(ILMN) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Third Quarter 2023 Illumina Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

女士們、先生們，美好的一天，歡迎參加 Illumina 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to Salli Schwartz, Vice President of Investor Relations.

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 third quarter of 2023. During the call today, we will review the financial results we released after the close of the market and offer commentary on our commercial and regulatory activity, after which we will host a question-and-answer session. Our earnings release 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 年第三季財報電話會議。在今天的電話會議中，我們將回顧收盤後發布的財務業績，並對我們的商業和監管活動發表評論，之後我們將主持問答環節。您可以在我們網站 Illumina.com 的投資者關係部分找到我們的收益報告。

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

今天出席 Illumina 會議的包括執行長 Jacob Thaysen；財務長兼首席策略與企業發展長 Joydeep Goswami。 Jacob 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 transitional measures ordered by the European Commission, which prohibited our acquisition of GRAIL under the EU merger regulation.

需要提醒的是，根據歐盟委員會下令的過渡措施，GRAIL 必須與 Illumina 分開持有和運營，該措施禁止我們根據歐盟合併法規收購 GRAIL。

This call is being recorded, and the audio portion will be archived in the Investors section of our website.

本次通話正在錄音，音訊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.

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有重大差異。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。

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.

為了更了解可能導致實際結果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'll now turn the call over to Jacob.

現在，我將把電話轉給雅各。

Thank you, Salli. Good day, everyone, and thank you for joining today's call. As you know, I assumed the role as Illumina's CEO a little over 6 weeks ago. It is an honor to lead this company. I joined Illumina after more than a decade at Agilent, where I ran both the Diagnostic and Genomics Group; and more recently, Agilent's largest business, the Life Science and Applied Markets Group. I have long admired Illumina for its role in building the genomics market, and I'm incredibly excited to be here.

謝謝你，莎莉。大家好，感謝您參加今天的電話會議。如您所知，我於 6 週多前就任 Illumina 的執行長。領導這家公司是我的榮幸。我在安捷倫工作了十多年後加入了 Illumina，負責診斷和基因組學工作。最近，安捷倫最大的業務部門—生命科學和應用市場集團。我長期以來一直欽佩 Illumina 在建立基因組學市場方面所發揮的作用，我非常高興能夠來到這裡。

During my first weeks, I prioritized getting to know our employees and meeting with several of our customers. Illumina has a highly capable team, and I have been impressed with their level of passion and commitment to our work. Both our employees and our customers are driven to move genomics forward.

在第一周，我優先考慮的是了解我們的員工並會見我們的幾位客戶。 Illumina 擁有一支非常有能力的團隊，他們對我們工作的熱情和承諾給我留下了深刻的印象。我們的員工和客戶都致力於推動基因組學向前發展。

Like our team, I'm passionate about genomics and the role that this field can play in health care and personalized medicine, particularly in the oncology space. This is a massive opportunity, and Illumina will remain the key player even as others enter the market. Illumina's infrastructure that they have built over 2.5 decades, our compelling offerings that sets the global standard and our deep commitment to innovation for the future will continue to drive the use of genomics and multiomics around the world.

和我們的團隊一樣，我對基因組學以及該領域在醫療保健和個人化醫療（尤其是腫瘤學領域）中所扮演的角色充滿熱情。這是一個巨大的機會，即使其他公司進入市場，Illumina 仍將是關鍵參與者。 Illumina 在 2.5 年來建立的基礎設施、我們制定全球標準的引人注目的產品以及我們對未來創新的堅定承諾將繼續推動基因組學和多組學在全球的使用。

Turning to our third quarter results. In Q3, Illumina delivered revenue of approximately $1.12 billion, flat year-over-year or up 1% on a constant currency basis. This was a disappointing result. The macroeconomic environment remains challenging for our industry and for our customers with customers increasingly cautious and constrained in their purchasing decisions.

轉向我們第三季的業績。第三季度，Illumina 營收約 11.2 億美元，年比持平，以固定匯率計算成長 1%。這是一個令人失望的結果。宏觀經濟環境對我們的產業和我們的客戶來說仍然充滿挑戰，客戶的購買決策變得越來越謹慎和受限。

Despite a lower gross margin year-over-year, tight management of our operating expenses allowed us to deliver diluted non-GAAP EPS of $0.33, also approximately flat year-over-year. While we cannot control external environment, Illumina's management team and I remain focused on supporting our customers and our own operational execution.

儘管毛利率同比較低，但對營運費用的嚴格管理使我們能夠實現稀釋後的非 GAAP 每股收益 0.33 美元，也與去年同期基本持平。雖然我們無法控制外部環境，但 Illumina 的管理團隊和我仍然專注於支援我們的客戶和我們自己的營運執行。

Part of my comprehensive review of the business includes reexamining our strategic initiatives and our targets for long-term revenue growth and operating margins. We will lay out our new targets for you later next year.

我對業務進行全面審查的一部分包括重新審視我們的策略舉措以及長期收入成長和營業利潤的目標。我們將於明年稍後為您制定新目標。

A key priority for me is to get clarity on the GRAIL situation. Therefore, I have requested and the Board has established a special committee to expedite decisions on GRAIL. Furthermore, we have retained advisers and are preparing for sale and capital markets transactions. We expect to file a Form 10 on a confidential basis with the SEC. Hereafter, we will contact third parties as investment capital sources or as potential purchases as our appeals are ongoing.

對我來說，首要任務是弄清楚 GRAIL 的情況。因此，我已要求董事會成立一個特別委員會來加速 GRAIL 的決策。此外，我們還聘請了顧問，並正在準備出售和資本市場交易。我們希望以保密方式向 SEC 提交表格 10。此後，我們將聯繫第三方作為投資資金來源或潛在的購買，因為我們的呼籲正在進行中。

I know there have been questions regarding our appeals. These appeals are not just about GRAIL. They provide Illumina with flexibility for any divestiture of GRAIL and also for future transactions. The appeals will not impact our ability to move swiftly. Make no mistake, I'm here to focus on the core business, which I will talk more about after Joydeep's remarks. Joydeep?

我知道有人對我們的上訴提出疑問。這些呼籲不僅涉及 GRAIL。它們為 Illumina 提供了對 GRAIL 的任何剝離以及未來交易的靈活性。這些呼籲不會影響我們迅速採取行動的能力。別誤會，我是來關注核心業務的，這個我會在Joydeep講話之後再談。喬伊迪普？

Thank you, Jacob. 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 review 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.

謝謝你，雅各。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 調整表，您可以在今天的新聞稿和我們網站上提供的補充資料中找到這些調整表。

As Jacob noted, in the third quarter, consolidated revenue of $1.12 billion was flat year-over-year and up 1% on a constant currency basis. Consolidated revenue was down 5% from the second quarter of 2023. Although we correctly anticipated a sequential decrease in high-throughput consumables revenue due to the NovaSeq X transition, we placed fewer NovaSeq X instruments than we expected in the quarter as customers purchase constraints led to lengthened sales cycles.

正如 Jacob 指出的那樣，第三季綜合收入為 11.2 億美元，與去年同期持平，按固定匯率計算成長 1%。合併收入較2023 年第二季下降5%。儘管我們正確預期由於NovaSeq X 過渡，高通量耗材收入將連續下降，但由於客戶購買限制導致我們在本季度放置的NovaSeq X 儀器數量少於我們的預期以延長銷售週期。

Non-GAAP net income was $52 million or $0.33 per diluted share, which included dilution from GRAIL's non-GAAP operating loss of $155 million for the quarter. Despite our lower revenue, non-GAAP EPS exceeded our expectations primarily due to continued execution of expense-reduction initiatives and a higher gross margin than we forecast.

非 GAAP 淨利潤為 5,200 萬美元，或攤薄後每股收益 0.33 美元，其中包括 GRAIL 本季度 1.55 億美元的非 GAAP 營運虧損帶來的攤薄。儘管我們的收入較低，但非公認會計準則每股收益超出了我們的預期，這主要是由於費用削減計劃的持續執行以及毛利率高於我們的預期。

GAAP net loss was $754 million or $4.77 per diluted share, which included goodwill and intangible impairments of $821 million related to the GRAIL segment. These impairments were primarily the result of a decrease in Illumina's consolidated market capitalization and a higher discount rate used for the fair value cancellation of the GRAIL segment.

GAAP 淨虧損為 7.54 億美元，或稀釋後每股 4.77 美元，其中包括與 GRAIL 部門相關的商譽和無形減值 8.21 億美元。這些減損主要是由於 Illumina 合併市值下降以及 GRAIL 部門公允價值取消所使用的較高折現率所致。

Our non-GAAP tax rate was 39.7% for the quarter, which decreased from 43.2% in Q3 2022 with both quarters reflecting the impact of R&D capitalization requirements. The year-over-year decrease was primarily due to a decrease in the non-GAAP tax expense, impact of R&D capitalization requirements given increased amortization of capitalized R&D expenses. Our non-GAAP weighted average diluted share count for the quarter was approximately 158 million.

本季我們的非 GAAP 稅率為 39.7%，較 2022 年第三季的 43.2% 有所下降，這兩個季度都反映了研發資本化要求的影響。年比下降的主要原因是非公認會計準則稅收費用減少，以及資本化研發費用攤銷增加導致研發資本化要求的影響。本季我們的非 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 $1.11 billion was flat year-over-year on both a reported and constant currency basis and included anticipated reductions of approximately 7 percentage points from 2 primary categories: one, the decrease in COVID surveillance and the effect of sanctions in Russia that together represent approximately 3.5 percentage points; and two, the year-over-year reduction in China revenue, that also is approximately 3.5 percentage points.

