Name: Illumina Inc. (NASDAQ:ILMN) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Illumina Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 29, 2019	Dec 30, 2018	Dec 31, 2017	Dec 31, 2016
Product revenue	2,735)	2,929)	2,749)	2,289)	2,032)
Service and other revenue	504)	614)	584)	463)	366)
Revenue	3,239)	3,543)	3,333)	2,752)	2,398)
Cost of product revenue	(788)	(802)	(738)	(679)	(534)
Cost of service and other revenue	(220)	(240)	(260)	(208)	(155)
Amortization of acquired intangible assets	(28)	(34)	(35)	(39)	(43)
Cost of revenue	(1,036)	(1,076)	(1,033)	(926)	(732)
Gross profit	2,203)	2,467)	2,300)	1,826)	1,666)
Research and development	(682)	(647)	(623)	(546)	(504)
Selling, general and administrative	(941)	(835)	(794)	(674)	(584)
Legal contingencies	—)	—)	—)	—)	9)
Operating expense	(1,623)	(1,482)	(1,417)	(1,220)	(1,079)
Income from operations	580)	985)	883)	606)	587)
Interest income	41)	75)	44)	19)	10)
Interest expense	(49)	(52)	(57)	(37)	(33)
Other income (expense), net	284)	110)	24)	455)	(2)
Other income (expense), net	276)	133)	11)	437)	(26)
Income before income taxes	856)	1,118)	894)	1,043)	561)
Provision for income taxes	(200)	(128)	(112)	(365)	(133)
Consolidated net income	656)	990)	782)	678)	428)
Net loss attributable to noncontrolling interests	—)	12)	44)	48)	35)
Net income attributable to Illumina stockholders	656)	1,002)	826)	726)	463)

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).

Revenue exhibited a consistent growth trajectory from 2016 through 2019, increasing from 2,398 million US$ to a peak of 3,543 million US$. This expansion was supported by growth in both product revenue and service and other revenue. However, 2020 marked a reversal of this trend, with total revenue declining to 3,239 million US$, reflecting a contraction in both primary revenue streams.

Gross Profitability and Margin Trends: Gross profit grew in tandem with revenue from 2016 to 2019, rising from 1,666 million US$ to 2,467 million US$. The gross margin remained relatively stable throughout the period, fluctuating between approximately 66% and 70%. In 2020, gross profit declined to 2,203 million US$, mirroring the decline in total revenue, although the cost of revenue also decreased slightly, mitigating the impact of the sales drop.
Operating Expense Analysis: Operating expenses demonstrated an uninterrupted upward trend from 2016 to 2020, increasing from 1,079 million US$ to 1,623 million US$. Research and development costs rose steadily from 504 million US$ to 682 million US$, while selling, general, and administrative expenses increased from 584 million US$ to 941 million US$. Notably, operating expenses continued to rise in 2020 despite the decrease in overall revenue, putting downward pressure on operating margins.
Operating Income Performance: Income from operations showed significant growth between 2016 and 2019, peaking at 985 million US$. However, 2020 saw a sharp contraction in operating income to 580 million US$, a level similar to that seen in 2016. This decline is attributable to the combination of reduced revenue and increased operating expenditures during the final year of the analysis.
Net Income and Non-Operating Factors: Consolidated net income attributable to stockholders followed a general upward path from 2016 (463 million US$) to 2019 (1,002 million US$), before falling to 656 million US$ in 2020. The net income figures were significantly influenced by "Other income (expense), net," which showed high volatility, specifically with substantial gains in 2017 (437 million US$) and 2020 (276 million US$). These non-operating gains provided a buffer to the net income in 2020, preventing a more severe drop in line with the operating income decline.

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