AFFX » Topics » NOTE 12-SUBSEQUENT EVENTS

This excerpt taken from the AFFX 10-Q filed Aug 8, 2008.

NOTE 12—SUBSEQUENT EVENTS

 

Acquisition

 

In July 2008, Affymetrix completed an acquisition of a privately held San Francisco-based company that develops digitally encoded microparticle technology for approximately $25 million in cash.  This technology is applicable to the research, applied and diagnostic markets and will enable the Company to enter low to mid-multiplex markets and compete with bead-based platforms.

 

Restructuring

 

In July 2008, the Company decided to expand its restructuring plan by closing its West Sacramento manufacturing facility.  Following the closure of its West Sacramento manufacturing facility, all of its products will be manufactured out of its Singapore and Cleveland, Ohio facilities, as well as by third parties.  In addition to the charges incurred during the six months ended June 30, 2008, the Company expects to incur a total of approximately $42 million in charges related to this expansion of its restructuring plan.  Of this total, the Company expects that approximately $22 million will be included as a component of total cost of product sales, $17 million of which relates to accelerated depreciation charges associated with the continued use of certain long-lived manufacturing assets and $5 million of which relates to manufacturing transition and other costs.  Additionally, the Company expects to include approximately $20 million in the line item labeled “Restructuring charges” in its Condensed Consolidated Statements of Operations, $11 million of which relates to impairment charges primarily related to the facility itself and to certain long-lived manufacturing assets and $9 million related to employee severance costs.

 

The Company expects the closure of the West Sacramento facility to be substantially complete by the end of the second quarter of 2009.  The Company expects to incur approximately $26 million of the charges relating to the closure of the West Sacramento facility during the remainder of fiscal 2008 and approximately $16 million of the charges in 2009. The estimated cash outlays to be incurred in connection with these restructuring activities are estimated to be approximately $13 million.  Depending on the rate at which the Company transfers its production capacity out of its West Sacramento facility, the Company may incur additional expenses.

 

This excerpt taken from the AFFX 10-K filed Jul 30, 2007.

NOTE 20—SUBSEQUENT EVENTS

Default Under Convertible Notes

The Company violated the reporting covenant under the indentures governing the 0.75% Notes as a result of the Company’s failure to file its Form 10-Q for the quarter ended June 30, 2006 by the required deadline. As a consequence of these violations, the holders of the 0.75% Notes have the right to accelerate the maturity of such Notes if they or the trustee provide the Company with notice of the default and the Company is unable to cure the default within 60 days after that notice.

NASDAQ Notice

On August 17, 2006, the Company announced that it will request a hearing before the NASDAQ Listing Qualifications Panel (the “Panel”) in response to the receipt of a NASDAQ Staff Determination letter dated August 17, 2006 indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company’s Form 10-Q for the quarter ended June 30, 2006. Pending a decision by the Panel, Affymetrix shares will remain listed on the NASDAQ Stock Market.

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This excerpt taken from the AFFX 10-Q filed Aug 30, 2006.

NOTE 12—SUBSEQUENT EVENTS

Restructuring

In its earnings announcement for the quarter ended June 30, 2006, the Company announced its intent to restructure its corporate, general and administrative expenses in the third quarter of fiscal 2006 in order to bring the Company’s general and administrative cost structure in line with its current business requirements.  The restructuring actions will consist of a combination of reducing headcount in general and administrative functions and rationalizing of the Company’s facility requirements.  The Company expects the benefits of the restructuring actions will be reflected in lower operating expenses and anticipate savings from these initiatives will begin to be realized in the fourth quarter of fiscal 2006.  At this time, the Company cannot reasonably estimate the total restructuring charge as not all the Company’s restructuring initiatives have been finalized.

Default Under Convertible Notes

The Company violated the reporting covenant under the indentures governing the Company’s $120 million aggregate principal amount 0.75% Senior Convertible Notes due 2033 (the “Notes”) as a result of the Company’s failure to file its Form 10-Q for the quarter ended June 30, 2006 by the required deadline. As a consequence of these violations, the holders of the Notes have the right to accelerate the maturity of such Notes if they or the trustee provide the Company with notice of the default and the Company is unable to cure the default within 60 days after that notice.

NASDAQ Notice

On August 17, 2006, the Company announced that it will request a hearing before the NASDAQ Listing Qualifications Panel (the “Panel”) in response to the receipt of a NASDAQ Staff Determination letter dated August 17, 2006 indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company’s Form 10-Q for the quarter ended June 30, 2006. Pending a decision by the Panel, Affymetrix shares will remain listed on the NASDAQ Stock Market.

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This excerpt taken from the AFFX 10-K filed Aug 30, 2006.

NOTE 20—SUBSEQUENT EVENTS

Default Under Convertible Notes

The Company violated the reporting covenant under the indentures governing the 0.75% Notes as a result of the Company’s failure to file its Form 10-Q for the quarter ended June 30, 2006 by the required deadline. As a consequence of these violations, the holders of the 0.75% Notes have the right to accelerate the maturity of such Notes if they or the trustee provide the Company with notice of the default and the Company is unable to cure the default within 60 days after that notice.

NASDAQ Notice

On August 17, 2006, the Company announced that it will request a hearing before the NASDAQ Listing Qualifications Panel (the “Panel”) in response to the receipt of a NASDAQ Staff Determination letter dated August 17, 2006 indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company’s Form 10-Q for the quarter ended June 30, 2006. Pending a decision by the Panel, Affymetrix shares will remain listed on the NASDAQ Stock Market.

This excerpt taken from the AFFX 10-Q filed Aug 30, 2006.

NOTE 12—SUBSEQUENT EVENTS

Default Under Convertible Notes

The Company violated the reporting covenant under the indentures governing the Company’s $120 million aggregate principal amount 0.75% Senior Convertible Notes due 2033 (the “Notes”) as a result of the Company’s failure to file its Form 10-Q for the quarter ended June 30, 2006 by the required deadline. As a consequence of these violations, the holders of the Notes have the right to accelerate the maturity of such Notes if they or the trustee provide the Company with notice of the default and the Company is unable to cure the default within 60 days after that notice.

NASDAQ Notice

On August 17, 2006, the Company announced that it will request a hearing before the NASDAQ Listing Qualifications Panel (the “Panel”) in response to the receipt of a NASDAQ Staff Determination letter dated August 17, 2006 indicating that the Company is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14). As anticipated, the letter was issued in accordance with NASDAQ procedures due to the delayed filing of the Company’s Form 10-Q for the quarter ended June 30, 2006. Pending a decision by the Panel, Affymetrix shares will remain listed on the NASDAQ Stock Market.

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