Investopedia: Affymetrix's Downward Spiral Continues

If Affymetrix (Nasdaq:AFFX) wants to be a long-term player in the future of genetic research, the company had best get its rear in gear. This latest disappointing financial performance has not pushed Affymetrix to new lows (and the stock had actually been performing quite well over the last year), but it does highlight that the company continues to struggle while rivals like Illumina (Nasdaq:ILMN), Life Technologies (Nasdaq:LIFE), and Agilent (NYSE:A) move on with their platforms. 


A Disappointing Q2
After the close on Wednesday, Affymetrix pre-announced disappointing second quarter results. Instead of the consensus estimate of $75 million, revenue is going to come in closer to $64 million to $65 million. That is down about 10% from last year and the company is seeing notable weakness in its consumables business - a clear warning sign that demand for the company's microarray products is not where it needs to be.

Funding - Worse, But Maybe Not That Bad
It is fair to wonder how much impact issues with NIH funding have had on demand for Affymetrix's products. A significant percentage of Affymetrix's sales go into the academic research community and a lot of that demand is ultimately subsidized by NIH grants. While that is a legitimate concern, particularly amidst all of the debate and wrangling over the budget, it would not seem to impact Affymetrix any more than it would Life Technologies, Illumina, or Qiagen (Nasdaq:QGEN). In other words, Affymetrix has some company-specific and product-specific issues of its own right now. 



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