轉向細分結果。 Core Illumina 的收入為 11.1 億美元，按報告和固定匯率計算，與去年同期持平，其中包括兩個主要類別的預期減少約 7 個百分點：一是新冠病毒監控的減少以及俄羅斯制裁的影響，合計約佔3.5 個百分點；第二，中國收入較去年同期下降約3.5個百分點。

COVID surveillance contributed approximately $4 million in total revenue in Q3 2023 compared to $28 million in Q3 2022. Core Illumina sequencing consumables revenue of $695 million was down 4% year-over-year. The decrease was primarily driven by a 12% decline in sales to research customers. These customers were impacted by the NovaSeq X transition and are reducing NovaSeq 6000 consumables purchases before they have fully ramped up activity on NovaSeq X.

COVID 監測在 2023 年第三季貢獻了約 400 萬美元的總收入，而 2022 年第三季為 2,800 萬美元。Core Illumina 定序耗材收入為 6.95 億美元，年減 4%。這一下降主要是由於研究客戶的銷售額下降了 12%。這些客戶受到 NovaSeq X 過渡的影響，在全面加強 NovaSeq X 上的活動之前正在減少 NovaSeq 6000 耗材的採購。

Total sequencing consumables revenue was also impacted by the COVID, Russia and China factor, I noted previously, as well as the impact of macroeconomic conditions and customers' purchasing power and project planning. Strength in sales to clinical customers partially offset the decline in research with clinical sequencing consumables growing 10% year-over-year, led by continued momentum in oncology and genetic disease testing.

我先前指出，定序耗材總收入也受到新冠疫情、俄羅斯和中國因素的影響，以及宏觀經濟狀況、顧客購買力和專案規劃的影響。在腫瘤學和遺傳疾病檢測持續成長的帶動下，臨床定序耗材年增 10%，對臨床客戶的銷售強勁部分抵銷了研究的下降。

Turning to sequencing activity. Total sequencing gigabase output connected high- and mid-throughput instruments grew 5% from Q2 2023 and 29% year-over-year. We are encouraged by the trends we are seeing across both research and clinical high-throughput customers that have a NovaSeq X installed. As expected, these customers show higher overall growth in sequencing output than high-throughput customers that have not yet adopted the NovaSeq X, both on a quarter-over-quarter and a year-over-year basis.

轉向測序活動。連接高通量和中通量儀器的千兆鹼基定序總輸出較 2023 年第二季成長 5%，較去年同期成長 29%。我們對安裝了 NovaSeq X 的研究和臨床高通量客戶所看到的趨勢感到鼓舞。正如預期的那樣，與尚未採用 NovaSeq X 的高通量客戶相比，這些客戶的定序輸出整體成長速度更快，無論是環比還是同比。

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.

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整體活動趨勢，並且與一段時間內的收入呈方向相關。

Sequencing instruments revenue for core Illumina of $179 million grew 10% year-over-year driven primarily by NovaSeq X, which more than offset the decline in NovaSeq 6000 shipments. Growth in high-throughput instruments was partially offset by the expected decline in mid-throughput due to increasing capital purchase and cash flow constraints that continue to impact our customers' purchasing behaviors globally as well as by local competition in China.

Illumina 核心定序儀器營收為 1.79 億美元，年成長 10%，主要由 NovaSeq X 推動，足以抵消 NovaSeq 6000 出貨量的下降。高通量儀器的成長被中通量的預期下降部分抵消，這是由於資本購買和現金流限制的增加繼續影響我們客戶在全球的購買行為以及中國的本地競爭。

For NovaSeq X, we exited Q3 with more than 310 orders since launch. Our shipments of 97 NovaSeq X instruments in Q3 brought our total installed base to 273 instruments. Core Illumina sequencing service and other revenue of $142 million was up 15% year-over-year driven primarily by higher instrument service contract revenue on a growing installed base as well as an increase in lab services revenue.

對於 NovaSeq X，自推出以來，我們在第三季結束時收到了超過 310 個訂單。第三季我們出貨了 97 台 NovaSeq X 儀器，使我們的總安裝基數達到 273 台儀器。核心 Illumina 定序服務和其他收入為 1.42 億美元，年增 15%，這主要是由於安裝基礎不斷增長而儀器服務合約收入增加以及實驗室服務收入增加所致。

Moving to regional results for core Illumina. All regions continued to be impacted by 2 key issues: one, tighter funding and budget pressures that are impacting customer purchasing power and project planning; and two, the impact of high-throughput customers transitioning to NovaSeq X as customers continue to reduce NovaSeq 6000 consumables purchases before they have fully ramped up activity on NovaSeq X.

轉向核心 Illumina 的區域結果。所有地區都持續受到兩個關鍵問題的影響：一是資金和預算壓力收緊，影響了客戶購買力和專案規劃；第二，高通量客戶過渡到 NovaSeq X 的影響，因為客戶在全面增加 NovaSeq X 上的活動之前繼續減少 NovaSeq 6000 耗材的採購。

Americas revenue of $650 million grew 10% year-over-year, attributed to NovaSeq X placements as well as clinical testing volume driving greater consumables revenue. Clinical sequencing consumable shipments grew more than 20% year-over-year.

美洲地區的營收為 6.5 億美元，年增 10%，這得益於 NovaSeq X 的投放以及臨床檢測量推動了耗材收入的增加。臨床定序耗材出貨量年增超過20%。

Europe revenue of $260 million was flat year-over-year or up 1% on a constant currency basis. Growth in sequencing consumables was driven by mid-teens growth in clinical and strength in mid-throughput consumables, offset by the decline in COVID surveillance and the negative impact of exchange rates.

歐洲營收為 2.6 億美元，與去年同期持平，以固定匯率計算成長 1%。定序耗材的成長是由臨床中十幾歲的成長和中通量耗材的實力推動的，但被新冠肺炎監測的下降和匯率的負面影響所抵消。

For sequencing instruments, growth in high throughput due to NovaSeq X placements was more than offset by a decline in mid-throughput instruments. EMEA revenue of $98 million declined 22% year-over-year or 19% on a constant currency basis, which included an 11 percentage point impact from sanctions in Russia. The year-over-year decrease was also driven by softness in Japan due to the macroeconomic factors I mentioned earlier as well as the expected slowdown in COVID surveillance.

對於定序儀器來說，NovaSeq X 放置所帶來的高通量成長被中通量儀器的下降所抵消。歐洲、中東和非洲地區的收入為 9,800 萬美元，年減 22%，以固定匯率計算下降 19%，其中俄羅斯制裁造成 11 個百分點的影響。年比下降的原因還在於日本經濟疲軟，原因是我之前提到的宏觀經濟因素以及新冠監測的預期放緩。

Greater China revenue of $98 million represented a 26% decrease year-over-year or 25% on a constant currency basis, reflecting continued macroeconomic and geopolitical challenges as well as local competition in mid-throughput.

大中華區營收為 9,800 萬美元，年減 26%，以固定匯率計算下降 25%，反映出持續的宏觀經濟和地緣政治挑戰以及中吞吐量的本地競爭。

Moving to the rest of core Illumina P&L. Core Illumina non-GAAP gross margin of 66% decreased 290 basis points year-over-year primarily driven by product mix and less fixed cost leverage on lower manufacturing volumes as well as lower instrument margins and higher field service and installation costs due to the NovaSeq X launch, which is typical in a launch year.

轉向 Illumina 核心損益表的其餘部分。 Core Illumina 非 GAAP 毛利率為 66%，年減 290 個基點，主要是由於產品組合和固定成本槓桿減少導致的製造量下降以及 NovaSeq 導致的儀器利潤率下降和現場服務和安裝成本上升X 發布，這是發布年份的典型情況。

Core Illumina non-GAAP operating expenses of $481 million were down $33 million year-over-year and were lower than expected primarily due to continued expense-reduction initiatives. As a result of these factors, core Illumina non-GAAP operating margin was 22.5% in Q3 2023 compared to 22.6% in Q3 2022. Despite our lower gross margin, operating margin was approximately flat year-over-year due to our proactive cost management initiatives.

Core Illumina 的非 GAAP 營運費用為 4.81 億美元，年比減少 3,300 萬美元，低於預期，主要是由於持續的費用削減措施。由於這些因素，2023 年第三季Illumina 非GAAP 核心營業利潤率為22.5%，而2022 年第三季為22.6%。儘管我們的毛利率較低，但由於我們積極的成本管理，營業利潤率與去年同期基本持平倡議。

Transitioning to financial results for GRAIL. GRAIL revenue of $21 million for the quarter grew 110% year-over-year driven primarily by adoption of Galleri. GRAIL non-GAAP operating expenses totaled $161 million and increased $12 million year-over-year driven primarily by efforts to scale GRAIL's commercial and R&D organizations.

轉向 GRAIL 的財務表現。 GRAIL 本季營收為 2,100 萬美元，年增 110%，這主要得益於 Galleri 的採用。 GRAIL 非公認會計準則營運費用總計 1.61 億美元，年增 1,200 萬美元，主要是由於擴大 GRAIL 商業和研發組織的努力所致。

Moving to consolidated cash flow and balance sheet items. Cash flow provided by operations was $139 million. Third quarter 2023 capital expenditures were $45 million, and free cash flow was $94 million. We did not repurchase any common stock in the quarter.

轉向合併現金流量和資產負債表項目。營運提供的現金流為 1.39 億美元。 2023 年第三季資本支出為 4,500 萬美元，自由現金流為 9,400 萬美元。本季我們沒有回購任何普通股。

We ended the quarter with approximately $933 million in cash, cash equivalents and short-term investments. During the third quarter of 2023, the company used $750 million in cash to repay the outstanding principal of convertible notes that matured in August 2023.

