Illumina Inc (ILMN) 2023 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Second Quarter 2023 Illumina Earnings Conference Call. (Operator Instructions). Please be advised that today's conference is being recorded. I would now like to hand the conference over to Salli Schwartz, Vice President of Investor Relations.

女士們、先生們，美好的一天，歡迎參加 Illumina 2023 年第二季度收益電話會議。 （操作員說明）。請注意，今天的會議正在錄製中。現在我想將會議交給投資者關係副總裁薩利·施瓦茨 (Salli Schwartz)。

Hello, everyone, and welcome to our earnings call for the second quarter of 2023. During the call today, we will review the financial results released after the close of the market and offer commentary on our commercial activity, after which we will host a question-and-answer session. If you have not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.

大家好，歡迎參加我們的 2023 年第二季度財報電話會議。在今天的電話會議中，我們將回顧收盤後發布的財務業績，並對我們的商業活動進行評論，之後我們將主持一個問題問答環節。如果您還沒有機會查看收益發布，可以在我們網站 Illumina.com 的投資者關係部分找到它。

Participating for Illumina today will be Charles Dadswell, Interim Chief Executive Officer and General Counsel; and Joydeep Goswami, Chief Financial Officer and Chief Strategy and Corporate Development Officer. Chuck will provide an update on the state of Illumina's business, and Joydeep will review our financial results, which include GRAIL.

臨時首席執行官兼總法律顧問 Charles Dadswell 出席今天的 Illumina 會議；首席財務官兼首席戰略和企業發展官 Joydeep Goswami。 Chuck 將提供有關 Illumina 業務狀況的最新信息，Joydeep 將審查我們的財務業績，其中包括 GRAIL。

As a reminder, GRAIL must be held and operated separately and independently from Illumina pursuant to the interim measures ordered by the European Commission, which prohibited our acquisition of GRAIL under the EU merger regulation. This call is being recorded, and the audio portion will be archived in the Investors section of our website.

需要提醒的是，根據歐盟委員會頒布的臨時措施，GRAIL 必須與 Illumina 分開持有和運營，該臨時措施禁止我們根據歐盟合併法規收購 GRAIL。本次通話正在錄音，音頻部分將存檔在我們網站的投資者部分。

It is our intent that all forward-looking statements regarding our financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current available information, and Illumina assumes no obligation to update these statements. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent Forms 10-Q and 10-K.

我們希望在今天的電話會議中做出的有關我們財務業績和商業活動的所有前瞻性陳述都將受到《1995 年私人證券訴訟改革法案》的保護。前瞻性陳述存在風險和不確定性。實際事件或結果可能與預測或討論的事件或結果存在重大差異。所有前瞻性陳述均基於當前可用信息，Illumina 不承擔更新這些陳述的義務。為了更好地了解可能導致實際結果出現差異的風險和不確定性，我們建議您參閱 Illumina 向美國證券交易委員會提交的文件，包括 Illumina 最新的表格 10-Q 和 10-K。

With that, I will now turn the call over to Chuck.

這樣，我現在將把電話轉給查克。

Thank you, Salli. Good afternoon, everyone, and thank you for joining today's call. As you know, I assumed the role of Illumina's interim CEO 2 months ago. Our search for a CEO is underway, and we look forward to updating you soon. Our Board is pleased with the outstanding candidates they're seeing. Before going to our second quarter results, I wanted to take a moment to acknowledge and thank our former CEO, Francis deSouza, and our former Chairman of the Board, John Thompson, for their thoughtfulness and commitment while at Illumina. I would also like to welcome our new Board members, Stephen MacMillan, our new Chairman of the Board; as well as Andrew Teno and Scott Ullem. I also want to acknowledge changes in our Executive Leadership team, including the departures of our Chief Technology Officer, Alex Aravanis, and our Chief Medical Officer, Phil Febbo. I speak for the whole company in wishing both of them every success for the future.

謝謝你，莎莉。大家下午好，感謝您參加今天的電話會議。如您所知，我在兩個月前擔任了 Illumina 的臨時首席執行官。我們正在尋找首席執行官，我們期待盡快向您通報最新情況。我們的董事會對他們看到的優秀候選人感到滿意。在公佈第二季度業績之前，我想花點時間感謝我們的前首席執行官 Francis deSouza 和前董事會主席 John Thompson 在 Illumina 期間的深思熟慮和奉獻精神。我還要歡迎我們的新董事會成員、新任董事會主席斯蒂芬·麥克米倫 (Stephen MacMillan)；以及安德魯·特諾和斯科特·烏勒姆。我還要感謝我們執行領導團隊的變化，包括我們的首席技術官 Alex Aravanis 和我們的首席醫療官 Phil Febbo 的離職。我代表整個公司祝愿他們未來一切順利。

We're also pleased to announce the Steve Barnard, a 25-year Illumina employee and distinguished scientist in our field, will drive Illumina's legacy of innovation forward as our next Chief Technology Officer. We'll be conducting a search for our next Chief Medical Officer.

我們還很高興地宣布，在Illumina 工作了25 年的史蒂夫·巴納德(Steve Barnard) 將擔任我們的下一任首席技術官，他是我們領域的傑出科學家，將推動Illumina 的創新傳統向前發展。我們將尋找下一任首席醫療官。

Turning to second quarter results. In Q2, Illumina delivered revenue of approximately $1.18 billion and diluted non-GAAP EPS of $0.32, both ahead of guidance we provided in Q1. We shipped 109 NovaSeq X instruments in the quarter and have increased our expectations for our full year supply capacity to more than 390 instruments. However, as you saw from our earnings release, we are reducing our guidance and now expect core Illumina full year 2023 revenue to be approximately flat with 2022, primarily as a result of 3 factors.

轉向第二季度業績。第二季度，Illumina 實現了約 11.8 億美元的收入，攤薄後的非 GAAP 每股收益為 0.32 美元，均高於我們在第一季度提供的指引。我們在本季度發貨了 109 台 NovaSeq X 儀器，並將全年供應能力的預期提高到超過 390 台儀器。然而，正如您從我們的財報中看到的那樣，我們正在降低我們的指導，現在預計 Illumina 2023 年全年核心收入將與 2022 年大致持平，這主要是由於 3 個因素。

First, a larger-than-expected temporary decline in high throughput consumables as we transition more than expected customers to the NovaSeq X. Second, many of our customers are remaining more cautious in their purchasing behaviors. And finally, in China, there's a more protracted economic recovery and an increasingly challenged competitive landscape, in contrast to the Americas and Europe, where we're still expecting year-over-year growth in 2023. Joydeep will provide additional details on our revised guidance during his remarks.

首先，由於我們將超過預期的客戶轉向 NovaSeq X，高通量耗材暫時下降幅度超出預期。其次，我們的許多客戶在購買行為上仍然更加謹慎。最後，與美洲和歐洲相比，中國的經濟復甦更為持久，競爭格局也日益面臨挑戰，我們仍預計2023 年這些地區將實現同比增長。Joydeep 將提供有關我們修訂後的預測的更多詳細信息。他在講話中給予指導。

One area I'd like to touch on further is the rollout of NovaSeq X. This has been a more challenging process than we anticipated. NovaSeq X is the most sophisticated platform we have ever launched and includes the most comprehensive end-to-end software we have ever released. Also, the rollout of the X has occurred at an unprecedented magnitude and pace, and we have identified issues in the field that are typical in new product releases. To address these issues, we have taken actions, including a planned software update that was released in June after our first customer shipment in March. We have deployed Illumina technical teams worldwide to work with our customers to accelerate bringing their systems online.

我想進一步討論的一個領域是 NovaSeq X 的推出。這是一個比我們預期更具挑戰性的過程。 NovaSeq X 是我們推出的最複雜的平台，包括我們發布的最全面的端到端軟件。此外，X 的推出以前所未有的規模和速度進行，我們已經確定了該領域新產品發布中的典型問題。為了解決這些問題，我們已採取行動，包括計劃在 3 月份向客戶發貨後於 6 月份發布的軟件更新。我們在全球部署了 Illumina 技術團隊，與我們的客戶合作，加速他們的系統上線。

While the rollout of NovaSeq X will take longer than we originally expected, the continued strong interest and commitment of capital purchased NovaSeq X's remains encouraging. To date, 20% of customers who have purchased a NovaSeq X have ordered more than 1 instrument. This early demand from multiple instruments and the capacity they represent underscores our confidence that customers are planning to increase their sequencing activity. Customers have clear intentions to do more sequencing in the future. Our customers have commented that larger scale single cell and spatial analysis experiments have become more practical with NovaSeq X, and they are requesting funding for these applications.

雖然 NovaSeq X 的推出將比我們最初預期的時間更長，但對 NovaSeq X 的持續強烈興趣和資本購買的承諾仍然令人鼓舞。迄今為止，購買 NovaSeq X 的客戶中有 20% 訂購了超過 1 台儀器。來自多種儀器的早期需求及其所代表的能力強調了我們對客戶計劃增加測序活動的信心。客戶有明確的意圖在未來進行更多測序。我們的客戶評論說，使用 NovaSeq X 進行更大規模的單細胞和空間分析實驗變得更加實用，他們正在為這些應用申請資金。

Customers engaged in large population genomics initiatives have stated they plan to run additional multiomic programs for population-specific variants, which can be used to develop treatments for various demographics that will be more effective in those populations. And as some of you have heard, several of our largest customers are using the X to accelerate the move from targeted panels and exomes to whole genome sequencing. We expect these types of projects to scale and ramp in the near future, and we'll be closely engaged with our customers to support their needs. We continue to consciously and actively reduce our expense base and have accelerated actions with $100 million plus annual run rate expense reduction program we announced on our last earnings call.

參與大規模群體基因組學計劃的客戶表示，他們計劃針對特定人群的變異運行額外的多組學程序，這些程序可用於開發針對各種人口統計數據的治療方法，對這些人群更有效。正如你們中的一些人所聽說的，我們的幾個最大的客戶正在使用 X 來加速從目標面板和外顯子組到全基因組測序的轉變。我們預計這些類型的項目將在不久的將來擴大規模並逐步擴大，我們將與客戶密切合作以支持他們的需求。我們繼續有意識地、積極地減少我們的費用基礎，並加速採取行動，實施我們在上次財報電話會議上宣布的 1 億美元以上的年度運行費用削減計劃。

As you saw on our late June 8-K filing, we have reduced our global headcount and are downsizing our global real estate footprint. We're also optimizing our third-party vendor spend and have reduced travel-related and other costs. For 2023, these steps are helping mitigate the impact of lower full year revenue on our operating margin. Looking forward, these actions will continue to support our margins and create flexibility for further investment in high-growth areas.

