DELAWARE | 0-28218 | 77-0319159 | ||
(State of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | |
99.1 | Press Release dated March 31, 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 March 31, 2015 |
• | Reported revenue growth of 6.9% and 9.1% on a constant currency basis. |
• | Total revenue was $88.7 million, compared to $83.0 million in first quarter of 2014. |
• | Product revenue was $79.4 million compared to $73.7 million in the first quarter of 2014, an increase of 7.7%. |
• | GAAP net income was $4.4 million, or $0.06 per diluted share, as compared to a GAAP net loss of $10.5 million, or $0.14 per diluted share, in the first quarter of 2014, an increase of $14.9 million or $0.20 per diluted share. |
• | Non-GAAP net income was $7.9 million, or $0.10 per diluted share, compared to a non-GAAP net income of $1.9 million, or $0.03 per diluted share, for the first quarter of 2014. Please refer to "Itemized Reconciliation Between GAAP and Non-GAAP Net Income (Loss)" for a reconciliation of these GAAP and non-GAAP financial measures. |
• | Net proceeds of $25.3 million raised through an "at-the-market" offering. |
• | Total balance in cash and cash equivalents was $104.0 million and senior debt was $22.0 million as of March 31, 2015. |
• | Affymetrix and MTI Ltd. (TSE:9438), through its wholly-owned subsidiary, EverGene Ltd., announced that the two companies will collaborate in genetic research and personal genomics services in Japan. MTI/EG, a personal genome services (PGS) provider in Japan, plans to further expand their business in the healthcare field through a collaborative project focused on “quality of life”. More than 10,000 volunteers from the subscriber base of MTI’s LunaLuna, a women’s healthcare service mobile app in Japan, have applied to participate in this research program. The outcome of the research is expected to produce results that will enable MTI/EG to introduce new categories of PGS in several fields for quality of life improvement. |
• | The Company announced two new genotyping products at the 2015 Plant and Animal Genome Conference for applications in breeding and routine analysis. The newest arrays, Axiom® Porcine Genotyping Array and Axiom Equine Genotyping Array, will be available to the agriculture community under the Axiom Expert Design Program. These two high-density arrays expand the Company’s product portfolio that includes bovine, chicken, maize, salmon, and wheat. Affymetrix recently launched arrays with the most current content for genomic breeding in soybean and cotton, and arrays for buffalo, rainbow trout, rose, and strawberry. Also new are enhanced wheat arrays that have come out of the UK-based Wheat Institute Strategic Programme (WISP), which began using Axiom arrays early last year. Affymetrix now offers the largest selection of catalog of arrays for research and applied agriculture markets. |
March 31, 2015 | December 31, 2014 | ||||||
ASSETS: | (Note 1) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 104,009 | $ | 79,923 | |||
Accounts receivable, net | 48,526 | 46,896 | |||||
Inventories, net—short-term portion | 50,701 | 50,676 | |||||
Deferred tax assets—short-term portion | 3,781 | 3,778 | |||||
Prepaid expenses and other current assets | 11,969 | 9,197 | |||||
Total current assets | 218,986 | 190,470 | |||||
Property and equipment, net | 18,576 | 18,087 | |||||
Inventories, net—long-term portion | 4,809 | 5,956 | |||||
Goodwill | 151,789 | 156,178 | |||||
Intangible assets, net | 99,479 | 106,183 | |||||
Deferred tax assets—long-term portion | 308 | 303 | |||||
Other long-term assets | 9,343 | 9,371 | |||||
Total assets | $ | 503,290 | $ | 486,548 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
Current liabilities: | $ | 43,110 | $ | 53,063 | |||
Accounts payable and accrued liabilities | 4,000 | 4,000 | |||||
Current portion of long-term debt | 8,748 | 9,210 | |||||
Deferred revenue—short-term portion | 55,858 | 66,273 | |||||
Total current liabilities | 2,515 | 2,372 | |||||
