Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AFFYMETRIX INC | |
Entity Central Index Key | 913077 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 77,323,772 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $104,009 | $79,923 |
Accounts receivable, net | 48,526 | 46,896 |
Inventories, net—short-term portion | 50,701 | 50,676 |
Deferred tax assets—short-term portion | 3,781 | 3,778 |
Prepaid expenses and other current assets | 11,969 | 9,197 |
Total current assets | 218,986 | 190,470 |
Property and equipment, net | 18,576 | 18,087 |
Inventories, net—long-term portion | 4,809 | 5,956 |
Goodwill | 151,789 | 156,178 |
Intangible assets, net | 99,479 | 106,183 |
Deferred tax assets—long-term portion | 308 | 303 |
Other long-term assets | 9,343 | 9,371 |
Total assets | 503,290 | 486,548 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 43,110 | 53,063 |
Current portion of long-term debt | 4,000 | 4,000 |
Deferred revenue—short-term portion | 8,748 | 9,210 |
Total current liabilities | 55,858 | 66,273 |
Deferred revenue—long-term portion | 2,515 | 2,372 |
Convertible notes | 105,000 | 105,000 |
Term loan—long-term portion | 17,950 | 18,950 |
Other long-term liabilities | 20,643 | 21,626 |
Total liabilities | 201,966 | 214,221 |
Stockholders’ equity: | ||
Common stock | 773 | 743 |
Additional paid-in capital | 812,438 | 781,747 |
Accumulated other comprehensive loss | -6,722 | -612 |
Accumulated deficit | -505,165 | -509,551 |
Total stockholders’ equity | 301,324 | 272,327 |
Total liabilities and stockholders’ equity | $503,290 | $486,548 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUE: | ||
Product sales | $79,367 | $73,695 |
Services and other | 9,350 | 9,276 |
Total revenue | 88,717 | 82,971 |
COSTS AND EXPENSES: | ||
Cost of product sales | 27,583 | 29,512 |
Cost of services and other | 6,296 | 6,904 |
Research and development | 12,120 | 11,635 |
Selling, general and administrative | 35,433 | 38,562 |
Litigation settlement | 0 | 5,100 |
Total costs and expenses | 81,432 | 91,713 |
Income (loss) from operations | 7,285 | -8,742 |
Other (expense) income, net | -673 | 293 |
Interest expense | 1,483 | 1,753 |
Income (loss) before income taxes | 5,129 | -10,202 |
Income tax provision | 743 | 272 |
Net income (loss) | $4,386 | ($10,474) |
Basic net income (loss) per common share | $0.06 | ($0.14) |
Diluted net income (loss) per common share | $0.06 | ($0.14) |
Shares used in computing basic net income (loss) per common share | 75,408 | 72,498 |
Shares used in computing diluted net income (loss) per common share | 78,754 | 72,498 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $4,386 | ($10,474) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | -8,122 | 151 |
Unrealized change in available-for-sale and non-marketable securities (net of $0 tax for the three months ended March 31, 2015 and 2014) | 224 | 1,319 |
Unrealized change in cash flow hedges (net of $0 tax for the three months ended March 31, 2015 and 2014) | 1,788 | 297 |
Net change in other comprehensive (loss) income, net of tax | -6,110 | 1,767 |
Comprehensive loss | ($1,724) | ($8,707) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Unrealized change in available-for-sale and non-marketable securities, Tax | $0 | $0 |
Unrealized change in cash flow hedges, Tax | $0 | $0 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $4,386 | ($10,474) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 5,515 | 8,712 |
Amortization of inventory step-up in fair value | 0 | 2,896 |
Share-based compensation | 4,063 | 3,145 |
Deferred tax, net | -977 | -284 |
(Gain) loss on sales of securities | -59 | 15 |
Other non-cash transactions | 291 | 134 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | -2,035 | 130 |
Inventories | 145 | -2,456 |
Prepaid expenses and other assets | -916 | 2,191 |
Accounts payable and accrued liabilities | -9,533 | 3,205 |
Deferred revenue | -309 | -2,527 |
Other long-term liabilities | 771 | -82 |
Net cash provided by operating activities | 1,342 | 4,605 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds on sale of fixed assets | 0 | 106 |
Capital expenditures | -2,297 | -1,111 |
Purchase of technology rights | -41 | 0 |
Net cash used in investing activities | -2,338 | -1,005 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock, net of issuance costs | 26,658 | 184 |
Repayments of long-term debt | -1,000 | -3,250 |
Net cash provided by (used in) financing activities | 25,658 | -3,066 |
Effect of exchange rate changes on cash and cash equivalents | -576 | 44 |
Net increase in cash and cash equivalents | 24,086 | 578 |
Cash and cash equivalents at beginning of period | 79,923 | 57,128 |
Cash and cash equivalents at end of period | $104,009 | $57,706 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||
Basis of Presentation | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of Affymetrix, Inc. and its wholly-owned subsidiaries (“Affymetrix” or the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting of normal recurring entries, considered necessary for a fair presentation have been included. | ||||||||||||||||
