Affymetrix Inc. (NASDAQ:AFFX) Q4 2014 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 05:00 pm ET

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Affymetrix Inc. (NASDAQ:AFFX) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Greetings. And welcome to the Affymetrix Fourth Quarter and Fiscal Year 2014 Conference Call. At this time all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions)

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Doug Farrell, VP of Investor Relations. Thank you. You may begin.

Executive
Doug Farrell

Thank you, Operator. Good afternoon, everyone. Welcome to Affymetrix's fourth quarter and fiscal year 2014 conference call. At the close of market we released our operating results.

Joining me on today's call are our President and CEO, Frank Witney; and our CFO, Gavin Wood; and our COO, Andy Last, will be joining us for the Q&A portion.

(Forward-Looking Cautionary Statements)

As a reminder, the call is also being recorded and the audio from the call is available on our homepage at affymetrix.com.

So, with that, let me turn the call over to Frank.

Executive
Frank Witney

Good afternoon and thank you for joining us. I'd like to take a moment to give you a strategic update, before I review our results by business unit. The end of 2014 marked the completion of Phase 2 of our strategic plan.

We exited Phase 2 in a strong financial and competitive position, demonstrating that our strategic plan is founded on the right priorities and we have the resources to execute against it. In Phase 2, we return our company to growth, improved our profitability and strengthen our balance sheet.

In addition, we are proud that we achieved a number of commercial milestones such as receiving 510(k) clearance from the FDA for CytoScan Dx, collaborating a number of landmark Biobank projects, significantly increasing our revenues from AgBio applications and entering into a partnership with Ariosa in a rapidly expanding market for non-invasive pregnancy testing, seeing just a handful of highlights.

Our focus on our performance for the full year of 2014 and Gavin will review the Q4 specifics later in the call. With regard to growth, our total 2014 revenue of $349 million represents an increase of 5.6% over the prior year.

After adjusting for the divestment of our Anatrace product line and a one-time license payment from a diagnostic partner in Q4 2013, our revenue increased by nearly 9% over fiscal year 2013.

Q4 was the sixth consecutive quarter in which we generated year-over-year

Executive
Unidentified Speaker

revenue growth, demonstrating that our strategy of diversifying our revenues and focusing on new market opportunities is paying off.

Our adjusted EBITDA for 2014 was approximately $60 million or 17% of sales and we posted a non-GAAP net income of $22 million for the full year. For the full year, our non-GAAP EPS was $0.30, an improvement of $0.20 over the prior year.

We had strong cash flow from operations of $43.5 million for 2014. For the full year, we reduced our senior debt by more than 40% to about $23 million and we increased our cash on hand to $80 million at year end.

Turning to our