截至本季末，我們擁有約 9.33 億美元的現金、現金等價物和短期投資。 2023年第三季度，該公司使用7.5億美元現金償還2023年8月到期的可轉換票據的未償本金。

Moving now to 2023 guidance. We now expect full year 2023 consolidated revenue to decline 2% to 3% from 2022, including core Illumina revenue that is down 3% to 4% year-over-year. As a reminder, these ranges include anticipated reductions from COVID surveillance of approximately 200 basis points, the impact on our business from sanctions in Russia of approximately 100 basis points, reductions in our business in China as well as a year-over-year negative impact from foreign exchange rates.

現在轉向 2023 年指導。我們現在預計 2023 年全年合併收入將比 2022 年下降 2% 至 3%，其中核心 Illumina 收入將年減 3% 至 4%。提醒一下，這些範圍包括預計新冠病毒監控將減少約 200 個基點、俄羅斯制裁對我們業務的影響約 100 個基點、我們在中國業務的減少以及同比負面影響來自外匯匯率。

GRAIL revenue is now expected to be at the low end of the range of $90 million to $110 million for 2023.

目前預計 2023 年 GRAIL 收入將處於 9,000 萬美元至 1.1 億美元範圍內的低端。

For fiscal 2023, we now expect core Illumina sequencing instrument revenue to decline 5% to 6% year-over-year driven by capital and cash flow constraints that have continued to impact our customers' purchasing behaviors globally as well as the decline in our business in China. The decrease from our prior guidance is primarily driven by our lower NovaSeq X shipment expectations for 2023.

對於 2023 財年，我們目前預計 Illumina 核心定序儀器收入將同比下降 5% 至 6%，原因是資本和現金流限制持續影響我們全球客戶的購買行為以及我們業務的下滑在中國。較先前指引的下降主要是因為我們對 2023 年 NovaSeq X 出貨量預期的降低。

We now expect to ship between 330 to 340 NovaSeq X instruments for the year as customers' purchasing constraints lead to lengthened sales cycles. We also now expect core Illumina sequencing consumables revenue to decline 5% to 6% year-over-year driven primarily by the decrease in NovaSeq 6000 consumables as customers transition to NovaSeq X, the impact of macroeconomic conditions on customer project planning and budgets, the effect of sanctions in Russia, the slowdown in COVID surveillance, and the decline in our business in China. The decrease from our prior guidance primarily reflects a slower ramp in NovaSeq X consumables, in part due to our lower placement expectations as well as the increasing impacts of macroeconomic constraints.

由於客戶的採購限制導致銷售週期延長，我們現在預計今年將出貨 330 至 340 台 NovaSeq X 儀器。我們現在也預期核心 Illumina 定序耗材收入將年減 5% 至 6%，這主要是由於客戶過渡到 NovaSeq X 時 NovaSeq 6000 耗材的減少、宏觀經濟狀況對客戶專案規劃和預算的影響、俄羅斯制裁的影響、新冠病毒監控的放緩以及我們在中國業務的下滑。與我們先前指引相比的下降主要反映了 NovaSeq X 耗材的成長放緩，部分原因是我們的安置預期較低以及宏觀經濟限制的影響日益加大。

We now expect core Illumina total sequencing revenue to decline 3% to 4% year-over-year. This continues to include intercompany sales to GRAIL of approximately $30 million, which are eliminated in consolidation. We now expect consolidated non-GAAP operating margin of 4% to 4.5% and core Illumina non-GAAP operating margin of 19% to 19.5%. Our revised operating margins reflect our lower revenue expectations for the year, partially offset by continued expense-reduction initiatives. We now expect our non-GAAP tax rate to be approximately 39% for 2023 due to discrete tax benefit recognized in Q3 2023 related to prior year return adjustments.

我們現在預計 Illumina 核心總定序收入將年減 3% 至 4%。其中還包括公司間向 GRAIL 銷售的約 3,000 萬美元，該銷售額在合併中被消除。我們目前預期綜合非 GAAP 營運利潤率為 4% 至 4.5%，核心 Illumina 非 GAAP 營運利潤率為 19% 至 19.5%。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，但部分被持續的費用削減舉措所抵消。由於 2023 年第三季確認了與上一年報酬調整相關的離散稅收優惠，我們現在預計 2023 年的非 GAAP 稅率約為 39%。

Lastly, we now expect non-GAAP earnings per diluted share in the range of $0.60 to $0.70 for 2023, reflecting non-GAAP diluted shares outstanding of approximately 159 million shares. Dilution from GRAIL's non-GAAP operating loss is now expected to be approximately $660 million as GRAIL continues to manage its expense base in line of its latest revenue outlook.

最後，我們目前預計 2023 年非 GAAP 攤薄每股收益將在 0.60 美元至 0.70 美元之間，反映非 GAAP 攤薄後已發行股數約為 1.59 億股。由於 GRAIL 繼續根據其最新收入前景管理其費用基礎，GRAIL 的非 GAAP 營運虧損預計將攤薄至約 6.6 億美元。

I will now turn it back over to Jacob for his closing remarks. Thank you.

現在我將把它轉回給雅各布，讓他作結束語。謝謝。

Before we go to Q&A, I wanted to reiterate Illumina's commitment to supporting our customers in this difficult macroeconomic environment. While we cannot control for external factors, we can optimize our own actions to successfully navigate through this period and position the company for a return to accelerated growth on the other side.

在進行問答之前，我想重申 Illumina 在當前困難的宏觀經濟環境中為客戶提供支援的承諾。雖然我們無法控制外部因素，但我們可以優化自己的行動，以成功渡過這段時期，並為公司在另一方面恢復加速成長做好準備。

I know you're interested to hear our views for 2024. With the caveat that we haven't finished 2023, we're still looking at our budget for 2024. Our initial view is that 2024 results will look very similar to 2023. We don't expect near-term improvement to the macroeconomic environment, and geopolitical issues have been persistent.

我知道您有興趣聽聽我們對2024 年的看法。需要注意的是，我們尚未完成2023 年的工作，我們仍在考慮2024 年的預算。我們的初步觀點是2024 年的結果將與2023 年非常相似。我們不要指望宏觀經濟環境短期內會有所改善，地緣政治問題也一直存在。

We are encouraged with the early signs we're seeing for NovaSeq X utilization and the continued rollout of the X position us very well for the ramp in consumables and overall growth when the market conditions improve. This is clearly a dynamic situation, and we want to be able to develop our views in depth. Therefore, for 2024, we will not provide guidance before our Q4 earnings call in February.

我們看到 NovaSeq X 利用率的早期跡象令我們感到鼓舞，而且 X 的持續推出使我們在市場條件改善時有利於消耗品的成長和整體成長。這顯然是一個動態的情況，我們希望能夠深入發展我們的觀點。因此，對於 2024 年，我們不會在 2 月的第四季財報電話會議之前提供指導。

The main reason that I joined Illumina was my strong conviction about the future of the core Illumina business. While over the coming months, I'll continue to listen and learn, I would also be focused on several key priorities. First, we need to drive our top line as much as possible in this environment. This means continued placements of the NovaSeq X and all of our instruments, laying the groundwork for increased consumables demand.

我加入 Illumina 的主要原因是我對 Illumina 核心業務的未來抱持堅定的信念。在接下來的幾個月裡，我將繼續傾聽和學習，同時我也會專注於幾個關鍵的優先事項。首先，我們需要在這種環境下盡可能地提高我們的營收。這意味著 NovaSeq X 和我們所有儀器的繼續放置，為消耗品需求的增加奠定了基礎。

We'll continue working closely with our customers around the world, whether they are integrating new instruments into their workflows, starting new projects or building new tests or assays.

我們將繼續與世界各地的客戶密切合作，無論他們是將新儀器整合到他們的工作流程中、啟動新專案還是建立新的測試或分析。

Second, we need to keep driving innovation that is highly focused on our customers with priorities. These innovations include automation and sample-to-answer solutions, served to strengthen our leadership position around the world. At the same time, we need to manage our R&D investments with discipline and rigor.

其次，我們需要持續推動高度關注客戶的創新。這些創新包括自動化和從樣本到答案的解決方案，有助於加強我們在全球的領導地位。同時，我們需要紀律嚴明地管理我們的研發投資。

We most recently launched our 25B rating kit. This was highly anticipated by our customers, and it will unleash the full power of the NovaSeq X.

我們最近推出了 25B 評級套件。這是我們的客戶高度期待的，它將釋放 NovaSeq X 的全部力量。

Third, we need to focus our own operational excellence across geographies, functions and processes. Earlier this year, we announced a plan to reduce our annualized run rate expenses. Our team has executed well and has been able to reduce annualized run rate expenses by approximately $175 million, ahead of our original projection of more than $100 million. These savings will continue to support flexibility and further investment in high-growth areas and our margins.

第三，我們需要專注於跨地域、職能和流程的卓越營運。今年早些時候，我們宣布了一項減少年化運行費用的計劃。我們的團隊執行良好，已能夠將年化運行費用減少約 1.75 億美元，比我們最初預計的 1 億多美元要高。這些節省將繼續支持靈活性以及對高成長領域和我們的利潤的進一步投資。

I'm committed to executing against all of these priorities with a strong sense of urgency. We are focused on delivering tangible improvements that support profitable long-term growth from Illumina and for our shareholders.

我致力於以強烈的緊迫感執行所有這些優先事項。我們專注於提供實際的改進，以支持 Illumina 和我們的股東實現盈利的長期成長。

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

我現在邀請接線生開始問答環節。

(Operator Instructions) And our first question comes from Vijay Kumar with Evercore ISI.

（操作員說明）我們的第一個問題來自 Evercore ISI 的 Vijay Kumar。

Jacob, welcome to Illumina. My maybe one question is on GRAIL, maybe a 2-parter here. I think the EC divestiture order asks for 2.5 years of cash outlay. What does that mean given GRAIL's current OpEx spending? Is that $1.75 billion of cash out there. And I think related to that, I saw you announced a special committee, who is on the special committee? What is the focus for this committee? Is there any more details and it sounded something different, I just wanted to understand what is different, what has changed?

