Affymetrix, Inc., (NASDAQ:AFFX) today reported its operating
results for the fourth quarter and fiscal year ended December 31,
2011. Total revenue for the fourth quarter was $65.1 million, as
compared to total revenue of $84.9 million for the same period of
2010. For the full year 2011, total revenue was $267.5 million, as
compared to $310.7 million for 2010.
The Company reported a net loss of approximately $14.7 million,
or $0.21 per diluted share, in the fourth quarter of 2011. This
compares to net income of $4.0 million, or $0.06 per diluted share,
in the same period of 2010.
Fiscal year 2011 net loss was $28.2 million, or $0.40 per
diluted share. This is compared to a net loss of $10.2 million, or
$0.15 per diluted share, for fiscal year 2010 which included a $6.3
million gain from the repurchase of convertible notes, or $0.09 per
diluted share.
For the fourth quarter 2011, product revenue was $58.7 million,
which consisted of consumable revenue of $54.9 million and
instrument revenue of $3.8 million. Service revenue was $5.1
million, and royalties and other revenue was $1.3 million. This
compares to fourth quarter 2010, product revenue of $71.9 million,
which consisted of consumable revenue of $63.4 million and
instrument revenue of $8.5 million, service revenue of $6.4
million, and royalties and other revenue of $6.6 million.
For the full year 2011, product revenue was $241.3 million,
which consisted of consumable revenue of $225.0 million and
instrument revenue of $16.3 million. Service revenue was $20.2
million, and royalties and other revenue was $6.0 million. This
compares to full year 2010 product revenue of $277.7 million, which
consisted of consumable revenue of $252.1 million and instrument
revenue of $25.6 million, service revenue of $20.6 million, and
royalties and other revenue of $12.4 million.
For the fourth quarter of 2011, cost of product sales was $26.9
million compared to $31.6 million in the same period of 2010.
Product gross margin was 54.1%, as compared to 56.1% in the same
period of 2010. Cost of services and other was $3.5 million
compared to $4.0 million in the same period of 2010.
For the full year 2011, cost of product sales was $97.8 million
as compared to $117.4 million in 2010. Product gross margin was
59.5% as compared to 57.7% in 2010. Cost of services and other was
$13.1 million compared to $15.8 million in 2010.
For the fourth quarter of 2011, operating expenses were $45.5
million as compared to operating expenses of $44.1 million in the
same period of 2010.
For the full year 2011, operating expenses were $173.2 million
as compared to operating expenses of $182.7 million in 2010.
“2011 was a challenging year for Affymetrix,” said Frank Witney,
president and chief executive officer. “However, we made tangible
progress in strengthening our organization through the addition of
seasoned industry leaders to our commercial team, an aggressive
internal restructuring initiative and a revitalized go-to-market
strategy, which will better position us for growth in 2012.
Expression remains our most challenged business, but we are
aggressively attacking market segments where our technologies bring
significant value, such as clinical validation. In addition, we are
pleased with the progress of our clinical program, particularly our
CytoScan RUO cytogenetics product.”
During the fourth quarter, the Company
announced:
- That it has entered into an agreement
with the Broad Institute to chart the genomic changes involved in
more than 20 types of cancer as part of the Broad's work in The
Cancer Genome Atlas (TCGA). The agreement will involve the
processing of 13,500 cancer samples on the Affymetrix® Genome-Wide
Human SNP 6.0 Array, a widely used platform for genotyping and
studying copy number variation (CNV) and somatic events in tumor
samples. The SNP Array 6.0 will also determine loss of
heterozygosity (LOH), an important genomic change that indicates a
loss of normal function that cannot be detected using traditional
cytogenetic methods such as FISH or comparative genomic
hybridization (CGH).
- That it has entered into an exclusive
agreement with Genisphere® LLC, to offer the company’s proprietary
FlashTag™ Biotin HSR Reagents designed for Affymetrix. The miRNA
reagents provide streamlined target preparation methods yielding
high quality data and unmatched reproducibility when used with
Affymetrix miRNA GeneChip® Arrays. Genisphere reagents are
compatible across a wide variety of sample types including
formalin-fixed, paraffin-embedded (FFPE) fresh frozen samples and
blood. In addition, Affymetrix has obtained an exclusive license to
Genisphere mRNA applification technology, again suitable for use in
FFPE samples, central to cancer research.
- The Company has signed a Memorandum of
Understanding with BGI to enter into a strategic co-development and
co-marketing collaboration. The non-exclusive partnership will
develop and commercialize a portfolio of plant, crop, and livestock
microarrays for genotyping analysis, spanning applications such as
marker-assisted trait selection, parentage, quality control, and
traceability.
Affymetrix's management team will host a conference call on
February 8, 2012 at 2:00 p.m. PT to review its operating results
for the fourth quarter and fiscal year ended December 31, 2011. A
live webcast can be accessed by visiting the Investor Relations
section of the Company’s website at www.affymetrix.com. In
addition, investors and other interested parties can listen by
dialing domestic: (877) 407-8291, international: (201)
689-8345.
A replay of this call will be available from 5:00 p.m. PT on
February 8, 2012 until 8:00 p.m. PT on February 15, 2012 at the
following numbers: domestic: (877) 660-6853, international: (201)
612-7415. The passcode for both replays is 387472. An archived
webcast of the conference call will be available under the Investor
Relations section of the Company's website.