正如您在 6 月末的 8-K 文件中看到的那樣，我們減少了全球員工人數，並縮小了全球房地產業務規模。我們還優化了第三方供應商支出，並減少了與旅行相關的成本和其他成本。對於 2023 年，這些措施將有助於減輕全年收入下降對我們營業利潤率的影響。展望未來，這些行動將繼續支撐我們的利潤，並為高增長領域的進一步投資創造靈活性。

Let me give you an update on a couple of our platforms. We saw continued global interest in the NovaSeq X Series in Q2, and we exited the quarter with more than 260 orders since launch. Our shipment of 109 NovaSeq X instruments in Q2 were above our expectation of 80 for the quarter and brought our total installed base to 176 instruments. We now expect to be able to ship more than 390 NovaSeq X instruments this year, up from the 330 we had previously expected for the year.

讓我向您介紹我們的幾個平台的最新情況。我們在第二季度看到全球對 NovaSeq X 系列的持續興趣，自推出以來我們在本季度結束時收到了超過 260 個訂單。我們第二季度的 109 台 NovaSeq X 儀器發貨量超出了我們對本季度 80 台的預期，使我們的總安裝基數達到 176 台儀器。我們現在預計今年能夠發貨超過 390 台 NovaSeq X 儀器，高於我們之前預計的 330 台。

In mid throughput, we shipped approximately 160 NextSeq 1000, NextSeq 2000 units in the second quarter, an increase of 8% year-over-year as customers expanded their current fleets or migrated from the MiSeq or NextSeq 550. More than 20% of NextSeq 1000, NextSeq 2000 units in Q2 were placed with new 2 Illumina customers.

在中期吞吐量中，我們在第二季度發貨了約160 個NextSeq 1000、NextSeq 2000 台，同比增長8%，因為客戶擴大了現有機隊或從MiSeq 或NextSeq 550 遷移。NextSeq 的出貨量超過20%第二季度的 1000 個、NextSeq 2000 個單元被放置給 2 個 Illumina 新客戶。

We continue to experience lengthened sales cycles. In some cases, as customers take time to raise funding or prioritize their investment dollars and in other cases, as they run longer procurement processes. Our win rate across the mid-throughput segment outside of China increased from the first quarter. We believe there is a long runway of differentiation for the 1000, 2000, notably with XLEAP-SBS chemistry coming available on these instruments next year.

我們繼續經歷著銷售週期延長的情況。在某些情況下，因為客戶需要時間來籌集資金或優先考慮他們的投資資金，而在其他情況下，因為他們運行更長的採購流程。我們在中國以外的中吞吐量領域的勝率比第一季度有所上升。我們相信 1000、2000 的差異化還有很長的路要走，特別是明年這些儀器將採用 XLEAP-SBS 化學技術。

Moving to our markets. In Q2, Clinical represented approximately 53% of our total sequencing consumables revenue. In Oncology, progress continued for next-generation sequencing-based testing reimbursement. Anthem, the second largest commercial payer in the U.S. and Blue Cross Blue Shield of Michigan, both added coverage for comprehensive genomic profiling for patients with advanced cancers, adding more than 30 million additional covered lives.

轉向我們的市場。第二季度，臨床收入約占我們測序耗材總收入的 53%。在腫瘤學領域，下一代測序檢測報銷繼續取得進展。美國第二大商業支付機構 Anthem 和密歇根州 Blue Cross Blue Shield 均增加了晚期癌症患者全面基因組分析的承保範圍，為超過 3000 萬人提供了額外的承保生命。

We also saw coverage continue to progress in Europe with Switzerland now reimbursing a large next-generation sequencing panels, including comprehensive genomic profiling. Illumina's market-leading TruSight Oncology assay, TSO 500, remains on track to exceed more than $100 million in 2023 revenue. Growth continues to be driven by greater utilization and broader adoption of our assay.

我們還看到歐洲的覆蓋範圍繼續擴大，瑞士現在正在償還大型下一代測序小組的費用，包括全面的基因組分析。 Illumina 市場領先的 TruSight Oncology 檢測 TSO 500 有望在 2023 年收入超過 1 億美元。我們的檢測方法的更高利用率和更廣泛採用繼續推動增長。

In Q2, we also completed our TSO comprehensive submission for IVD registration in the United States. Also in oncology, GRAIL continues to achieve solid progress in the adoption of its Galleri multi-cancer early detection test. In Q2, GRAIL achieved its 100,000th commercial Galleri test milestone, and the test has now been prescribed by more than 7,500 providers in the U.S. and ordered in more than 80 health systems. As an update on the NHS Galleri study, in Q2, GRAIL completed second year follow-up visits in which 130,000 participants returned, giving the trial a retention rate of 91.3%. Invitations for the third and final year visits have begun, and the first appointments for those visits are expected this fall.

第二季度，我們還完成了美國 IVD 註冊的 TSO 綜合提交。同樣在腫瘤學領域，GRAIL 在採用 Galleri 多種癌症早期檢測測試方面繼續取得紮實進展。第二季度，GRAIL 實現了第 100,000 次商業 Galleri 測試里程碑，該測試現已獲得美國 7,500 多家提供商的處方，並在 80 多個衛生系統中訂購。作為 NHS Galleri 研究的更新，GRAIL 在第二季度完成了第二年的隨訪，其中 130,000 名參與者返回，試驗保留率為 91.3%。第三年也是最後一年的訪問邀請已經開始，預計這些訪問的首次預約將於今年秋天進行。

Evidence for Galleri continues to grow. At the most recent annual meeting held by the American Society of Clinical Oncology, GRAIL announced results from the University of Oxford sponsored SIMPLIFY study, reporting high specificity, positive predictive value and accuracy of the cancer signal detected and the cancer signal of origin prediction as well as demonstrating the feasibility of using an MCED test to assist clinicians with decisions regarding referrals from primary care physicians. GRAIL is also making progress on its unique multi-cancer minimal residual disease test.

關於加萊里的證據仍在不斷增加。在最近舉行的美國臨床腫瘤學會年會上，GRAIL公佈了牛津大學贊助的SIMPLIFY研究結果，報告了檢測到的癌症信號和癌症起源預測的高特異性、陽性預測值和準確性證明使用MCED 測試來協助臨床醫生做出有關初級保健醫生轉診的決定的可行性。 GRAIL 在其獨特的多癌症微小殘留病測試方面也取得了進展。

At the American Association for Cancer Research Annual Meeting, GRAIL and AstraZeneca presented new data that supports the use of GRAIL's methylation platform to identify residual cancer in post-treatment settings. GRAIL's technology had a cancer detection rate of 92% in patients with relapsed or refractory disease across 6 hematological malignancies. These findings demonstrate GRAIL's blood-based methylation approach, offers additional options to clinicians as they evaluate patients in efforts to achieve remission and improve survival.

在美國癌症研究協會年會上，GRAIL 和阿斯利康展示了新數據，支持使用 GRAIL 的甲基化平台來識別治療後環境中的殘留癌症。 GRAIL 的技術對 6 种血液惡性腫瘤的複發或難治性疾病患者的癌症檢出率為 92%。這些發現表明，GRAIL 基於血液的甲基化方法為臨床醫生評估患者以實現緩解和提高生存率時提供了額外的選擇。

Returning to core Illumina, in reproductive health in the U.S., 5 state Medicaid programs in Louisiana, Michigan, North Carolina, Rhode Island and Tennessee, updated their policies and are now covering noninvasive prenatal testing for all pregnancies. In Europe, NIPT is now available for all pregnancies in the Netherlands and has been approved for broader coverage in Italy.

回到Illumina 的核心，在美國的生殖健康領域，路易斯安那州、密歇根州、北卡羅來納州、羅德島州和田納西州的5 個州醫療補助計劃更新了政策，目前涵蓋所有懷孕的無創產前檢測。在歐洲，NIPT 現已適用於荷蘭的所有妊娠，並已被批准在意大利擴大覆蓋範圍。

Turning to our research and applied markets. As we announced in mid-July, the alliance for Genomic Discovery launched by Illumina and Nashville Biosciences in 2022, now includes 5 founding members, AbbVie, Amgen, AstraZeneca, Bayer and Merck, and now represents novel industry-led collaboration to accelerate the development of therapeutics through the large-scale genomics. Members will co-fund whole genome sequencing of 250,000 samples and all have access to the resulting data for use in drug discovery and therapeutic development. The first phase in the alliance was announced in January and involved whole genome sequencing for 35,000 samples primarily made of DNA from individuals of African ancestry.

轉向我們的研究和應用市場。正如我們在7 月中旬宣布的那樣，Illumina 和Nashville Biosciences 於2022 年發起的基因組發現聯盟目前包括5 個創始成員：艾伯維(AbbVie)、安進(Amgen)、阿斯利康(AstraZeneca)、拜耳(Bayer) 和默克(Merck)，現在代表著行業主導的新型合作，以加速開發通過大規模基因組學進行治療。成員將共同資助 250,000 個樣本的全基因組測序，所有人都可以獲得所得數據用於藥物發現和治療開發。該聯盟的第一階段於一月份宣布，涉及對 35,000 個樣本進行全基因組測序，這些樣本主要由非洲血統個體的 DNA 組成。

Before we move to Joydeep and then go to Q&A, I wanted to point out a couple of additional innovations we recently announced. In June, our PrimateAI-3D, an AI algorithm that predicts disease-causing genetic mutations in patients with unprecedented accuracy was featured in articles as the cover story of Science magazine's June issue. And in July, we announced the latest version of our DRAGEN software for analysis of next-generation sequencing data. DRAGEN 4.2 expands award-winning accuracy, combined with the flexibility and scalability to enable efficient workflows and extract meaningful insights from genomic data. It improves identification of the causes of genetic disease and further aids in both drug discovery and population genomic analysis.

在我們轉向 Joydeep 並進行問答之前，我想指出我們最近宣布的一些其他創新。 6 月，我們的 PrimateAI-3D 是一種人工智能算法，能夠以前所未有的準確度預測患者致病基因突變，並作為《科學》雜誌 6 月號的封面故事出現在文章中。 7 月，我們發布了最新版本的 DRAGEN 軟件，用於分析下一代測序數據。 DRAGEN 4.2 擴展了屢獲殊榮的準確性，並結合靈活性和可擴展性，以實現高效的工作流程並從基因組數據中提取有意義的見解。它改進了遺傳疾病原因的識別，並進一步幫助藥物發現和群體基因組分析。

While the year hasn't progressed the way we expected, we remain focused on execution, innovation and supporting our customers as they ramp their NovaSeq X instruments. We continue to progress on margin improvement while prioritizing investment in proprietary technology that generates differentiated products that are valued by our customers and will drive growth. These include upcoming product launches, including the highly anticipated 25B flow cell for NovaSeq X, the Illumina Complete Long Read enrichment assay and XLEAP-SBS chemistry on NextSeq 1000, 2000 as well as future offerings for emerging markets like proteomics, multi-omics and spatial, where we see opportunities to address researchers' needs, deliver complete, integrated and accessible workflows.

