NEW YORK, April 21 (GenomeWeb News) - Affymetrix yesterday said that first-quarter sales declined more than 10 percent as overall revenue fell 2.5 percent year over year amid growing R&D expenses and shrunken profits.
The results caused shares in the company to plummet 15.88 percent, or $5.38, to $28.50 in early-morning trade today, below the company's 52-week low of $29.80. The company's stock has lost more than half its value since early July last year.
Sales for the three months ended March 31 fell to $66 million from 73.6 million year over year. Product-related revenue, however, increased 16.8 percent to $13.2 million year over year and revenue from Perlegen Sciences more than doubled to $5.3 million, Affy said. Royalties and "other" revenue" increased 18.8 percent to $1.9 million year over year.
Total receipts for the period declined to $86.4 million from $88.6 million in the year-ago quarter.
R&D spending in the quarter surged 38.2 percent to $23.5 million from $17 million year over year.
Profits sank to $1.8 million, or $.03 per basic share, from $16.2 million, or $.26 per basic share, one year ago.
Affy said it had around $104.5 million in cash and equivalents and around $150 million in short-term securities as of March 31.
The company on Wednesday said Sue Siegel, president since 1999, has resigned.