About Affymetrix
Affymetrix technology is used by the world's top pharmaceutical,
diagnostic, and biotechnology companies, as well as leading
academic, government, and nonprofit research institutes. About
2,200 systems have been shipped around the world and approximately
25,000 peer-reviewed papers have been published using the
technology. Affymetrix is headquartered in Santa Clara, California,
and has manufacturing facilities in Cleveland, Ohio, and Singapore.
The Company has about 900 employees worldwide and maintains sales
and distribution operations across Europe, Asia and Latin
America.
All statements in this press release that are not historical are
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act as amended, including statements
regarding Affymetrix' "expectations," "beliefs," "hopes,"
"intentions," "strategies" or the like. Such statements are subject
to risks and uncertainties that could cause actual results to
differ materially for Affymetrix from those projected, including,
but not limited to: risk relating to the Company’s ability to
successfully commercialize new products, risk relating to past and
future acquisitions, including the ability of the Company to
successfully integrate such acquisitions into its existing
business; risks of the Company's ability to achieve and sustain
higher levels of revenue, higher gross margins and reduced
operating expenses; uncertainties relating to technological
approaches, risks associated with manufacturing and product
development; personnel retention; uncertainties relating to cost
and pricing of Affymetrix products; dependence on collaborative
partners; uncertainties relating to sole-source suppliers;
uncertainties relating to FDA and other regulatory approvals;
competition; risks relating to intellectual property of others and
the uncertainties of patent protection and litigation. These and
other risk factors are discussed in Affymetrix' Annual Report on
Form 10-K for the year ended December 31, 2010, and other SEC
reports. Affymetrix expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Affymetrix' expectations with regard thereto or any change in
events, conditions or circumstances on which any such statements
are based.
PLEASE NOTE: Affymetrix, the Affymetrix logo, GeneChip,
and all other trademarks are the property of Affymetrix, Inc.
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(IN THOUSANDS)
(UNAUDITED)
December 31, December 31,
2011 2010 ASSETS: (Note
1) Current assets: Cash and cash equivalents $ 201,937 $ 35,484
Restricted cash 692 287 Available-for-sale securities—short-term
portion 7,937 67,223 Accounts receivable, net 44,021 52,281
Inventories 42,851 49,373 Deferred tax assets—short-term portion
364 1,071 Property and equipment, net—held for sale 9,000 - Prepaid
expenses and other current assets 7,785 9,422
Total current assets 314,587 215,141 Available-for-sale
securities—long-term portion 54,501 134,190 Property and equipment,
net 30,583 54,177 Acquired technology rights, net 29,525 38,858
Deferred tax assets—long-term portion
450
4,894 Other long-term assets 8,369 13,525
Total assets $ 438,015 $ 460,785
LIABILITIES AND STOCKHOLDERS’ EQUITY: Current liabilities:
Accounts payable and accrued liabilities $ 44,774 $ 44,259 Deferred
revenue—short-term portion 9,852 10,950
Total current liabilities 54,626 55,209 Deferred revenue—long-term
portion
3,959
4,601 Other long-term liabilities 9,127 11,748 Convertible notes
95,469 95,472 Stockholders’ equity: Common stock 704 706 Additional
paid-in capital 750,332 742,206 Accumulated other comprehensive
income 2,492 1,376 Accumulated deficit (478,694 )
(450,533 ) Total stockholders’ equity 274,834
293,755 Total liabilities and stockholders’ equity $ 438,015
$ 460,785
Note 1: The condensed consolidated
balance sheet at December 31, 2010 has been derived fromthe
audited consolidated financial statements at that date included in
the Company’s Annual Reporton Form 10-K for the fiscal year
ended December 31, 2010.
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS)
(UNAUDITED)
Three Months Ended Twelve Months
Ended December 31, December 31,
2011 2010 2011
2010 REVENUE: Product
sales $ 58,665 $ 71,924 $ 241,273 $ 277,743 Services 5,129 6,431
20,158 20,565 Royalties and other revenue 1,310
6,554 6,043 12,438 Total revenue
65,104 84,909 267,474
310,746
COSTS AND EXPENSES: Cost of product sales
26,902 31,568 97,815 117,384 Cost of services and other 3,510 4,002
13,137 15,822 Research and development 16,697 15,465 63,591 67,934
Selling, general and administrative 28,770
28,657 109,572 114,773 Total costs and
expenses 75,879 79,692 284,115
315,913 (Loss) income from operations (10,775 ) 5,217
(16,641 ) (5,167 ) Interest income and other, net (2,753 ) 613
(6,302 ) (1,487 ) Interest expense 947 1,397 3,813 7,706 Gain from
repurchase of convertible notes - 445 -
6,297 (Loss) income before income taxes
(14,475 ) 4,878 (26,756 ) (8,063 ) Income tax provision 264
918 1,405 2,170 Net
(loss) income $ (14,739 ) $ 3,960 $ (28,161 ) $ (10,233 )
Basic net (loss) income per common share $ (0.21 ) $ 0.06 $ (0.40 )
$ (0.15 ) Diluted net (loss) income per common share $ (0.21 ) $
0.06 $ (0.40 ) $ (0.15 ) Shares used in computing basic net
(loss) income per common share 69,889 68,594
70,877 68,856 Shares used in computing
diluted net (loss) income per common share 69,889
69,004 70,877 68,856
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Oct 2023 to Oct 2024