DELAWARE | 0-28218 | 77-0319159 | ||
(State of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | |
99.1 | Press Release dated July 29, 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 July 29, 2015 |
• | Reported revenue growth of 4.1% and 7.9% on a constant currency basis. |
• | Total revenue was $89.0 million, compared to $85.4 million in second quarter of 2014. |
• | GAAP net income was $7.0 million, or $0.08 per diluted share, as compared to a GAAP net loss of $0.9 million, or $0.01 per diluted share, in the second quarter of 2014, an increase of $7.9 million or $0.09 per diluted share. |
• | Non-GAAP net income was $10.5 million, or $0.12 per diluted share, compared to a non-GAAP net income of $5.2 million, or $0.07 per diluted share, for the second 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. |
• | The Company announced the acquisition of Eureka Genomics for $15 million in an all cash transaction. |
• | Net proceeds of $19.4 million were raised through an "at-the-market" offering. |
• | Total balance in cash and cash equivalents was $119.6 million and senior debt was $21.0 million as of June 30, 2015. |
• | The Company announced the acquisition of Eureka Genomics for $15 million in an all cash transaction. Eureka Genomics has developed proprietary, low-to mid-plex, high throughput genotyping assays that use next-generation sequencing (NGS) platforms for signal readout. These assays enable the cost-effective detection of hundreds to thousands of genetic markers which are increasingly in demand for routine agrigenomic testing of both crops and animals. |
• | Affymetrix, BioRealm LLC, and RUCDR Infinite Biologics announced a broad strategic alliance. This alliance will leverage BioRealm's SmokeScreen® platform to genotype the National Institute on Drug Abuse (NIDA) biorepository of more than 50,000 samples, collected from human subjects studied in NIDA-funded research. NIDA preserves these samples in a biorepository at RUCDR Infinite Biologics, on the campus of Rutgers University. The biorepository is maintained by RUCDR Infinite Biologics and in part through collaboration with the BioProcessing Solutions Alliance which was created by RUDCR Infinite Biologics and BioStorage Technologies, the global leader in comprehensive sample management. |
• | Riccardo Pigliucci has been appointed to the company’s board of directors effective May 13, 2015. Mr. Pigliucci will serve as a member of the Compensation Committee. Mr. Pigliucci has served as the Managing Partner of Aldwych Associates, LLP, a management and technology consulting partnership since 2006. Prior to joining Aldwych Associates, Mr. Pigliucci was Chairman and Chief Executive Officer of Discovery Partners International (DPI), a supplier of equipment and services to the drug discovery market. |
June 30, 2015 | December 31, 2014 | ||||||
ASSETS: | (Note 1) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 119,597 | $ | 79,923 | |||
Accounts receivable, net | 52,769 | 46,896 | |||||
Inventories, net—short-term portion | 54,030 | 50,676 | |||||
Deferred tax assets—short-term portion | 3,731 | 3,778 | |||||
Prepaid expenses and other current assets | 9,065 | 9,197 | |||||
Total current assets | 239,192 | 190,470 | |||||
Property and equipment, net | 20,861 | 18,087 | |||||
Inventories, net—long-term portion | 4,849 | 5,956 | |||||
Goodwill | 156,834 | 156,178 | |||||
Intangible assets, net | 107,920 | 106,183 | |||||
Deferred tax assets—long-term portion | 297 | 303 | |||||
Other long-term assets | 8,417 | 9,371 | |||||
Total assets | $ | 538,370 | $ | 486,548 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 45,882 | $ | 53,063 | |||
Current portion of long-term debt | 4,000 | 4,000 | |||||
Deferred revenue—short-term portion | 8,128 | 9,210 | |||||
Total current liabilities | 58,010 | 66,273 | |||||
Deferred revenue—long-term portion | 2,348 | 2,372 | |||||
4.00% notes | 105,000 | 105,000 | |||||
Term loan—long-term portion | 16,950 | 18,950 | |||||
Other long-term liabilities | 20,601 | 21,626 | |||||
Total liabilities | 202,909 | 214,221 | |||||
Stockholders’ equity: | |||||||
Common stock | 798 | 743 | |||||
Additional paid-in capital | 840,400 | 781,747 | |||||
Accumulated other comprehensive income | (7,578 | ) | (612 | ) | |||
Accumulated deficit | (498,159 | ) | (509,551 | ) | |||
Total stockholders’ equity | 335,461 | 272,327 | |||||
Total liabilities and stockholders’ equity | $ | 538,370 | $ | 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 June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUE: | |||||||||||||||