雅各布，歡迎來到 Illumina。我可能有一個關於 GRAIL 的問題，這裡可能是 2 人問題。我認為 EC 剝離令要求 2.5 年的現金支出。考慮到 GRAIL 目前的營運支出，這意味著什麼？那裡有 17.5 億美元的現金嗎？我認為與此相關的是，我看到你宣布了一個特別委員會，特別委員會中有誰？這個委員會的重點是什麼？有沒有更多的細節，聽起來有些不同，我只是想了解什麼不同，什麼改變了？

Yes, Vijay. Thank you very much, and I'm really excited to be here at Illumina. And let me start with your second question, and then I'll have Joydeep step in also on talking about the -- what those 2.5 years means. But as I discussed here, coming into the company, I felt it was very important to get clarity on GRAIL. And it was very important for me to have the support for the Board and to make swift decisions to move forward.

是的，維傑。非常感謝你們，我很高興來到 Illumina。讓我從你的第二個問題開始，然後我將請 Joydeep 介入討論——這 2.5 年意味著什麼。但正如我在這裡討論的那樣，進入公司後，我覺得弄清楚 GRAIL 非常重要。獲得董事會的支持並迅速做出前進的決定對我來說非常重要。

And thereby, we started a special committee with 3 of the Board members, including -- and then besides me, that is the chairing of that committee. So I have 3 Board members plus me, that will work with the management team to really walk through all the elements around the divestiture order to make sure we can make some fast decisions.

因此，我們成立了一個由 3 名董事會成員組成的特別委員會，除了我之外，還有該委員會的主席。因此，除了我之外，我還有 3 位董事會成員，他們將與管理團隊合作，真正了解剝離令的所有要素，以確保我們能夠快速做出一些決策。

We need to make decisions which path we're going to follow. Is it going to be a trade sale, the spin, the split, with or without a sponsor? And of course, there's a lot of considerations related to that. That's really what the special committee is helping me and the rest of the management team to do. Joydeep?

我們需要決定要走哪條路。是否會是貿易銷售、旋轉、分割，有或沒有贊助商？當然，有很多與此相關的考慮因素。這確實是特別委員會正在幫助我和管理團隊其他成員做的事情。喬伊迪普？

Yes, Vijay. So in the 2.5 years of cash support to GRAIL, we're still working with the European Commission on exactly what that means in terms of numerical number. So I'm not at liberty to disclose those details. We will come back with that once we have alignment.

是的，維傑。因此，在對 GRAIL 的 2.5 年現金支持中，我們仍在與歐盟委員會合作，研究這在數字方面的具體含義。所以我不能隨意透露這些細節。一旦我們達成一致，我們就會回來。

But I think as Jacob alluded to, right, this is not something that we have to provide all on our own, right? We have several options now that we have worked with the EC to come out with a -- or to have a divestiture order that is in line with our expectations for flexibility to use even in the case of a spin or a split decision, we can get in a sponsor that can support all or part of the requirement for the 2.5 years of cash support or we can go to the markets and raise that money as well, right? So stay tuned on that one.

但我認為正如雅各所提到的，這不是我們必須自己提供的東西，對吧？我們現在有多種選擇，我們已經與歐盟委員會合作，制定一項剝離令，該剝離令符合我們對靈活使用的期望，即使在旋轉或分裂決定的情況下，我們也可以找到一個可以支持2.5 年現金支持的全部或部分要求的贊助商，或者我們也可以去市場籌集這筆錢，對嗎？所以請繼續關注這一點。

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。

Jacob, welcome. Maybe just -- I'll ask one. Obviously, it's all we have, but maybe a couple parter. So maybe, Jacob, obviously, you left a great job at Agilent before coming here. And certainly, would be interested to get your view on the growth rate and outlook for Illumina when you're ready to give that. But I'd be interested to get your view on kind of the overall NGS market in taking a job. Like thoughts on what type of growth characteristics you think are reasonable in that market? Because given the price cuts, there's just a lot of question on demand elasticity.

雅各布，歡迎。也許只是——我會問一個。顯然，這是我們所擁有的一切，但也許還有一對。所以，雅各布，顯然，您在來到這裡之前離開了安捷倫的一份出色工作。當然，當您準備好提供這些資訊時，我們有興趣了解您對 Illumina 的成長率和前景的看法。但我很想了解您對找工作時整個 NGS 市場的看法。您認為該市場中哪種類型的成長特徵是合理的？因為考慮到降價，需求彈性存在許多問題。

So I guess, first one is on the NGS overall market, few of view there. And then, b, I just had a question on the X specifically. I understand, obviously, has a lowering replacement number given customer constraints. But can you give any color on the orders or the backlog that you have as of right now?

所以我想，第一個是 NGS 整體市場，很少人關注。然後，b，我只是有一個關於 X 的具體問題。據我了解，考慮到客戶的限制，更換數量顯然會減少。但您能否對目前的訂單或積壓訂單進行說明？

And then the final part would just be on guidance. Illumina has had a series of kind of guidance reductions. A lot of peers are facing the same issue, but you guys have had a more elongated period of this. So I'm just wondering kind of what changes can be made in order to hopefully better set guidance so that the risk of these reductions is elemented going forward.

然後最後一部分只是指導。 Illumina 進行了一系列指導性的削減。很多同行都面臨同樣的問題，但你們經歷的時間更長。因此，我只是想知道可以做出哪些改變，以便更好地制定指導，以便未來減少這些減少的風險。

Thanks, Dan. And I think I will have Joydeep also jumping in on some of those elements here. But let me just start by coming here into Illumina. And my observation both from when I was outside Illumina but also coming in, I think that the core business has a tremendous opportunity. I think there's a lot of opportunities in the NGS markets. And I think we are definitely through a tough period right now. I think the whole life science tools industry is seeing it. And certainly, here at Illumina, we're not immune for that.

謝謝，丹。我想 Joydeep 也會參與其中的一些元素。但讓我先從 Illumina 開始。根據我在 Illumina 外部和剛加入時的觀察，我認為核心業務擁有巨大的機會。我認為NGS市場有很多機會。我認為我們現在肯定正在經歷一段艱難的時期。我認為整個生命科學工具產業都在看到這一點。當然，在 Illumina，我們也不能倖免。

But the growth rates, even though -- I will spend time here over the next period of time still learning the business and really understand the organization. So at this point of time, I don't have a final opinion about what the -- what I think is the right growth rate for the business and what we're committing to. But I will certainly come back later in '24 and share all of that with you when I'm ready for it.

但儘管如此，成長率 - 我將在接下來的一段時間內花時間仍然學習業務並真正了解組織。因此，目前，我對業務的正確成長率以及我們的承諾還沒有最終意見。但我肯定會在 24 年晚些時候回來，當我準備好時與你們分享所有這些。

But in the meantime, I think that the overall market is very healthy and there will be a lot of growth opportunities for Illumina going forward. And I can then say that my -- some of the findings coming into the company and really digging deep into our innovation engine and what our road maps look like. I'm very excited for the future of this company. I think we will continue to pioneer in this area.

但同時，我認為整體市場非常健康，Illumina 未來將會有許多成長機會。然後我可以說，我的一些發現進入了公司，並真正深入研究了我們的創新引擎和我們的路線圖。我對這家公司的未來感到非常興奮。我想我們會繼續在這個領域做先鋒。

So I think on guidance and, Joydeep, join in here also, but in the end, we wanted to make sure when we signal also from, especially '24 here, that at this point, we want to be prudent in how we set our -- it's not a guidance yet, but at least how we view '24 as we simply don't see any change -- short-term change in the economical environment. And therefore, we felt it was important for -- to go out now and share our observations. But Joydeep, do you want to?

所以我認為在指導上，Joydeep 也加入這裡，但最後，我們想確保當我們也發出信號時，特別是 24 在這裡，在這一點上，我們希望謹慎對待我們如何設置我們的——這還不是一個指導方針，但至少我們如何看待“24”，因為我們根本看不到任何變化——經濟環境的短期變化。因此，我們認為現在出去分享我們的觀察非常重要。但是Joydeep，你願意嗎？

No. I think, Jacob, that's right. On the guidance piece, look, we made a commitment to you to come back to you with any read on the macroeconomics we see. And I think we've held up to that commitment. In fact, we may have been a little bit canary in the coal mine signaling some of this earlier to you, especially this year than others, right?

不，我想，雅各布，是的。在指導文章中，我們向您承諾，我們會向您提供有關我們所看到的宏觀經濟學的任何讀物。我認為我們已經履行了這項承諾。事實上，我們可能是煤礦裡的金絲雀，比其他人更早地向您發出了一些信號，尤其是今年，對嗎？

One of the things, of course, you did bring up was the elongated sort of lack of growth or the reduced growth that we have had. That is true. I think part of what hit us at the same time as a macroeconomic going down is the transition -- major transition on our platform, which has hit us as customers move from the 6000 to the expert. There's a gap between when they burn down some of their inventory on the X and then wait to fully ramp up on the X. So you will see that balance out over time. We don't have any doubts on that.

當然，您確實提到的一件事是我們所經歷的長期缺乏成長或成長放緩。那是真實的。我認為，在宏觀經濟下行的同時，對我們造成衝擊的部分原因是轉型——我們平台上的重大轉型，隨著客戶從 6000 轉向專家，這對我們造成了衝擊。他們在 X 上消耗掉一些庫存，然後等待 X 上的庫存完全增加，這之間有一個間隙。因此，隨著時間的推移，你會看到這種平衡。對此我們沒有任何疑問。

And then on the X, I want to reemphasize, and I think you will have seen this from your channel checks as well, demand and interest in the innovation and the capabilities that the X brings remain strong. I think we are very excited about the launch of the 25b. And I think those of you who attended ASHG would have seen our customers interest in that and the data that's coming out of the 25B and the improvements that we continue to make on the software really resonate with our customers. So we remain very interested in that.

