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.

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 Trends: The total revenue showed a general upward trend from 2016 to 2019, increasing from $2,398 million to $3,543 million, followed by a decline to $3,239 million in 2020. Product revenue increased steadily from $2,032 million in 2016 to a peak of $2,929 million in 2019, then decreased slightly to $2,735 million in 2020. Service and other revenue also rose consistently until 2019, peaking at $614 million, before falling to $504 million in 2020.
Cost of Revenue and Gross Profit: Cost of revenue increased in line with revenue growth, from $732 million in 2016 to $1,076 million in 2019, and then slightly decreased to $1,036 million in 2020. Despite the increase in costs, gross profit rose significantly from $1,666 million in 2016 to $2,467 million in 2019, before declining to $2,203 million in 2020, indicating some pressure on profitability in the latest period.
Operating Expenses: Operating expenses, which include research and development (R&D) and selling, general and administrative (SG&A) expenses, increased steadily over the period. R&D expenses grew from $504 million in 2016 to $682 million in 2020, reflecting ongoing investment in innovation. SG&A expenses also rose from $584 million to $941 million, indicating increased spending on sales and administrative functions. Overall operating expenses increased from $1,079 million to $1,623 million, putting pressure on operating income in 2020.
Operating Income: Income from operations rose from $587 million in 2016 to a peak of $985 million in 2019, followed by a sharp decrease to $580 million in 2020. This decline aligns with the drop in gross profit and increased operating expenses, suggesting a contraction in operational efficiency or increased cost pressures in 2020.
Other Income and Interest: Interest income increased significantly from $10 million in 2016 to $75 million in 2019 but then dropped to $41 million in 2020. Interest expense showed a moderate increase over the years but remained fairly stable in the last two years. Other income (expense), net displayed volatility, with a large positive spike in 2017 and upward movement thereafter, reaching $276-284 million in 2020, which may have offset some operational downturn effects.
Income Before Taxes and Tax Provision: Income before income taxes increased from $561 million in 2016 to a high of $1,118 million in 2019, followed by a decline to $856 million in 2020. The provision for income taxes showed fluctuation, with a large increase in 2017, a decrease afterward, and a rise again in 2020, peaking at $200 million, which might have impacted net income performance.
Net Income: Consolidated net income followed a strong growth trend from $428 million in 2016 to $990 million in 2019, but then declined sharply to $656 million in 2020. Net income attributable to Illumina stockholders mirrored this trend, reaching $1,002 million in 2019 before dropping to $656 million in 2020. This contraction corresponds with the revenue decline and increased expenses observed in 2020.
Summary: Overall, the financial data shows strong growth in revenue, gross profit, operating income, and net income from 2016 through 2019, supported by consistent increases in both product and service revenues. However, 2020 marked a period of decline across key metrics, including total revenue, gross profit, operating income, and net income. This downturn corresponded with heightened operating expenses and tax provisions, indicating increased cost pressures and possibly challenging market conditions affecting profitability according to the latest data.

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Illumina Inc. (NASDAQ:ILMN)

Income Statement