NEW YORK (GenomeWeb News) – Affymetrix today said that it expects a 21 percent drop in third-quarter revenues due to “increased competition for academic research funding and continued softness in industrial spending.”
The company said that total third-quarter 2008 revenue will be approximately $75 million. The company posted $95 million in revenue in the year-ago period and $84.7 million in the third quarter of 2006.
Kevin King, president of Affymetrix, said in a statement that the firm is "disappointed" with its results for the quarter and that it plans to complete an analysis of the shortfall to identify “specific actions that we intend to take to improve our operating results.”
Stephen Fodor, chairman and CEO of Affymetrix, said that the company expects that research budgets will remain “tight” in the near term, but added that the company believes that “the long term growth opportunity in the genetic analysis markets remains attractive.”
Fodor added that the company is “reengineering” its platform to offer products that are “more flexible and cost effective” in 2009.
Affymetrix will release its third-quarter financial results on Oct. 23.
In mid-morning trading, the company’s shares were down 26 percent to $4.00.