On Feb. 7, biotech company Affymetrix (NASDAQ:AFFX) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues were down by 6.5%, primarily because of a 15% decrease in product sales.
  • Gross margins were significantly affected by forward pricing of the company's two-chip 500K mapping product.
  • EPS was down by 70% on the drop in sales and falling margins.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$104.2

$111.5

(6.5%)

Net Profit

$8.7

$30.6

(71.6%)

EPS

$0.13

$0.43

(69.8%)

Diluted Shares

71.9

72.3

(0.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

62.0%

71.8%

(9.8)

Operating Margin

10.1%

19.5%

(9.4)

Net Margin

8.3%

27.5%

(19.1)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$237.2

$284.9

(16.8%)

Accounts Rec

$77.8

$97.1

(19.8%)

Inventory

$46.5

$36.0

29.3%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$62.9

$71.6

(12.1%)

Long-Term Debt

$120.0

$120.0

0.0%



Learn the ways of the balance sheet.

Cash Flow Highlights
A statement of cash flows was not provided.

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Related Companies:

  • Bio-Rad Laboratories (AMEX:BIO)
  • PDL Biopharma (NASDAQ:PDLI)
  • Illumina (NASDAQ:ILMN)
  • Human Genome Sciences (NASDAQ:HGSI)
  • Myriad Genetics (NASDAQ:MYGN)

Related Foolishness:

Affymetrix, PDL Biopharma, and Myriad Genetics are all Motley Fool Rule Breakers recommendations. To see why, you can take a 30-day free trial of our growth-stock service.

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