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Affymetrix Reports First Quarter 2012 Results

Stock quotes in this article: AFFX 

Affymetrix, Inc., (NASDAQ:AFFX) today reported its operating results for the first quarter of 2012. Total revenue for the quarter was $65.2 million, as compared to total revenue of $73.7 million for the same period of 2011.

The Company reported a net loss of approximately $4.2 million, or $0.06 per diluted share, in the first quarter of 2012. This compares to a profit of less than $0.1 million in the same period of 2011.

For the first quarter of 2012, product revenue was $58.4 million, which consisted of consumable revenue of $53.7 million, instrument revenue of $4.7 million and service and other revenue was $6.8 million. This compares to the first quarter of 2011, product revenue of $67.5 million, which consisted of consumable revenue of $62.9 million, instrument revenue of $4.6 million and service and other revenue of $6.2 million.

For the first quarter of 2012, cost of product sales was $23.6 million compared to $23.9 million in the same period of 2011. Product gross margin was 59.7%, as compared to 64.6% in the same period of 2011. Cost of services and other was $3.8 million compared to $3.2 million in the same period of 2011.

For the first quarter of 2012, operating expenses were $41.3 million as compared to operating expenses of $43.5 million in the same period of 2011. The 2012 expenses included $1.3 million in acquisition and associated legal expenses.

“During the first quarter we began to realize the benefits of reorganizing the Company with a business unit focus and a strengthened commercial team. On a sequential basis our Genetic Analysis unit grew, including a strong performance from our CytoScan HD product which continues to gain momentum, as well as a mid-single digit decline in revenue from our Expression Business unit. We also generated an improved product gross margin of 60%,” said Frank Witney, president and chief executive officer. “We had a better than expected quarter in Europe and Asia and we expect to generate year-over-year growth in our total revenue for 2012.”

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