Affymetrix, Inc., (NASDAQ: AFFX) today reported its operating results for the three and twelve months ended December 31, 2012.
Results for the three months ended December 31, 2012:
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Total revenue was $84.4 million, which excluding eBioscience of $18.1 million, represented a 2% increase from the fourth quarter of 2011.
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GAAP net loss was $12.3 million, or $0.17 per diluted share, as compared to a net loss of $14.7 million, or $0.21 per diluted share, in the fourth quarter of 2011.
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Non-GAAP net loss was $1.3 million, or $0.02 per diluted share, as compared to a net loss of $8.3 million, or $0.12 per diluted share, for the fourth quarter of 2011. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Net Loss" for a reconciliation of these GAAP and non-GAAP financial measures.
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Positive cash flow from operations of $2.0 million and a total balance in cash, cash equivalents and available-for-sale securities of $35.7 million at the end of December 31, 2012, after debt payments of $9.6 million during the quarter.
Product revenue for the fourth quarter of 2012 was $76.4 million and service and other revenue was $8.0 million. This compares to product revenue of $58.7 million and service and other revenue of $6.4 million in the fourth quarter of 2011. Product revenue for the fourth quarter of 2012 included Affymetrix core consumable revenue of $53.1 million, instrument revenue of $5.2 million and revenue from eBioscience of $18.1 million. Product revenue for the fourth quarter of 2011 included Affymetrix core consumable revenue of $54.9 million and instrument revenue of $3.8 million.
Total gross margin was 54%, as compared to 53% in the same period of 2011. Excluding non-GAAP adjustments such as the amortization of step-up in inventory fair value, total margin was 61% in 2012, as compared to 54% in 2011. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Gross Margin" for a reconciliation of these GAAP and non-GAAP financial measures.
For the fourth quarter of 2012, operating expenses were $54.4 million on a GAAP basis as compared to $45.5 million in 2011. Excluding non-GAAP adjustments such as the amortization of acquired intangible assets and non-recurring charges, operating expenses were $48.5 million, compared to an adjusted total of $41.5 million in 2011. The increase reflects the acquisition of eBioscience in June 2012. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Operating Expenses" for a reconciliation of these GAAP and non-GAAP financial measures.
Results for the year ended December 31, 2012:
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Total revenue was $295.6 million, which excluding eBioscience of $37.0 million, represented a 3% decrease from 2011.
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GAAP net loss was $10.7 million, or $0.15 per diluted share, as compared to a net loss of $28.2 million, or $0.40 per diluted share, in 2011.
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Non-GAAP net loss was $6.8 million, or $0.10 per diluted share, as compared to a net loss of $13.0 million, or $0.18 per diluted share, for 2011. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Net Loss" for a reconciliation of these GAAP and non-GAAP financial measures.
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Positive cash flow from operations of $4.0 million. $11.7 million of debt payments were made during the year.
Product revenue for the year ended December 31, 2012 was $266.1 million and service and other revenue was $29.5 million. This compares to product revenue of $241.3 million and service and other revenue of $26.2 million in 2011. Product revenue for 2012 included Affymetrix core consumable revenue of $210.7 million, instrument revenue of $18.4 million and revenue from eBioscience of $37.0 million. Product revenue for 2011 included Affymetrix core consumable revenue of $225.0 million and instrument revenue of $16.3 million.
Total gross margin was 55%, as compared to 58% in the same period of 2011. Excluding non-GAAP adjustments such as the amortization of step-up in inventory fair value and acquired intangible assets, total margin was 60% in 2012, as compared to 59% in 2011. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Gross Margin" for a reconciliation of these GAAP and non-GAAP financial measures.
For the year ended December 31, 2012, operating expenses were $202.6 million on a GAAP basis as compared to $173.2 million in 2011. Excluding non-GAAP adjustments such as the amortization of acquired intangible assets and non-recurring charges, operating expenses were $175.4 million, compared to an adjusted total of $166.2 million in 2011, with the increase reflecting the eBioscience acquisition in 2012. Please refer to the "Itemized Reconciliation Between GAAP and Non-GAAP Operating Expenses" for a reconciliation of these GAAP and non-GAAP financial measures.
"We had a good finish to 2012, achieving modest growth in our core business during the fourth quarter, which was a very challenging environment for academic spending. Revenue for eBioscience increased by 5% as compared to the fourth quarter of 2011," said Dr. Frank Witney, president & CEO. "Over the last year we have diversified our portfolio, achieved our strategic and revenue goals for our CytoScan product line and demonstrated renewed strength in genotyping with our Axiom platform. We plan to return to growth and profitability in fiscal 2013."
Recent announcements:
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In December of 2012, the Company prepaid $9.6 million of its senior-secured debt representing the entire principal due in 2013.
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Additionally, the Company implemented a corporate restructuring to accelerate its 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. The Company expects to record a total charge of approximately $7 million, the majority of which will be incurred during the first quarter of 2013 except for $1.8 million which was recognized in 2012.