儘管這一年的進展沒有達到我們的預期，但我們仍然專注於執行、創新，並在客戶升級 NovaSeq X 儀器時為他們提供支持。我們繼續在利潤率改善方面取得進展，同時優先投資專有技術，以產生受到客戶重視並推動增長的差異化產品。其中包括即將推出的產品，包括備受期待的NovaSeq X 25B 流動槽、NextSeq 1000、2000 上的Illumina Complete Long Read 富集分析和XLEAP-SBS 化學，以及面向蛋白質組學、多組學和空間組學等新興市場的未來產品，我們看到了滿足研究人員需求、提供完整、集成和可訪問的工作流程的機會。

In short, Illumina will continue to deliver impactful outcomes. We empower researchers and clinicians with the data and technology they need to make life-changing discoveries and decisions for patients. Our employees take pride in being part of Illumina's mission to improve human health by unlocking the power of the genome. And we are the global engine of genomics innovation, positioning us today and in the future to maximize shareholder value. With that, I'd like to turn the call over to Joydeep to discuss additional details on our results and outlook. And from there, we'll go to Q&A. Joydeep?

簡而言之，Illumina 將繼續提供有影響力的成果。我們為研究人員和臨床醫生提供所需的數據和技術，幫助他們做出改變患者生活的發現和決策。我們的員工為成為 Illumina 使命的一部分而感到自豪，該使命是通過釋放基因組的力量來改善人類健康。我們是基因組學創新的全球引擎，使我們在今天和未來都能實現股東價值最大化。至此，我想將電話轉給 Joydeep，討論有關我們結果和前景的更多細節。從那裡，我們將進入問答環節。喬伊迪普？

Thank you, Chuck. I'll start by reviewing our consolidated financial results, followed by segment results for core Illumina and GRAIL and then conclude with my remarks on our current outlook for 2023. I will be discussing non-GAAP results, which includes stock-based compensation. I encourage you to view the GAAP reconciliation of these non-GAAP measures, which can be found in today's release and in the supplementary data available on our website. As Chuck noted, in the second quarter, consolidated revenue was $1.18 billion, up 8% for the first quarter of 2023 and exceeding the high end of our guidance range on stronger-than-expected shipments of NovaSeq X. Consolidated revenue was up 1% year-over-year and up 3% on a constant currency basis. Non-GAAP net income was $50 million or $0.32 per diluted share, which includes dilution from GRAIL's non-GAAP operating loss of $164 million for the quarter.

謝謝你，查克。我將首先回顧我們的綜合財務業績，然後是核心 Illumina 和 GRAIL 的部門業績，最後以我對 2023 年當前前景的評論作為結束。我將討論非 GAAP 業績，其中包括基於股票的薪酬。我鼓勵您查看這些非 GAAP 指標的 GAAP 調節表，您可以在今天的新聞稿和我們網站上提供的補充數據中找到這些調節表。正如 Chuck 指出的那樣，第二季度綜合收入為 11.8 億美元，比 2023 年第一季度增長 8%，超出了我們對 NovaSeq X 出貨量強於預期的指導範圍的上限。綜合收入增長了 1%按固定匯率計算，同比增長3%。非 GAAP 淨利潤為 5000 萬美元，或攤薄後每股收益 0.32 美元，其中包括 GRAIL 本季度 1.64 億美元的非 GAAP 運營虧損帶來的攤薄。

Non-GAAP EPS exceeded our expectations, primarily due to continued execution of expense reduction initiatives, gross margin favorability and our higher revenue for the quarter. Our non-GAAP tax rate was 39.3% for the quarter, which increased from 25.8% in Q2 2022, with both quarters reflecting the impact of R&D capitalization requirements. Although the non-GAAP tax expense impact of R&D capitalization requirements in dollars was the same in both periods, the impact to our effective tax rate in Q2 2023 was more significant due to our lower earnings. Our non-GAAP weighted average diluted share count for the quarter was approximately 158 million.

非公認會計準則每股收益超出了我們的預期，主要是由於費用削減計劃的持續執行、毛利率的有利以及我們本季度更高的收入。本季度我們的非 GAAP 稅率為 39.3%，高於 2022 年第二季度的 25.8%，這兩個季度都反映了研發資本化要求的影響。儘管以美元計算的研發資本要求對非公認會計準則稅收費用的影響在兩個時期是相同的，但由於我們的收益較低，對 2023 年第二季度的有效稅率的影響更為顯著。本季度我們的非 GAAP 加權平均稀釋股票數量約為 1.58 億股。

Moving to segment results. Core Illumina revenue of $1.16 billion was approximately flat year-over-year or up 2% on a constant currency basis, which included an anticipated reduction from COVID surveillance of approximately 180 basis points. COVID surveillance contributed approximately $6 million in total revenue in Q2 2023 compared to $27 million in Q2 2022. Core Illumina sequencing consumables revenue of $739 million was down 1% year-over-year. Mid-teens growth in clinical, led by continued momentum in oncology and genetic disease testing was offset by anticipated headwinds impacting research, including an approximately 260 basis point reduction from COVID surveillance as well as sanctions in Russia, the impact of NovaSeq 6000 consumables as customers start to transition to, but before they are fully ramped up on NovaSeq X, and constrained funding impacting many of our customers globally.

轉向細分結果。 Core Illumina 的收入為 11.6 億美元，與去年同期基本持平，按固定匯率計算增長 2%，其中包括預計因新冠病毒監測而減少約 180 個基點。 COVID 監測在 2023 年第二季度貢獻了約 600 萬美元的總收入，而 2022 年第二季度為 2700 萬美元。Core Illumina 測序耗材收入為 7.39 億美元，同比下降 1%。在腫瘤學和遺傳病檢測的持續增長勢頭的帶動下，臨床試驗的增長被預期的影響研究的不利因素所抵消，包括新冠肺炎監測減少約260 個基點以及俄羅斯的製裁、NovaSeq 6000 耗材作為客戶的影響開始過渡，但在 NovaSeq X 上全面啟動之前，資金有限影響了我們全球的許多客戶。

Total sequencing activity on our connected high and mid-throughput instruments grew 3% from Q1 2023 and 9% year-over-year. Research and Applied was flat from Q1 and declined 1% year-over-year. Clinical sequencing attribute growth remained strong, up 6% from Q1 and 23% year-over-year. As a reminder, we believe this data is a useful reference that shows the general activity trends across our installed base and is directionally correlated with revenue over time. We have been providing this information on the basis of number of sequencing runs, but in the future, we will disclose these metrics in terms of gigabases sequenced to better reflect activity trends given the significant increase in output per run enabled by NovaSeq X and NextSeq 1000, NextSeq 2000.

我們的互聯高通量和中通量儀器上的總測序活動較 2023 年第一季度增長了 3%，同比增長了 9%。研究和應用業務與第一季度持平，同比下降 1%。臨床測序屬性增長依然強勁，較第一季度增長 6%，同比增長 23%。提醒一下，我們相信這些數據是一個有用的參考，它顯示了我們安裝基礎上的總體活動趨勢，並且與一段時間內的收入呈方向相關。我們一直根據測序運行次數提供此信息，但考慮到NovaSeq X 和NextSeq 1000 使每次運行的產出顯著增加，未來我們將按照測序的千兆鹼基數來披露這些指標，以更好地反映活動趨勢，NextSeq 2000。

Sequencing instruments revenue for core alumina of $193 million grew 2% year-over-year. Stronger-than-expected shipments of NovaSeq X more than offset the anticipated decline in NovaSeq 6000 shipments globally and NextSeq 550 placements in China as well as a decrease in MiSeq shipments as customers transition to NextSeq 1000, NextSeq 2000. We continue to see strong demand for NextSeq 1000, NextSeq 2000, from new 2 Illumina customers with shipments growing 8% year-over-year. Core Illumina sequencing service and other revenue of $134 million was up 7% year-over-year, driven primarily by higher instrument service contract revenue on a growing installed base, partially offset by lower contributions from codevelopment partnerships.

核心氧化鋁測序儀器收入為 1.93 億美元，同比增長 2%。 NovaSeq X 的出貨量強於預期，足以抵消NovaSeq 6000 全球出貨量和NextSeq 550 在中國的預期下降，以及隨著客戶轉向NextSeq 1000、NextSeq 2000 而MiSeq 出貨量的下降。我們繼續看到強勁的需求NextSeq 1000、NextSeq 2000，來自 2 個 Illumina 新客戶，出貨量同比增長 8%。核心 Illumina 測序服務和其他收入為 1.34 億美元，同比增長 7%，這主要是由於安裝基礎不斷增長而儀器服務合同收入增加，部分被共同開發合作夥伴貢獻的減少所抵消。

Moving to regional results for core Illumina. All regions continued to be impacted by tighter funding and budget pressures that are affecting customers' project planning and purchasing behaviors. Additionally, all regions faced the impact of high throughput customers transitioning to NovaSeq X, where we saw customers reduce NovaSeq 6000 consumables purchases before they fully ramped up activity on NovaSeq X. As Chuck mentioned, as though anticipated, this effect was magnified by the larger-than-expected number of NovaSeq X deliveries and a slower-than-expected ramp of these instruments coming online in Q2. The continued global demand for NovaSeq X instruments and our stronger-than-anticipated supply in Q2 helped offset these factors. Strong momentum in clinical also continued across the Americas, Europe and EMEA with consumable shipments to clinical customers in these regions growing just under 20% year-over-year. Europe also benefited from the NIPT reimbursement decision in Germany last year and a national NIPT program in the Netherlands.

轉向核心 Illumina 的區域結果。所有地區都繼續受到資金和預算緊張的影響，從而影響客戶的項目規劃和購買行為。此外，所有地區都面臨著高通量客戶過渡到NovaSeq X 的影響，我們看到客戶在全面增加NovaSeq X 上的活動之前減少了NovaSeq 6000 耗材的採購。正如Chuck 提到的，正如預期的那樣，這種影響被更大的產品放大了。 - NovaSeq X 的交付數量超出預期，並且這些儀器在第二季度上線的速度比預期慢。全球對 NovaSeq X 儀器的持續需求以及我們第二季度強於預期的供應有助於抵消這些因素。美洲、歐洲和歐洲、中東和非洲地區臨床領域也繼續保持強勁勢頭，這些地區臨床客戶的耗材出貨量同比增長略低於 20%。歐洲還受益於德國去年的 NIPT 報銷決定和荷蘭的國家 NIPT 計劃。

Americas revenue of $623 million was down 2% year-over-year and Europe revenue of $303 million grew 11% year-over-year or 14% on a constant currency basis. EMEA revenue of $118 million declined 10% year-over-year or 6% on a constant currency basis, which included a 14 percentage point impact from sanctions affecting our ability to conduct business in Russia. As a reminder, these regions also continued to be impacted by the slowdown in COVID surveillance year-over-year. Greater China revenue of $115 million represented a 3% decrease year-over-year or a 1% increase on a constant currency basis. In addition to persistent macroeconomic and geopolitical challenges that are impacting this region, revenue was negatively impacted by the local competitive landscape, particularly in mid-throughput.

