DELAWARE | 0-28218 | 77-0319159 | ||
(State of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | |
99.1 | Press Release dated February 4, 2015 |
AFFYMETRIX, INC. | |||
By: | /s/ GAVIN WOOD | ||
Name: | Gavin H.J. Wood | ||
Title: | Executive Vice President and | ||
Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated February 4, 2015 |
• | Total revenue was $349.0 million, as compared to total revenue of $330.4 million in 2013. Total revenue grew by 8.9% in 2014, after adjusting for a one-time license payment of $5.3 million in 2013 and the sale of its Anatrace business with revenues of $4.5 million. |
• | Total GAAP gross margin was 59%, as compared to 55% in 2013. Non-GAAP gross margin was 62%, as compared to 60% in 2013. |
• | Non-GAAP net income was $22.3 million, or $0.30 per diluted share, as compared to $7.4 million, or $0.10 per diluted share, for 2013. Please refer to the “Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss)” for a reconciliation of these GAAP and non-GAAP financial measures. |
• | GAAP net loss was $3.8 million, or $0.05 per diluted share, as compared to a net loss of $16.3 million, or $0.23 per diluted share, in 2013. |
• | Cash provided by operating activities was $43.5 million. Total balance in cash and cash equivalents was $79.9 million as of December 31, 2014. Senior secured debt is $23.0 million at the end of the year following net debt payments of $16.5 million in 2014. |
• | Total revenue was $93.5 million, as compared to $92.6 million in the fourth quarter of 2013. Total revenue grew by 7.3% over the fourth quarter of 2013, after adjusting for a one-time license payment of $5.3 million in 2013 and the sale of its Anatrace business with revenues of $0.2 million in the fourth quarter of 2014. |
• | Total GAAP gross margin was 63%, as compared to 59% in the fourth quarter of 2013. Non-GAAP gross margin was 64%, as compared to 62% in the fourth quarter of 2013. |
• | Non-GAAP net income was $8.9 million, or $0.09 per diluted share, as compared to $2.2 million, or $0.02 per diluted share, for the fourth quarter of 2013. Please refer to "Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss)" for a reconciliation of these GAAP and Non-GAAP financial measures. |
• | GAAP net income was $5.2 million, or $0.05 per diluted share, as compared to $9.4 million, or $0.10 per diluted share, in the fourth quarter of 2013. GAAP net income in 2013 included a gain on the divestiture of the Company's Anatrace business of $9.3 million, or $0.10 per diluted share and a one-time license payment of $5.3 million, or $0.06 per diluted share. |
• | Axiom® Genotyping Solution has been selected by Toshiba Corporation’s (TYO: 6502) Healthcare Company as the platform for its newly launched genotyping service. Affymetrix collaborated with Toshiba to custom design and manufacture the Japonica Array™, which is based on the Axiom platform. This array contains unique genetic content specifically optimized for the Japanese population. Toshiba has launched this genotyping service as of Dec. 1, 2014 for Japanese population genotyping studies primarily servicing universities, hospitals, and other research agencies and institutes. |
• | eBioscience, launched PrimeFlow™ RNA Assay, the first and only flow cytometry assay capable of simultaneous detection of RNA and protein within millions of cells at single-cell resolution. Current flow cytometry applications are limited to antibody-based interrogation of cell surface and intracellular proteins. |
• | The launch of Concurrent Molecular Analysis Profiling (CoMAP™) capability, which enables cancer researchers to gain rapid insight into the functional impact of DNA copy number alterations by combining whole-genome copy number data with gene expression profiles to easily and cost-effectively visualize and identify cancer driver events. The CoMAP capability is a new functionality included in Affymetrix’ new Chromosome Analysis Suite (ChAS) 3.0 Software that enables researchers to easily and quickly analyze and visualize the functional impact of copy number changes on gene expression in cancer samples, including FFPE tissue. |
