SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company reports segment information on the "management" approach which designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company has determined that its Chief Executive Officer is the Company's chief operating decision maker ("CODM") as he is responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure.  The Company is organized in two reportable segments: Affymetrix Core and eBioscience.

Affymetrix Core is divided into four business units, with each business unit having its own marketing groups to better serve customers and respond quickly to the market needs.  Affymetrix Core manufacturing operations are based on platforms that are used to produce various Affymetrix products that serve multiple applications and markets and similar customer and economic characteristics. Additionally, the business units share certain research, development and common corporate services that provide capital, infrastructure and functional support. As such, the Company has concluded that the four business units represent one reportable operating segment. The following describes the four business units that form Affymetrix Core:

• Expression: This business unit markets the Company's GeneChip® gene expression products and services.

• Genetic Analysis and Clinical Applications: This business unit markets the Company's rapidly growing genotyping product line including the Axiom® product line, as well as arrays and assays with clinical diagnostic and research applications including the CytoScan® and OncoScan products, and QuantiGene ViewRNA in-situ hybridization platform for clinical translational research of RNA in tissue sections. In addition, the business unit is responsible for development and marketing of the CytoScan Dx product, our recently FDA approved microarray system for post natal diagnostics of children with development delays.

• Life Science Reagents: This business unit sells reagents, enzymes, purification kits and biochemicals used by life science researchers.

• Corporate: This business unit is comprised primarily of incidental revenue from royalty arrangements and field revenue from field-services provided to customers of the Company.

eBioscience is operated as a separate business unit with its own manufacturing, research and marketing groups.  This reportable segment specializes in the areas of flow cytometry, immunoassays, microscopic imaging, other protein-based analyses, QuantiGene single and multiplex RNA solution assays (not including the QuantiGeneRNA View in-situ hybridization platform) and Procarta multilex immunoassay product lines.

eBioscience began integrating the development and marketing of the QuantiGene (excluding the QuantiGene ViewRNA in-situ hybridization platform) and Procarta product line during 2013 with full integration in 2014. These products were previously reported by the Expression Business Unit or the Affymetrix Core reportable segment.  Accordingly, segment information for prior periods has been restated to reflect these changes for purposes of comparability. 

The Company evaluates the performance of its reportable segments based on revenue and income (loss) from operations. Revenue is allocated to each business unit based on product codes. The eBioscience business is operated on a stand-alone basis.

The following table shows revenue and loss from operations by reportable operating segment for the three months ended March 31, 2014 and 2013 (in thousands):

	Three Months Ended March 31,
	2014			2013
Revenue:
Affymetrix Core	$	59,447		$	55,920
eBioscience	23,524			22,025
Totals	$	82,971		$	77,945
Loss from operations:
Affymetrix Core	$	(7,589	)	$	(8,054	)
eBioscience	(1,153		)	(4,152		)
Totals	$	(8,742	)	$	(12,206	)