That's gotta hurt. After Affymetrix
The Motley Fool Rule Breakers pick also announced estimated first-quarter revenue of $80 million, excluding the $90 million payment from Illumina
The biochip maker blamed the fall in revenues on decreased spending on research and development among pharmaceutical companies. The R&D drop shouldn't be a big surprise, given all of the layoffs we've been hearing about in recent weeks from the likes of Wyeth
Affymetrix's biggest weakness is that its revenue stream isn't terribly diversified -- even its most recent acquisition of USB didn't make it less dependent on companies and universities purchasing laboratory supplies, although the purchase did broaden its offerings. It's supplying its machines to Laboratory Corp. of America
Investors will get to see full financial results and hear the company's plan for the future at next week's conference call. If it can hit its new revenue guidance for the year, it'll still have year-over-year revenue growth of 8%-13% excluding this year's one-time gain. If it can cut costs to make up the lower top-line growth, Affymetrix should be OK this year.