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Biotech / Medical : AFFYMETRIX (AFFX) -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (1637)	7/23/2003 4:41:24 PM
From: tuck	Read Replies (1) \| Respond to of 1728

AFFX beats estimates handily, and guides roughly in line. Trading back above $22 after hours. >>SANTA CLARA, Calif., July 23 /PRNewswire-FirstCall/ -- Affymetrix, Inc., (Nasdaq: AFFX - News) today reported its operating results for the second quarter ended June 30, 2003. The Company reported net income of approximately $5.2 million or $0.09 per basic and diluted share in the second quarter of 2003, as compared to a net loss of $1.6 million or $0.03 per basic and diluted share in the second quarter of 2002. Total revenue for the quarter was $68.6 million, of which $2.8 million was related to the sale of wafers to Perlegen Sciences, Inc., compared to total revenue of $70.7 million in the second quarter of 2002, of which $5.6 million was related to the sale of wafers to Perlegen. Product and product related revenue increased to $63.2 million for the second quarter of 2003, compared to $58.6 million in the same period in 2002. Second quarter product sales included GeneChip® array revenue of $29.4 million and record instrument revenue of $15.6 million. The combination of next generation system purchases and upgrades contributed to strong instrument sales for the quarter. Royalties and other revenue were $2.7 million for the second quarter of 2003 compared to $6.4 million in the second quarter of 2002. Total costs and expenses for the quarter were $63.8 million compared to $69.2 million in the second quarter of 2002. Cost of product and product related revenue was $19.3 million in the second quarter of 2003 compared to $21.0 million in the same period of 2002. Product and product related gross margin was 69.5% in the second quarter compared to 64.1% in the second quarter of 2002. Research and development expenses were $16.6 million during the second quarter of 2003 compared to $17.3 million in the second quarter of 2002. Selling, general and administrative expenses were $24.2 million for the second quarter for 2003 compared to $23.0 million in the second quarter of 2002. Quarterly Highlights In July, Affymetrix launched the GeneChip® Mapping 10K Array and the GeneChip® CustomSeq(TM) Resequencing Array enabling the DNA analysis markets with GeneChip technology. The first "Powered by Affymetrix" product, the Roche AmpliChip(TM) CYP450, was launched. Customer demand for next generation products was indicated by record instrumentation sales. The Company launched the SARS GeneChip® product for research into the sequence diversity of this pathogen contributing to the understanding of SARS and the search for treatments. The Company established 12 new service providers worldwide, doubling the provider base, increasing customer access to GeneChip technology. Affymetrix gained five new BiotechAccess(TM) customers. The Company repurchased more than $100 million in subordinated convertible notes. Financial Outlook for 2003 The Company expects product and product related revenue of approximately $68-73 million for the third quarter, and net income per diluted share of $0.07-0.09. For fiscal 2003, the Company expects product and product related revenue of approximately $280 million and total revenue of approximately $300 million.<< snip Cheers, Tuck