Affymetrix anticipates second-quarter total revenues in the range of $71-72 million

Affymetrix, Inc. (Nasdaq:AFFX) today reported that based on preliminary financial data, the Company expects total revenue for the second quarter of 2010 to be in the range of $71-72 million, as compared to the Company's previous guidance in the range of $80-82 million. The company expects product revenue for the second quarter of 2010 to be approximately $65-66 million, including instrument sales of approximately $4-5 million and consumable sales of approximately $60-61 million.

“When the Company previously issued guidance for the second quarter of 2010, we anticipated that growth in product sales would offset an expected decline in services revenue as compared to the second quarter of 2009”

The principal factors that contributed to the lower than expected second quarter revenue include:

• Delayed and lengthened capital equipment purchase cycles by academic research customers, particularly in Europe;
• Increased sales of DNA products offset by declines in RNA sales that were related to the integration of recent acquisitions and the realignment of sales territories; as well as
• Material deterioration in both the Euro and British Pound of $1 million in aggregate since the Company provided second quarter guidance on April 21, 2010.

"When the Company previously issued guidance for the second quarter of 2010, we anticipated that growth in product sales would offset an expected decline in services revenue as compared to the second quarter of 2009," stated Kevin M. King, president and CEO. "However, instrument adoption was slower than anticipated, principally due to reduced foreign academic research spending. In Europe, we believe our business was impacted by governmental actions taken to address high levels of debt and weakening currencies."

"Despite the challenges we experienced in the second quarter, we are confident our business is moving in the right direction and we are focused on growing the business beyond the basic research market," continued King.

Tim Barabe, executive vice president and CFO, said, "We continue to make good progress in reducing our operating expenses and we expect to be cash-flow positive on an operating basis in each quarter of fiscal year 2010. In addition, we have a strong balance sheet and expect to report about $100 million in net cash as of June 30, 2010."

The Company noted that it will not be providing updated revenue guidance for the remainder of 2010 due to uncertainty regarding academic research funding and foreign currency fluctuations.

The Company will provide further information when it reports second quarter 2010 results after the close of the market on Wednesday, July 21, 2010.