Product sales | $ | 79,897 | $ | 75,880 | $ | 159,265 | $ | 149,576 | |||||||
Services and other | 9,069 | 9,552 | 18,419 | 18,827 | |||||||||||
Total revenue | 88,966 | 85,432 | 177,684 | 168,403 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Cost of product sales | 27,156 | 30,560 | 54,741 | 60,071 | |||||||||||
Cost of services and other | 4,731 | 6,028 | 11,027 | 12,932 | |||||||||||
Research and development | 12,911 | 12,882 | 25,032 | 24,517 | |||||||||||
Selling, general and administrative | 35,642 | 36,266 | 71,074 | 74,828 | |||||||||||
Litigation settlement | — | — | — | 5,100 | |||||||||||
Total costs and expenses | 80,440 | 85,736 | 161,874 | 177,448 | |||||||||||
Income (loss) from operations | 8,526 | (304 | ) | 15,810 | (9,045 | ) | |||||||||
Other income (expense), net | 275 | 1,418 | (398 | ) | 1,711 | ||||||||||
Interest expense | 1,471 | 1,623 | 2,953 | 3,377 | |||||||||||
Income (loss) before income taxes | 7,330 | (509 | ) | 12,459 | (10,711 | ) | |||||||||
Income tax provision | 324 | 402 | 1,067 | 674 | |||||||||||
Net income (loss) | $ | 7,006 | $ | (911 | ) | $ | 11,392 | $ | (11,385 | ) | |||||
Basic net income (loss) per common share | $ | 0.09 | $ | (0.01 | ) | $ | 0.15 | $ | (0.16 | ) | |||||
Diluted net income (loss) per common share | $ | 0.08 | $ | (0.01 | ) | $ | 0.14 | $ | (0.16 | ) | |||||
Shares used in computing basic net income (loss) per common share | 78,476 | 72,944 | 76,951 | 72,722 | |||||||||||
Shares used in computing diluted net income (loss) per common share | 99,462 | 72,944 | 98,019 | 72,722 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
GAAP net income (loss) - basic and diluted | $ | 7,006 | $ | (911 | ) | $ | 11,392 | $ | (11,385 | ) | |||||
Amortization of inventory fair value adjustment | — | 1,770 | — | 4,666 | |||||||||||
Amortization of acquired intangible assets | 3,448 | 4,298 | 6,946 | 8,680 | |||||||||||
Litigation settlement | — | — | — | 5,100 | |||||||||||
Non-GAAP net income - basic and diluted | $ | 10,454 | $ | 5,157 | $ | 18,338 | $ | 7,061 | |||||||
Non-GAAP basic net income per common share | $ | 0.13 | $ | 0.07 | $ | 0.24 | $ | 0.10 | |||||||
Non-GAAP diluted net income per common share (Note 1) | $ | 0.12 | $ | 0.07 | $ | 0.21 | $ | 0.10 | |||||||
Shares used in computing Non-GAAP basic net income per common share | 78,476 | 72,944 | 76,951 | 72,722 | |||||||||||
Shares used in computing Non-GAAP diluted net income per common share (Note 2) | 99,462 | 72,944 | 98,019 | 72,722 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
GAAP total gross margin | $ | 57,079 | 64 | % | $ | 48,844 | 57 | % | $ | 111,916 | 63 | % | $ | 95,400 | 57 | % | |||||||||||
Amortization of inventory fair value adjustment | — | — | % | 1,770 | 2 | % | — | — | % | 4,666 | 3 | % | |||||||||||||||
Amortization of acquired intangible assets | 1,247 | 1 | % | 1,362 | 2 | % | 2,515 | 1 | % | 2,722 | 1 | % | |||||||||||||||
Non-GAAP total gross margin | $ | 58,326 | 65 | % | $ | 51,976 | 61 | % | $ | 114,431 | 64 | % | $ | 102,788 | 61 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Total GAAP operating expenses | $ | 48,553 | $ | 49,148 | $ | 96,106 | $ | 104,445 | |||||||
Amortization of acquired intangible assets | (2,201 | ) | (2,936 | ) | (4,431 | ) | (5,958 | ) | |||||||
Litigation settlement | — | — | — | (5,100 | ) | ||||||||||
Total Non-GAAP operating expenses | $ | 46,352 | $ | 46,212 | $ | 91,675 | $ | 93,387 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
GAAP net income (loss) | $ | 7,006 | $ | (911 | ) | $ | 11,392 | $ | (11,385 | ) | |||||
Depreciation and amortization | 5,340 | 7,808 | 10,855 | 16,527 | |||||||||||
Amortization of inventory fair value adjustment | — | 1,770 | — | 4,666 | |||||||||||
Interest expense, net | 1,468 | 1,607 | 2,969 | 3,331 | |||||||||||
Income tax provision | 324 | 402 | 1,067 | 674 | |||||||||||
EBITDA | 14,138 | 10,676 | 26,283 | 13,813 | |||||||||||
Adjustments to EBITDA: | |||||||||||||||
Share-based compensation | 3,224 | 3,128 | 7,287 | 6,272 | |||||||||||
(Gain) loss on foreign currency | (245 | ) | 103 | 931 | 335 | ||||||||||
Litigation charges | 44 | 1,462 | 312 | 8,359 | |||||||||||
(Gain) loss on sales of securities | 5 | (1,255 | ) | (54 | ) | (1,240 | ) | ||||||||
Other adjustments | (32 | ) | (250 | ) | (494 | ) | (759 | ) | |||||||
Adjusted EBITDA | $ | 17,134 | $ | 13,864 | $ | 34,265 | $ | 26,780 | |||||||
Revenue | $ | 88,966 | $ | 85,432 | $ | 177,684 | $ | 168,403 | |||||||
Adjusted EBITDA as percentage of revenue | 19 | % | 16 | % | 19 | % | 16 | % |