WASHINGTON (dpa-AFX) - Affymetrix Inc. (AFFX) announced that it prepaid $9.6 million of its senior-secured debt and is implementing a corporate restructuring to accelerate the company's path to profitability.
As part of the restructuring, Affymetrix expects that more than 100 employees will leave the company, representing about 8% of its work force. The company expects to record a charge of approximately $7 million, the majority of which will be incurred during the first quarter of 2013.
The restructuring is expected to result in annualized savings of approximately $25 million based on 2013 run rates, of which $5 million is in cost-of-goods sold.
The company expects total revenue for the fourth quarter of 2012 will be approximately $84 million, including $18 million from its eBioscience business unit. Excluding eBioscience, the Company's revenue increased by 1% as compared to the fourth quarter of 2011, and eBioscience's revenue increased by approximately 5% as compared to the fourth quarter of 2011. For fiscal 2012, the company expects total revenue of approximately $295 million.
Analysts polled by Thomson Reuters expect the company to report revenues of $84.41 million for the fourth-quarter, and $295.64 million for fiscal 2012. Analysts' estimates typically exclude special items.
The company said that its EVP and general counsel John Runkel will retire from the company effective March 31, 2013. Runkel will be succeeded by Siang Chin. Chin joined the company in 2007 as vice president, chief corporate counsel.
The company expects to retain Runkel in a consulting capacity to ensure a smooth transition. In addition, the Company's EVP and CFO Tim Barabe will also retire from Affymetrix. Barabe will continue in his current capacity while the Company conducts a search for a successor.
'In December we prepaid $9.6 million of our senior secured debt representing the entire principal due in 2013. This payment was funded in part from the sale of our manufacturing facility in Sacramento. We have reduced our senior debt to $73 million and cash-on-hand at year-end was approximately $35 million.' stated Tim Barabe, EVP & CFO.
Copyright(c) 2013 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2013 AFX News
