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UPDATE 1-Affymetrix breaks even in Q3, sees Q4 loss
(Reuters, N/A)
(adds details, company coments, stock price, byline)
By Deena Beasley
LOS ANGELES, Oct 24 (Reuters) - Genetic technology company Affymetrix Inc. (NASDAQ:AFFX) said on Tuesday it posted a slight third-quarter profit and broke even on a per-share basis amid robust product sales, but said it would lose money in the fourth quarter.
The Santa Clara, Calif.-based company reported a third-quarter profit of $0.3 million, or zero cents per diluted share, compared with a net loss of $5.8 million, or 10 cents a share, in the comparable 1999 period. Without the share dilution, Affymetrix said it posted a 1-cent-per-share profit.
Analysts on average had expected Affymetrix to lose 2 cents a share, according to First Call/Thomson Financial, which tracks earnings estimates.
In after-hours trading, shares of Affymetrix traded as high as 59 after closing earlier on Nasdaq at 52-5/16.
The company said during a conference call that it would likely post a $6 million operating loss in fourth quarter 2000, due to its planned acquisition of computational genomics company Neomorphic Inc., its recent formation of a subsidiary called Perlegen Sciences Inc. and its participation in a $58 million program led by the National Institutes of Health to provide a public database of the mouse genome.
"It is difficult to give guidance for Q1 (2001) because of these deals, but we anticipate becoming increasingly profitable in Q2," Ed Hurwitz, the company's chief financial officer, said.
He noted that the company still expects to meet its previous guidance for a loss this year of $17-18 million.
"We are going whole genome," said Susan Siegel, the company's president.
She explained that the Neomorphic deal will allow Affymetrix to combine public genome databases with its technology, Perlegen will scan those databases to uncover fundamental human genetic patterns associated with health and disease and the mouse gene-sequencing consortium will allow the company to commercialize new whole genome products.
Affymetrix said its third-quarter revenues increased 89 percent to $55.8 million from $29.5 million in the year-earlier quarter on strong sales of its GeneChip probe arrays, increased placements of instruments and subscription fees for access to the company's proprietary technology.
Affymetrix said its total costs and expenses rose to $57.7 million from $36.0 million in the comparable 1999 period due mostly to expansion of commercial activities and higher legal costs from ongoing patent litigation.
Copyright 2000, Reuters News Service
Companies or Securities discussed in this article: Symbol Name
NASDAQ:AFFX Affymetrix, Inc. (NM) |
