Affymetrix shares fall on weak Q2 revenue view
Affymetrix shares fall on weak Q2 revenue view (Global Markets) - Shares of Affymetrix Inc (AFFX.O) fell about 20 percent on Thursday, a day after the genetic analysis products maker reported preliminary second-quarter revenue below market expectations.Stock Market Predictions
"Affymetrix described its academic business (nearly 70 percent of revenue) as weak across all geographies, particularly in North America. Some of this business is pushed into third-quarter, as we believe it restricted its salesforce's ability to offer end-of-quarter discounts to meet quota," Leerink Swann analysts said in a note to clients.
On Wednesday, the company said it expects revenue between $64-65 million. Analysts, on average, were expecting $74 million in revenue, according to Thomson Global Markets I/B/E/S.
"Our consumable revenue was down by about 10 percent from last year," said Chief Commercial Officer Andrew Last.
The company expects product revenue of about $58-$59 million. Consumable sales was projected at about $55 million.
Leerink Swann analysts said they were expecting consumable sales of $63 million for the second quarter.
Shares of the company were trading down 19 percent at $6.48 after hitting a low of $6.42 on Thursday on Nasdaq. (Reporting by Kavyanjali Kaushik in Bangalore; Editing by Sriraj Kalluvila)