• | eBioscience and Binding Site Group Ltd. have entered into a multi-year global distribution agreement. Under this agreement, The Binding Site has been granted the exclusive rights to distribute the eBioscience clinical flow cytometry reagents (ASR & CE marked) in the clinical care market, including hospitals and reference labs. |
December 31, 2014 | December 31, 2013 | ||||||
ASSETS: | (See Note 1) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 79,923 | $ | 57,128 | |||
Accounts receivable, net | 46,896 | 50,862 | |||||
Inventories—short-term portion | 50,676 | 58,059 | |||||
Deferred tax assets—short-term portion | 3,778 | 767 | |||||
Prepaid expenses and other current assets | 9,197 | 8,920 | |||||
Total current assets | 190,470 | 175,736 | |||||
Property and equipment, net | 18,087 | 18,671 | |||||
Inventories—long-term portion | 5,956 | 5,972 | |||||
Goodwill | 156,178 | 161,595 | |||||
Intangible assets, net | 106,183 | 131,108 | |||||
Deferred tax assets—long-term portion | 303 | 355 | |||||
Other long-term assets | 9,371 | 11,074 | |||||
Total assets | $ | 486,548 | $ | 504,511 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 53,063 | $ | 45,534 | |||
Term loan—short-term portion | 4,000 | 12,750 | |||||
Deferred revenue—short-term portion | 9,210 | 18,660 | |||||
Total current liabilities | 66,273 | 76,944 | |||||
Deferred revenue—long-term portion | 2,372 | 2,824 | |||||
Convertible notes | 105,000 | 105,000 | |||||
Term loan—long-term portion | 18,950 | 26,700 | |||||
Other long-term liabilities | 21,626 | 21,496 | |||||
Stockholders' equity: | |||||||
Common stock | 743 | 723 | |||||
Additional paid-in capital | 781,747 | 768,149 | |||||
Accumulated other comprehensive income | (612 | ) | 8,392 | ||||
Accumulated deficit | (509,551 | ) | (505,717 | ) | |||
Total stockholders' equity | 272,327 | 271,547 | |||||
Total liabilities and stockholders' equity | $ | 486,548 | $ | 504,511 |
Note 1: | The condensed consolidated balance sheet at December 31, 2013 has been derived from the audited consolidated financial statements at that date included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUE: | (See Note 1) | ||||||||||||||
Product sales | $ | 82,814 | $ | 82,113 | $ | 310,458 | $ | 302,618 | |||||||
Services and other | 10,716 | 10,523 | 38,561 | 27,781 | |||||||||||
Total revenue | 93,530 | 92,636 | 349,019 | 330,399 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Cost of product sales | 28,288 | 33,361 | 117,499 | 133,982 | |||||||||||
Cost of services and other | 6,300 | 4,251 | 25,659 | 15,379 | |||||||||||
Research and development | 12,784 | 11,984 | 50,227 | 47,670 | |||||||||||
Selling, general and administrative | 39,866 | 39,144 | 148,411 | 141,430 | |||||||||||
Litigation settlement | — | — | 5,100 | — | |||||||||||
Restructuring charges | — | 6 | — | 4,490 | |||||||||||
Total costs and expenses | 87,238 | 88,746 | 346,896 | 342,951 | |||||||||||
Income (loss) from operations | 6,292 | 3,890 | 2,123 | (12,552 | ) | ||||||||||
Interest income and other, net | (50 | ) | 301 | 652 | 802 | ||||||||||
Interest expense | 1,401 | 4,437 | 6,373 | 12,711 | |||||||||||
Gain on sale of product line | — | 9,295 | — | 9,295 | |||||||||||
Income (loss) before income taxes | 4,841 | 9,049 | (3,598 | ) | (15,166 | ) | |||||||||
Income tax (benefit) provision | (326 | ) | (324 | ) | 236 | 1,161 | |||||||||
Net income (loss) | $ | 5,167 | $ | 9,373 | $ | (3,834 | ) | $ | (16,327 | ) | |||||
Basic net income (loss) per common share | $ | 0.07 | $ | 0.13 | $ | (0.05 | ) | $ | (0.23 | ) | |||||
Diluted net income (loss) per common share | $ | 0.05 | $ | 0.10 | $ | (0.05 | ) | $ | (0.23 | ) | |||||
Shares used in computing basic net income (loss) per common share | 73,933 | 72,077 | 73,202 | 71,441 | |||||||||||
Shares used in computing diluted net income (loss) per common share | 94,585 | 92,513 | 73,202 | 71,441 |
Note 1: | The condensed consolidated statement of operations for the twelve months ended December 31, 2013 has been derived from the audited consolidated financial statements at that date included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