然後，關於 X，我想再次強調，我想您也會從通路檢查中看到這一點，對 X 帶來的創新和功能的需求和興趣仍然很強勁。我認為我們對 25b 的推出感到非常興奮。我認為參加 ASHG 的人會看到我們的客戶對此感興趣，25B 中得出的數據以及我們繼續對軟體進行的改進確實引起了客戶的共鳴。所以我們對此仍然非常感興趣。

And our next question will come from Puneet Souda with Leerink Partners.

我們的下一個問題將來自 Leerink Partners 的 Puneet Souda。

Jacob, good to have you on board here. So if I could ask 2-part questions just with the 25B launch, can you talk a little bit about how -- and maybe Joydeep can chime in and talk about how the transformation is going to be sort of over the next couple of months. You obviously get a price uptick with the 25B, but not all customers are going to be able to essentially fill up that flow cell. So there is going to be a bit of an ebb and flow. So maybe if you could talk a little bit about that, at least qualitatively in the near term.

雅各布，很高興你能加入這裡。因此，如果我可以就 25B 的發布提出由兩部分組成的問題，您能否談談如何——也許 Joydeep 可以插話並談談未來幾個月將如何進行轉型。顯然 25B 的價格會上漲，但並非所有客戶基本上都能填滿該流通池。所以會有一點潮起潮落。所以也許你可以談談這個問題，至少在短期內是定性的。

And then a bigger competition question. Jacob, you've seen the LCMS business and other businesses in China. What do you imagine for China, for Illumina with one of the bigger competitors over there? How do you see Illumina's position in China longer term?

然後是一個更大的競爭問題。 Jacob，您已經了解了中國的LCMS業務和其他業務。對於 Illumina 和那裡更大的競爭對手之一，您對中國有何看法？您如何看待Illumina在中國的長期地位？

And if I may just ask on -- again, on competition, one of your diagnostic customers, NIPT and MRD customer pointed out that they're validating different platforms. So again, what's your view on competition?

如果我可以再問一下，關於競爭，你們的一位診斷客戶、NIPT 和 MRD 客戶指出，他們正在驗證不同的平台。那麼，您對競爭有何看法？

Thank you very much, Puneet. And again, I'm very pleased to be here. Let me start with the China question. Yes, you're right, I have certainly some experience of running businesses in China, very familiar with the Chinese -- the China itself and how to operate businesses there.

非常感謝你，普尼特。再說一遍，我很高興來到這裡。讓我從中國問題開始。是的，你說得對，我當然有一些在中國經營企業的經驗，非常熟悉中國人——中國本身以及如何在那裡經營企業。

So what is, of course, more unique for Illumina than some of our -- some of the other life science tools companies is that Illumina has a Chinese competitor that have at least good enough sequencing capabilities here. But China continues to be an extremely important country for us. And we are right now working through and -- in China for China strategy to really be much better positioned in China going forward, and we are committing to China. And I think we can actually do really well in China.

當然，對於 Illumina 來說，比我們其他一些生命科學工具公司更獨特的是，Illumina 有一個中國競爭對手，至少在這裡擁有足夠好的定序能力。但中國對我們來說仍然是一個極為重要的國家。我們現在正在中國努力製定中國戰略，以便真正在中國更好地定位未來，我們正在對中國做出承諾。我認為我們實際上可以在中國做得很好。

Many of our customers in China prefers to work with Illumina for what we stand for both quality but also that we are the number one brand out there. So we will continue to be very strong in China.

我們在中國的許多客戶更喜歡與 Illumina 合作，因為我們不僅代表著質量，而且我們是那裡的第一品牌。因此，我們將繼續在中國保持強大的實力。

Generally speaking, on competition, yes, you're right. I mean there are competition out there. As you also know, I'm very familiar with being in a very competitive environment. And I think that with what Illumina has, which I think will serve us extremely well, is that we have a very strong brand. We have a very strong installed base. Almost all payables coming out is based on our technology.

一般來說，關於競爭，是的，你是對的。我的意思是那裡存在競爭。如你所知，我非常熟悉競爭激烈的環境。我認為 Illumina 擁有非常強大的品牌，我認為這將為我們提供非常好的服務。我們擁有非常強大的安裝基礎。幾乎所有應付款項都是基於我們的技術。

And also, of course, what I see internally with the road map we have for the pipeline of new products coming out, our innovation capabilities will continue to position us very extremely competitive in this environment. But of course, I understand and I'm fully aware that we will be in a very competitive situation forward. And in the end, I think that just keeps us really focused on our customers, and we'll do our best for our customers. So I'm here, I'm ready to fight for it.

當然，從我內部看到的新產品開發路線圖來看，我們的創新能力將繼續使我們在這種環境中具有極其強大的競爭力。但當然，我理解並且完全意識到我們將處於一個非常競爭的局面。最後，我認為這讓我們真正專注於我們的客戶，我們將竭盡全力為我們的客戶服務。所以我在這裡，我準備好要為此奮鬥。

Yes. Maybe I'll tag on there. Let me start with the competition. We obviously, as Jacob said, take it seriously but also monitor it very carefully across the globe through what we're seeing out in the field. So I will say, outside of China, we have seen the competition. And share have been what we had expected, right? Obviously, with new market entrants, you will see a little bit of a decline in share, but it has been, outside of China, very much according to expectations.

是的。也許我會在那裡標記。讓我從比賽開始。顯然，正如雅各布所說，我們認真對待它，但也透過我們在現場看到的情況在全球範圍內非常仔細地監控它。所以我想說，在中國之外，我們已經看到了競爭。分享也正是我們所期望的，對嗎？顯然，隨著新的市場進入者，你會看到份額略有下降，但在中國以外的地區，情況非常符合預期。

On the 25B, Puneet, so let me start by saying what we have seen, and this is early indicator, is that when we look at sequencing activity growth, and we measure it by gigabase, we are seeing that customers who have adopted Dx have seen a faster growth rate in output, in sequencing output than customers who have not adopted Dx, right? So this is an encouraging sign that X is actually spurring more sequencing activity at these customers.

在 25B 上，Puneet，所以讓我先說一下我們所看到的，這是早期指標，當我們觀察測序活動的增長並通過千兆鹼基來衡量它時，我們發現採用了 Dx 的客戶已經與未採用Dx 的客戶相比，我們看到產量、定序產量的成長率更快，對嗎？因此，這是一個令人鼓舞的跡象，表明 X 實際上正在刺激這些客戶進行更多的定序活動。

And again, it's still very early days. They're ramping up. They're validating fully on their particular workflows. With 25B, I think you're right, it will spur even more capacity and experiments. We've heard customers that want to run very large single-cell experiments, for example, be very excited about this 25B and the capabilities that it brings. So we expect that to play out.

再說一遍，現在還為時過早。他們正在加速。他們正在充分驗證其特定的工作流程。有了 25B，我認為你是對的，它將刺激更多的容量和實驗。例如，我們聽說想要運行超大型單細胞實驗的客戶對這款 25B 及其帶來的功能感到非常興奮。所以我們預計這會發生。

I think when you get into the dynamics of whether you're running full flow cells or not, there is a very complex interaction of things that will lead to higher prices per gigabase until we fully load your flow cells. So we can get into that off-line. But we do expect those dynamics to be very similar to what you saw when you brought on NovaSeq 6000 and some of the other flow cells, et cetera.

我認為，當您了解是否正在運行完整的流動槽時，會發現存在非常複雜的相互作用，這將導致每千兆鹼基的價格更高，直到我們完全加載您的流動槽。所以我們可以離線進行。但我們確實希望這些動態與您使用 NovaSeq 6000 和其他一些流通池等時看到的非常相似。

But I think also, Joydeep, just to finish on the opportunity that we have seen, at least the customers that I've met here also in the clinical space, are very excited with the new flow cells as this opens up for new assays, new products offering that they haven't had before. So while it will take them a little while, of course, to validate and get up and running, we see many of them right now are rushing to be first to market with us.

但我也認為，Joydeep，為了結束我們所看到的機會，至少我在這裡遇到的臨床領域的客戶對新的流動池感到非常興奮，因為這為新的檢測開闢了道路，提供他們以前沒有過的新產品。因此，雖然他們當然需要一段時間來驗證、啟動和運行，但我們看到他們中的許多人現在都在爭先恐後地與我們一起進入市場。

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。

Jacob, just a follow-up on the special committee that will look at GRAIL. What's the general time line that they're expected to be on with respect to reaching a decision? And then can you update us on when the GRAIL team is expecting to see a readout for the NHS-Galleri study at this point?

Jacob，只是負責 GRAIL 的特別委員會的後續行動。他們做出決定的一般時間表是怎樣的？那麼您能否向我們介紹 GRAIL 團隊預計何時看到 NHS-Galleri 研究結果的最新消息？

Yes. So I can tell you that we are working as quickly as we can under the framework to look at the options here. And I can tell you the -- I'm as frustrated as all of you, and I look forward to get this behind us. So we are working on very tight time lines. At this point, I don't want to commit to anything because I want to make sure that I can deliver on my commitments on any time line here.

是的。所以我可以告訴你，我們正在框架下盡快研究這裡的選項。我可以告訴你們——我和你們所有人一樣感到沮喪，我期待著把這件事拋在腦後。因此，我們的工作時間非常緊迫。此時，我不想承諾任何事情，因為我想確保我可以在任何時間線上兌現我的承諾。

So by the way, I also want to share with you that this morning, we got the feedback from the ECJ that they have now put in a date for the hearing -- oral hearing, which would be mid-December. So it's good news in the way that things now are moving forward.