Interim financial results are not necessarily indicative of results anticipated for the full year. These unaudited financial statements should be read in conjunction with the Company's audited financial statements and footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, from which the balance sheet information as of that date and as included herein was derived. | ||||||||||||||||
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | ||||||||||||||||
There have been no material changes to the Company’s significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||||||||||
Comprehensive Loss | ||||||||||||||||
Comprehensive loss is comprised of net loss and other comprehensive loss (“OCI”). OCI includes foreign currency translation adjustments, unrealized gains and losses on the Company's non-marketable securities and unrealized gains and losses on cash flow hedges that are excluded from net loss. Total comprehensive loss has been disclosed in the Company's Condensed Consolidated Statements of Comprehensive Loss. | ||||||||||||||||
The following table summarizes the amounts reclassified out of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2015 (in thousands): | ||||||||||||||||
December 31, | (Decrease)/ Increase | Reclassification | March 31, | |||||||||||||
2014 | Adjustments | 2015 | ||||||||||||||
Foreign currency translation adjustment | $ | (2,933 | ) | $ | (8,122 | ) | $ | — | $ | (11,055 | ) | |||||
Unrealized change in non-marketable securities | 1,219 | 224 | — | 1,443 | ||||||||||||
Unrealized change in cash flow hedges | 1,102 | 3,573 | (1,785 | ) | 2,890 | |||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (612 | ) | $ | (4,325 | ) | $ | (1,785 | ) | $ | (6,722 | ) | ||||
Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) to provide guidance on revenue recognition. ASU 2014-09 requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In April 2015, the FASB proposed a one-year deferral of the effective date for ASU 2014-09. Under the proposal, ASU 2014-09 is effective for the Company in the first quarter of 2018. Early adoption up to the first quarter of 2017 is permitted. Upon adoption, ASU 2014-09 can be applied retrospectively to all periods presented or only to the most current period presented with the cumulative effect of changes reflected in the opening balance of retained earnings in the most current period presented. The Company is currently evaluating the method of adoption and the impact of adopting ASU 2014-09 on its consolidated financial statements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, the assets and liabilities measured at fair value consisted of the following (in thousands): | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Fair Value Measurements Using Input Types | Fair Value Measurements Using Input Types | |||||||||||||||||||||||
Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Derivative assets | $ | 3,063 | $ | — | $ | 3,063 | $ | 1,258 | $ | — | $ | 1,258 | ||||||||||||
Non-marketable securities | — | 3,667 | 3,667 | — | 3,384 | 3,384 | ||||||||||||||||||
Total assets | $ | 3,063 | $ | 3,667 | $ | 6,730 | $ | 1,258 | $ | 3,384 | $ | 4,642 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives liabilities | $ | 12 | $ | — | $ | 12 | $ | — | $ | — | $ | — | ||||||||||||
Derivative financial instruments | ||||||||||||||||||||||||
The Company's derivative financial instruments are measured at fair value on a recurring basis utilizing Level 2 inputs as determined based on review of third-party sources. The fair value of the Company's derivative assets and liabilities is determined based on the estimated consideration the Company would pay or receive to terminate these agreements on the reporting date. The derivative assets and liabilities are located in Prepaid expenses and other current assets and Accounts payable and accrued expenses, respectively, in the accompanying Condensed Consolidated Balance Sheets. | ||||||||||||||||||||||||
Non-Marketable Securities | ||||||||||||||||||||||||
The Company believes the carrying amounts of its non-marketable securities approximated their fair values at the dates presented above. These non-marketable securities consist of an investment in a limited partnership investment fund that invests in companies in the life science industry and are located in the United States. The investments were initially valued at purchase price and subsequently on the basis of inputs that market participants would use in pricing such investments. The portfolio of investments includes Level 1 publicly-traded equity securities and Level 3 equity securities and notes. | ||||||||||||||||||||||||
