Affymetrix Reports 2004 Fourth Quarter and Full-Year Results New
Products Drive Record Revenue and Over 200% EPS Growth SANTA CLARA,
Calif., Jan. 26 /PRNewswire-FirstCall/ -- Affymetrix, Inc.,
(NASDAQ:AFFX) today reported its results for the fourth quarter and
fiscal year ended December 31, 2004. The Company reported net
income of $27.1 million or $0.44 per basic share and $0.41 per
diluted share in the fourth quarter of 2004, as compared to net
income of $16.0 million or $0.27 per basic share and $0.26 per
diluted share in the fourth quarter of 2003. For fiscal year 2004,
the Company reported net income of $47.6 million or $0.79 per basic
share and $0.74 per diluted share, as compared to $14.3 million or
$0.24 per basic and diluted share for 2003. Net cash provided by
operations was $19.8 million for the quarter and $48.9 million for
the year ended December 31, 2004. Total revenue for the quarter was
$107.7 million, of which $1.3 million was related to the sale of
products and wafers to Perlegen Sciences, Inc., compared to total
revenue of $89.2 million in the fourth quarter of 2003, of which
$1.5 million was related to the sale of products and wafers to
Perlegen. For the full year, total revenue increased to $346.0
million as compared to $300.8 million for 2003. Product and product
related revenue increased to $104.9 million for the fourth quarter
of 2004, compared to $85.3 million in the same period in 2003.
Fourth quarter product sales included record GeneChip(R) array
revenue of $57.4 million, record instrument revenue of $25.2
million and record reagent revenue of $9.6 million. In 2004, total
product and product related revenue increased to $330.9 million as
compared to $280.8 million for 2003. Affymetrix shipped
approximately 200 systems in 2004 compared to approximately 150
systems in 2003, an increase of approximately 30%. The cumulative
systems shipped grew to approximately 1,200 at the end of the
fourth quarter. Royalties and other revenue were $1.5 million for
the fourth quarter of 2004 compared to $2.4 million in the fourth
quarter of 2003. In 2004, royalties and other revenue were $9.8
million compared to $10.6 million in 2003. Total operating costs
and expenses were $79.7 million for the fourth quarter of 2004
compared to $74.2 million in the fourth quarter of 2003. In 2004,
total operating costs and expenses were $286.2 million as compared
to $283.3 million in 2003. Cost of product and product related
revenue was $26.8 million in the fourth quarter of 2004 compared to
$26.8 million in the same period of 2003. Product and product
related gross margin was 74.4% in the fourth quarter of 2004
compared to 68.6% in the fourth quarter of 2003. In 2004, cost of
product and product related revenue was $91.3 million as compared
to $89.8 million in 2003, resulting in product and product related
gross margin of 72.4% in 2004 as compared to 68.0% in 2003.
Research and development expenses were $20.5 million during the
fourth quarter of 2004 compared to $16.9 million in the fourth
quarter of 2003. In 2004, research and development expenses were
$73.4 million as compared to $65.9 million in 2003. Selling,
general and administrative expenses were $31.8 million for the
fourth quarter of 2004 compared to $28.5 million in the fourth
quarter of 2003. In 2004, selling, general, and administrative
expenses were $117.0 million as compared to $104.8 million in 2003.
