Affymetrix shares climb after 2Q tops St. view

The Associated Press

Shares of Affymetrix Inc. climbed Thursday, a day after the genetic testing instrument maker turned in a second-quarter performance that topped Wall Street expectations.

THE SPARK: The Santa Clara, Calif., company said Wednesday it lost $6.1 million, or 9 cents per share, in the quarter. Excluding one-time items, it posted profit of 4 cents per share, while revenue grew 20 percent to $79.5 million.

Analysts expected, on average, that Affymetrix would break even on $78.2 million in revenue, according to FactSet.

THE BIG PICTURE: Affymetrix makes technology that helps analyze biological systems at the cell, protein and gene levels. It provides kits for molecular biology applications like DNA sequencing and protein analysis.

THE ANALYSIS: Cowen and Co. analyst Doug Schenkel said in a research note he saw "promising signs of improved stability and execution discipline" in the company's performance.

"While the core Gene Expression business continues to decline significantly, (Affymetrix's) key growth drivers remain intact," Schenkel wrote. Still, he said that he needs to see more consistency from the company, whose shares he rates "Market Perform."

SHARE ACTION: Up 12 percent, or 45 cents, to $4.25 in late trading Thursday. The stock has traded between $2.96 and $5.26 over the past year.