Deferred revenue—long-term portion | 105,000 | 105,000 | |||||
4.00% notes | 17,950 | 18,950 | |||||
Term loan—long-term portion | 20,643 | 21,626 | |||||
Other long-term liabilities | 201,966 | 214,221 | |||||
Total liabilities | |||||||
Stockholders’ equity: | |||||||
Common stock | 773 | 743 | |||||
Additional paid-in capital | 812,438 | 781,747 | |||||
Accumulated other comprehensive income | (6,722 | ) | (612 | ) | |||
Accumulated deficit | (505,165 | ) | (509,551 | ) | |||
Total stockholders’ equity | 301,324 | 272,327 | |||||
Total liabilities and stockholders’ equity | $ | 503,290 | $ | 486,548 |
Note 1: | The condensed consolidated balance sheet at December 31, 2014 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, 2014. |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
REVENUE: | |||||||
Product sales | $ | 79,367 | $ | 73,695 | |||
Services and other | 9,350 | 9,276 | |||||
Total revenue | 88,717 | 82,971 | |||||
COSTS AND EXPENSES: | |||||||
Cost of product sales | 27,583 | 29,512 | |||||
Cost of services and other | 6,296 | 6,904 | |||||
Research and development | 12,120 | 11,635 | |||||
Selling, general and administrative | 35,433 | 38,562 | |||||
Litigation settlement | — | 5,100 | |||||
Total costs and expenses | 81,432 | 91,713 | |||||
Income (loss) from operations | 7,285 | (8,742 | ) | ||||
Other (expense) income, net | (673 | ) | 293 | ||||
Interest expense | 1,483 | 1,753 | |||||
Income (loss) before income taxes | 5,129 | (10,202 | ) | ||||
Income tax provision | 743 | 272 | |||||
Net income (loss) | $ | 4,386 | $ | (10,474 | ) | ||
Basic net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | ||
Diluted net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | ||
Shares used in computing basic net income (loss) per common share | 75,408 | 72,498 | |||||
Shares used in computing diluted net income (loss) per common share | 78,754 | 72,498 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
GAAP net income (loss) - basic and diluted | $ | 4,386 | $ | (10,474 | ) | ||
Amortization of inventory fair value adjustment | — | 2,896 | |||||
Amortization of acquired intangible assets | 3,498 | 4,382 | |||||
Litigation settlement | — | 5,100 | |||||
Non-GAAP net income - basic and diluted | $ | 7,884 | $ | 1,904 | |||
Non-GAAP basic net income per common share | $ | 0.10 | $ | 0.03 | |||
Non-GAAP diluted net income per common share | $ | 0.10 | $ | 0.03 | |||
Shares used in computing Non-GAAP basic net income per common share | 75,408 | 72,498 | |||||
Shares used in computing Non-GAAP diluted net income per common share | 78,754 | 72,498 |
Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
GAAP total gross margin | $ | 54,838 | 62 | % | $ | 46,555 | 56 | % | |||||
Amortization of inventory fair value adjustment | — | — | % | 2,896 | 3 | % | |||||||
Amortization of acquired intangible assets | 1,268 | 1 | % | 1,359 | 2 | % | |||||||
Non-GAAP total gross margin | $ | 56,106 | 63 | % | $ | 50,810 | 61 | % |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Total GAAP operating expenses | $ | 47,553 | $ | 55,297 | |||
Amortization of acquired intangible assets | (2,230 | ) | (3,023 | ) | |||
Litigation settlement | — | (5,100 | ) | ||||
Total Non-GAAP operating expenses | $ | 45,323 | $ | 47,174 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
GAAP net income (loss) | $ | 4,386 | $ | (10,474 | ) | ||
Depreciation and amortization | 5,515 | 8,718 | |||||
Amortization of inventory fair value adjustment | — | 2,896 | |||||
Interest expense, net | 1,501 | 1,723 | |||||
Income tax provision | 743 | 272 | |||||
EBITDA | 12,145 | 3,135 | |||||
Adjustments to EBITDA: | |||||||
Share-based compensation | 4,063 | 3,145 | |||||
Loss on foreign currency | 1,176 | 232 | |||||
Litigation charges | 268 | 6,897 | |||||
(Gain) loss on sales of securities | (59 | ) | 15 | ||||
Other adjustments | (461 | ) | (508 | ) | |||
Adjusted EBITDA | $ | 17,132 | $ | 12,916 | |||
Revenue | $ | 88,717 | $ | 82,971 | |||
Adjusted EBITDA as percentage of revenue | 19 | % | 16 | % |