Never got around to AFFX's quarterly numbers. Encouraging that they are still placing readers as well as selling consumables. However, third quarter guidance doesn't look so rosy, while they maintained full year guidance. Probably just timing issues. And would like to know if their revenue guidance includes Perlegen revenue or not (probably not). Wonder if the CC is still archived somewhere.
>>SANTA CLARA, Calif., July 24 /PRNewswire-FirstCall/ -- Affymetrix, Inc., (Nasdaq: AFFX - News) today reported its results for the second quarter of 2002. Total revenue for the quarter was $70.7 million, of which $5.6 million was related to the sale of wafers to Perlegen Sciences, Inc. at cost, compared to total revenue of $49.5 million in the second quarter of 2001. Excluding the sale of wafers to Perlegen, total revenue grew approximately 39% during the quarter when compared to the second quarter of 2001.
Excluding non-cash stock compensation expense and amortization of purchased intangible assets, Affymetrix reported a pro forma profit of $0.6 million, or $0.01 per basic and diluted share for the quarter ended June 30, 2002. This is the third consecutive quarter of pro forma profitability for Affymetrix. On a GAAP basis, the Company reported a net loss of $1.6 million or $0.03 per basic and diluted share in the second quarter of 2002 compared to a net loss of $9.1 million or $0.16 per basic and diluted share in the second quarter of 2001.
Product revenue increased to $58.6 million for the second quarter, an increase of $16.7 million or 40% as compared to the same period in 2001. The increase was primarily the result of record GeneChip® array shipments.
During the quarter, Affymetrix' product revenue included shipment of more than 97,000 GeneChip arrays, which represented unit growth of more than 50% over the comparable quarter in 2001. The figures reflect increasing usage of GeneChip arrays as the standard for performing gene expression research. In addition, Affymetrix shipped four GeneChip systems per week on average, bringing the total number of installed systems to approximately 690.
Other revenues, which include licensing fees, royalties and research revenue, were $6.4 million for the second quarter of 2002 compared to $4.7 million in the second quarter of 2001.
Revenue received from the sale of wafers at cost to Perlegen for the quarter was $5.6 million. Sales to Perlegen have been consistently excluded from Affymetrix product revenue.
Total costs and expenses for the quarter were $69.2 million compared to $61.8 million in the second quarter of 2001.
Cost of product revenue was $21.0 million in the second quarter compared to $15.7 million in the same period of 2001. Product gross margin was 64.1% in the second quarter as compared to 62.5% in the second quarter of 2001.
Research and development expense was $17.3 million during the quarter as compared to $16.5 million in the second quarter of 2001.
Selling, general and administrative expenses were $23.0 million for the quarter as compared to $22.0 million in the corresponding period of 2001.
Quarterly Highlights
-- Affymetrix expanded its Tiered Silver EasyAccess(TM) program via
agreements with Immunex Corporation and Organon.
-- Affymetrix signed six new BiotechAccess(TM) agreements bringing the
total number of these agreements to over 40.
-- Affymetrix increased its installed base of instruments by 50 systems
and shipped over 97,000 GeneChip arrays.
-- Affymetrix and the National Cancer Institute published the first
observation of large-scale transcriptional activity into the public
databases.
-- In an independent survey of scientists, Affymetrix was recognized as
the top supplier in the DNA microarray market. The survey was
conducted by BioInformatics, LLC.
-- Affymetrix expanded its patent portfolio, bringing the total number to
over 185 issued and approximately 370 pending U.S. patents.
Financial Outlook
We estimate product revenue for the third fiscal quarter will range from $60-62 million. We maintain our annual product revenue guidance of $248 million for 2002.
Investors may listen to Affymetrix' management discuss operating results for the second quarter and provide future financial guidance by dialing domestic: 888-737-3798, international: 706-643-2578 on July 24 at 2:00 p.m. PT. A replay of this call will be available until 5:00 p.m. PT on July 31 at the following numbers: domestic: 800-642-1687, international: 706-645-9291, passcode: 4875076#. To access a Webcast of the conference call, please visit www.affymetrix.com.
The use of the term "pro forma" in this news release refers to amounts calculated by removing costs associated with certain acquisition related non- cash charges associated with stock compensation expense and the amortization of purchased intangibles. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from pro forma measures used by other companies.
