Stock Analysis on Net
Stock Analysis on Net

Illumina Inc. (NASDAQ:ILMN)

This company has been moved to the archive! The financial data has not been updated since November 5, 2021.

Common-Size Income Statement

Illumina Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2020 Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016
Product revenue 84.44 82.67 82.48 83.18 84.72
Service and other revenue 15.56 17.33 17.52 16.82 15.28
Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of product revenue -24.33 -22.64 -22.14 -24.67 -22.27
Cost of service and other revenue -6.79 -6.77 -7.80 -7.56 -6.45
Amortization of acquired intangible assets -0.86 -0.96 -1.05 -1.42 -1.79
Cost of revenue -31.99% -30.37% -30.99% -33.65% -30.52%
Gross profit 68.01% 69.63% 69.01% 66.35% 69.48%
Research and development -21.06 -18.26 -18.69 -19.84 -21.03
Selling, general and administrative -29.05 -23.57 -23.82 -24.49 -24.37
Legal contingencies 0.00 0.00 0.00 0.00 0.40
Operating expense -50.11% -41.83% -42.51% -44.33% -45.01%
Income from operations 17.91% 27.80% 26.49% 22.02% 24.48%
Interest income 1.27 2.12 1.32 0.69 0.41
Interest expense -1.51 -1.47 -1.71 -1.34 -1.38
Other income (expense), net 8.77 3.10 0.72 16.53 -0.10
Other income (expense), net 8.52% 3.75% 0.33% 15.88% -1.08%
Income before income taxes 26.43% 31.56% 26.82% 37.90% 23.40%
Provision for income taxes -6.17 -3.61 -3.36 -13.26 -5.55
Consolidated net income 20.25% 27.94% 23.46% 24.64% 17.85%
Net loss attributable to noncontrolling interests 0.00 0.34 1.32 1.74 1.44
Net income attributable to Illumina stockholders 20.25% 28.28% 24.78% 26.38% 19.29%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

The common-size income statement reveals a period of stability in revenue composition and gross margin performance, contrasted by a significant increase in operating expenses and a subsequent compression of operating margins in the final year of the period.

Revenue Composition and Gross Profitability
Revenue streams remained consistent from 2016 to 2020, with product revenue consistently contributing between 82.48% and 84.72% of total turnover. Service and other revenue fluctuated within a narrow range of 15.28% to 17.52%. Gross profit margins demonstrated resilience, generally remaining between 66% and 70%, suggesting that the cost of revenue was well-managed and scaled proportionally with sales.
Operating Expense Dynamics
Research and development costs remained relatively stable, averaging approximately 20% of revenue over the five-year period. However, a notable shift occurred in selling, general, and administrative (SG&A) expenses, which remained steady around 24% until 2020, when they increased sharply to 29.05%. This rise in SG&A contributed to a significant increase in total operating expenses, which reached 50.11% of revenue in 2020, compared to a low of 41.83% in 2019.
Operating and Net Income Trends
Income from operations showed an upward trajectory from 2017 (22.02%) to a peak in 2019 (27.80%), before dropping sharply to 17.91% in 2020 due to the aforementioned rise in operating costs. Net income attributable to stockholders remained strong but volatile, peaking at 28.28% in 2019. This volatility was largely driven by non-operating items, such as a significant spike in other income in 2017 (16.53%) and corresponding fluctuations in the provision for income taxes, which reached 13.26% of revenue in 2017 before stabilizing between 3% and 6% in later years.

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