Genetic products maker Affymetrix Inc (AFFX) has announced its expected results for fourth-quarter fiscal 2010. Separately, the California-based company has entered into a distribution pact with Fischer Scientific Inc, a unit of Thermo Fisher Scientific (TMO). Affymetrix's shares gained roughly 17% following the news.
Based on the preliminary financial metrics, Affymetrix expects to post profit in the fourth quarter on revenues of $85 million. Revenues include a milestone payment of $4.8 million from a diagnostic partner. However, the company did not divulge any specific net income target for the quarter.
Moreover, Affymetrix has repurchased an additional $53 million of 3.5% convertible notes in the quarter and expects to exit fiscal 2010 with cash of roughly $140 million. The company is expected to report final results for the fourth quarter and fiscal 2010 on February 2, 2011.
In a major move, Affymetrix has embarked upon an agreement with Fischer Scientific to distribute the GeneAtlas system, its premium microarray solution, across the U.S. and Canada. The agreement will enable Affymetrix to leverage Fisher Scientific's leadership in the life sciences industry to expand sales in research markets.
The GeneAtlas system has been designed to address the need of the researchers for an easy-to-use and affordable microarray solution for whole-genome analysis, allowing them control over their samples and expedite their pace to results and publication.
Affymetrix is a leading provider of microarray-based products and services to the global research community. Along with Illumina Inc. (ILMN), it is one of the two major providers of microarray technologies primarily used in the field of genetic research.
Affymetrix is broadening its customer base through new product introductions and strategic alliances. The company continues to enjoy steady end-user demand for its arrays as evidenced by sustained volume growth over the past few quarters.
The Axiom array platform (launched in October 2009) has been a key driver for Affymetrix'sDNA business. However, the company is increasingly being challenged by competitive product offerings that leverage advanced technologies.
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