Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of genetics analysis specialist Affymetrix
So what: When a company says that it's "clearly disappointed" with its revenue for a quarter, you can be assured that its investors will be none too happy. For the second quarter, Affymetrix said that it will likely report between $64 million and $65 million in revenue. Wall Street analysts had been expecting a hair over $74 million. This was a preliminary announcement, so it didn't give investors a full picture of the quarter's financials, but it's a pretty safe assumption that the bottom line will also be worse than anticipated.
Now what: For those interested in looking on the bright side, the company's CFO emphasized the fact that the company produced approximately $10 million in positive cash flow, and will end the quarter with $155 million in net cash. Looking ahead though, the question that investors will likely want answered when the company holds its quarterly conference call is whether academic institutions -- which management blamed for the revenue miss -- are expected to open their wallets again anytime soon.
Want to keep up to date on Affymetrix? Add it to your watchlist.
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.
Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.
More from The Motley Fool
Why Affymetrix, Inc. Shares Are Tumbling 10% Today
Shares are slipping after the Board of Directors rejects a higher, unsolicited acquisition offer.
Why Affymetrix, Western Digital, and Goldman Sachs Jumped Today
The markets finished the week on a strong note thanks to stocks like these. Find out why.
Why Affymetrix, Macy's, and Sotheby's Jumped Today
Despite ongoing volatility in the market, these stocks all climbed. Find out why.