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Illumina shares plummet after cutting revenue guidance

A sales consultant with Illumina displays a flow cell at a symposium in La Jolla, California.
Sam Hodgson | Reuters

Illumina shares shed nearly 25 percent Tuesday after the San Diego-based biotech company trimmed its third-quarter revenue estimates.

The shortfall was due to a decline in demand for its high-speed genetic sequencing instruments used to analyze large genomes, the company said.

Illumina now expects to report revenue of about $607 million, which is about 10 percent higher than last year's third-quarter revenue of $550 million. Previously, the company expected to report revenue in the range of $625 million to $630 million.

Based on current trends, the company said it expects its fourth-quarter revenue will be flat to slightly up sequentially.

Shares of Pacific Biosciences of California, another biotechnology company focused on genetic sequencing, dropped 5.8 percent Tuesday morning.

The key biotechnology ETF declined 3.8 percent Tuesday.

Illumina's shares closed at $184.85 on Monday before the the company released the third-quarter revenue forecast.