美洲收入為 6.23 億美元，同比下降 2%，歐洲收入為 3.03 億美元，同比增長 11%，按固定匯率計算增長 14%。歐洲、中東和非洲地區的收入為 1.18 億美元，同比下降 10%，按固定匯率計算下降 6%，其中包括影響我們在俄羅斯開展業務能力的製裁造成的 14 個百分點的影響。需要提醒的是，這些地區還繼續受到新冠肺炎監測逐年放緩的影響。大中華區收入為 1.15 億美元，同比下降 3%，按固定匯率計算增長 1%。除了影響該地區的持續宏觀經濟和地緣政治挑戰外，收入還受到當地競爭格局的負面影響，特別是在中吞吐量方面。

Moving to the rest of Core Illumina P&L. Core Illumina non-GAAP gross margin of 67% decreased 280 basis points year-over-year, primarily driven by lower instrument margins due to the NovaSeq X launch, which is typical in a launch year, as well as less fixed cost leverage on lower manufacturing volumes and higher field services and installation costs. Core Illumina non-GAAP operating expenses of $531 million were up $12 million year-over-year, primarily due to the full year impact of our headcount growth in 2022.

轉到 Core Illumina 損益表的其餘部分。 Core Illumina 非 GAAP 毛利率為 67%，同比下降 280 個基點，主要是由於 NovaSeq X 的推出（這在推出年份很常見）導致儀器利潤率下降，以及較低的固定成本槓桿減少。製造量和更高的現場服務和安裝成本。 Core Illumina 非 GAAP 運營費用為 5.31 億美元，同比增加 1200 萬美元，主要是由於 2022 年員工人數增長對全年的影響。

Non-GAAP operating expenses were lower than expected due to the acceleration of our expense reduction initiative and lower performance-based compensation. As a result of the above, Core Illumina non-GAAP operating margin was 21.2% in Q2 2023 compared to 24.9% in Q2 2022.

由於我們的費用削減計劃的加速和基於績效的薪酬的降低，非公認會計準則運營費用低於預期。綜上所述，Core Illumina 2023 年第二季度的非 GAAP 營業利潤率為 21.2%，而 2022 年第二季度為 24.9%。

Transitioning to the financial results for GRAIL. GRAIL revenue of $22 million for the quarter grew 83% year-over-year driven primarily by accelerating adoption of Galleri. GRAIL non-GAAP operating expenses totaled $174 million and increased $18 million year-over-year, driven primarily by continued investments to scale GRAIL's commercial organization.

轉向 GRAIL 的財務業績。 GRAIL 本季度收入為 2200 萬美元，同比增長 83%，這主要得益於 Galleri 的加速採用。 GRAIL 非公認會計準則運營費用總計 1.74 億美元，同比增加 1800 萬美元，這主要是由於持續投資以擴大 GRAIL 商業組織的規模。

Moving to consolidated cash flow and balance sheet items. Cash flow provided by operations was $105 million. Second quarter 2023 capital expenditures were $47 million, and free cash flow was $58 million. We did not repurchase any common stock in the quarter. We ended the quarter with approximately $1.6 billion in cash, cash equivalents and short-term investments. As you're aware, we have $750 million in convertible debt that matures this month. Additionally, on July 12, 2023, the European Commission imposed a EUR 432 million fine on Illumina due to the completion of the GRAIL acquisition during the pendency of the European Commission's review. We plan to issue a guarantee and defer the payment of the fine pending the outcome of the appeal of the EU General Court's ruling that the European Commission has the jurisdiction to review the GRAIL acquisition.

轉向合併現金流量和資產負債表項目。運營提供的現金流為 1.05 億美元。 2023 年第二季度資本支出為 4700 萬美元，自由現金流為 5800 萬美元。本季度我們沒有回購任何普通股。截至本季度末，我們擁有約 16 億美元的現金、現金等價物和短期投資。如您所知，我們有 7.5 億美元的可轉換債務將於本月到期。此外，2023年7月12日，由於Illumina在歐盟委員會審查期間完成對GRAIL的收購，歐盟委員會對Illumina處以4.32億歐元的罰款。我們計劃提供擔保並推遲支付罰款，等待歐盟普通法院裁定歐盟委員會擁有審查 GRAIL 收購管轄權的上訴結果。

Moving now to 2023 guidance. We now expect full year 2023 consolidated revenue to grow approximately 1%, including core Illumina revenue that's approximately flat with 2022. As a reminder, these ranges include anticipated reductions from COVID surveillance of approximately 200 basis points, the impact on our business from sanctions on Russia of approximately 100 basis points as well as a year-over-year negative impact from foreign exchange rates. GRAIL revenue is still expected to be in the range of $90 million to $110 million for 2023. For fiscal 2023, we now expect core Illumina sequencing instrument revenue growth of approximately 3% year-over-year, reflecting our higher NovaSeq X shipment expectation, partially offset by capital and cash flow constraints that have continued to impact our customers' purchasing behaviors, including in China, which also had an increased impact from local competition primarily affecting mid-throughput.

現在轉向 2023 年指導。我們現在預計2023 年全年合併收入將增長約1%，其中包括Illumina 的核心收入，與2022 年大致持平。提醒一下，這些範圍包括預計因新冠肺炎監測而減少約200 個基點、制裁對我們業務的影響。俄羅斯的匯率下降了約 100 個基點，並且受到外匯匯率的同比負面影響。預計 2023 年 GRAIL 收入仍將在 9000 萬美元至 1.1 億美元之間。對於 2023 財年，我們現在預計核心 Illumina 測序儀器收入同比增長約 3%，反映了我們更高的 NovaSeq X 出貨量預期，資本和現金流限制部分抵消了這些限制，這些限制繼續影響我們客戶的購買行為，包括在中國，當地競爭主要影響中吞吐量，這也增加了影響。

We also expect core Illumina's sequencing consumables revenue to decline approximately 3% year-over-year, driven predominantly by: one, a more persistent impact of funding issues and cautious purchasing behaviors causing project delays; two, a more meaningful decrease in NovaSeq 6000 sequencing ahead of planned transitions to NovaSeq X in part due to our higher shipment expectations for NovaSeq X; three, a delay in the expected ramp of consumables on NovaSeq X; and four, a slower-than-anticipated second half recovery in China.

我們還預計 Illumina 核心測序耗材收入將同比下降約 3%，主要原因是：一是資金問題和謹慎採購行為的持續影響導致項目延誤；第二，在計劃過渡到 NovaSeq X 之前，NovaSeq 6000 測序量出現更有意義的減少，部分原因是我們對 NovaSeq X 的出貨量預期更高；三、NovaSeq X 耗材的預期增量延遲；第四，中國下半年復蘇慢於預期。

We now expect annual pull-through for NovaSeq 6000 of approximately $800,000 to $900,000 per instrument in 2023; NextSeq 550 pull-through in the range of $80,000 to $130,000; and pull-through for MiSeq in the range of $30,000 to $40,000. We still expect pull-through for NextSeq 1000/2000 to be within the historical guidance range of $120,000 to $170,000, and MiniSeq pull-through is still expected to be within the historical range of $20,000 to $25,000 per instrument.

我們現在預計到 2023 年，每台 NovaSeq 6000 的年度拉動約為 800,000 美元至 900,000 美元； NextSeq 550 的拉動金額為 80,000 美元至 130,000 美元； MiSeq 的拉動費用在 30,000 美元到 40,000 美元之間。我們仍然預計 NextSeq 1000/2000 的拉動費用將在 120,000 美元至 170,000 美元的歷史指導範圍內，而 MiniSeq 的拉動費用仍預計將在每台儀器 20,000 美元至 25,000 美元的歷史指導範圍內。

With regard to core Illumina sequencing revenue, we expect it to be approximately flat year-over-year. This includes intercompany sales to GRAIL of approximately $30 million, which are eliminated in consolidation. We now expect consolidated non-GAAP operating margin of approximately 5% and core Illumina non-GAAP operating margin of approximately 20%. Our revised operating margins reflect our lower revenue expectations for the year and lower gross margins given lower manufacturing volumes and fixed cost leverage.

就 Illumina 的核心測序收入而言，我們預計其同比大致持平。其中包括公司間向 GRAIL 銷售的約 3000 萬美元，該金額在合併中被抵消。我們現在預計綜合非 GAAP 運營利潤率約為 5%，核心 Illumina 的非 GAAP 運營利潤率約為 20%。我們修訂後的營業利潤率反映了我們今年較低的收入預期以及由於製造量和固定成本槓桿較低而導致的毛利率較低。

These impacts are partially offset by acceleration of our $100 million-plus annual run rate expense reduction initiatives, spanning headcount, real estate and other costs that Chuck mentioned earlier. We now expect our non-GAAP tax rate to be approximately 41% for 2023, which continues to include an approximately $75 million tax expense impact from R&D capitalization requirements. Although the non-GAAP tax expense impact of R&D capitalization requirements in dollars hasn't changed, the impact to our effective tax rate in 2023 has increased as a result of our lower earnings.

這些影響被我們加速實施每年超過 1 億美元的費用削減計劃所部分抵消，這些費用涵蓋員工人數、房地產和查克之前提到的其他成本。我們現在預計 2023 年的非 GAAP 稅率約為 41%，其中繼續包括研發資本化要求帶來的約 7500 萬美元的稅收費用影響。儘管以美元計算的研發資本要求對非公認會計準則稅收費用的影響沒有變化，但由於我們的收益較低，對 2023 年有效稅率的影響有所增加。

Lastly, we now expect non-GAAP earnings per diluted share in the range of $0.75 to $0.90 for 2023, which continues to include dilution from GRAIL's non-GAAP operating loss of approximately $670 million. Before we go to Q&A, I'd like to cover guidance for the third quarter of 2023. We expect consolidated Q3 2023 revenue to grow approximately 2% year-over-year to approximately $1.14 billion. This reflects a sequential decrease of approximately 320 basis points from Q2 2023, primarily driven by a sequential decrease in NovaSeq 6000 consumables as customers continue to transition to NovaSeq X. For the third quarter, we expect non-GAAP diluted EPS of approximately $0.10 to $0.15, reflecting consolidated non-GAAP operating margin of approximately 4% and core Illumina non-GAAP operating margin of approximately 19%.

