UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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FOR THE PERIOD ENDED SEPTEMBER 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE |
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FOR THE TRANSITION PERIOD FROM TO . |
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COMMISSION FILE NO. 0-28218
AFFYMETRIX, INC.
(Exact name of Registrant as specified in its charter)
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DELAWARE |
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77-0319159 |
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3380 CENTRAL EXPRESSWAY |
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95051 |
Registrant’s telephone number, including area code: (408) 731-5000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ý No o
COMMON SHARES OUTSTANDING ON OCTOBER 31, 2003: 59,325,251
AFFYMETRIX, INC.
TABLE OF CONTENTS
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Condensed Consolidated Balance Sheets at September 30, 2003 and December 31, 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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AFFYMETRIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
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September 30, |
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December 31, |
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(Note 1) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
50,387 |
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$ |
67,888 |
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Available-for-sale securities |
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279,150 |
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293,570 |
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Accounts receivable, net |
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55,198 |
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65,986 |
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Inventories |
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24,042 |
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26,739 |
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Prepaid expenses and other current assets |
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4,250 |
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3,770 |
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Total current assets |
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413,027 |
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457,953 |
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Property and equipment, net |
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63,499 |
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72,836 |
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Acquired technology rights, net |
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28,362 |
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23,039 |
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Goodwill |
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18,601 |
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18,601 |
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Notes receivable from employees |
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1,589 |
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1,674 |
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Other assets |
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27,979 |
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27,300 |
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Total assets |
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$ |
553,057 |
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$ |
601,403 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued liabilities |
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$ |
53,714 |
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$ |
66,864 |
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Deferred revenue—current portion |
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29,713 |
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19,381 |
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Common stock purchase rights |
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3,000 |
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— |
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Other current liabilities |
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6,376 |
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— |
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Total current liabilities |
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92,803 |
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86,245 |
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Deferred revenue—long-term portion |
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46,919 |
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— |
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Other long-term liabilities |
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2,983 |
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8,322 |
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Convertible subordinated notes |
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267,460 |
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368,900 |
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Common stock purchase rights |
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— |
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3,000 |
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Stockholders’ equity: |
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Common stock |
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591 |
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585 |
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Additional paid-in capital |
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363,758 |
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355,515 |
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Notes receivable from stockholders |
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(417 |
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(720 |
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Deferred stock compensation |
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(5,571 |
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(8,015 |
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Accumulated other comprehensive (loss) income |
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(800 |
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515 |
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Accumulated deficit |
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(214,669 |
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(212,944 |
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Total stockholders’ equity |
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142,892 |
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134,936 |
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Total liabilities and stockholders’ equity |
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$ |
553,057 |
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$ |
601,403 |
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Note 1: The condensed consolidated balance sheet at December 31, 2002 has been derived from the audited consolidated financial statements at that date included in the Company’s Form 10-K for the year ended December 31, 2002.
See accompanying notes.
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AFFYMETRIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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Three Months Ended |
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Nine Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue: |
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Product sales |
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$ |
57,467 |
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$ |
50,973 |
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$ |
153,441 |
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$ |
144,721 |
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Product related revenue |
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13,625 |
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11,961 |
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41,992 |
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34,069 |
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Total product and product related revenue |
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71,092 |
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62,934 |
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195,433 |
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178,790 |
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Royalties and other revenue |
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2,349 |
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4,971 |
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8,194 |
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16,331 |
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Revenue from Perlegen Sciences |
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2,744 |
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4,868 |
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8,005 |
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16,454 |
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Total revenue |
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76,185 |
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72,773 |
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211,632 |
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211,575 |
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Costs and expenses: |
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Cost of product sales |
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22,393 |
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