Illumina Inc. (NASDAQ:ILMN)

The financial data exhibits several notable trends and fluctuations across the examined periods. Overall revenue composition reveals that product revenue consistently accounts for the majority share, ranging primarily between approximately 78% and 88% of total revenue, with a general increasing trend in the most recent quarters, peaking near 88%. Conversely, service and other revenue fluctuates more markedly, inversely tracking product revenue, dropping from around 21% in early 2019 to below 12% by late 2021.

Cost structures demonstrate variable dynamics. The cost of product revenue as a percentage of total revenue shows fluctuations mostly between -20% and -27%, with occasional declines and increases but no clear a sustained directional trend. Cost of service and other revenue percentages remain relatively stable with slight sporadic variations, generally staying within a range of approximately -5% to -9%. The amortization of acquired intangible assets as a cost item tends to decrease over time, falling from near -1.8% to below -1%, though a notable spike to -1.62% occurred in the last quarter.

The aggregate cost of revenue fluctuates between roughly -27% and -38%, showing temporary increases in cost burden but also periods of relative containment. This produces a gross profit margin mostly stable within the range of about 66% to 72% of revenue, pointing to a relatively healthy margin despite cost fluctuations. The gross profit percentage experiences volatility but generally stabilizes above 66% in recent quarters.

Operating expenses as a percentage of revenue reveal considerable variability. Research and development expenses generally represent a significant portion, averaging around 17% to 24% of revenue, but a substantial outlier appears in the final quarter with a steep increase to nearly -39%. Selling, general and administrative expenses remain broadly within -20% to -27%, albeit increasing sharply toward the end, culminating in an extraordinary value close to -79%. The combined operating expense percentage follows these patterns, reflecting considerable swings and steep increases in certain later quarters.

Income from operations exhibits meaningful volatility, ranging from about 7% up to 34%, before an abrupt decline to a pronounced loss of -49% in the final quarter. This sharp negative swing aligns temporally with spikes in operating expenses, suggesting significant operational challenges or extraordinary charges during that period.

Interest income remains modest but generally positive, peaking around 2.7%, while interest expense remains continuously negative but stable near the -1.3% to -1.7% range of revenue. Other income (expense), net, shows irregular and wide-ranging values with extreme spikes in some periods, notably reaching over 75% in one instance, indicating occasional significant non-operating income or expense events influencing profitability.

Income before income taxes follows the pattern of operating income, varying broadly but generally positive, with sharp deviations upward in certain quarters analogous to other income spikes, reaching more than 80%, and ending with a moderately high value near 38%. Provision for income taxes is variable, with some quarters showing unusually high negative percentages coincident with strong earnings or losses, including a large negative charge around -25.9% at one point.

Net income attributable to stockholders generally comprises a strong majority of revenue, reaching levels above 35% in some periods, though reflecting significant swings in certain quarters. Notably, a severe negative operational quarter is followed by moderate net income levels, indicating potential impact from non-operating items or tax treatment. Overall, net income trends show resilience with periodic fluctuations but end with an uptick to approximately 29% of revenue.

In summary, the data depicts a company with a revenue base dominated by product sales, managing generally solid gross margins despite some cost variability. Operating expenses and other costs have shown increasing pressure in certain recent periods, culminating in an exceptional downturn in operating results. Non-operating income and taxes contribute to profit volatility. The company exhibits fluctuating profitability with periodic strong income but also encounters episodes of significant expense or impairment impacting net performance.

Revenue Composition

Product revenue remains the dominant source, generally increasing toward late periods.

Service and other revenue declines in percentage terms during recent quarters.

Cost of Revenue

Costs of product and service revenues fluctuate but remain significant portions of total revenue.

Amortization costs tend to decrease over time with minor exceptions.

Gross profit margin is relatively stable, maintaining above 66% in most quarters.

Operating Expenses

R&D expenses are consistently high, with an extreme increase in the final period.

SG&A expenses rise notably in recent periods, culminating in a large spike.

Operating expenses as a whole exhibit increased volatility and upward trends toward the end.

Operating Income

Income from operations shows strong but volatile results, suffering a sharp loss in the final quarter.

Non-operating Items and Taxes

Interest income and expense remain relatively stable with minor variance.

Other income (expense), net, experiences extreme fluctuations, occasionally impacting overall profitability.

Provision for income taxes varies significantly, affecting net income outcomes.

Net Income

Net income attributable to stockholders generally tracks positively but is marked by distinct fluctuations and volatility.

Recent periods show recovery in net income despite operational challenges.