Revenue during the quarter grew 4.70 percent to $619.35 million from $591.55 million in the previous year period. Gross margin for the quarter contracted 165 basis points over the previous year period to 67.72 percent. Total expenses were 76.91 percent of quarterly revenues, up from 75.66 percent for the same period last year. That has resulted in a contraction of 125 basis points in operating margin to 23.09 percent.

Operating income for the quarter was $143.02 million, compared with $144 million in the previous year period.

However, the adjusted operating income for the quarter stood at $182.82 million compared to $197.31 million in the prior year period. At the same time, adjusted operating margin contracted 384 basis points in the quarter to 29.52 percent from 33.36 percent in the last year period.

"We ended 2016 on a stronger note than we anticipated, with robust performance across sequencing consumables and microarrays," stated Francis de Souza, President and chief executive officer. "We also made significant progress on key R&D programs as evidenced by the launch of NovaSeq, a brand new architecture that delivers the most powerful, flexible sequencer ever created, once again redefining the trajectory of sequencing."

For financial year 2017, Illumina expects revenue to grow in the range of 10 percent to 12 percent. The company projects diluted earnings per share to be in the range of $3.25 to $3.35. It projects diluted earnings per share to be in the range of $3.60 to $3.70 on adjusted basis.

For the first-quarter, Illumina expects revenue to be in the range of $580 million to $595 million. The company projects diluted earnings per share to be in the range of $0.51 to $0.56. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.60 to $0.65.

The company has spent $514.54 million cash to meet investing activities during the year as against cash outgo of $106.15 million in the last year.

The company has spent $204.71 million cash to carry out financing activities during the year as against cash outgo of $418.76 million in the last year period.

Cash and cash equivalents stood at $734.52 million as on Jan. 01, 2017, down 4.46 percent or $34.25 million from $768.77 million on Jan. 03, 2016.

Working capital increases
Illumina, Inc. has recorded an increase in the working capital over the last year. It stood at $1,613.43 million as at Jan. 01, 2017, up 8.55 percent or $127.10 million from $1,486.33 million on Jan. 03, 2016. Current ratio was at 3.29 as on Jan. 01, 2017, down from 3.43 on Jan. 03, 2016.

Cash conversion cycle (CCC) has decreased to 65 days for the quarter from 68 days for the last year period. Days sales outstanding went down to 28 days for the quarter compared with 32 days for the same period last year.

Days inventory outstanding has decreased to 68 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 38 for the same period last year.