最後，我們目前預計 2023 年非 GAAP 每股攤薄收益將在 0.75 美元至 0.90 美元之間，其中繼續包括 GRAIL 約 6.7 億美元的非 GAAP 運營虧損帶來的攤薄。在進行問答之前，我想先介紹一下 2023 年第三季度的指引。我們預計 2023 年第三季度的合併收入將同比增長約 2%，達到約 11.4 億美元。這反映出較2023 年第二季度環比下降約320 個基點，主要是由於隨著客戶繼續過渡到NovaSeq X，NovaSeq 6000 耗材環比下降。我們預計第三季度非GAAP 攤薄後每股收益約為0.10 美元至0.15 美元，反映出約 4% 的綜合非 GAAP 運營利潤率和約 19% 的 Illumina 核心非 GAAP 運營利潤率。

I will now invite the operator to open the line for Q&A. Thank you.

我現在請接線員打開電話進行問答。謝謝。

(Operator Instructions). And our first question will come from Puneet Souda with Leerink Partners.

（操作員說明）。我們的第一個問題將來自 Leerink Partners 的 Puneet Souda。

The NovaSeq field challenges that you're having in the market, can you talk a little bit about that? How soon can you fix these challenges? What is getting this recovery? And what does that mean for the installs in the third and fourth quarter and maybe even 2024? I mean my question there is does the market sort of freezes to see if these challenges are resolved before taking on more instruments?

NovaSeq 領域在市場上面臨的挑戰，您能談談嗎？您多久可以解決這些挑戰？是什麼讓這種複蘇？這對於第三季度和第四季度甚至 2024 年的安裝量意味著什麼？我的意思是，我的問題是，在採用更多工具之前，市場是否會凍結，看看這些挑戰是否得到解決？

And then on the elasticity of demand, clearly, there is significantly more higher dip this year. There is a decline in sequencing consumables versus when we look at the last product launch of NovaSeq 6000. You mentioned a number of factors, but just trying to understand how much of that is due to the challenges that you are facing in the field. And look, the NovaSeq is definitely selling despite these challenges. So maybe could you just update us on the CEO search as well?

然後就需求彈性而言，顯然今年的跌幅明顯更大。與我們上次推出的 NovaSeq 6000 產品相比，測序耗材有所下降。您提到了許多因素，但只是想了解其中有多少是由於您在該領域面臨的挑戰造成的。瞧，儘管面臨這些挑戰，NovaSeq 確實很暢銷。那麼您能否也向我們介紹一下首席執行官搜尋的最新情況？

Yes, Puneet for the question. I've been listening to you guys now for a long time, and it's nice to be able to be part of the conversation. So as far as the NovaSeq X, right? Some of the positives of the launch of an instrument of this magnitude are -- that we placed more instruments than we thought. It also has some of the biggest software placements that we've ever seen. And it's revolutionary from the ground up. What we did is we underestimated the amount of time it would ultimately take to bring these instruments online, but our technical teams are working with our customers to bring them up to speed as quickly as we can.

是的，普尼特來回答這個問題。我已經聽你們講話很長時間了，很高興能夠參與對話。那麼至於 NovaSeq X，對吧？推出如此規模的儀器的一些積極因素是——我們放置的儀器比我們想像的要多。它還擁有一些我們見過的最大的軟件佈局。它從頭到尾都是革命性的。我們所做的是低估了最終使這些儀器上線所需的時間，但我們的技術團隊正在與客戶合作，盡快讓他們加快速度。

Yes. And Puneet, maybe I'll jump in, nice to hear from me again. So a couple of things, right? First, as you know, with any of these launches of this magnitude, as you go out into the field and as you start installing it, you find some bugs that you have to go resolve. So what we have seen in Q2 was nothing out of the ordinary. We have actually already have fixes for the issues that we have seen and are in the process of deploying these fixes to our customers. So it has meant a little bit of delay in our original expectations of when these instruments would be fully up to speed, but it doesn't -- hasn't changed any of our or our customer expectations on NovaSeq X. And I will also really urge you to consider that it's not all customers that see this, right? So some customers are fully ramped up, while others as they have experienced these issues, we are -- really have all hands on deck to go fix these issues in the field.

是的。普尼特，也許我會插話，很高興再次收到我的來信。有幾件事，對吧？首先，如您所知，對於任何此類規模的發布，當您進入現場並開始安裝它時，您會發現一些必須解決的錯誤。因此，我們在第二季度看到的情況並沒有什麼異常。實際上，我們已經針對我們所看到的問題進行了修復，並且正在將這些修復部署給我們的客戶。因此，這意味著我們最初對這些儀器何時完全達到速度的期望有一點延遲，但這並沒有改變我們或我們的客戶對 NovaSeq X 的任何期望。我也將真的強烈建議您考慮一下並非所有客戶都會看到此內容，對吧？因此，一些客戶已經全力以赴，而另一些客戶則遇到了這些問題，而我們確實已經全力以赴在現場解決這些問題。

The other thing is you talked about elasticity and in terms of volume increase and sequencing volume increase. Look, we are not seeing any fundamental change to elasticity. The issues that you've seen are more related to transition to the X. So what we have seen is because of the larger number of Xs installed in the area because we moved up some of the supply of Xs, we have seen that the decline in the 6000 consumables has been faster and larger than we had expected. Again, this is the flip side of people really being excited about the X and our ability to deliver more Xs. So that's what has happened. It's a temporary decline. And we expect that as we ramp up fully on the Xs that, that volume will come back on -- in terms of X consumables, but what you're seeing now is this timing gap that we have between those 2 events.

另一件事是你談到了彈性以及交易量增加和排序交易量增加。看，我們沒有看到彈性發生任何根本性變化。您所看到的問題與向 X 的過渡更相關。因此，我們所看到的是，由於該地區安裝了更多的 X，因為我們增加了一些 X 的供應，我們看到了下降6000 種消耗品的速度和規模都超出了我們的預期。同樣，這也是人們對 X 以及我們提供更多 X 的能力感到興奮的另一面。這就是發生的事情。這是暫時的下降。我們預計，隨著 X 的全面投入，X 消耗品的數量將會恢復，但您現在看到的是我們在這兩個事件之間存在的時間差距。

And you said something about -- I think it was whether these challenges on the X are continuing or they'll cause a stall in the market, actually, they haven't caused a stall in the market. We have seen demand for the X and our late-stage pipeline continue to ramp up. We are, as Chuck mentioned in his prepared remarks that we have seen the actually enable experiments and solutions that were not hitherto possible. So we do see continued interest in the X and the continued interest in doing things that were not possible before. And Chuck, I'll turn it back over to you to -- for the CEO search.

你說了一些關於——我認為 X 上的這些挑戰是否會持續，或者它們是否會導致市場停滯，實際上，它們並沒有造成市場停滯。我們看到對 X 的需求以及我們的後期研發管線持續增加。正如查克在他準備好的發言中提到的那樣，我們已經看到了迄今為​​止不可能的實際實驗和解決方案。因此，我們確實看到了人們對 X 的持續興趣以及對做以前不可能的事情的持續興趣。查克，我會把它轉回給你——尋找首席執行官。

Yes. With regards to the CEO search, the Board is actively searching for our new CEO. The search includes both internal and external candidates. We've been really encouraged about the outstanding quality of the candidates we're seeing. But of course, you know the details of the Board's process on this are confidential. We'll be able to update you as soon as we can.

是的。關於首席執行官的尋找，董事會正在積極尋找新的首席執行官。搜尋範圍包括內部和外部候選人。我們看到的候選人的傑出品質讓我們深受鼓舞。但當然，您知道董事會對此的流程細節是保密的。我們將盡快向您通報最新情況。

And our next question will come from Dan Brennan with TD Cowen.

我們的下一個問題將由 Dan Brennan 和 TD Cowen 提出。

So maybe a couple here packed into one, I guess. The $25 billion flow cell, is that still on track? When will that ship given some of the issues that you've cited? Second part, China. China actually grew in the quarter, but I know you called out some pressure there. So kind of what's baked in for China in the back half of the year? Third part would be you've referenced customer challenges throughout which, obviously, the broader tool space is at a really challenging second quarter. But that said, the academic and government end market has actually been pretty robust outside of China. So I'm wondering if you can discuss a little bit where you're seeing these challenges.

我猜，這裡可能有一對夫婦擠在一起。耗資 250 億美元的流動池，還在按計劃進行嗎？那艘船什麼時候會解決你提到的一些問題？第二部分，中國。中國實際上在本季度實現了增長，但我知道您在那裡提出了一些壓力。那麼今年下半年中國會發生什麼？第三部分是您提到的客戶挑戰，顯然，更廣泛的工具空間在第二季度確實充滿挑戰。但話雖如此，中國以外的學術和政府終端市場實際上相當強勁。所以我想知道您是否可以討論一下您在哪裡看到這些挑戰。

And then the final point would just be on the NovaSeq consumable pull-through cut and you're mentioning customers are switching faster over to the X. I guess how do we get comfortable that you're not seeing some, either, competitive impact or some dampening of utilization, I guess, kind of what was different this time around do you think in terms of your forecasting versus you think how management forecasted during the last cycle?

然後最後一點就是關於 NovaSeq 耗材直通式切割，您提到客戶正在更快地轉向 X。我想我們如何才能放心，因為您沒有看到一些競爭影響或影響我想，利用率有所下降，您認為這次的預測與管理層在上一個週期的預測有何不同？

Yes, Dan. So I think first, we continue to prioritize our investments. They're proprietary, and we still continue to focus on the differentiation of products. We probably have the biggest and the best proprietary pipeline in the industry, and we continue to lean on it. The 25B flow cell remains on track for launch in the second half of '23. We continue to push forward on the Illumina -- the Illumina CLR-enrichment assay particularly -- one that's particularly compelling when you're using it with the 25B flow cell. We continue to move forward on the XLEAP-SBS chemistry for NextSeq 1000, 2000. And we're going to have future offerings for emerging markets for things like proteomics, multi-omics and spatial.

