Illumina, Inc.

Good day, ladies and gentlemen, and welcome to the third quarter 2023 Illumina Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Sally Schwartz, Vice President of Investor Relations.

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. Participating for Illumina today will be Jacob Tyson, 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. 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 regulations. This call is being recorded, and the audio portion will be archived in the investor section of our website. 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. With that, I'll now turn the call over to Jacob.

Thank you, Sally. 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 six 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. 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. Like our team, I'm passionate about genomics and the role that this field can play in healthcare and personalized medicines. 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 we have built over two and a half 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. Turning to our third quarter results. In Q3, Illuminat 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. Despite a lower growth margin year-over-year, Tight management of our operating expenses allowed us to deliver diluted non-GAAP EPS of 33 cents, 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. 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. 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 advisors 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 purchasers as our appeals are ongoing. 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 Jadib's remarks. Jadib?