AFFX reports, hits high end of revised guidance:
>>SANTA CLARA, Calif., July 25 /PRNewswire/ -- Affymetrix, Inc., (Nasdaq: AFFX - news) today reported results for the second quarter of 2001. Total revenues were $49.5 million and $104.4 million for the quarter and six months ended June 30, 2001, respectively. Product sales were $42.0 million and $92.5 million for the quarter and six months ended June 30, 2001, respectively, excluding sales to Perlegen Sciences, Inc. (``Perlegen'').
The increases in product sales during the quarter and six 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 18% and 33% growth over the corresponding second quarter and first half periods of 2000, respectively, excluding sales to Perlegen.
``We are pleased that our core GeneChip business achieved the high end of our revised guidance,'' said Susan E. Siegel, President of Affymetrix. ``This performance reaffirms our confidence in the broad market acceptance of GeneChip technology. To further drive market growth, we will continue to leverage our manufacturing capabilities and expand our product offerings.''
Other revenues, which include licensing fees, royalties and research revenue, were $4.7 million for the quarter and $9.1 million for the six months ended June 30, 2001. Sales to Perlegen for the quarter ended June 30, 2001 were $2.9 million, the first period for which such sales were reported.
Total costs and expenses for the quarter and six months ended June 30, 2001, were $61.8 million and $129.6 million, respectively. Excluding amortization of acquired intangible assets and deferred compensation, total costs and expenses were $57.1 million and $120.1 million for the quarter and six months ended June 30, 2001, respectively.
Excluding amortization of acquired intangible assets and deferred compensation, Affymetrix reported a net loss of $4.4 million, or $0.08 per basic share for the quarter ended June 30, 2001. For the six months ended June 30, 2001, Affymetrix reported a net loss of $10.4 million, or $0.19 per basic share.
Including amortization of acquired intangible assets and deferred compensation, Affymetrix reported a net loss of $9.1 million, or $0.16 per basic share for the quarter ended June 30, 2001. For the six months ended June 30, 2001, Affymetrix reported a net loss of $19.9 million, or $0.35 per basic share.
During the second quarter, Affymetrix entered into multiple GeneChip supply agreements with leading pharmaceutical and biotechnology companies including an EasyAccess(TM) Silver agreement with Chiron Corporation and BiotechAccess(TM) agreements with Advanced Tissue Sciences, Inc., Diversa Corporation, Hypnion, Inc., and Medplant Genetics, S. L., bringing the total number of BiotechAccess customers to over 20. Affymetrix also signed a collaboration agreement to identify gene expression patterns that are important in drug response using deCODE genetics' unique clinical populations. Strong adoption of the GeneChip system in the academic market continued. At the end of the second quarter, over 250 universities and non-profit research centers around the world had taken advantage of the Company's AcademicAccess(TM) pricing program.
The continued shift from do-it-yourself cDNA arrays to pre-synthesized oligonucleotide arrays and the increased use of arrays in the drug development process are two trends the Company believes will expand its microarray market. To facilitate broader use of its GeneChip technology and to foster expansion of array applications, Affymetrix introduced two new products, CustomExpress(TM) and NetAffx(TM), during the quarter.
Affymetrix launched its flexible CustomExpress array service that allows scientists to quickly design affordable custom arrays. Innovative manufacturing advances enabled this product line expansion, providing solutions for customers needing flexible chip formats with varying information content. CustomExpress arrays use the same probe set design and manufacturing technology as GeneChip whole genome expression arrays, providing a single, high-quality system from start to finish for any gene expression study.
NetAffx is a web-based tool designed to help researchers obtain biologically meaningful results faster. NetAffx provides scientists with access to proprietary annotations, links to public and proprietary databases and other related biological information. Scientists may also use NetAffx functionality to design and order their own CustomExpress arrays online. By providing an integrated desktop information environment, NetAffx strengthens Affymetrix' complete system solution for DNA microarrays.
Investors may listen to Affymetrix' management discuss this announcement, its financial implications and provide future guidance by dialing domestic: +1-800-215-6518, international: +1-212-346-6426 on July 25, at 2:00 p.m. PT. A replay of this call will be available until 4:00 p.m. PT on August 1 at the following numbers: domestic: +1-800-633-8284, international: +1-858-812- 6440, reservation number: 19300167. To access a Webcast of the conference call, please visit www.affymetrix.com.<<
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Cheers, Tuck |