是的，丹。所以我認為首先，我們繼續優先考慮我們的投資。它們是專有的，我們仍然繼續關注產品的差異化。我們可能擁有業內最大、最好的專有管道，並且我們將繼續依賴它。 25B 流通池仍有望在 23 年下半年推出。我們繼續推進 Illumina 的開發，尤其是 Illumina CLR 富集檢測，當您將其與 25B 流動池一起使用時，該檢測尤其引人注目。我們繼續推進 NextSeq 1000、2000 的 XLEAP-SBS 化學研究。未來我們將為新興市場提供蛋白質組學、多組學和空間等方面的產品。

Yes. And maybe I'll jump in on China, right? So yes, we did see like other companies, a slower-than-expected recovery in the second half of the year. Remember, we had expected China in the first half of the year to be somewhat soft and recovering from the COVID challenges. And then we had expected an acceleration in that recovery in the second half of the year. We do not currently see that happening both because of some of the challenges that you've seen in the broader economy in China, but also for us from an increased competitive intensity that we are seeing in China on the mid-throughput and low-throughput segments.

是的。也許我會加入中國，對嗎？所以，是的，我們確實像其他公司一樣看到下半年的複蘇慢於預期。請記住，我們曾預計中國上半年會有所疲軟，並從新冠疫情的挑戰中恢復過來。然後我們預計下半年復蘇會加速。我們目前認為這種情況不會發生，不僅是因為您在中國更廣泛的經濟中看到了一些挑戰，而且對我們來說也因為我們在中國看到中吞吐量和低吞吐量的競爭強度不斷增加段。

I think with respect to -- sorry, your second part of the question was on the -- oh yes, everything ex China, right? So there, it's a little bit of a -- I don't think the situation is dire as it was in last year. It was more -- what we are seeing is a little bit of conservatism given the economic uncertainty in the speed at which people are coming back online or purchasing. So we have seen a little bit of lengthening of cycles in terms of purchasing behavior, both on our instrument side, remit throughput and low throughput and also on some of the consumables pieces.

我認為關於——抱歉，你問題的第二部分是——哦，是的，所有來自中國的東西，對吧？所以，我認為情況並不像去年那麼可怕。更重要的是，考慮到人們重新上網或購物的速度存在經濟不確定性，我們看到的是一點保守主義。因此，我們看到購買行為的周期有所延長，無論是在我們的儀器方面、匯款吞吐量和低吞吐量方面，還是在一些消耗品方面。

Activity, as I indicated, remains strong, but it's just that the -- any new projects or new instruments that are coming in are slower than we had expected. Our win rate in -- and we track this pretty closely in terms of both mid-throughput and of course, on the high throughput side, remains high. In fact, it picked up slightly compared to Q1 in Q2. So again, I think it's more of a lengthening out of cycles and purchasing cycles rather than anything related to competitive intensity on those fronts.

正如我所指出的，活動仍然強勁，但只是任何新項目或新工具的出現都比我們預期的要慢。我們的勝率——並且我們在中吞吐量方面以及當然在高吞吐量方面都非常密切地跟踪這一點，仍然很高。事實上，第二季度與第一季度相比略有回升。再說一遍，我認為這更多的是周期和採購週期的延長，而不是與這些方面的競爭強度相關的任何事情。

And then -- sorry, I just want to make sure I'm hitting your -- so customer challenges, yes, Yes. And then on the X, the issue is not competition at all, right? We -- as I indicated, I mean, we are seeing continued strong interest and strong interest from, of course, the existing customers, but also newer customers or people that are moving up from mid throughput. We continue to see that our ability to actually deliver on the instruments is -- continues to maintain that interest. And then in terms of -- as Chuck mentioned, right, in terms of what these instruments are enabling, there's a whole new set of experiments that are on a larger scale going forward. Again, this is a lead indicator for us.

然後 - 抱歉，我只是想確保我能滿足您的要求 - 所以客戶挑戰，是的，是的。那麼在 X 上，問題根本不是競爭，對吧？正如我所指出的，我的意思是，我們看到了持續的強烈興趣和來自現有客戶的強烈興趣，而且還有新客戶或從中吞吐量上升的人。我們繼續看到，我們實際交付這些工具的能力是——繼續保持這種興趣。然後，正如查克所提到的，就這些儀器的功能而言，未來將進行一系列更大規模的全新實驗。同樣，這對我們來說是一個領先指標。

Obviously, people have not ramped up on the X fully but it is a lot about transitioning to the X and being able to take advantage of the many capabilities that it's providing beyond just the price aspect of it, right? So the dragon on board, the faster capabilities, the simplicity of the workflow, obviously, the ambient ship reagents. So there's a lot that goes into that beyond just the focus on, oh, it's going to help us with the lower GP.

顯然，人們還沒有完全接受 X，但重要的是要過渡到 X，並能夠利用它提供的許多功能，而不僅僅是價格方面，對嗎？所以船上的龍，更快的能力，簡單的工作流程，顯然，環境船試劑。因此，除了關注之外，還有很多事情要做，哦，這將幫助我們降低 GP。

And our next question will come from Dan Arias with Stifel.

我們的下一個問題將由 Dan Arias 和 Stifel 提出。

Joydeep, obviously, quite a few moving parts here on the top line and the OpEx line. And it looks like what you're doing in terms of cost reduction and expense management as part of a multiyear effort. So I guess, given where this year is headed, how are you thinking about op margins next year for the core business relative to the 25% target that you talked about last quarter?

顯然，Joydeep 在頂線和運營支出線上有很多移動部件。看起來您在降低成本和費用管理方面正在做的事情是多年努力的一部分。所以我想，考慮到今年的發展方向，相對於上季度談到的 25% 的目標，您如何看待明年核心業務的運營利潤率？

Yes, absolutely. Thanks, Dan, for the question. So a couple of things, right? So one, you're right. We started off and as we committed to in our Q1 earnings call, we started off a broad look at our cost structure and actually at the end of Q1, we proceeded with beginning a cost reset that we have executed on and actually have taken out on a run rate basis, more than $100 million annually of cost.

是的，一點沒錯。謝謝丹提出的問題。有幾件事，對吧？所以，你是對的。正如我們在第一季度財報電話會議中所承諾的那樣，我們開始廣泛審視我們的成本結構，實際上在第一季度末，我們開始進行成本重置，我們已經執行並實際執行了成本重置按運行率計算，每年的成本超過1 億美元。

During the second half of the year, just given some of the uncertainties in the broader economic space, we continue to keep a very close eye on managing expenses and being very careful about allocating expenses to the highest return areas, including the innovation areas that Chuck talked about. Given the challenges we are having this year, obviously, we acknowledge that getting to margins next year is going to seem like a stretch, but we remain very committed to planning for and delivering on those margins, and that's the way we're moving forward.

今年下半年，考慮到更廣泛的經濟領域的一些不確定性，我們繼續密切關注費用管理，並非常謹慎地將費用分配給最高回報領域，包括查克（Chuck）的創新領域。討論過。顯然，考慮到我們今年面臨的挑戰，我們承認明年達到利潤率似乎有點困難，但我們仍然非常致力於規劃和實現這些利潤率，這就是我們前進的方式。

And we have a question from Vijay Kumar with Evercore ISI.

我們有來自 Evercore ISI 的 Vijay Kumar 的提問。

I had a 2-part question mostly on the guidance here. Your -- I think for the third quarter, you said 3%, your comps for fourth quarter look pretty easy. Historically, when I've looked at your sequential revenue ramp from second quarter, it's always been up. And I look at your second quarter trends, sequentially, instruments were up, consumables are up, your pull-top boxes are up, China was up. So is there anything incremental headwinds that we should be thinking about for the back half and why your back half shouldn't follow historical patterns?

我有一個由兩部分組成的問題，主要是關於這裡的指導。你的——我認為對於第三季度，你說的是 3%，你第四季度的比較看起來很簡單。從歷史上看，當我查看第二季度以來的連續收入增長時，它總是在上升。我看看你們第二季度的趨勢，按順序，儀器上漲，消耗品上漲，拉頂盒上漲，中國上漲。那麼，對於後半部分，我們應該考慮一些增量阻力嗎？為什麼你的後半部分不應該遵循歷史模式？

And a related questions here. You mentioned $800,000 to $900,000 pull-through on the NovaSeq 6000. I think there's been some concern, the pull-through on the NovaSeq X perhaps might be lower because of the lower price point. Maybe can you just walk us through your assumptions around pull-through for the Nova X? Could we perhaps see a rebound because I'm assuming inventory levels here for customers are pretty low and they need to restock.

還有一個相關的問題在這裡。您提到 NovaSeq 6000 的拉通價格為 800,000 至 900,000 美元。我認為有人擔心，NovaSeq X 的拉通可能會更低，因為價格較低。也許您可以向我們介紹一下您對 Nova X 的拉通性能的假設嗎？我們是否可能會看到反彈，因為我假設客戶的庫存水平相當低，他們需要補充庫存。

Well, Vijay, good to hear from you, and that was a long multipart question. So let me try to get to unpack some of that, right? So first of all, for the full year guidance, given that it has come down, the components roughly fall into 3 categories. About 25% of the reduction in guidance really comes from China. And as I mentioned earlier, for China, there's a 2-part thing. We are seeing a slower-than-expected recovery in the larger economy, including some liquidity challenges for mainly our clinical customers. And we are seeing a higher competitive intensity that affect the mid-throughput and low-throughput segments. That's 25%.

好吧，Vijay，很高興收到你的來信，這是一個很長的多部分問題。那麼讓我嘗試解開其中的一些內容，對嗎？首先，對於全年指導，鑑於其已經下降，其組成部分大致分為三類。大約25%的指導減少實際上來自中國。正如我之前提到的，對於中國來說，事情分為兩部分。我們看到整體經濟的複蘇速度慢於預期，其中主要是我們的臨床客戶面臨一些流動性挑戰。我們看到更高的競爭強度影響了中吞吐量和低吞吐量細分市場。那是25%。

The other 75% is roughly equally split into 2 buckets. So one part is around the transition to the X and the gap we are seeing in terms of the high throughput consumables, right? And this is an issue of the 6000 consumables going down pretty rapidly as people are planning to transition to the X and again, exacerbated somewhat by the larger number of Xs we are delivering. And the other part is a slightly slower than expected ramp up on the full utilization of the X. The other 50% of that 75% is coming from some of the customer conservatism that we are seeing in terms of longer sales cycles and slower-than-expected recovery on -- across the board, right, but in -- across -- beyond China.

另外 75% 大致平均分為 2 個部分。因此，一部分是圍繞向 X 的過渡以及我們在高吞吐量耗材方面看到的差距，對嗎？隨著人們計劃向 X 過渡，6000 種消耗品的消耗量很快就會減少，而我們提供的 X 數量較多，這一問題在一定程度上加劇了。另一部分是 X 的充分利用率比預期稍慢。這 75% 中的另外 50% 來自我們在更長的銷售週期和更慢的銷售週期方面看到的一些客戶保守主義。 - 預計全面復甦，但在中國以外的地區。

So now in third quarter versus second quarter -- sorry, second quarter versus the first quarter and then third quarter versus second quarter. So we did see a ramp up from first quarter into second quarter across many dimensions. Obviously, we shipped more Xs, so we saw a jump on the instrument side. We did see a healthy ramp up on our 6000 consumables, primarily driven by the clinical segment. And you're right, we did actually see a jump from Q1 to Q2 in China, but that was expected given China was really depressed for us and other companies in Q1.

