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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of
Earliest Event Reported): October 24, 1997
AFFYMETRIX, INC.
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(Exact name of registrant as specified in its charter)
California 0-28218 77-0319159
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(State or other jurisdiction of (COMMISSION (IRS Employer
Incorporation or organization) FILE NUMBER) Identification
Number)
3380 Central Expressway
Santa Clara, California 95051
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(Address of principal executive offices) (Zip Code)
Registrant's telephone no., including area code: (408)731-5000
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
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Item 5. OTHER EVENTS
On October 24, 1997, Affymetrix, Inc. issued a press release announcing its
results for the quarter ending September 30, 1997. A copy of the press release
is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report on Form 8-K to be signed on its behalf by
the undersigned hereunto duly authorized.
AFFYMETRIX, INC.
Date: October 27, 1997 By: /s/ Vernon A. Norviel
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Vernon A. Norviel
Vice President & General Counsel
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EXHIBIT INDEX
Exhibit
No. Exhibit
- ------- -------
99.1 Press release issued on October 24, 1997, by Affymetrix, Inc.
announcing its results for the quarter ending September 30, 1997.
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FOR IMMEDIATE RELEASE
Contact: Edward M. Hurwitz
Vice President and Chief Financial Officer
(408)731-5000
AFFYMETRIX, INC. REPORTS THIRD QUARTER RESULTS
SANTA CLARA, CA, OCTOBER 24, 1997. Affymetrix, Inc. (Nasdaq: AFFX) today
reported a net loss of $5.3 million, or $0.23 per share, on revenue of $5.0
million for the quarter ended September 30, 1997, compared to a net loss of $2.6
million, or $0.11 per share, on revenue of $2.7 million for the quarter ended
September 30, 1996. For the first nine months of 1997, the Company reported a
net loss of $15.4 million, or $0.68 per share, on revenue of $12.6 million,
compared to a net loss of $10.3 million, or $0.53 per share, on revenue of $6.4
million for the first nine months of 1996. The increase in revenue for the three
and nine months ended September 30, 1997, compared to the respective periods for
1996 resulted from increases in contract and grant revenue and product sales.
The Company's future financial results may fluctuate significantly due to
increased spending, the amount and timing of contract and grant revenue, and the
mix of products sold.
Operating expenses increased to $11.6 million for the quarter ended September
30, 1997, compared to $7.0 million for the same period in 1996. For the first
nine months of 1997, operating expenses increased to $32.0 million, compared to
$19.5 million for the same period in 1996. The increase in operating expenses
for the three and nine month periods ended September 30, 1997, compared to the
respective periods in 1996, resulted primarily from the Company's expansion of
research activities and increases in general and administrative expenses,
including increases in marketing, business development and legal costs.
As of September 30, 1997, the Company had cash, cash equivalents and short-term
investments of $85.2 million. The Company's initial public offering in 1996
generated net proceeds of $85.1 million from the sale of 6.2 million shares. The
Company had 22.7 million shares of common stock outstanding at September 30,
1997.
During the quarter ended September 30,1997, Affymetrix launched its
GeneChip-Registered Trademark- p53 assay for research applications. The
GeneChip p53 assay is the first commercially available DNA probe array-based
product capable of analyzing the full-length coding sequence of the human p53
tumor suppressor gene, a gene that is believed to be mutated in greater than 50%
of all human cancers. Affymetrix also signed three new agreements during the
quarter. In August 1997, Affymetrix and F. Hoffmann-La Roche Ltd. entered into a
subscription-based EasyAccess-TM-
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supply agreement under which Roche has broad access to both custom and standard
GeneChip expression probe arrays and GeneChip instrumentation for simultaneous
monitoring of the expression of thousands of genes. In addition, Roche has
access to commercially available genotyping and resequencing applications.