順便說一句，我還想與大家分享，今天早上，我們收到了歐洲法院的回饋，他們現在已經確定了聽證會的日期——口頭聽證會，將於 12 月中旬舉行。因此，就目前事情的進展而言，這是個好消息。

And just on that, that the appeals are important to us, obviously, for the reason of GRAIL, but probably as important for ensuring that we have the flexibility for future transactions that we will look into. So -- and obviously, also, we can get rid of the fine and so on. So that's why the appeals continues to be important.

就這一點而言，顯然，出於 GRAIL 的原因，這些呼籲對我們很重要，但對於確保我們對未來交易的靈活性也可能同樣重要。因此，顯然，我們也可以取消罰款等。這就是為什麼呼籲仍然很重要。

NHS GRAIL readout timing, I think as I stated before that's -- the final expectation on that is some point in 2024, and they will have an early readout as well -- a preliminary readout before that.

NHS GRAIL 讀出時間，我認為正如我之前所說，最終的預期是 2024 年的某個時間點，他們也將有一個早期讀出——在此之前的初步讀出。

And we have a question from Michael Ryskin with Bank of America.

我們有來自美國銀行的邁克爾·里斯金 (Michael Ryskin) 的問題。

Welcome board. I guess I want to follow up on the earlier question about sort of underlying demand in the market and what gives you confidence in some of the longer-term view. And I guess I'll phrase it in terms of your update to the guide here in the third quarter. I mean you're citing some of the same macro headwinds that others are in terms of what's going on in China, in terms of broader funding concerns and budget tightness. And you're saying that that's sort of weighing on consumables purchases.

歡迎板。我想我想跟進之前關於市場潛在需求的問題，以及是什麼讓您對一些長期觀點充滿信心。我想我會根據您在第三季對指南的更新來表達它。我的意思是，你引用了一些與其他國家相同的宏觀逆風，即中國正在發生的事情，即更廣泛的資金擔憂和預算緊張。你是說這對消耗品購買造成了一定的壓力。

But at the same time, you're not getting the switchover to the Nova X because if you're looking at the order book, the orders have barely grown between 2Q and 3Q. You went from 260 to 310. So orders were up 50 units in the quarter and you placed 97. So it's not like there's a ton of demand growing for Nova X, and yet the Nova 6000 consumables seems to be really slowing.

但同時，你並沒有切換到 Nova X，因為如果你查看訂單簿，你會發現第二季到第三季的訂單幾乎沒有成長。您從 260 台增加到 310 台。因此，本季訂單增加了 50 台，而您下了 97 台。因此，Nova X 的需求並沒有大量增長，但 Nova 6000 消耗品的需求似乎確實在放緩。

So I'm just trying to reconcile that. I mean if people aren't sequencing on the Nova 6000 because they're gearing up for the Nova X, then you would at least see those orders grow. So how can you confidently state that some of this is that transition between instruments and not just less underlying demand in the market?

所以我只是想協調這一點。我的意思是，如果人們因為為 Nova X 做準備而不在 Nova 6000 上進行測序，那麼您至少會看到這些訂單增長。那麼，您如何自信地說其中一部分是工具之間的過渡，而不僅僅是市場潛在需求的減少？

Yes. So let me just start again, address that the -- that we do see the demand in the market space. We also mentioned this overall that we see more gigabase growth rate. So we see definitely there's a lot of activities out there. And again, there's no doubt that the long-term perspective in this market is very healthy. I think what you're seeing is that we're running through and a very challenging environment that everybody else is seeing.

是的。因此，讓我重新開始，解決這個問題——我們確實看到了市場空間的需求。我們也提到了總體而言，我們看到了更多的千兆位元成長率。所以我們看到肯定有很多活動。毫無疑問，這個市場的長期前景是非常健康的。我認為你所看到的是我們正在經歷一個其他人都看到的非常具有挑戰性的環境。

And I think everybody -- also last year when they were providing guidance, they were probably optimistic that things will spring back in the second half. And everybody got surprised or at least -- that it didn't. So therefore, we are right now a little more prudent in how we look out in the future. So I think that's one element to it. But if you look into the specifics, I think Joydeep can provide little more insights.

我認為每個人——去年當他們提供指導時，他們可能對下半年情況反彈持樂觀態度。每個人都感到驚訝，或者至少——事實並非如此。因此，我們現在對未來的展望更加謹慎。所以我認為這是其中的一個要素。但如果你深入研究細節，我認為 Joydeep 可以提供更多的見解。

Yes. So I think the -- there's a couple of things when we look at why is it -- further -- the slowdown is further impacted by the transition, right? So definitely, Michael, there is an element of the overall macro slowdown.

是的。因此，我認為，當我們進一步探討為什麼經濟放緩進一步受到轉型的影響時，有幾件事，對嗎？邁克爾，所以肯定存在整體宏觀經濟放緩的因素。

But two things I will tell you about the transition, right? So we look very carefully at high-throughput customers that have purchased the X versus those that have not purchased an X. And we see definitely that the 6000 consumables slowdown is much more pronounced to these customers that have bought the X, right? So that gives us a very good control mechanism of isolating the impact of transition versus the broader macroeconomic trends.

但我會告訴你關於過渡的兩件事，對嗎？因此，我們非常仔細地觀察購買了X 的高吞吐量客戶與未購買X 的客戶。我們確實看到，對於這些購買了X 的客戶來說，6000 種消耗品的放緩更為明顯，對吧？因此，這為我們提供了一個非常好的控制機制，可以將轉型的影響與更廣泛的宏觀經濟趨勢隔離。

And again, realize that they're still ramping up with the X and the 25B. Really for many of these customers that are early adopters, they're really the higher users -- the higher-output users for the NovaSeq X, right? So you will see that transition coming, the ramp-up on the X consumables coming, especially after the launch of the 25B. But it will take them a few months to get up to full capacity once they've validated their workflows.

再次提醒您，他們仍在大力開發 X 和 25B。對於許多早期採用者來說，他們確實是更高級別的用戶——NovaSeq X 的更高輸出用戶，對吧？所以你會看到這種轉變即將到來，X 消耗品的升級即將到來，特別是在 25B 推出之後。但一旦他們驗證了工作流程，他們將需要幾個月的時間才能達到滿載。

And our next question comes from Tejas Savant with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Tejas Savant。

Jacob, welcome to Illumina. I had a couple of questions for you here, starting on the GRAIL side of things. Looks like you're expecting this ECJ decision in mid-'24. So can you just walk us through the implications of that in terms of what the committee can really do ahead of that time frame?

雅各布，歡迎來到 Illumina。我在這裡有幾個問題要問你，首先是從 GRAIL 方面開始。看起來您預計 ECJ 將在 24 年中期做出決定。那麼您能否向我們介紹委員會在該時間範圍之前可以真正做什麼的影響？

And then beyond the ongoing sort of court cases and figuring out if it end and how to divest this asset, how are you thinking about monetizing the data value that's embedded within GRAIL? Is that an active discussion that's being had at the Board level within this committee as well?

然後，除了正在進行的法庭案件、確定案件是否結束以及如何剝離該資產之外，您如何考慮將 GRAIL 中嵌入的資料價值貨幣化？該委員會的董事會層級是否也在進行積極的討論？

And the final part of my question really is a broader one on core Illumina. Where are you in terms of the key leadership roles. Are those -- do you feel like you have a settled team yet? Or could we see some sort of significant changes in the months ahead?

我的問題的最後一部分實際上是關於 Illumina 核心的更廣泛的問題。您在關鍵領導角色方面處於什麼位置？那些——你覺得你已經擁有穩定的團隊了嗎？或者我們能在未來幾個月看到某種重大變化嗎？

Yes. So let me start by addressing the GRAIL situation. And as I think I mentioned before, that's why I put the committee in place or special committee in place is that we have the European divestiture order. And obviously, while we still run the appeals, we will do everything within the framework to move as quickly as possible. As I also mentioned in my remarks is that as soon as we have filed the Form 10, we will go out there and start to talk to potential acquirer and so on -- also looking for the spin and so on.

是的。那麼讓我先談談 GRAIL 的情況。正如我之前提到的，這就是我設立委員會或特別委員會的原因是我們有歐洲剝離令。顯然，在我們仍在進行上訴的同時，我們將在框架內盡一切努力盡快採取行動。正如我在演講中提到的，一旦我們提交了 10 號表格，我們就會出去並開始與潛在的收購方等交談，同時尋找機會等。

So we are moving as quick as we can within that framework. And we will move -- yes, again, we will move as much as we can here. So there's really nothing that holds us back from -- the appeals really runs in parallel. So there's nothing that it prevents us from moving as quick as we can within that. So I think that's -- on that, if you look at the monetization of GRAIL, I don't know, Joydeep, do you have any, thinking about that?

因此，我們正在該框架內盡快採取行動。我們將搬家——是的，我們將在這裡盡可能多地搬家。因此，確實沒有什麼可以阻止我們——這些呼籲確實是並行的。因此，沒有什麼可以阻止我們盡快行動。所以我認為，如果你看看 GRAIL 的貨幣化情況，我不知道 Joydeep，你有沒有考慮過這個問題？

I think mostly, it's -- you're talking about GRAIL data here. So this is one of the options that obviously the committee will consider and we will consider as a team. But it also really depends on the divestiture option that's chosen and what we agree going back and forth with the European Commission here. So it is one of the things that is absolutely in consideration of the various options that Jacob mentioned that the committee is going to bring on.

我認為主要是——你在這裡談論的是 GRAIL 數據。因此，這顯然是委員會將考慮的選項之一，我們將作為一個團隊考慮。但這實際上還取決於所選的剝離方案以及我們與歐盟委員會反覆商定的協議。因此，這是絕對要考慮雅各提到的委員會將提出的各種選擇的事情之一。

Yes. And then the last question, I think, was on the leadership team, and I will put it more broadly saying that I will be performing a comprehensive business view over the next period of time. Again, I've been here 40 days, and I'm really impressed with the team and the talented people we have in the organization. But I will, of course, keep you updated on what my thinking is, why we move forward here in '24.

