NEW YORK, Jan. 6 (GenomeWeb News) - Affymetrix announced yesterday cut its fourth-quarter revenue projections by roughly $15 million, or 12.5 percent, below previous guidance.
The company blamed the cut, which is the second one in three months, on low fourth-quarter instrument sales and delays in completing genotyping processing under a services contract.
Affymetrix had originally projected its Q4 revenues to be $130 million. In the fall of 2005, the company cut this projection to $120 million.
Affy also cut its full-year 2005 product-related revenue projection, also for a second time. The company originally projected to generate $390 million in product-releated receipts in 2005, but in the fall of 2005, the firm cut that figure 6 percent to $365 million. Yesterday, Affy further cut that projection, this time to $350 million, or an additional 4.3 percent.
Also yesterday, Affy cut its total 2005 revenue projection by $40 million, or 9.9 percent, to $365 million.
"Affymetrix is experiencing growing pains as it both innovates and commercializes new products in high potential markets," said CEO Stephen Fodor. "We are carrying record orders into 2006 and expect to achieve around 15 percent top-line growth for the full year."