現在是第三季度與第二季度——抱歉，第二季度與第一季度，然後是第三季度與第二季度。因此，我們確實看到從第一季度到第二季度在許多方面都出現了增長。顯然，我們發貨了更多的 X，因此我們看到了儀器方面的跳躍。我們確實看到 6000 種消耗品的健康增長，這主要是由臨床領域推動的。你是對的，我們確實看到中國從第一季度到第二季度的躍升，但考慮到中國在第一季度對我們和其他公司來說確實很蕭條，這是預料之中的。

Moving on to Q3, what you're seeing in some of the sequential ramp down, there are 2 big reasons for it, right? One, the aforementioned 6000 consumable reduction is going to hit sort of a local maxima there because of the larger transition expected to the X. So we're shipping more Xs. That impact on the 6000 consumables is going to ramp up. And we don't yet have a full ramp-up on our X consumables yet, right? We expect that in Q4, and I'll come back to that. And the other piece is we do expect China to actually be down slightly from Q2, again, because of the expectation that the recovery is proceeding unfortunately more slowly than we had expected.

轉到第三季度，您在一些連續下降中看到的情況，有兩個重要原因，對嗎？第一，前面提到的 6000 個消耗品的減少將達到局部最大值，因為 X 預計會有更大的轉變。因此，我們將運送更多的 X。對 6000 種消耗品的影響將會加大。而且我們的 X 消耗品還沒有全面升級，對吧？我們預計在第四季度會出現這種情況，我會再回來討論這一點。另一方面，我們確實預計中國的經濟增速實際上會比第二季度略有下降，因為不幸的是，我們預計復甦的進展速度比我們預期的要慢。

And then the last piece around that is just we do expect Q4 to be up significantly. And Q4 is the first quarter you actually start seeing the X consumables come in. You see your traditional end of the year ramp up and some of the spend from companies. So you are still seeing that, and that's built into our guidance. The last thing you mentioned was about pull-through. And pull through -- by the way, we only -- we have not given you pull-through on X. We -- as with all new instruments, we'll only come out with that once the instrument ramp-up has stabilized. So we do expect, given the interest in X and the kinds of cohort studies and experiments that our customers are telling us they want to do on X, we do expect that our initial assumptions and pull-through are still justified.

最後一點是我們確實預計第四季度將大幅增長。第四季度是您真正開始看到 X 消耗品進入的第一個季度。您會看到傳統的年末增長以及公司的一些支出。所以你仍然看到了這一點，這已納入我們的指導中。你提到的最後一件事是關於拉通的。並且拉通——順便說一句，我們只是——我們還沒有給你拉通X。我們——就像所有新工具一樣，只有在工具增長穩定後，我們才會推出這一點。因此，考慮到對 X 的興趣以及我們的客戶告訴我們他們想要對 X 進行的隊列研究和實驗的類型，我們確實預計我們最初的假設和拉動仍然是合理的。

On the NovaSeq 6000, which is probably what you were referring to, we are -- we have called down our pull-through numbers for this year, but that is really driven by the transition to the X and the larger-than-expected impact of that transition that I've talked about.

在 NovaSeq 6000 上，這可能就是您所指的，我們已經調低了今年的拉通數字，但這實際上是由向 X 的過渡以及超出預期的影響推動的我談到的轉變。

And we'll take a question from Tejas Savant with Morgan Stanley.

我們將回答摩根士丹利 Tejas Savant 的提問。

So one, Chuck, for you, on the leadership changes here. Perhaps, Joydeep feel free to chime in as well. Dan asked about sort of margins and your commitment to 25% and you call that sort of stretchy but something that you're certainly committed to. Would that sort of framing apply to your mid-teens growth that you had talked about at the Analyst Day as well, for core Illumina? And Chuck, for you on the leadership changes, I mean, beyond the CEO seat, obviously, the CTO and CMO search is underway as well. Any color you can share there on the thought process behind that?

所以，查克，對於你來說，這裡的領導層發生了變化。也許，Joydeep 也可以隨意插話。 Dan 詢問了利潤率以及您對 25% 的承諾，您稱這種情況有些彈性，但您確實會做出承諾。這種框架是否也適用於您在分析師日上談到的 Illumina 核心業務的青少年成長？查克（Chuck），對於領導層變動，我的意思是，除了首席執行官席位之外，顯然，首席技術官（CTO）和首席營銷官（CMO）的搜尋也在進行中。您可以分享一下其背後的思考過程嗎？

And then on the base business itself, on the NovaSeq, placements here for the X clearly came in I think it was 28 to 30 units above at least where we were. But instrument -- sequencing instrument revenue was -- beat us by only about 5% to 6%, right? So the question really is, are you seeing more aggressive discounting? I mean is that something Illumina is pushing through in response to the macro environment? You called out sort of BGI starting to be sort of competitive in China, but just any color on just the pricing dynamics on the instrument side would be helpful as well.

然後就基礎業務本身而言，在 NovaSeq 上，X 的展示位置顯然進來了，我認為它至少比我們的位置高出 28 到 30 個單位。但儀器——測序儀器的收入——只比我們高出大約 5% 到 6%，對吧？所以問題實際上是，您是否看到更激進的折扣？我的意思是 Illumina 正在推動一些事情來應對宏觀環境嗎？你指出華大基因在中國開始具有競爭力，但只要工具方面的定價動態有任何顏色也會有幫助。

Yes, Tejas, thanks for the question. On the executive team and on the process here. So I think the first thing we want to do is just both thank Alex and Phil for all the things that they've done for Illumina. With Alex what we know is that he's moving on to a new role, he'll be taking the CEO in another company. And I think that we should be really proud to see the kind of leadership that we grow out of Illumina. So Alex started with Illumina. He went over to GRAIL. He came back to Illumina and now he's going to land as a CEO, and we're all looking forward to kind of where that's going to be.

是的，Tejas，謝謝你的提問。關於執行團隊和這裡的流程。所以我認為我們要做的第一件事就是感謝 Alex 和 Phil 為 Illumina 所做的一切。據我們所知，亞歷克斯將擔任新職務，他將擔任另一家公司的首席執行官。我認為，看到 Illumina 培養出的領導力，我們應該感到非常自豪。所以 Alex 開始使用 Illumina。他轉向了GRAIL。他回到了 Illumina，現在他將擔任首席執行官，我們都期待著這一結果。

We have a really deep bench in our R&D program. And it's really heartening to see employee number 4, Steve Barnard, who is the first scientist that the company ever hired, bringing him into that role, he knows the technology, he knows the team, and he'll be able to seamlessly pick up where Alex left off.

我們的研發計劃擁有非常深厚的基礎。看到4 號員工史蒂夫·巴納德(Steve Barnard) 真的很令人振奮，他是公司僱用的第一位科學家，把他帶入這個職位，他了解技術，了解團隊，並且能夠無縫地接手工作。亞歷克斯離開的地方。

On the Chief Medical Officer, we're going to take some time and look at that organization. We're going to evaluate where we are on the clinical side and on the medical side, our commitment to our clinical customers, our clinical markets and our clinical programs continues and we'll open up that search after we have some time to examine exactly where that organization fits and what we need.

關於首席醫療官，我們將花一些時間來研究該組織。我們將評估我們在臨床方面和醫療方面的進展，我們對臨床客戶、臨床市場和臨床項目的承諾仍在繼續，在我們有時間進行準確檢查後，我們將展開搜索該組織適合什麼以及我們需要什麼。

Yes, Tejas, thank you, picking up on your other questions. First of all, in terms of margins and the implied long-term growth in mid-teens, so look, the long-term growth in mid-teens, by the way, our expectations on that have not changed, right? And that was, as you know, underpinned on 2 things, right? One, a large and growing market that NGS is still under-penetrated in. And the ability then by -- through our innovations, addressing the core needs of that market for our NGS and Illumina to take an ever growing share. And that then manifests itself in the sequencing volume growth along the 3 dimensions I had mentioned earlier.

是的，Tejas，謝謝您，回答您的其他問題。首先，就利潤率和十幾歲左右的隱含長期增長而言，看看十幾歲左右的長期增長，順便說一句，我們對此的預期沒有改變，對嗎？正如您所知，這是基於兩件事，對嗎？第一，NGS 是一個巨大且不斷增長的市場，但其滲透率仍然不足。通過我們的創新，我們的 NGS 和 Illumina 能夠滿足該市場的核心需求，從而獲得不斷增長的份額。這體現在我之前提到的 3 個維度上測序量的增長。

First around ever-increasing number of samples, again, more cohorts and things like spatial and single cell really driving more of that. The increasing number of analyses per sample, so again, that's really being driven by NGS being able to handle more of the multiomic side of the questions that our customers are asking.

首先，樣本數量不斷增加，更多的群體以及空間和單細胞等因素確實推動了更多的樣本數量。每個樣本的分析數量不斷增加，這實際上是由 NGS 能夠處理客戶提出的更多多組學方面的問題推動的。

And lastly, just the higher sequencing intensity, right? As you move towards larger panels, as you do more things in liquid biopsy or things like MRD, so all those remain intact. I think where we are really looking for in the next year or so, right, as X kind of comes online and enables a lot of these moves into things that we talked about, how quickly does that ramp take place? So -- but in the long term, nothing of what we had guided to really has changed in our mind. And we are looking forward to seeing how the X kind of evolves us down that path.

最後，只是更高的測序強度，對吧？當您轉向更大的面板時，當您在液體活檢或 MRD 等方面做更多的事情時，所有這些都保持不變。我認為我們真正在明年左右尋找什麼，對吧，隨著 X 上線並實現我們談論的許多這些舉措，這種增長發生的速度有多快？所以——但從長遠來看，我們的指導思想並沒有真正改變。我們期待看到 X 如何讓我們沿著這條道路發展。

You had asked two other questions. So one was around -- oh, yes, the X and the revenue growth on the instrument side not being that high. So as I mentioned, right, so we are very pleased that we were able to deliver on the X and ramp up our supply much faster than expected. I think this is a good thing in the long run. What offset that higher number of Xs was to -- two things that I mentioned earlier. So one, we did see on the China side that we did have a lower-than-expected number of mid-throughput and high-throughput -- mid-throughput and low-throughput instruments. And in general, overall, given some of the lengthening of these, of the purchasing cycles, we did see a lower-than-expected mid-throughput and low-throughput instrument sales across the world.

