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Affymetrix, Inc. (AFFX) Announces Second Quarter 2008 Results and Manufacturing Restructuring to Improve Gross Margins

Affymetrix, Inc. (NASDAQ: AFFX), the developer of products designed to accelerate genetic research and tailor treatments for individual patients by identifying and measuring the genetic information associated with complex diseases, recently announced the company’s operating results for the second quarter of 2008. Total revenue for the quarter came in at $86.9 million, compared to total revenue of $88.3 million during the second quarter of 2007.

Shares of Affymetrix, Inc. fell to a multi-year low late last week after the company reported net loss of approximately $3.6 million or $0.05 per diluted share in the second quarter of 2008. Total product reached $75.0 million in the second quarter, compared to second quarter 2007 product revenue of $68.4 million. Due to predicted ongoing weakness in the company’s pharmaceutical revenue, management now expects 2008 revenue to be in the range of $455 million to $460 million, including a one-time $90 million payment.

In an effort to improve gross margins, Affymetrix, Inc. also announced plans to consolidate manufacturing to three locations, which is expected to elevate capacity utilization and increase operational efficiencies. Affymetrix, Inc. also recently completed the acquisition of a privately held San Francisco-based company that develops digitally encoded microparticle technology for approximately $25 million in cash.

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