Santa Clara, CA 7/7/10—Affymetrix has announced that it expects second-quarter revenues to be $71–$72 million, compared to its earlier guidance of $80–$82 million (see IBO 5/15/10). Product revenue is forecast to be approximately $65–$66 million, including $4–$5 million in instrument sales and consumables sales of $60–$61 million. The company stated three primary reasons for the discrepancy: delayed and lengthened purchase cycles for capital equipment by academic research customers, particularly in Europe; a decline in RNA sales related to the integration of acquisitions and the realignment of sales territories; and a material deterioration in the Euro and British Pound of $1 million in aggregate since April 21, the date the company provided its previous second-quarter guidance. “In Europe, we believe our business was impacted by governmental actions taken to address high levels of debt and weakening currencies,” commented Kevin M. King, president and CEO of Affymetrix. Tim Barabe, executive vice president and CFO, stated: “We continue to make good progress in reducing our operating expenses and we expect to be cash-flow positive on an operating basis in each quarter of fiscal year 2010. In addition, we have a strong balance sheet and expect to report about $100 million in net cash as of June 30, 2010.”