Affymetrix (AFFX) Prelim. Q4 Revs Slightly Lighter than Views
Tweet
Share
E-mailGet Alerts AFFX Hot Sheet
Price: $14.01 --0%
Financial Fact:
Cost of services and other: 4.49M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Cost of services and other: 4.49M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Join SI Premium – FREE
Affymetrix, Inc., (NASDAQ: AFFX) announced that based on preliminary financial data, the Company expects total revenue for the fourth quarter of 2012 will be approximately $84 million, including $18 million from its eBioscience business unit. Excluding eBioscience, the Company’s revenue increased by 1% as compared to the fourth quarter of 2011, and eBioscience’s revenue increased by approximately 5% as compared to the fourth quarter of 2011. For fiscal 2012, the Company expects total revenue of approximately $295 million.
*** The Street currently sees revs of $84.4 million and a loss of 3 cents per share.
The company also announced that it prepaid $9.6 million of its senior-secured debt and is implementing a corporate restructuring to accelerate the Company’s path to profitability. The restructuring is expected to result in annualized savings of approximately $25 million based on 2013 run rates, of which $5 million is in cost-of-goods sold. As part of the restructuring, Affymetrix expects that more than 100 employees will leave the company, representing about 8% of its work force. The company expects to record a charge of approximately $7 million, the majority of which will be incurred during the first quarter of 2013.
“This restructuring will drive operational efficiency, and together with the sharpened focus of our development and commercial priorities, will accelerate our return to profitability,” said Dr. Frank Witney, president and chief executive officer.
In conjunction with this announcement, the Company’s EVP and general counsel John F. (Rick) Runkel will retire from Affymetrix effective March 31, 2013. Mr. Runkel will be succeeded by Ms. Siang Chin. Ms. Chin joined the company in 2007 as vice president, chief corporate counsel. Ms. Chin has practiced law for over 15 years; prior to joining the Company, she was associated with the law firms of Shearman & Sterling and Slaughter and May. The Company expects to retain Mr. Runkel in a consulting capacity to ensure a smooth transition. In addition, the Company’s EVP and CFO Tim Barabe will also retire from Affymetrix. Mr. Barabe will continue in his current capacity while the Company conducts a search for a successor.
“I would like to thank Tim and Rick for their years of service and the contributions that they have made to Affymetrix, including their efforts to ensure a smooth transition. I will personally miss them as friends and colleagues,” Dr. Witney said.
“This restructuring will help to improve our free-cash flow in 2013 and beyond, as well as enable us to accelerate the repayment of our senior debt,” stated Tim Barabe, EVP & CFO. “In December we prepaid $9.6 million of our senior secured debt representing the entire principal due in 2013. This payment was funded in part from the sale of our manufacturing facility in Sacramento. We have reduced our senior debt to $73 million and cash-on-hand at year-end was approximately $35 million.”
*** The Street currently sees revs of $84.4 million and a loss of 3 cents per share.
The company also announced that it prepaid $9.6 million of its senior-secured debt and is implementing a corporate restructuring to accelerate the Company’s path to profitability. The restructuring is expected to result in annualized savings of approximately $25 million based on 2013 run rates, of which $5 million is in cost-of-goods sold. As part of the restructuring, Affymetrix expects that more than 100 employees will leave the company, representing about 8% of its work force. The company expects to record a charge of approximately $7 million, the majority of which will be incurred during the first quarter of 2013.
“This restructuring will drive operational efficiency, and together with the sharpened focus of our development and commercial priorities, will accelerate our return to profitability,” said Dr. Frank Witney, president and chief executive officer.
In conjunction with this announcement, the Company’s EVP and general counsel John F. (Rick) Runkel will retire from Affymetrix effective March 31, 2013. Mr. Runkel will be succeeded by Ms. Siang Chin. Ms. Chin joined the company in 2007 as vice president, chief corporate counsel. Ms. Chin has practiced law for over 15 years; prior to joining the Company, she was associated with the law firms of Shearman & Sterling and Slaughter and May. The Company expects to retain Mr. Runkel in a consulting capacity to ensure a smooth transition. In addition, the Company’s EVP and CFO Tim Barabe will also retire from Affymetrix. Mr. Barabe will continue in his current capacity while the Company conducts a search for a successor.
“I would like to thank Tim and Rick for their years of service and the contributions that they have made to Affymetrix, including their efforts to ensure a smooth transition. I will personally miss them as friends and colleagues,” Dr. Witney said.
“This restructuring will help to improve our free-cash flow in 2013 and beyond, as well as enable us to accelerate the repayment of our senior debt,” stated Tim Barabe, EVP & CFO. “In December we prepaid $9.6 million of our senior secured debt representing the entire principal due in 2013. This payment was funded in part from the sale of our manufacturing facility in Sacramento. We have reduced our senior debt to $73 million and cash-on-hand at year-end was approximately $35 million.”
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BJ's Wholesale Club (BJ) Tops Q2 EPS by 19c, Beats on Revenue; Offers FY27 EPS Guidance
- Advance Auto Parts (AAP) Tops Q2 EPS by 22c; lifrs profit guidance
- Opera Limited (OPRA) Misses Q2 EPS by 1c ; Offers Guidance
Create E-mail Alert Related Categories
Guidance, Hot GuidanceSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