About Affymetrix:
Affymetrix is a 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 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 integrated 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' "estimates," "beliefs," "hopes," "intentions," "strategies" or the like. Such statements, including Affymetrix' financial outlook for 2002, are subject to risks and uncertainties that could cause actual results to differ materially for Affymetrix from those projected, including, but not limited to risks of the Company's ability to achieve and sustain higher levels of revenue, higher gross margins, reduced operating expenses, 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, 2001 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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenue:
Product $58,645 $41,970 $115,856 $92,459
Revenue from Perlegen 5,615 2,865 11,586 2,865
Research 1,396 1,332 3,036 2,432
License fees and royalties 5,010 3,382 8,324 6,680
Total revenue 70,666 49,549 138,802 104,436
Costs and expenses:
Cost of product revenue 21,032 15,743 41,726 34,940
Cost of Perlegen revenue 5,615 2,865 11,586 2,865
Research and development 17,326 16,466 34,015 35,809
Selling, general and
administrative 22,995 21,988 46,485 46,532
Stock compensation expense 1,934 3,178 5,641 6,356
Amortization of purchased
intangible assets 281 1,565 562 3,138
Total costs and expenses 69,183 61,805 140,015 129,640
Income (loss) from operations 1,483 (12,256) (1,213) (25,204)
Interest (expense) income
other, net (2,866) 3,149 (3,551) 5,534
Net loss before income taxes (1,383) (9,107) (4,764) (19,670)
Income tax provision (201) -- (401) (200)
Net loss $(1,584) $(9,107) $(5,165) $(19,870)
Basic / diluted loss per
common share $(0.03) $(0.16) $(0.09) $(0.35)
Shares used to calculate
basic / diluted loss per
common share 57,922 57,340 57,869 57,168
AFFYMETRIX, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
EXCLUDING CERTAIN NON-CASH CHARGES*
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenue:
Product $58,645 $41,970 $115,856 $92,459
Revenue from Perlegen 5,615 2,865 11,586 2,865
Research 1,396 1,332 3,036 2,432
License fees and royalties 5,010 3,382 8,324 6,680
Total revenue 70,666 49,549 138,802 104,436
Costs and expenses:
Cost of product revenue 21,032 15,743 41,726 34,940
Cost of Perlegen revenue 5,615 2,865 11,586 2,865
Research and development 17,326 16,466 34,015 35,809
Selling, general and
administrative 22,995 21,988 46,485 46,532
Total costs and expenses 66,968 57,062 133,812 120,146
Income (loss) from operations 3,698 (7,513) 4,990 (15,710)
Interest (expense) income
other, net (2,866) 3,149 (3,551) 5,534
Net income (loss) before
income taxes 832 (4,364) 1,439 (10,176)
Income tax provision (201) -- (401) (200)
Net income (loss) $631 $(4,364) $1,038 $(10,376)
Basic earnings (loss) per
common share $0.01 $(0.08) $0.02 $(0.18)
Shares used to calculate
basic earnings (loss) per
common share 57,922 57,340 57,869 57,168
Diluted earnings (loss)
per common share $0.01 $(0.08) $0.02 $(0.18)
Shares used to calculate
diluted earnings (loss)
per common share 60,101 57,340 60,443 57,168
* The above Pro Forma Condensed Consolidated Statements of Operations are
presented for illustrative purposes only and are not prepared in
accordance with generally accepted accounting principles.These Pro Forma
Condensed Consolidated Statements of Operations are intended to
illustrate the Company's operating results excluding certain non-cash
charges associated with stock compensation expense and the amortization
of purchased intangibles associated with the acquisition of Neomorphic,
Inc. in 2000.These measures may be different from Pro Forma measures
used by other companies.
AFFYMETRIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2002 2001
(Note)
ASSETS
Current assets:
Cash and cash equivalents $134,791 $58,795
Available-for-sale securities 218,732 310,028
Accounts receivable 47,867 44,812
Inventories 29,544 28,812
Other current assets 4,279 3,276
Total current assets 435,213 445,723
Net property and equipment 75,777 72,728
Acquired technology rights 16,479 17,636
Intangible assets 20,101 20,663
Notes receivable from employees 1,432 1,404
Other assets 21,427 21,861
$570,429 $580,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $46,966 $53,428
Deferred revenue 19,750 19,577
Total current liabilities 66,716 73,005
Obligation to Beckman Coulter, Inc. 5,000 5,000
Convertible subordinated notes 370,000 370,000
Common stock purchase rights 3,000 3,000
Stockholders' equity 125,713 129,010
$570,429 $580,015
Note: The balance sheet at December 31, 2001 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, 2001.<<
Cheers, Tuck |