Fiscal 2004 highlights: Financial -- Achieved record total revenue
of $346 million and record product and product related revenue of
more than $330 million -- Grew full-year earnings per diluted share
by over 200% compared to fiscal 2003 -- Improved product and
product related gross margin by more than 400 basis points compared
to fiscal 2003 -- Reduced total debt by over $250 million in 2004,
lowering the Company's interest expense RNA analysis -- Introduced
new products and applications to fuel landmark discoveries and to
expand market opportunities -- Offered early access to tiling array
technologies, enabling new analyses of biological function,
including DNA methylation sites, transcription factor binding sites
(ChIP-on-Chip), and sites of chromatin modification -- Introduced
early access to Exon Scanning Arrays, enabling researchers to study
splice variants across the entire human genome for the first time
-- Shipped automation systems designed to enable large scale
studies such as compound profiling, molecular toxicology, and
clinical trials DNA analysis -- Launched market-transforming SNP
genotyping products, enabling unprecedented, large-scale research
studies to understand genetics of complex diseases, including
recently announced projects in autism, diabetes, obesity, and
neurological conditions -- Launched GeneChip(R) Mapping 100K Set,
the first in a family of products for large-scale association
studies -- Drove demand for new Mapping 500K Set, which will be
offered in early access in the first half of 2005 and will launch
commercially in the second half of 2005 -- Expanded comprehensive
genotyping portfolio with products and services through commercial
relationships with ParAllele and Perlegen -- Enhanced chromosomal
copy number applications of the Mapping 10K Array and 100K Set by
launching a dedicated software tool Molecular Diagnostics --
Continued to demonstrate the strength of microarrays for molecular
diagnostics -- Received FDA 510(k) clearance of the GeneChip(R)
System 3000Dx -- FDA clearance of Roche's AmpliChip Cytochrome P450
Genotyping Test for use with the Affymetrix GeneChip System 3000Dx
-- Obtained CE Marking of the GeneChip System 3000Dx and AmpliChip
products for sale in the European Union -- Granted Veridex, LLC, a
Johnson & Johnson company, access to GeneChip technology to
create and market in vitro diagnostics for cancer through the
"Powered by Affymetrix(TM)" program Translational Medicine --
Continued to drive translation of basic research discoveries into
clinical utility through translational medicine relationships --
Partnered with IBM to deliver tools to accelerate translational and
information-based medicine -- Signed an enterprise-wide agreement
with Erasmus University Medical Center to use Affymetrix technology
in translational medicine initiatives -- Collaborated with the
Broad Institute of MIT and Harvard to use the GeneChip HT System
for large-scale expression, SNP genotyping, and resequencing
projects Financial Outlook for 2005 For fiscal 2005, the Company
expects product and product related revenue of approximately $390
million, total revenue of approximately $405 million, and earnings
per diluted share of approximately $1.12. For the first quarter of
2005, the Company projects approximately $87 million in product and
product related revenue, approximately $90 million in total
revenue, and earnings per diluted share of approximately $0.20.
Affymetrix' management team will host a conference call to review
its operating results for the fourth quarter of 2004 and to provide
financial guidance for the first quarter and fiscal year 2005. A
live webcast of the conference call on January 26th at 2:00 p.m. PT
can be accessed by visiting the Investor Relations section of the
Company's website at http://www.affymetrix.com/. In addition,
investors and other interested parties can listen by dialing
domestic: (888) 396-2356, international: (617) 847-8709. The
passcode for both domestic and international callers is 75652162. A
replay of the conference call will be available until 5:00 p.m. PT
on February 2, 2005 at the following numbers: domestic: (888)
286-8010, international: (617) 801-6888. The passcode for both
domestic and international callers is 28234721. An archived webcast
of the conference call will be available under the Investor
Relations section of the Company's website at
http://www.affymetrix.com/. About Affymetrix Affymetrix scientists
invented the world's first high-density microarray in 1989 and
began selling the first commercial microarray in 1994. Since then,
Affymetrix GeneChip(R) technology has become the industry standard
in molecular biology research. Affymetrix technology is used by the
world's top pharmaceutical, diagnostic and biotechnology companies
as well as leading academic, government and not-for-profit research
institutes. More than 1,200 systems have been installed around the
world and nearly 3,000 peer-reviewed papers have been published
using the technology. Affymetrix' patented photolithographic
manufacturing process provides the most information capacity
available today on an array, enabling researchers to use a
whole-genome approach to analyzing the relationship between
genetics and health. Affymetrix is headquartered in Santa Clara,
Calif., with manufacturing facilities in Sacramento, Calif., and
Bedford, Mass. The company maintains important sales and marketing
operations in Europe and Asia and has about 900 employees
worldwide. All statements in this press release that are not
historical are "forward- looking statements" within the meaning of
Section 21E of the Securities Exchange Act as amended, including
statements regarding Affymetrix' "expectations," "beliefs,"
"hopes," "intentions," "strategies," or the like. Such statements,
including Affymetrix' financial outlook for 2005, are subject to
risks and uncertainties that could cause actual results to differ
materially for Affymetrix from those projected, including, but not
limited to, risks of the Company's ability to achieve and sustain
higher levels of revenue, higher gross margins, reduced operating
expenses, market acceptance, personnel retention, global economic
conditions, the fluctuations in overall capital spending in the
academic and biotechnology sectors, changes in government funding
policies, unpredictable fluctuations in quarterly revenues,
uncertainties related to cost and pricing of Affymetrix products,
dependence on collaborative partners, uncertainties relating to
sole source suppliers, uncertainties relating to FDA, and other
regulatory approvals, risks relating to intellectual property of
others and the uncertainties of patent protection and litigation.
