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Affymetrix Posts 2 Percent Q1 Revenue Growth

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Affymetrix reported after the close of the market on Monday that its first-quarter 2010 revenues increased 2 percent, with a sharp increase in product sales somewhat offset by lower service revenues.

The Santa Clara, Calif.-based firm brought in total revenues of $80.2 million for the three-month period ended March 31, compared to revenues of $78.6 million for the first quarter of 2009. Affy beat analysts' consensus estimate of $78.9 million in revenues for Q1 2010.

Its product sales jumped 13 percent to $73.4 million from $64.9 million, while its services revenue declined to $4.5 million from $11.6 million. Its royalties and other revenue were $2.3 million versus $2.1 million for the first quarter of 2009.

The firm's services revenues were affected by several large genotyping studies that Affy was conducting for customers that ended in 2009.

Affy said that it shipped 40 systems in the first quarter, with instrumentation revenue up 38 percent over the prior year, driven by adoption of its GeneTitan platform and initial shipments of its GeneAtlas system. Company officials noted during a conference call that consumables accounted for 83 percent of the firm's revenues, and were up 11 percent year over year.

Its net loss dropped to $9.6 million, or $.14 per share, from $25.2 million, or $.37 per share, as it trimmed its spending and did not repeat the $2 million restructuring charge from Q1 2009. However, Affy took an impairment charge of $4.9 million on a nonmarketable investment in Q1 2010.

Affy's R&D spending declined to $18.5 million from $21.3 million, and its SG&A spending dropped to $31.4 million from $34 million.

As of March 31, Affy had cash and cash equivalents of $75.8 million.

The firm said that it expects to report second-quarter revenues of between $80 million and $82 million, below analysts' expectations of $84.2 million.

In early Thursday trade on the Nasdaq, shares of Affymetrix dropped 13 percent to $7.13.

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