Affymetrix s Q4 Revenues Increase 3.5 Percent, Beating Earlier Projection Cuts; Profits Tumble

NEW YORK, Jan. 27 (GenomeWeb News) - Affymetrix reported yesterday a 3.5-percent increase in revenues for the fourth quarter of 2005.

Total revenue for the fourth quarter inched up to $111.5 million from $107.7 million during the year-ago period.

Affymetrix's Q4 revenues were approximately $6 million dollars above its last projection of $105 million. The company had cut its fourth-quarter revenue projection twice since the fall of 2005, citing "growing pains" as it brought new products into potential markets.

Affy's fourth-quarter profit fell 8.2 percent to $24.8 million, or $0.35 per share, from $27.1 million, or $0.41 per share, during the fourth quarter of 2004.

R&D spending during the period decreased to $19.7 million from $20.5 million year-over-year.

As of Dec. 31, 2005, Affymetrix had $100 million in cash and cash equivalents.

For fiscal 2006, Affymetrix predicted product and product-related revenue of about $400 million, and total revenue of about $420 million.

For the first quarter of 2006, Affy projected product and product-related revenue of $87 million, and total revenue of about $91 million.