Affymetrix’s Quarterly Sales to Disappoint
Analysts commented that the earnings warning was indicative of Affymetrix’s loss of market share and technology cycle, not of market weakness. In July, Affymetrix cut its full-year revenue guidance 7%–10%, citing weak pharmaceutical industry demand (see IBO 8/15/08).
Santa Clara, CA 10/13/08—Affymetrix has announced that it expects third-quarter revenues to be approximately $75 million, compared to $95.0 million last year. Analysts had forecasted revenues of $90.1 million, according to Thomson Financial. The company does not provide revenue guidance on a quarterly basis. Affymetrix attributed the shortfall to greater competition for research funding and continued weakness in industrial spending. “We are re-engineering our platform to offer our customers a range of new products that are more flexible and cost effective in 2009,” stated Stephen P.A. Fodor, chairman and CEO of Affymetrix.