是的。我認為最後一個問題是關於領導團隊的，我會更廣泛地說，我將在接下來的一段時間內執行全面的業務視圖。再說一遍，我已經在這裡工作了 40 天，我對我們的團隊和組織中的才華橫溢的人員印象深刻。當然，我會隨時向您通報我的想法以及我們為何在 24 年繼續前進。

And we have a question from Dan Leonard with UBS.

我們有來自瑞銀集團的 Dan Leonard 的問題。

Now that you're sort of transitioning to maybe a bit more of a hand-to-mouth demand cycle for the X given that you don't have much backlog left, I was hoping you could elaborate what the pipeline looks like. Any metrics you could offer? And is it possible you could quantify how much is the sales cycle lengthening? Is it double what it used to be? Is it some different multiple? Just anything you could help us contextualize that?

現在，考慮到您沒有太多積壓，您可能正在過渡到 X 的糊口需求週期，我希望您能詳細說明管道的情況。您可以提供任何指標嗎？您是否可以量化銷售週期延長了多少？是原來的兩倍嗎？它是一些不同的倍數嗎？您可以幫助我們了解具體情況嗎？

I think that, again, I would like to invite Joydeep in to provide a little more insights on where we are. But I can say, generally speaking, the sales cycles is extended quite a lot from what we're used to, not only because it takes time to make the decision, but also to get it through all the levels that there's much more scrutiny on all levels in the decision-making. And we've seen that. I mean we see that in Illumina, but I think that's a general thing that is happening in the industry right now. But Joydeep, do you want to...

我想，我想再次邀請 Joydeep 來提供更多關於我們現狀的見解。但我可以說，一般來說，銷售週期比我們習慣的要長得多，不僅因為做出決定需要時間，而且要通過所有需要更多審查的級別決策過程中的各個層面。我們已經看到了這一點。我的意思是我們在 Illumina 中看到了這一點，但我認為這是目前行業中正在發生的普遍現象。但是Joydeep，你想...

I just want to corroborate, Jacob, what you said, right? We see strong interest in the X. And obviously, with the launch of the 25B, that has perked up even more. And the pipeline continues to have hundreds of opportunities there, right? So we're not suffering decline in the pipeline. We continue to add opportunities for the pipeline.

我只是想證實，雅各布，你說的是不是？我們看到了人們對 X 的濃厚興趣。顯然，隨著 25B 的推出，這種興趣更加濃厚。而且管道中仍然有數百個機會，對吧？所以我們的管道並沒有減少。我們繼續增加管道的機會。

What has been -- because of the macroeconomic situation is a little bit more challenging for us is converting those, that pipeline into orders as quickly as we had imagined, right? So that is the lengthening of the sales cycle that you talked about. And we expect that, that will continue for us and for others for a little bit of time into the future here, right, till macroeconomic conditions return.

由於宏觀經濟形勢對我們來說更具挑戰性，正在將這些管道轉化為訂單，就像我們想像的那樣，對嗎？這就是你所說的銷售週期的延長。我們預計，這種情況對我們和其他人來說將持續一段時間，直到宏觀經濟狀況恢復為止。

But there's no doubt that they're not -- it's not that the demand is shifting to some other technology or some other instrument. It is still very much centered on the X, and we still continue to have conversations with our customers to get them there. And once they have bought it to really ramp them up and get them ramped up as quickly as possible so that they can pull through the consumables as quickly as possible.

但毫無疑問，事實並非如此——並不是需求正在轉向其他技術或其他儀器。它仍然以 X 為中心，我們仍然繼續與客戶進行對話，以幫助他們實現目標。一旦他們購買了它，就可以真正提高他們的能力，並讓他們盡快提高能力，以便他們可以盡快用完消耗品。

Yes. And again, I mean, as Joydeep was saying, we have a healthy pipeline. And just as an evidence that this is moving, we just here -- over the last few days, we received a 10 order -- or 10 pieces -- or was it 10-instrument order on X so -- from one of our biggest customers. So we're definitely seeing that there is really customers who really like the X and can really see that it can be utilized very nicely.

是的。我的意思是，正如 Joydeep 所說，我們有一個健康的管道。正如這正在發生的證據一樣，我們就在這裡 - 在過去的幾天裡，我們收到了 10 個訂單 - 或 10 件 - 或者是 X 上的 10 件儀器訂單 - 來自我們最大的公司之一顧客。因此，我們確實看到確實有一些客戶非常喜歡 X，並且確實看到它可以很好地使用。

Yes. Jacob, that's a good point. That's a fleet expansion order. So they've had experience with the X, and they are doubling down, right, so.

是的。雅各布，這是一個很好的觀點。這是艦隊擴張命令。所以他們已經有了 X 的經驗，並且他們正在加倍努力，對吧，所以。

And we have a question from Sung Ji Nam with Scotiabank.

Sung Ji Nam 向豐業銀行提出了一個問題。

Welcome, to Jacob. Just a quick one on GRAIL. Kind of what's the key driver of the guidance, the updated guidance being at the low end of the prior range?

歡迎來到雅各。簡單介紹一下 GRAIL。指導的關鍵驅動因素是什麼？更新後的指導處於先前範圍的低端？

Joydeep?

喬伊迪普？

I can handle this. Yes, so again, it's mostly 2 things. So they did have this particular year, some challenges with their PDX revenue. This is the pharma services revenue. And then Galleri sales are -- while they're growing nicely, have been lower than their initial expectations, right? So both those have impacted it.

我可以應付這個。是的，再說一遍，主要有兩件事。因此，今年他們的 PDX 收入確實遇到了一些挑戰。這是製藥服務收入。然後，Galleri 的銷售額雖然成長良好，但低於最初的預期，對嗎？所以這兩者都對其產生了影響。

But still a healthy growth.

但依然健康成長。

Still a very healthy growth. We're seeing that at 100%-ish.

仍然是一個非常健康的成長。我們看到這一點是 100% 左右。

And our next question comes from Kyle Mikson with Canaccord.

我們的下一個問題來自 Canaccord 的 Kyle Mikson。

Welcome, Jacob. Two-part question. First on GRAIL, second on core. On the GRAIL funding in conjunction with the divestiture, if it is a capital mortgage transaction, the company is going to need 2.5 years of cash. I think that was touched on earlier. You could provide that via equity raise or debt issuance. Could you just walk through what your exact options are to produce that capital if you don't do equity or debt offering?

歡迎，雅各。兩部分的問題。首先是 GRAIL，其次是核心。在GRAIL融資與剝離相結合的情況下，如果是資本抵押交易，公司將需要2.5年的現金。我認為早些時候已經談到過這一點。您可以透過股權融資或債務發行來提供這一點。如果您不進行股權或債務發行，您能否簡單介紹一下產生這些資本的具體選擇是什麼？

And then on the core business. You guys mentioned the initial view on 2024, is that -- it look similar to 2023. Does that mean that revenue is going to be flat year-over-year for the third year in a row? And then maybe you could just comment on orders and placements for next year. Like could placements grow in '24?

然後是核心業務。你們提到了對 2024 年的初步看法，它看起來與 2023 年相似。這是否意味著收入將連續第三年同比持平？然後也許您可以對明年的訂單和安置發表評論。例如 24 年的展示位置會增加嗎？

Yes. So let me start by the second question here. And again, we will come up with a full guidance in our Q4 '23 call in February. But I'm just sharing you with the initial view we have on '24 right now. And due to the macroeconomic environment, we want to -- and we don't see that change right now.

是的。那麼就讓我從第二個問題開始。我們將在 2 月的 23 年第 4 季電話會議中再次提供完整的指導。但我只是與您分享我們現在對 24 的初步看法。由於宏觀經濟環境的原因，我們希望——但目前我們還沒有看到這種變化。

If it changes during '24, obviously, we will see more momentum in the business. But I felt it was important to share with all of you right now on how we see the year. There are more details behind it, but we're still working through the rest of this year and we're still finalizing the, of course, 2024 budget also. So it's too early for me to share details about the debt here.

如果在 24 年期間發生變化，顯然，我們將看到業務的更多動力。但我覺得現在有必要跟大家分享我們對這一年的看法。背後還有更多細節，但我們仍在今年剩餘時間努力工作，當然，我們仍在最終確定 2024 年預算。因此，我現在在這裡分享有關債務的詳細資訊還為時過早。

But what I can tell you, as we said before, is that we still have a strong pipeline on X particularly. And we expect -- and we're just seeing that the sales cycle is taking longer than we expected. But you should actually see that the consumables is starting to pick up in '24 also.

但我可以告訴你的是，正如我們之前所說，我們在 X 方面仍然擁有強大的管道。我們預計 - 我們只是看到銷售週期比我們預期的要長。但您實際上應該看到，24 年消耗品也開始回升。

And on the GRAIL, I think I've mentioned this earlier, look, there are several options now on the table that we could help pay for the 2.5 years of funding requirements, right? So for example, if we went for a spin, there are options around the sponsored spin where a sponsor could put in a fair chunk of the money on -- some or all of the money that is required for that funding.

關於 GRAIL，我想我之前已經提到過這一點，看，現在有幾個選擇可以幫助我們支付 2.5 年的資金需求，對嗎？例如，如果我們進行一次旋轉，圍繞贊助旋轉有多種選擇，贊助商可以投入相當大的資金——該資金所需的部分或全部資金。

The other one, which is more of a capital markets transaction, which is more of a split kind of option, where you could go and raise money in capital markets for GRAIL and IPO market for GRAIL. So we're looking through and working through those various options. They are, of course, dependent on specific market conditions and interest in GRAIL from private placement. So we'll keep you posted on that as we go out to the market and consider those options.