您還問了另外兩個問題。所以有一個問題——哦，是的，X 和儀器方面的收入增長並沒有那麼高。正如我所提到的，我們非常高興能夠以比預期更快的速度交付 X 並增加供應。我認為從長遠來看這是一件好事。抵消更多 X 的原因是——我之前提到的兩件事。因此，我們確實看到中國方面的中通量和高通量儀器的數量確實低於預期。總的來說，總體而言，考慮到採購週期的延長，我們確實看到全球中通量和低通量儀器的銷售低於預期。

Now unlike -- as in China, where competitive intensity was a factor, in the rest of the world, we actually did not see our win rate go down. We actually saw it climb a little bit in Q2. Also with respect to pricing, we track this very closely, right? So in China, yes, we are being very surgical about went to use price and given the type of customer, but we did see a price decline overall in China. In the rest of the world, our price actually remains on track to where we expected it to be, and we're proceeding along what we wanted to do with using price as a means to encourage faster adoption of our technologies. Did I cover all your questions? Yes, I think I covered them.

現在，與在中國不同，競爭強度是一個因素，而在世界其他地區，我們實際上並沒有看到我們的勝率下降。我們實際上看到它在第二季度略有上升。另外在定價方面，我們非常密切地跟踪，對吧？因此，在中國，是的，我們對使用價格和客戶類型非常謹慎，但我們確實看到中國整體價格下降。在世界其他地區，我們的價格實際上仍處於我們預期的水平，我們正在按照我們想要的方式進行，利用價格作為鼓勵更快採用我們技術的手段。我已經回答了你所有的問題了嗎？是的，我想我已經涵蓋了它們。

And our next question is from Sung Ji Nam with Scotiabank.

我們的下一個問題來自豐業銀行的 Sung Ji Nam。

Just a clarification question. In terms of the cautious purchasing behavior, is that more for your academic customers? Or is it also across clinical as well? And then sorry if I missed it, but kind of roughly what -- how much -- what percentage, I guess, of that -- the consumable delay in purchase is attributable to the launch of the higher density, the 25B and kind of waiting for the better economics in terms of sequencing?

只是一個澄清問題。就謹慎的購買行為而言，這更多是針對您的學術客戶嗎？或者它也跨臨床？如果我錯過了，抱歉，但是大概有多少——我猜，其中的百分比是多少——消耗品的購買延遲是由於更高密度、25B 的推出和某種等待造成的為了在測序方面獲得更好的經濟效益？

Sung, thanks for the question. So no, the cautious purchasing behavior, again, broadly ex of China is across both academic and clinical segments, right? The reasons are slightly different. I think a lot of our clinical customers are not profit-making companies, right? So they are managing their cash as you would expect them to. And while they're -- they continue to have sequencing at their core, we have seen that they're purchasing intensity has come up less quickly than we had expected it to.

宋，謝謝你的提問。所以，不，謹慎的購買行為，在中國以外廣泛存在於學術和臨床領域，對吧？原因略有不同。我想我們很多臨床客戶都不是營利性公司吧？因此，他們正在按照您的預期管理現金。雖然他們繼續以測序為核心，但我們發現他們的購買強度的上升速度比我們預期的要慢。

In terms of your second question on how much of a delay is there for 25B. I don't think there's a delay in 25B. So what I was trying to articulate is after -- the reset and guidance for the whole year, about 25% of that came from the impact from China. The other 75% -- about 50% of that 75% really came down to this impact on high throughput consumables due to the transition on X, right? So that includes, as I said, more transition on the 6000 faster. And then a little bit of a delay given some of the issues that I mentioned in Q2 that we are already deploying solutions in the field, there's a little bit of delay that is flowing through in 2023.

關於你的第二個問題，25B 有多少延遲。我不認為25B有延遲。所以我想表達的是全年的重置和指導，其中大約25%來自中國的影響。另外 75%——這 75% 中的大約 50% 確實歸結為由於 X 上的過渡而對高吞吐量消耗品的影響，對吧？正如我所說，這包括 6000 上的更多過渡更快。然後，考慮到我在第二季度提到的一些問題，我們已經在現場部署解決方案，因此 2023 年會出現一些延遲。

And we have a question from Rachel Vatnsdal with JPMorgan.

我們有來自摩根大通的 Rachel Vatnsdal 的提問。

Great. So first up on guidance, you cut revenue growth by 750 basis at the midpoint for the year. You walked through a few of the moving pieces between more cautious CapEx environment, China and then some of these lower consumables as customers are transitioning to the new platform. So can you just give us a more granular breakdown of from that 750 basis point cut, how is it really broken out across those 3 areas?

偉大的。因此，首先根據指引，您將今年中點的收入增長削減了 750 個基點。您了解了更加謹慎的資本支出環境、中國以及隨著客戶過渡到新平台而產生的一些較低消耗品之間的一些變化。那麼，您能否為我們提供更詳細的降息 750 個基點的詳細信息，它是如何在這 3 個領域中真正細分的？

And then as a follow-up, I just want to follow up on some of the earlier comments on China just mainly relating to some of these stimulus packages. We've heard that there could potentially be another tranche of stimulants in 4Q. So what are you hearing regarding stimulus packages? I know you guys weren't seeing much of a benefit in 1Q, but did you see anything in 2Q? And then how is stimulus contemplated in guidance for the back half of the year?

作為後續行動，我只想跟進之前對中國的一些評論，這些評論主要與其中一些刺激計劃有關。我們聽說第四季度可能會有另一批興奮劑。那麼您對刺激計劃有何看法？我知道你們在第一季度沒有看到太多好處，但是你們在第二季度看到了什麼嗎？那麼下半年的指導意見是如何考慮刺激措施的呢？

Yes. So I'm going to go through -- I mentioned the breakdowns earlier. So very quickly, Rachel. I think about 25% of that guidance reset is really coming from the impact from China. Of the remaining 75%, approximately 50% of that 75% really was coming from the impact on high throughput consumables related to the transition to the X. And then the other 50% is some of the cash conservatism that we are seeing with customers outside of China, right? So that's roughly the math, how we see the math working out.

是的。所以我要回顧一下——我之前提到過這些故障。很快，雷切爾。我認為大約 25% 的指引重置確實來自中國的影響。在剩下的 75% 中，這 75% 中的大約 50% 實際上來自與向 X 過渡相關的高吞吐量消耗品的影響。另外 50% 是我們在外部客戶中看到的一些現金保守主義中國的，對嗎？這就是大致的數學，我們如何看待數學的結果。

In China, first of all, there is no stimulus built into our expectations for the second half of the year. There never was in our guidance as well. As far as we could see the stimulus in the first half of the year benefited more of the industrial segments, which we don't play in. And there is no -- we didn't see any stimulus in the second half -- sorry, the second quarter either, right? So it's consistent. We've not built it in and we hadn't initially as well.

首先，在中國，我們對下半年的預期沒有任何刺激措施。我們的指導中也從來沒有這樣的內容。據我們所知，上半年的刺激措施使更多的工業領域受益，而我們沒有參與其中。下半年我們沒有看到任何刺激措施，抱歉，第二季度也可以，對吧？所以它是一致的。我們還沒有內置它，最初也沒有內置它。

And our next question will come from John Sourbeer with UBS.

我們的下一個問題將來自瑞銀集團的約翰·索爾比爾。

Maybe just a couple of clarifications. So I appreciate you confirming the long-term guidance in the mid-teens. It does sound though that some of the China headwinds there could be structural with some of the competition increases there. I guess just had the long-term outlook for that market changed at all? And then just a follow-up here, just on the Complete Long Reads, any color there on what you're seeing the demand for that launch?

也許只需做一些澄清。因此，我感謝您確認青少年中期的長期指導。不過，聽起來中國的一些不利因素可能是結構性的，因為那裡的競爭加劇。我想該市場的長期前景是否發生了變化？然後是這裡的後續行動，就完整的長讀物而言，您認為該發布的需求有什麼顏色嗎？

Yes. Let me take those in order, right? So I think your -- for China in terms of the long-term outlook, look, I think China remains an important market for us, and we are committed to serving our customers in China. There is a -- our brand in China actually is very positive. And again, we remain committed to serving that market. Now again, given some of the changes we're seeing, we will continue to kind of refine our strategy in terms of how we go to market there, the kinds of partners we choose in order to reach the relevant segments, the highest growing segments of the market better and more efficiently. So none of that has changed. But we continue to observe how China is going to evolve from its current condition as most other people in our space are.

是的。讓我按順序排列，好嗎？因此，我認為，就中國的長期前景而言，我認為中國仍然是我們的重要市場，我們致力於為中國的客戶提供服務。我們的品牌在中國實際上非常積極。再次，我們仍然致力於服務該市場。現在，鑑於我們看到的一些變化，我們將繼續完善我們的戰略，包括我們如何進入那裡的市場、我們選擇的合作夥伴類型，以進入相關細分市場、增長最快的細分市場更好、更有效地開拓市場。所以這一切都沒有改變。但我們將繼續觀察中國將如何擺脫目前的狀況，就像我們這個領域的大多數其他人一樣。

In terms of the Illumina Complete Long Reads. So the interest on that has been very high, right? We have a large number of customers that have taken the current WGS product and have -- are working on it. I think really, we had always anticipated that the real jump into this technology would come from the enrichment product, which we are on track to delivering. But that also is coupled because of the economics involved in it, really coupled with the launch of the 25B flow cell, right? So we are -- that is still coming through towards the end of this year and really pick up into -- as we go into 2024.

就 Illumina 完整長讀而言。所以人們對此的興趣非常高，對嗎？我們有大量客戶已經採用了當前的 WGS 產品，並且正在研究它。我認為，實際上，我們一直預計這項技術的真正突破將來自我們正在交付的濃縮產品。但這也與它所涉及的經濟因素有關，實際上與 25B 流動池的推出有關，對吧？所以，到今年年底，我們仍然會經歷這一過程，並在進入 2024 年時真正有所回升。

And that concludes our Q&A session. I will now hand the call back over to Salli Schwartz.

我們的問答環節到此結束。我現在將把電話轉回給薩莉·施瓦茨。

Thank you again for joining us today. As a reminder, a replay of this call will be available in the Investors section of our website. This concludes our call, and we look forward to seeing you at upcoming conferences and other events.

再次感謝您今天加入我們。謹此提醒，我們網站的投資者部分將提供本次電話會議的重播。我們的通話到此結束，我們期待在即將舉行的會議和其他活動中見到您。

Thank you. That does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝。今天的會議到此結束。我們非常感謝您的參與。祝你有美好的一天。