For some reason, no one got around to posting this strong quarter from AFFX that is also helping fuel its recovery. One call I got right . . .
>>SANTA CLARA, Calif., Oct 24, 2001 /PRNewswire via COMTEX/ -- Affymetrix, Inc., (Nasdaq: AFFX chart, msgs) today reported results for the third quarter of 2001. Product revenue increased to $47.3 million for the third quarter up from $45.4 million for the comparable period of 2000. For the nine months ended September 30, 2001, product revenue was $139.7 million, an increase of 14% over the comparable period in 2000. Total revenue for the third quarter was $55.4 million compared to $55.8 million for the third quarter of 2000. For the nine months ended September 30, 2001 total revenue grew 13% over the comparable period in 2000 to $159.8 million.
The Company's core GeneChip(R) business continued to show significant strength. GeneChip array unit sales increased from approximately 50,000 arrays in the third quarter of 2000 to over 70,000 arrays in the third quarter of 2001, an increase of approximately 50%. Affymetrix shipped approximately four GeneChip systems per week, bringing the total number of installed systems to over 540.
Excluding amortization of acquired intangible assets, deferred compensation and an extraordinary gain from the repurchase of our convertible notes, Affymetrix reported a proforma net loss of $1.8 million, or $0.03 per basic share for the quarter ended September 30, 2001. For the nine months ended September 30, 2001, Affymetrix reported a proforma net loss of $12.2 million, or $0.21 per basic share.
Including amortization of acquired intangible assets, deferred compensation and an extraordinary gain, Affymetrix reported a net loss of $4.8 million, or $0.08 per basic share for the quarter ended September 30, 2001. For the nine months ended September 30, 2001, Affymetrix reported a net loss of $24.7 million, or $0.43 per basic share.
The increases in product revenue during the quarter and nine months of 2001 over the comparable periods in 2000 were primarily the result of increased sales of the Company's core GeneChip product offering. The Company's GeneChip business demonstrated 15% and 26% revenue growth over the corresponding third quarter and nine month periods of 2000, respectively.
Other revenue, which include licensing fees, royalties and research revenue, was $5.0 million for the quarter and $14.1 million for the nine months ended September 30, 2001. Sales to Perlegen Sciences, Inc. for the quarter and nine months ended September 30, 2001 were $3.1 and $5.9 million, respectively.
Total costs and expenses for the quarter and nine months ended September 30, 2001, were $63.2 million and $192.9 million, respectively. Product gross margins for the third quarter were 63% compared to 59% in the comparable quarter of 2000. Excluding amortization of acquired intangible assets and deferred compensation, total costs and expenses were $58.5 million and $178.7 million for the quarter and nine months ended September 30, 2001, respectively.
During the quarter, Affymetrix repurchased $5 million of the Company's outstanding 4.75% Convertible Subordinated Notes for approximately $3.3 million, resulting in the recognition of an extraordinary gain of $1.7 million.
Affymetrix expanded its share of the growing microarray market by entering into Tiered Silver supply agreements with Bristol-Myers Squibb Company, GlaxoSmithKline plc, and Millennium Pharmaceuticals, Inc. Affymetrix believes that its agreements with these companies, known for their large in-house arraying efforts, demonstrate the continued market shift to pre-synthesized oligonucleotide arrays. The Company also entered into a collaborative R&D agreement with Millennium to co-develop the next generation of GeneChip expression technology applications for use in drug discovery and development.
The Company maintained its momentum in the biotechnology industry by signing seven new BiotechAccess(TM) agreements including Cellular Genomics, Inc., Helicon Therapeutics, Inc., 3M Pharmaceuticals and CombinatoRx, Inc., bringing the total number of BiotechAccess agreements to over 25. Additionally, Affymetrix now has hundreds of AcademicAccess(TM) customers.
The Company has demonstrated that new market opportunities for Affymetrix' technology extend beyond the health care market. In the quarter, the Company signed a supply agreement with Nestle S.A. to use GeneChip technology to explore nutrition on a molecular level with the goal of developing new consumer products that benefit consumer health.
Investors may listen to Affymetrix' management discuss this announcement, its financial implications and provide future guidance by dialing domestic: 800-233-2178, international: 212-676-5038 on October 24 at 2:00 p.m. PT. A replay of this call will be available until 4:00 p.m. PT on October 31 at the following numbers: domestic: 800-633-8284, international: 858-812-6440, reservation number: 19859193. To access a Webcast of the conference call, please visit www.affymetrix.com.
Affymetrix is the market leader in creating breakthrough tools that are driving the genomic revolution. By applying the principles of semiconductor technology to the life sciences, Affymetrix develops and commercializes systems that help scientists alleviate human suffering and improve the quality of life. The Company's customers include pharmaceutical, biotechnology, agrochemical, diagnostics and consumer products companies as well as academic, government and other non-profit research institutes. Affymetrix offers an expanding portfolio of products and services, including its integrated GeneChip platform, to address growing markets focused on understanding the relationship between genes and human health. Additional information on Affymetrix can be found at www.affymetrix.com.
