Affymetrix Goes Negative

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Affymetrix (NAS: AFFX) reported earnings Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Affymetrix met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.

Margins shrank across the board.

Revenue details
Affymetrix booked revenue of $65.1 million. The 15 analysts polled by S&P Capital IQ foresaw sales of $65.7 million. GAAP sales were 23% lower than the prior-year quarter's $84.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.21. The 14 earnings estimates compiled by S&P Capital IQ forecast -$0.07 per share. GAAP EPS were -$0.21 for Q4 against $0.06 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.3%, 480 basis points worse than the prior-year quarter. Operating margin was -16.6%, 2,270 basis points worse than the prior-year quarter. Net margin was -22.6%, 2,730 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $82.4 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $335.7 million. The average EPS estimate is -$0.03.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 342 members out of 407 rating the stock outperform, and 65 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Affymetrix a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Affymetrix is hold, with an average price target of $5.82.

Over the decades, small-cap stocks, like Affymetrix have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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