Affymetrix Warns on Disappointing Results
Affymetrix’s stock price dropped 18% the day following the announcement to close at $6.59. Analysts had expected second-quarter revenues of around $74 million, according to Thomas Reuters. Affymetrix’s second-quarter results will be announced on July 27. Last year, the company issued a similar announcement about second-quarter results (see IBO 7/15/10). Affymetrix recently changed CEOs (see IBO 6/15/11).
Santa Clara, CA 7/6/11—Affymetrix has announced that it expects second-quarter revenues of $64–$65 million. This would be a 10%–11% decrease from a year ago. Product revenue is expected to be $58–$59 million for a 9%–11% decline. Product revenue includes $55 million in consumables sales and $3.5 million in instrument sales. Service revenue is estimated to be $5 million, and license and royalty revenue is expected to be $1 million. “During the second quarter, we experienced decreased sales to academic customers across all regions, particularly in North America,” said Andrew Last, executive vice president and chief commercial officer. “Our consumable revenue was down by about 10% from last year.” For the second quarter, the company expects to report a $10 million positive cash flow and a net cash position of more than $155 million.
