Affymetrix posts smaller 1st-quarter loss on lower costs, shares fall as outlook misses view

Affymetrix shares tumble on 1Q results, outlook

SANTA CLARA, Calif. — Affymetrix Inc., which makes genetic testing technology, reported a narrower first-quarter loss as revenue improved and it cut back on costs.

The company’s sales outlook fell shy of Wall Street expectations, and investors sent shares down $1.23, or 15 percent, to $7 in Thursday trading.

The company posted a loss of $9.6 million, or 13 cents per share, compared with a loss of $25.2 million, or 37 cents per share, during the same period a year prior. Excluding an impairment charge, the company would have lost 7 cents per share in the latest period.

Revenue rose to $80.2 million from $78.6 million, as increased product revenue offset a sharp decline in service revenue. The company also trimmed expenses by 16 percent to $82.9 million.

Analysts polled by Thomson Reuters expected a loss of 9 cents on $78.9 million in revenue.

On a conference call with analysts, Affymetrix forecast second-quarter sales of $80 million to $82 million, as strong product growth is expected to be offset by a continued decline in scientific services revenue of around $7 million to $8 million.

On average, analysts have forecast revenue of $84.2 million for the current quarter.