Diagnostics firm Affymetrix ($AFFX) reported a small uptick in revenue and a big gain in net income for the second quarter, including some early returns from its June buyout of eBioscience.
Affymetrix saw its net revenue increase to $66.4 million on the quarter, up from $64.7 million last year. Net income from Q2 reached $30.9 million, compared to a net loss of $3.7 million from the same period last year, the company reported. The change in net income is due in part to cost-cutting by Affymetrix, but largely to a $44.7 million income tax benefit related to its $315 million deal to acquire eBioscience last quarter.
Without the tax benefit and other one-time credits, Affymetrix would have posted a $1.2 million loss. However, with eBioscience and its molecular diagnostic products added to its lineup, the company is optimistic about the future.
The deal closed in June, just before the end of the quarter, and Affymetrix reported that eBioscience has already netted the company $1.4 million in revenue. CEO Frank Witney said in a statement that he's confident the acquisition will drive future growth. The company estimates that eBiosciences' products will expand its addressable markets by about $2.5 billion per year.
Affymetrix is also looking to expand its oncology offering, evidenced by the June deal it made with Massachusetts General Hospital to develop cancer biomarker tests.
- read Affymetrix's release
Related Articles:
Affymetrix, MGH seal deal to develop cancer biomarker Dx
Affymetrix, Leica to launch automated Dx/Rx research tool
Affymetrix amends EBioscience acquisition price