Affymetrix Announces Preliminary Fourth Quarter Revenue of $84 Million and Implements Corporate Restructuring to Accelerate Path

  Affymetrix Announces Preliminary Fourth Quarter Revenue of $84 Million and
  Implements Corporate Restructuring to Accelerate Path to Profitability

  *Preliminary fourth quarter revenue of $84 million.
  *Restructuring expected to result in savings of approximately $25 million
    on an annualized basis
  *The Company prepaid entire senior debt principal of $9.6 million due in

Business Wire

SANTA CLARA, Calif. -- January 8, 2013

Affymetrix, Inc., (NASDAQ: AFFX) today announced that based on preliminary
financial data, the Company expects total revenue for the fourth quarter of
2012 will be approximately $84 million, including $18 million from its
eBioscience business unit. Excluding eBioscience, the Company’s revenue
increased by 1% as compared to the fourth quarter of 2011, and eBioscience’s
revenue increased by approximately 5% as compared to the fourth quarter of
2011. For fiscal 2012, the Company expects total revenue of approximately $295

The company also announced that it prepaid $9.6 million of its senior-secured
debt and is implementing a corporate restructuring to accelerate the Company’s
path to profitability. The restructuring is expected to result in annualized
savings of approximately $25 million based on 2013 run rates, of which $5
million is in cost-of-goods sold. As part of the restructuring, Affymetrix
expects that more than 100 employees will leave the company, representing
about 8% of its work force. The company expects to record a charge of
approximately $7 million, the majority of which will be incurred during the
first quarter of 2013.

“This restructuring will drive operational efficiency, and together with the
sharpened focus of our development and commercial priorities, will accelerate
our return to profitability,” said Dr. Frank Witney, president and chief
executive officer.

In conjunction with this announcement, the Company’s EVP and general counsel
John F. (Rick) Runkel will retire from Affymetrix effective March 31, 2013.
Mr. Runkel will be succeeded by Ms. Siang Chin. Ms. Chin joined the company in
2007 as vice president, chief corporate counsel. Ms. Chin has practiced law
for over 15 years; prior to joining the Company, she was associated with the
law firms of Shearman & Sterling and Slaughter and May. The Company expects to
retain Mr. Runkel in a consulting capacity to ensure a smooth transition. In
addition, the Company’s EVP and CFO Tim Barabe will also retire from
Affymetrix. Mr. Barabe will continue in his current capacity while the Company
conducts a search for a successor.

“I would like to thank Tim and Rick for their years of service and the
contributions that they have made to Affymetrix, including their efforts to
ensure a smooth transition. I will personally miss them as friends and
colleagues,” Dr. Witney said.

“This restructuring will help to improve our free-cash flow in 2013 and
beyond, as well as enable us to accelerate the repayment of our senior debt,”
stated Tim Barabe, EVP & CFO. “In December we prepaid $9.6 million of our
senior secured debt representing the entire principal due in 2013. This
payment was funded in part from the sale of our manufacturing facility in
Sacramento. We have reduced our senior debt to $73 million and cash-on-hand at
year-end was approximately $35 million.”

Affymetrix’s management team will host a conference call on Thursday January
31, 2013 at 2:00 p.m. PT. A live webcast can be accessed by visiting the
Investor Relations section of the Company's website at In
addition, investors and other interested parties can listen by dialing
domestic: (877) 407-4812, international: (201) 689-8345.

A replay of this call will be available from 5:00pm PT on Thursday January 31,
2013 until 8:00pm PT on February 7, 2013 at the following numbers:
877-660-6853 (domestic), 201-612-7415 (international). The pass code to access
the conference call is 406352. An archived webcast of the conference call will
be available under the investor relations section of the company's website at

About Affymetrix

Affymetrix technology is used by the world's top pharmaceutical, diagnostic,
and biotechnology companies, as well as leading academic, government, and
nonprofit research institutes. More than 2,200 systems have been shipped
around the world and almost 26,000 peer-reviewed papers have been published
using the technology. Affymetrix is headquartered in Santa Clara, California,
and has manufacturing facilities in Cleveland, Ohio, and Singapore.
eBioscience is headquartered in San Diego, California and has manufacturing
facilities in San Diego and Vienna, Austria. Including eBioscience, the
Company has about 1,000 employees worldwide and maintains sales and
distribution operations across Europe, Asia and Latin America.

Forward-Looking Statements

Affymetrix has not filed the Form 10-k for fiscal 2012. As a result, all
financial results described in this press release should be considered
preliminary, and are subject to change to reflect any necessary corrections or
adjustments, or changes in accounting estimates, that are identified prior to
the time the company is in a position to complete these filings.

All statements in this press release that are not historical are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act as amended, including statements regarding
Affymetrix's "expectations," "beliefs," "hopes," "intentions," "strategies" or
the like. Such statements are subject to risks and uncertainties that could
cause actual results to differ materially for Affymetrix from those projected,
including, but not limited to: Affymetrix's ability to timely and successfully
integrate and realize the anticipated savings from this corporate
restructuring; strategic benefits and costs savings or other synergies of the
acquisition of eBioscience in a cost-effective manner while minimizing the
disruption to its business; risks that eBioscience’s future performance may
not be consistent with its historical performance; risks relating to
Affymetrix's ability to make scheduled payments of the principal of, to pay
interest on or to refinance its indebtedness; risks relating to Affymetrix's
ability to successfully develop and commercialize new products, including its
ability to successfully develop and commercialize novel molecular solutions
based on eBioscience’s portfolio of reagents; risks relating to past and
future acquisitions, including the ability of Affymetrix to successfully
integrate such acquisitions into its existing business; risks of Affymetrix's
ability to achieve and sustain higher levels of revenue, higher gross margins
and reduced operating expenses; risks relating to Affymetrix’s ability to
generate cash after interest and principal payments; uncertainties relating to
technological approaches; risks associated with manufacturing and product
development; personnel retention; uncertainties relating to cost and pricing
of Affymetrix products; dependence on collaborative partners; uncertainties
relating to sole-source suppliers; uncertainties relating to FDA and other
regulatory approvals; competition; risks relating to intellectual property of
others and the uncertainties of patent protection and litigation. These and
other risk factors are discussed in Affymetrix's Quarterly Report on Form 10-Q
for the quarter ended September 30, 2012, and other SEC reports. Affymetrix
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to
reflect any change in Affymetrix's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are


Affymetrix, the Affymetrix logo, GeneChip, and all other trademarks are the
property of Affymetrix, Inc.


Affymetrix, Inc.
Doug Farrell, 408-731-5285
Vice President of Investor Relations
Press spacebar to pause and continue. Press esc to stop.