infobeat.com
08:02 PM ET 10/19/99
Affymetrix shares rise on strong earnings
LOS ANGELES, Oct 19 (Reuters) - Shares of Affymetrix Inc.
rose nearly 8 percent on Tuesday, a day after the gene
technology company posted better-than-expected third-quarter
financial results.
Shares of the Santa Clara, Calif.-based company were up
7-3/4 at 109-1/4, in early trading on Nasdaq.
"They are the strongest player in the gene array space,
which has a lot of potential," Paul Roni, an analyst at Punk,
Ziegel & Co. said.
Affymetrix, which makes products that identify, analyze and
manage genetic information, said it lost $5.2 million, or 21
cents a diluted share, in the latest quarter, compared with a
loss of $5.7 million, or 25 cents, in the year-earlier quarter.
Wall Street analysts had expected the company to lose 27
cents a share, according to First Call/Thomson Financial.
Affymetrix also said its revenue rose to $26.2 million from
$15.0 million over the same comparison period.
The company attributed most of the growth to sales of its
GeneChip probe arrays, related products and subscription fees.
Affymetrix said it began last month to ship GeneChip
systems, which are used to analyze complex genetic information
as an aid in the diagnosis and treatment of disease, from its
new manufacturing facility in West Sacramento, Calif.
Also last month, the U.S. Patent and Trademark Office
declared judgment in favor of Affymetrix in two patent disputes
between the company and rival gene technology firm, Incyte
Pharmaceuticals Inc. .
Roni noted that gene array technology is getting less
expensive and as a result is being used in fields such as
agriculture, water quality and food testing as well as drug
development.
He noted, however, that Affymetrix, which is not expected
to turn a profit until 2001, has "gone beyond traditional means
of valuation" in terms of its stock price.
((--Deena Beasley, Los Angeles bureau + 1 213 380 2014)) |
