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Affymetrix Reports Third Quarter 2012 Results

Stocks in this article: AFFX

In addition to providing financial measures based on generally accepted accounting principles in the United States (GAAP), Affymetrix has disclosed in this press release its net loss and net loss per share as well as its gross margins for the third quarter of 2012 excluding specified one-time items. Reconciliation of non-GAAP net loss to GAAP net loss can be found in the tables included in this press release. Affymetrix has determined to disclose this financial information to investors because it believes it will be useful, as a supplement to GAAP measures, in comparing Affymetrix’s operating performance in the third quarter of 2012 to the prior-year period. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

PLEASE NOTE:

Affymetrix, the Affymetrix logo, GeneChip, and all other trademarks are the property of Affymetrix, Inc.

AFFYMETRIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

   

 

September 30, December 31,
  2012     2011  
(Unaudited) (See Note 1)
ASSETS:
Current assets:
Cash and cash equivalents $ 29,026 $ 201,937
Restricted cash 691 692
Available-for-sale securities—short-term portion 2,575 7,937
Accounts receivable, net 52,534 44,021
Inventories—short-term portion 74,891 42,851
Deferred tax assets—short-term portion 379 364
Property and equipment, net—held for sale 5,000 9,000
Prepaid expenses and other current assets   15,078     7,785  
Total current assets 180,174 314,587
Available-for-sale securities—long-term portion 7,337 54,501
Property and equipment, net 30,988 30,583
Inventories—long-term portion 14,668 -
Goodwill 159,420 -
Intangible assets, net 157,930 29,525
Deferred tax assets—long-term portion 3,445 450
Other long-term assets   16,224     8,369  
Total assets $ 570,186   $ 438,015  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities $ 56,852 $ 44,774
Convertible notes—short-term portion 3,855 -
Term loan—short-term portion 6,375 -
Deferred revenue—short-term portion   10,749     9,852  
Total current liabilities 77,831 54,626
Deferred revenue—long-term portion 3,453 3,959
Convertible notes—long-term portion 105,000 95,469
Term loan—long-term portion 76,500 -
Other long-term liabilities 22,345 9,127
Stockholders’ equity:
Common stock 707 704
Additional paid-in capital 757,051 750,332
Accumulated other comprehensive income 4,420 2,492
Accumulated deficit   (477,121 )   (478,694 )
Total stockholders’ equity   285,057     274,834  
Total liabilities and stockholders’ equity $ 570,186   $ 438,015  
 

Note 1: The condensed consolidated balance sheet at December 31, 2011 has been derived from the audited consolidatedfinancial statements at that date included in the Company’s Annual Report on Form 10-K for the fiscal year endedDecember 31, 2011.

AFFYMETRIX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

   
Three Months Ended Nine Months Ended
September 30, September 30,
  2012       2011     2012       2011  
REVENUE:
Product sales $ 72,685 $ 57,001 $ 189,681 $ 182,608
Services and other   6,939     6,986     21,593     19,762  
Total revenue   79,624     63,987     211,274     202,370  
COSTS AND EXPENSES:
Cost of product sales 33,979 24,647 81,907 70,913
Cost of services and other 3,959 3,001 11,057 9,627
Research and development 16,498 15,328 43,417 46,894
Selling, general and administrative   36,302     26,915     104,752     80,802  
Total costs and expenses   90,738     69,891     241,133     208,236  
Loss from operations (11,114 ) (5,904 ) (29,859 ) (5,866 )
Interest income and other, net (3,933 ) (2,154 ) (1,631 ) (3,549 )
Interest expense   2,993     991     4,191     2,866  
Loss before income taxes (18,040 ) (9,049 ) (35,681 ) (12,281 )
Income tax (benefit) provision   (181 )   740     (37,254 )   1,141  
Net (loss) income $ (17,859 ) $ (9,789 ) $ 1,573   $ (13,422 )
 
Basic net (loss) income per common share $ (0.25 ) $ (0.14 ) $ 0.02   $ (0.19 )
Diluted net (loss) income per common share $ (0.25 ) $ (0.14 ) $ 0.02   $ (0.19 )
 
Shares used in computing basic net (loss) income per common share   70,403     69,719     70,181     70,790  
Shares used in computing diluted net (loss) income per common share   70,403     69,719     70,610     70,790  

AFFYMETRIX, INC.

ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET (LOSS) INCOME

(IN THOUSANDS)

(UNAUDITED)

   
Three Months Ended Nine Months Ended
September 30,   September 30,
  2012       2011       2012       2011  
GAAP net (loss) income - diluted $ (17,859 )   $ (9,789 ) $ 1,573   $ (13,422 )
Amortization of inventory fair value adjustment 4,536 - 4,855 -
Amortization of acquired intangible assets 5,016 1,544 7,919 4,632
Acquisition-related transaction costs 326 - 6,093 -
Acquisition-related integration costs 1,541 - 1,541 -
Share-based compensation charge related to acquisition - - 8,265 -
Provision (recovery) of notes receivable - 2,215 (2,215 ) 2,215
Impairment of non-marketable investments - 743 - 1,900
Impairment of held-for-sale property 4,000 - 4,000 -
Income tax benefit related to acquisition   -       -       (37,462 )     -  
Non-GAAP net loss - diluted $ (2,440 )   $ (5,287 )   $ (5,431 )   $ (4,675 )
 
Basic net loss per common share $ (0.03 )   $ (0.08 )   $ (0.08 )   $ (0.07 )
Diluted net loss per common share $ (0.03 )   $ (0.08 )   $ (0.08 )   $ (0.07 )
 
Shares used in computing basic net loss per common share   70,403       69,719       70,181       70,790  
Shares used in computing diluted net loss per common share   70,403       69,719       70,610       70,790  




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