GAAP net income (loss) - basic and diluted | $ | 5,167 | $ | 9,373 | $ | (3,834 | ) | $ | (16,327 | ) | |||||
Amortization of inventory fair value adjustment | — | 2,896 | 4,666 | 14,876 | |||||||||||
Amortization of acquired intangible assets | 3,759 | 4,543 | 16,352 | 18,234 | |||||||||||
Litigation settlement | — | — | 5,100 | — | |||||||||||
Acquisition-related integration costs | — | — | — | 748 | |||||||||||
Gain on sale of product line | — | (9,295 | ) | — | (9,295 | ) | |||||||||
One-time licensing payment | — | (5,300 | ) | — | (5,300 | ) | |||||||||
Restructuring charges | — | 6 | — | 4,490 | |||||||||||
Non-GAAP net income - basic and diluted | $ | 8,926 | $ | 2,223 | $ | 22,284 | $ | 7,426 | |||||||
Non-GAAP basic net income per common share | $ | 0.12 | $ | 0.03 | $ | 0.30 | $ | 0.10 | |||||||
Non-GAAP diluted net income per common share | $ | 0.09 | $ | 0.02 | $ | 0.30 | $ | 0.10 | |||||||
Shares used in computing Non-GAAP basic net income per common share | 73,933 | 72,077 | 73,202 | 71,441 | |||||||||||
Shares used in computing Non-GAAP diluted net income per common share | 94,585 | 92,513 | 73,202 | 71,411 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
GAAP total gross margin | $ | 58,942 | 63 | % | $ | 55,024 | 59 | % | $ | 205,861 | 59 | % | $ | 181,038 | 55 | % | |||||||||||
Amortization of inventory fair value adjustment | — | — | % | 2,896 | 3 | % | 4,666 | 1 | % | 14,876 | 5 | % | |||||||||||||||
Amortization of acquired intangible assets | 1,316 | 1 | % | 1,345 | 2 | % | 5,389 | 2 | % | 5,367 | 1 | % | |||||||||||||||
One-time licensing payment | — | — | % | (5,300 | ) | (2 | )% | — | — | % | (5,300 | ) | (1 | )% | |||||||||||||
Non-GAAP total gross margin* | $ | 60,258 | 64 | % | $ | 53,965 | 62 | % | $ | 215,916 | 62 | % | $ | 195,981 | 60 | % |
Three Months Ended December 31, 2013 | Twelve Months Ended December 31, 2013 | ||||||
GAAP revenue | $ | 92,636 | $ | 330,399 | |||
One-time licensing payment | (5,300 | ) | (5,300 | ) | |||
Pro forma revenue | $ | 87,336 | $ | 325,099 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total GAAP operating expenses | $ | 52,650 | $ | 51,134 | $ | 203,738 | $ | 193,590 | |||||||
Amortization of acquired intangible assets | (2,443 | ) | (3,198 | ) | (10,963 | ) | (12,869 | ) | |||||||
Litigation settlement | — | — | (5,100 | ) | — | ||||||||||
Acquisition-related integration costs | — | — | — | (748 | ) | ||||||||||
Share-based compensation charge related to acquisition | — | — | — | — | |||||||||||
Restructuring charges | — | (6 | ) | — | (4,490 | ) | |||||||||
Total Non-GAAP operating expenses | $ | 50,207 | $ | 47,930 | $ | 187,675 | $ | 175,483 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
GAAP net income (loss) | $ | 5,167 | $ | 9,373 | $ | (3,834 | ) | $ | (16,327 | ) | |||||
Depreciation and amortization | 6,932 | 8,948 | 30,776 | 39,023 | |||||||||||
Amortization of inventory fair value adjustment | — | 2,896 | 4,666 | 14,876 | |||||||||||
Interest expense, net | 1,397 | 4,376 | 6,315 | 12,655 | |||||||||||
Income tax provision | (327 | ) | (324 | ) | 236 | 1,161 | |||||||||
EBITDA | 13,169 | 25,269 | 38,159 | 51,388 | |||||||||||
Adjustments to EBITDA: | |||||||||||||||
Share-based compensation | 2,975 | 2,619 | 12,411 | 7,727 | |||||||||||
Loss (gain) on foreign currency | 651 | (88 | ) | 2,458 | (66 | ) | |||||||||
Litigation charges | 757 | 560 | 9,917 | 2,318 | |||||||||||
(Gain) loss on sales of securities | (742 | ) | 13 | (2,426 | ) | 187 | |||||||||
Restructuring and integration charges | — | 606 | — | 5,413 | |||||||||||
Other adjustments | 146 | (166 | ) | (624 | ) | (912 | ) | ||||||||
Acquisition-related integration costs | — | — | — | 748 | |||||||||||
Gain on sale of product line | — | (9,295 | ) | — | (9,295 | ) | |||||||||
Adjusted EBITDA | $ | 16,956 | $ | 19,518 | $ | 59,895 | $ | 57,508 | |||||||
Revenue | $ | 93,530 | $ | 92,636 | $ | 349,019 | $ | 330,399 | |||||||
Adjusted EBITDA as percentage of revenue | 18 | % | 21 | % | 17 | % | 17 | % |