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Affy Posts $25M Net Loss for Q1

NEW YORK (GenomeWeb News) – Affymetrix reported after the close of the market on Wednesday that its first-quarter product and services revenue increased 7 percent year over year, but a profit in the first quarter of 2008 swung to a $25 million net loss.

Total revenue for the quarter fell to $78.6 million from $169.6 million in the prior year period, which included an intellectual property payment of $90 million.
 
The company’s first-quarter product revenue increased to $64.9 million from $62.8 million in the comparable period of 2008. Product revenues included array and reagent revenue of $59.7 million and instrument revenue of $5.2 million. Service revenue increased to $11.6 million from $8.4 million in the prior-year period, while royalties and other revenue fell to $2.1 million from $98.3 million in the first quarter of 2008, which included the $90 million IP settlement. 

Affy said that it shipped 26 GeneChip systems during the quarter, bringing its total systems shipped to 1,839.
 
The Santa Clara, Calif.-based company posted a net loss of $25.2 million, or $.37 per share, for the quarter compared to a profit of $46.3 million, or $.68 per share, for the first quarter of 2009. The company took on a restructuring charge of $2 million during the quarter, whereas the same period a year ago included restructuring charges of $13.9 million.
 
Affy’s R&D costs rose 13 percent year over year to $21.3 million from $18.8 million, while its SG&A expenses dipped around two percent to $34 million from $34.7 million.

Affy said it held $66 million in cash and cash equivalents at the end of the quarter.
 
CEO Kevin King said in a statement that the company is “optimistic about the potential impact of increased NIH funding and government stimulus dollars that have been allocated for life science research.”

The company's shares were down nearly 12 percent at $3.75 in Thursday morning trade.

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