These and other risk factors are discussed in Affymetrix' Form 10-K
for the year ended December 31, 2003 and other SEC reports,
including its Quarterly Reports on Form 10-Q for subsequent
quarterly periods. Affymetrix expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Affymetrix' expectations with regard thereto or any change in
events, conditions, or circumstances on which any such statements
are based. PLEASE NOTE: Affymetrix, the Affymetrix logo and
GeneChip are trademarks owned or used by Affymetrix, Inc.
CustomExpress is a trademark of Affymetrix, Inc. AFFYMETRIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED)
December 31, 2004 2003 (Note 1) ASSETS Current assets: Cash and
cash equivalents $42,595 $275,928 Available-for-sale securities
163,120 183,955 Accounts receivable 93,405 71,343 Inventories
17,997 22,632 Prepaid expenses and other current assets 5,833 7,443
Total current assets 322,950 561,301 Property and equipment, net
64,179 62,611 Acquired technology rights, net 64,334 27,818
Goodwill 18,601 18,601 Notes receivable from employees 1,900 1,500
Other assets 27,807 28,333 Total assets $499,771 $700,164
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable and accrued liabilities $61,265 $69,646 Deferred revenue -
current portion 33,776 30,019 Convertible subordinated notes -
short-term -- 267,460 Other current liabilities 1,698 1,398 Total
current liabilities 96,739 368,523 Deferred revenue - long-term
portion 29,463 43,346 Other long-term liabilities 4,382 3,240
Convertible notes 120,000 120,000 Stockholders' equity: Common
stock 616 595 Additional paid-in capital 407,258 370,304 Notes
receivable from stockholders -- (428) Deferred stock compensation
(4,265) (5,185) Accumulated other comprehensive loss (3,371)
(1,572) Accumulated deficit (151,051) (198,659) Total stockholders'
equity 249,187 165,055 $499,771 $700,164 Note 1: The condensed
consolidated balance sheet at December 31, 2003 has been derived
from the audited consolidated financial statements at that date
included in the Company's Form 10-K for the fiscal year ended
December 31, 2003. AFFYMETRIX, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED) Three Months Ended Year Ended December 31, December 31,
2004 2003 2004 2003 Revenue: Product sales $92,183 $69,307 $277,256
$222,748 Product related revenue 12,668 16,040 53,629 58,032 Total
product and product related revenue 104,851 85,347 330,885 280,780
Royalties and other revenue 1,532 2,362 9,832 10,556 Revenue from
Perlegen Sciences 1,325 1,455 5,245 9,460 Total revenue 107,708
89,164 345,962 300,796 Costs and expenses: Cost of product sales
24,473 23,948 81,700 80,158 Cost of product related revenue 2,335
2,852 9,634 9,657 Cost of revenue from Perlegen Sciences 572 1,455
3,611 9,460 Research and development 20,514 16,919 73,405 65,909
Selling, general and administrative 31,760 28,547 116,973 104,797
Stock-based compensation 5 386 920 2,238 Amortization of purchased
intangibles -- 93 -- 937 Acquired in-process research and
development -- -- -- 10,096 Total costs and expenses 79,659 74,200
286,243 283,252 Income from operations 28,049 14,964 59,719 17,544
Interest income and other, net 544 5,897 2,317 16,662 Interest
expense (427) (3,632) (11,102) (17,358) Income before income taxes
28,166 17,229 50,934 16,848 Income tax provision (1,111) (1,219)
(3,326) (2,563) Net income $27,055 $16,010 $47,608 $14,285 Basic
net income per share $0.44 $0.27 $0.79 $0.24 Diluted net income per
share $0.41 $0.26 $0.74 $0.24 Shares used in computing basic net
income per share 61,151 59,298 60,512 58,860 Shares used in
computing diluted net income per share 67,425 61,633 66,798 60,742
DATASOURCE: Affymetrix, Inc. CONTACT: Doug Farrell, Vice President
of Investor Relations of Affymetrix, Inc., +1-408-731-5285 Web
site: http://www.affymetrix.com/
Copyright
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Oct 2023 to Oct 2024