Affymetrix Restructures
Following a $9.6 million debt repayment in December 2012, Affymetrix’s senior debt for 2012 was $73 million and cash on hand totaled $35 million, according to the company. Affymetrix announced at an investor conference that it expects to generate 2013 revenues of around $330 million, with a positive operating income and gross margins of around 60%. In 2013, eBioscience revenue is expected to account for 22% of sales, compared to 13% last year, and expression revenue is expected to count for 32% of sales, compared with 41% in 2012. Highlights of 2012 included CytoScan products representing 10% of sales and around 50% growth for Axiom sales.
Santa Clara, CA 1/8/13—Affymetrix has announced preliminary 2012 revenues and a restructuring plan to improve profitability. The company estimates fourth-quarter revenues totaled $84 million, including $18 million in eBioscience sales. Year over year, revenue increased 1% excluding eBioscience, and eBioscience revenue grew 5%. Year-end revenues are estimated to be $295 million. The restructuring, which includes an 8% reduction in the company’s workforce, is anticipated to result in annualized savings of $25 million based on 2025 run rates, including $5 million in cost-of-goods sold. “This restructuring will drive operational efficiency, and together with the sharpened focus of our development and commercial priorities, will accelerate our return to profitability,” said Affymetrix President and CEO Dr. Frank Witney. “This restructuring will help to improve our free-cash flow in 2013 and beyond, as well as enable us to accelerate the repayment of our senior debt,” stated Tim Barabe, executive vice president and CFO. It was also announced that Mr. Barabe will leave the company. Executive Vice President and General Counsel John F. Runkel will also retire and will be replaced by Siang Chin, who currently services as vice president, chief corporate counsel.
