By Debbie Cai
Affymetrix Inc. (AFFX) said it will undergo a restructuring to
save about $25 million annually, while its Chief Financial Officer
Tim Barabe will retire.
The provider of genetic analysis technologies to pharmaceutical,
diagnostic and biotechnology companies also forecast fourth-quarter
revenue of about $84 million, in line with expectations of analysts
polled by Thomson Reuters. It also projects revenue for fiscal 2012
of $295 million.
The company said roughly $18 million of its top line will come
from the eBioscience business.
Affymetrix said it has prepaid $9.6 million of its
senior-secured debt and is implementing a corporate restructuring
to accelerate profitability. More than 100 employees, or about 8%
of the workforce, will leave the company, it said. Affymetrix
expects to record a restructuring charge of about $7 million, most
of which will be incurred during the first quarter of 2013.
"This restructuring will drive operational efficiency, and
together with the sharpened focus of our development and commercial
priorities, will accelerate our return to profitability," Frank
Witney, president and chief executive officer, said.
Mr. Barabe, who joined Affymetrix about three years ago, has
held a range of financial and strategic roles in the life sciences
and healthcare industries, including Human Genome Sciences Inc. and
Novartis AG (NVS).
In November, the company reported a wider loss amid higher
costs.
Shares closed at $3.49 on Tuesday and were unchanged after
hours. The stock is down 23% over the past six months.
Write to Debbie Cai at debbie.cai@dowjones.com
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