Also, in August 1997, Affymetrix entered into a supply agreement with the
Parke-Davis division of the Warner-Lambert Company to supply Parke-Davis with
GeneChip instrumentation, software and custom and standard DNA probe arrays. In
July 1997, Affymetrix entered into an agreement to supply Pfizer, Inc. with
GeneChip instrumentation, software and custom DNA probe arrays. In exchange for
supplying Pfizer with its GeneChip technology, the Company will receive certain
up-front payments and may receive certain preclinical, clinical and commercial
milestone payments. In addition, Affymetrix has supply or collaborative
agreements with bioMerieux Vitek, Inc., Bristol-Myers Squibb Company, Genetics
Institute, Inc., Glaxo Wellcome plc, Hewlett-Packard Company, Hoechst Marion
Roussel, Inc., Incyte Pharmaceuticals, Inc., Merck & Co., Millennium
Pharmaceutical, Inc., Pioneer Hi-Bred International, Inc. and OncorMed, Inc.
Affymetrix, Inc. has developed and intends to establish its GeneChip system as
the platform of choice for acquiring, analyzing and managing complex genetic
information in order to improve the diagnosis, monitoring and treatment of
disease. The Company's GeneChip system consists of disposable DNA probe arrays
containing gene sequences on a chip, reagents for use with the probe arrays, a
scanner and other instruments to process the probe arrays, and software to
analyze and manage genetic information.
All statements in this press release that are not historical are forward-looking
statements. 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, uncertainties relating to technological
approaches, product development, manufacturing and market acceptance,
uncertainties related 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. These and other risk factors are discussed in Affymetrix'
Registration Statement on Form S-3 filed with the Securities and Exchange
Commission ("SEC") on October 17, 1997, and in periodic reports filed with the
SEC, including the Company's annual report on Form 10-K for the year ended
December 31, 1996 and quarterly report on Form 10-Q for the quarter ended June
30, 1997, as filed on August 14, 1997. 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 the
Affymetrix' expectations with regard thereto or any change in events,
conditions, or circumstances on which any such statements are based. Affymetrix,
GeneChip and the Affymetrix logo are registered trademarks of Affymetrix, Inc.
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AFFYMETRIX, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Revenue:
Product $ 1,046 $ 401 $ 2,408 $ 858
Contract and grant 3,962 2,250 10,150 5,508
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Total revenue 5,008 2,651 12,558 6,366
Costs and expenses:
Cost of product revenue 907 382 2,751 1,089
Research and development 6,725 4,533 19,804 12,843
General and administrative 3,980 2,058 9,426 5,608
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Total operating expenses 11,612 6,973 31,981 19,540
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Loss from operations (6,604) (4,322) (19,423) (13,174)
Interest income, net 1,297 1,743 3,984 2,897
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Net loss $ (5,307) $ (2,579) $(15,439) $(10,277)
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Net loss per share (1) $ (0.23) $ (0.11) $ (0.68) $ (0.53)
-------- -------- -------- --------
-------- -------- -------- --------
Shares used in computing net
loss per share (1) 22,648 22,449 22,612 19,337
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-------- -------- -------- --------
</TABLE>
(1) The nine months ended September 30, 1996 give effect to the conversion
of convertible preferred shares into common shares upon the completion
of the initial public offering in June 1996.
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AFFYMETRIX, INC.
CONDENSED BALANCE SHEETS
(In thousands)
September 30, December 31,
1997 1996
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ASSETS (Unaudited)
Current assets:
Cash, cash equivalents and short-term
investments $ 85,219 $ 108,982
Accounts receivables 3,845 1,888
Inventories 3,025 1,901
Other current assets 947 523
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Total current assets 93,036 113,294
Net property and equipment 14,344 5,397
Other assets 787 169
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$ 108,167 $ 118,860
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 9,786 $ 5,626
Noncurrent portion of capital lease
obligation 567 741
Shareholders' equity:
Common stock 158,821 158,687
Accumulated deficit (60,182) (44,743)
Other (825) (1,451)
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Total shareholders' equity 97,814 112,493
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$ 108,167 $ 118,860
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