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, uncertainties relating to technological approaches, product development, manufacturing, market acceptance, personnel retention uncertainties related 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' Form 10-K for the year ended December 31, 2000 and other SEC reports, including its Quarterly Reports on Form 10-Q for subsequent quarterly periods. 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. Note: Affymetrix, GeneChip and the Affymetrix logo are registered trademarks used by Affymetrix, Inc.
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenue:
Product $47,283 $45,372 $139,742 $122,227
Revenue from Perlegen 3,063 -- 5,928 --
Research 1,333 1,855 3,765 4,729
License fees and
royalties 3,686 8,542 10,366 14,455
Total revenue 55,365 55,769 159,801 141,411
Costs and expenses:
Cost of product
revenue 17,437 18,400 52,377 49,117
Cost of Perlegen
revenue 3,063 -- 5,928 --
Research and
development 16,578 13,730 52,387 38,890
Selling, general
and administrative 21,434 25,533 67,966 68,334
Merger related costs -- -- -- 2,395
Amortization of
deferred stock
compensation 3,152 -- 9,508 --
Amortization of
purchased intangibles 1,550 -- 4,688 --
Total costs
and expenses 63,214 57,663 192,854 158,736
Loss from operations (7,849) (1,894) (33,053) (17,325)
Interest income, net 1,345 2,189 6,879 5,259
Net income (loss)
before income taxes (6,504) 295 (26,174) (12,066)
Income tax provision -- -- (200) --
Net income (loss)
before extraordinary
item (6,504) 295 (26,374) (12,066)
Extraordinary gain
from repurchase of
convertible notes 1,699 -- 1,699 --
Net income (loss) $(4,805) $295 $(24,675) $(12,066)
Basic earnings (loss)
per common share
before extraordinary
item $(0.11) $0.01 $(0.46) $(0.22)
Extraordinary gain
from repurchase of
convertible notes 0.03 -- 0.03 --
Basic earnings (loss)
per common share $(0.08) $0.01 $(0.43) $(0.22)
Shares used to
calculate basic
earnings (loss) per
common share 57,511 55,319 57,283 54,928
Diluted earnings (loss)
per common share after
extraordinary item $(0.08) $0.00 $(0.43) $(0.22)
Shares used to
calculate diluted
earnings (loss) per
common share after
extraordinary item 57,511 61,145 57,283 54,928
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED PROFORMA STATEMENTS OF OPERATIONS
EXCLUDING ACQUISITION-RELATED CHARGES AND EXTRAORDINARY ITEM*
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Revenue:
Product $47,283 $45,372 $139,742 $122,227
Revenue from Perlegen 3,063 -- 5,928 --
Research 1,333 1,855 3,765 4,729
License fees and
royalties 3,686 8,542 10,366 14,455
Total revenue 55,365 55,769 159,801 141,411
Costs and expenses:
Cost of product
revenue 17,437 18,400 52,377 49,117
Cost of Perlegen
revenue 3,063 -- 5,928 --
Research and
development 16,578 13,730 52,387 38,890
Selling, general and
administrative 21,434 25,533 67,966 68,334
Total costs and
expenses 58,512 57,663 178,658 156,341
Loss from operations (3,147) (1,894) (18,857) (14,930)
Interest income, net 1,345 2,189 6,879 5,259
Net income (loss)
before income taxes (1,802) 295 (11,978) (9,671)
Income tax provision -- -- (200) --
Net income (loss) $(1,802) $295 $(12,178) $(9,671)
Basic (loss) earnings
per common share $(0.03) $0.01 $(0.21) $(0.18)
Shares used to
calculate basic
(loss) earnings per
common share 57,511 55,319 57,283 54,928
* The above Condensed Consolidated Proforma Statements of Operations are
presented for illustrative purposes only and are not prepared in
accordance with generally accepted accounting principles.
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2001 2000
(Note)
ASSETS
Current assets:
Cash and cash equivalents $37,085 $7,263
Available-for-sale securities 329,998 428,767
Accounts receivable 40,604 53,104
Inventories 31,200 17,234
Other current assets 4,205 2,524
Total current assets 443,092 508,892
Net property and equipment 71,309 56,245
Acquired technology rights 8,124 10,014
Intangible assets 22,214 26,788
Notes receivable from employees 1,490 2,113
Other assets 17,310 16,728
$563,539 $620,780
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $32,303 $71,024
Deferred revenue 22,560 19,544
Current portion of capital lease obligation -- 22
Total current liabilities 54,863 90,590
Noncurrent portion of capital lease obligation -- 60
Obligation to Beckman Coulter, Inc. 5,000 5,000
Convertible subordinated notes 370,000 375,000
Common stock purchase rights 3,000 3,000
Stockholders' equity 130,676 147,130
$563,539 $620,780
Note: The balance sheet at December 31, 2000 has been derived from the
audited consolidated financial statements at that date included in
the Company's Form 10-K for the fiscal year ended December 31,
2000. |