另一種，更多的是資本市場交易，更多的是一種分裂的選擇，你可以在資本市場為 GRAIL 和 IPO 市場為 GRAIL 籌集資金。因此，我們正在研究並研究這些不同的選擇。當然，它們取決於特定的市場條件和私募對 GRAIL 的興趣。因此，當我們進入市場並考慮這些選擇時，我們會隨時向您通報這種情況。

And we'll take a question from Catherine Schulte with Baird.

我們將回答凱瑟琳舒爾特和貝爾德提出的問題。

Welcome, Jacob. I guess just on your comments on '24, when you say results might look similar to '23. In that case, I guess, how do you view core Illumina op margins? Would those also look similar to '23? Or given some of the cost reductions that you guys have talked about, do you think there's room for improvement there?

歡迎，雅各。我想只是關於你對 '24 的評論，當你說結果可能看起來與 '23 類似。在這種情況下，我想，您如何看待核心 Illumina 營運利潤？那些看起來也和 '23 類似嗎？或者考慮到你們談到的一些成本降低，你們認為還有改進的空間嗎？

Yes. Thanks for that. So I think right now, that Illumina have a wonderful model, actually. I think we have really strong operating gross margins. So obviously, with growth, we can really fuel that to the bottom also. But in a flat environment and with, of course -- we are seeing that more challenges. So right now, we're expecting to be flat both on top line and on the bottom line.

是的。感謝那。所以我現在認為 Illumina 有一個非常棒的模型。我認為我們的營業毛利率非常高。顯然，隨著成長，我們也確實可以將其推到底。但在平坦的環境中，當然，我們看到了更多的挑戰。所以現在，我們預計營收和利潤都將持平。

Yes. And I think you're right. We do expect to see an improvement in gross margins next year, obviously, with more consumables mix in there. Off the cost reductions that we have made this year, I just want to remind you that some of that -- a substantial portion of that, has already been recognized this year. So there won't be incremental to next year as we go through.

是的。我認為你是對的。我們確實預計明年毛利率會有所改善，顯然，其中會有更多的消耗品組合。除了我們今年所做的成本削減之外，我只是想提醒大家，其中一些——其中很大一部分——今年已經得到了認可。因此，隨著我們的經歷，明年不會有增量。

And then offsetting those 2 positives is we do expect that the variable compensation of sort of rationalization and year-on-year comp on that will be -- will eat away into that goodness that you've had and coupled with merit increases and inflation, right? So -- and again, we did not pay executives the stock-based compensation and variable compensation this year as our performance has not been up to par. So we do expect that, that will come back into next year as we correct some of that.

然後抵消這兩個積極因素的是，我們確實預計，某種合理化和同比補償的可變薪酬將蠶食你所擁有的好處，再加上績效增加和通貨膨脹，正確的？因此，我們今年沒有向高階主管支付股票薪酬和可變薪酬，因為我們的業績未達到標準。因此，我們確實預計，隨著我們糾正其中的一些問題，這種情況將在明年重新出現。

But I think -- on that, I think I'm everything I see here, as I mentioned, also the gross margins are strong in the company, but there's a lot we can do to continue to improve that. So I don't see anything that is -- for me, at least coming in here, see there's any difference in the thesis about Illumina going back to what has been historical margins. And we will work on that.

但我認為，就這一點而言，正如我所提到的，我認為我在這裡看到的一切，公司的毛利率也很高，但我們可以做很多事情來繼續改善這一點。所以我沒有看到任何東西——對我來說，至少來到這裡，看到關於 Illumina 回到歷史邊緣的論文有什麼不同。我們將為此努力。

I think historically, we have been -- the logic has been this will come through growth. And clearly, we need growth to drive some of that. But we were also really focus on operational excellence to build that going forward.

我認為從歷史上看，我們的邏輯是這將透過成長來實現。顯然，我們需要成長來推動其中的一些發展。但我們也非常注重卓越運營，以實現這一目標。

And our next question comes from Conor McNamara with RBC Capital Markets.

我們的下一個問題來自加拿大皇家銀行資本市場的康納·麥克納馬拉。

Jacob, welcome to San Diego. If I look at kind of what you've said about 2024 from pre-pandemic levels from 2019 to 2024, that would imply an annual growth rate on the core business of about 5%, which is roughly in line with the overall life science tools market despite the fact that you guys have consistently spent about 20% of sales in R&D.

雅各布，歡迎來到聖地牙哥。如果我從 2019 年到 2024 年大流行前的水平來看你所說的 2024 年，這意味著核心業務的年增長率約為 5%，這與整體生命科學工具大致一致儘管你們一直將大約20 % 的銷售額用於研發。

So if I'm an investor looking at Illumina, should I think of this as an EBIT margin expansion story from here where you bring R&D down in line with peers? Or do you think that you guys -- you can drive a return to growth above historic life science tools growth levels?

因此，如果我是一位關注 Illumina 的投資者，我是否應該將其視為息稅前利潤擴張的故事，讓研發與同行保持一致？或者你們認為你們能夠推動生命科學工具的成長恢復到歷史水準之上嗎？

Yes, that -- I mean, again, I want to be careful on coming with too many comments right now, I'm 40 days into my work here -- to my job here. But I think I still believe that Illumina has a better growth opportunity than many of the other life science tools company. And I will come back and give you more insights when I'm ready for it in -- later in 2024.

是的，我的意思是，我要小心現在不要發表太多評論，我在這裡工作已經 40 天了。但我認為我仍然相信 Illumina 比許多其他生命科學工具公司擁有更好的成長機會。當我準備好時，我會在 2024 年晚些時候回來為您提供更多見解。

But I don't think that Illumina is in a place where it's in the level of many of the other companies right now. But it's too early for me to give you a clear guidance. But yes, so wait and see.

但我認為 Illumina 目前還沒有達到許多其他公司的水平。但現在給你明確的指導還為時過早。但是，是的，所以拭目以待。

And our next question will come from Rachel Vatnsdal with JPMorgan.

我們的下一個問題將來自摩根大通的 Rachel Vatnsdal。

Welcome to Illumina, Jacob. So first up, I just wanted to ask on core Illumina margins, follow up on some of the earlier questions. Specifically, it looks like that implied 4Q margin step down for core Illumina. But also given the lower placement number, your mix should be more skewed towards consumables than typical in 4Q. So is there anything else that we should look at from a onetime perspective or anything else on the puts and takes on that margin implied for 4Q?

歡迎來到 Illumina，雅各。首先，我只想問 Illumina 的核心利潤，跟進一些先前的問題。具體來說，核心 Illumina 的第四季度利潤率似乎有所下降。但考慮到放置數量較低，您的組合應該比第四季度的典型情況更傾向於消耗品。那麼，對於第四季隱含的保證金，我們還應該從一次性的角度來看還有什麼其他的事情嗎？或者還有什麼其他的事情？

Joydeep, do you want to take that?

Joydeep，你想要那個嗎？

Yes. So Rachel, a couple of things, right? So we -- you will see margins and operating margins decline. We are seeing a step-down in revenue from Q3 into Q4. So that's one element of that.

是的。雷切爾，有幾件事，對吧？所以我們——你會看到利潤率和營業利潤率下降。我們看到第三季到第四季的收入有所下降。這就是其中的一個要素。

The second element is gross margins are impacted for several reasons, right? One, that we do see every time you see a reduction in volume, you have less absorption of fixed cost. So you have that flowing into it. The second piece is around, yes, we are seeing some shift from instruments into consumables. But we are seeing a reduction because of the transition effects of NovaSeq 6000 consumables, which are highly profitable. And so you're seeing a little bit of margin -- gross margin decline because of that.

第二個因素是毛利率受到多種原因的影響，對吧？第一，我們確實看到，每當銷售量減少時，固定成本的吸收就會減少。所以你就有了它。第二件事是，是的，我們正在看到一些從儀器到消耗品的轉變。但由於利潤豐厚的 NovaSeq 6000 耗材的過渡效應，我們看到了減少。因此，你會看到一點點利潤——毛利率因此而下降。

And then the third is we have some components of strategic deal revenue that we have coming in, in Q4 versus Q3. And that is also pulling down our gross margin. So those 3 components are really what are impacting the gross margin component.

第三是我們在第四季與第三季的策略交易收入中有一些組成部分。這也拉低了我們的毛利率。所以這三個因素確實是影響毛利率的因素。

And then in the operating margin side, I think we obviously are getting some of the benefits of the cost action that we saw. But we did have some movement of R&D-specific timing investments that moved from Q3 into Q4. So that is taking down our -- taking up our Q4 operating expense a little bit compared to what we had in Q3.

然後在營業利潤方面，我認為我們顯然正在從我們所看到的成本行動中獲得一些好處。但我們確實有一些特定於研發的時機投資的變化，從第三季轉移到了第四季。因此，與第三季相比，第四季的營運費用有所下降。

Thank you. And that does conclude our question-and-answer session. I will now hand the call back over to Jacob Thaysen for closing remarks.

謝謝。我們的問答環節到此結束。現在，我將把電話轉回給雅各布·塞森 (Jacob Thaysen) 進行總結發言。

Thank you, everyone. As we finish the year and move into 2024, I want to reiterate the great foundation that we have here, both in the infrastructure that we have built and in the significant markets that we serve. It is clear to me that there is a tremendous opportunity to create value for our customers and our partners worldwide and, of course, for our shareholders.

謝謝大家。當我們結束這一年並進入 2024 年時，我想重申我們在這裡擁有的偉大基礎，無論是在我們建造的基礎設施方面還是在我們服務的重要市場方面。我很清楚，我們有巨大的機會為我們的客戶和全球合作夥伴創造價值，當然也為我們的股東創造價值。

Thank you again. We're looking forward to see you at upcoming conferences and other events. Thank you.

再次感謝你。我們期待在即將舉行的會議和其他活動中見到您。謝謝。

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。