During the year ended December 31, 2014, other-than-temporary impairment charges of $0.1 million were recognized on the Company's non-marketable securities. There were no other-than-temporary impairment charges during the three months ended March 31, 2015. Net investment losses are included in Other (expense) income, net in the accompanying Consolidated Statements of Operations. Depending on market conditions, the Company may incur additional charges on this investment in the future. | ||||||||||||||||||||||||
The following table summarizes the change in the fair value of the Company's non-marketable securities during the three months ended March 31, 2015 (in thousands). | ||||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 3,384 | ||||||||||||||||||||||
Sales | — | |||||||||||||||||||||||
Realized gains | 59 | |||||||||||||||||||||||
Unrealized gains | 224 | |||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 3,667 | ||||||||||||||||||||||
Fair Value of Long-Term Debt Obligations | ||||||||||||||||||||||||
As further discussed in Note 7, "Long-Term Debt Obligations", the Company's long-term debt obligations are not measured at fair value on a recurring basis and are carried at amortized cost. The Company believes the fair value of the Term Loan approximates its carrying value, or amortized cost, due to the short-term nature of these obligations and the market rates of interest rates they bear, and therefore is classified as Level 3 of the fair value hierarchy. The fair value of the Company’s 4.00% Notes is based on quoted market prices as of the respective balance sheet date, and therefore is classified as Level 1 of the fair value hierarchy. As of March 31, 2015, the fair value of the Company’s 4.00% Notes was approximately $241.2 million. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||
The Company derives a portion of its revenues in foreign currencies, predominantly in Europe and Japan, as part of its ongoing business operations. In addition, a portion of its assets are held in the foreign currencies of its subsidiaries. The Company enters into foreign currency forward contracts to manage a portion of the volatility related to transactions that are denominated in foreign currencies. The Company’s foreign currency forward contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions that are independent of those exposures. | ||||||||||
The Company is exposed to the risk that the counterparties to its hedges may be unable to meet the terms of these agreements. To mitigate the risk, only contracts with carefully selected highly-rated major financial institutions are entered into. In the event of non-performance by these counterparties, the asset position carrying values of the financial instruments represent the maximum amount of loss that can be incurred; however, no losses as a result of counterparty defaults are expected. The Company does not require and is not required to pledge collateral for these financial instruments. The Company does not enter into foreign currency forward contracts for trading or speculative purposes and is not party to any leveraged derivative instruments. | ||||||||||
As of March 31, 2015 and December 31, 2014, the total notional values of the Company’s derivative assets and liabilities were as follows (in thousands): | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Euro | $ | 27,384 | $ | 15,982 | ||||||
Japanese Yen | 2,656 | 3,391 | ||||||||
British Pound | 6,941 | 1,784 | ||||||||
Total | $ | 36,981 | $ | 21,157 | ||||||
The Company records all derivative assets and liabilities on the accompanying Condensed Consolidated Balance sheets at fair value. The following table shows the Company’s derivatives as of March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||
March 31, | December 31, | Balance Sheet | ||||||||
2015 | 2014 | Classification | ||||||||
Derivative assets: | ||||||||||
Foreign exchange contracts | $ | 3,063 | $ | 1,258 | Prepaid expenses and other current assets | |||||
Derivative liabilities: | ||||||||||
Foreign exchange contracts | 12 | — | Accounts payable and accrued liabilities | |||||||
The effective portions of designated cash flow hedges are recorded in OCI until the hedged item is recognized in operations. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through operations. | ||||||||||
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Deferred gains and losses associated with such derivative instruments are reclassified immediately into operations through Other (expense) income, net on the Condensed Consolidated Statements of Operations. Any subsequent changes in fair value of such derivative instruments are reflected in Other (expense) income, net unless they are re-designated as hedges of other transactions. | ||||||||||
All derivative assets and liabilities were designated as hedging relationships as of March 31, 2015 and December 31, 2014. | ||||||||||
The following table shows the effect, net of tax, of the Company’s derivative instruments on the accompanying Condensed Consolidated Statements of Operations and OCI for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2015 | 2014 | |||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Net gain (loss) recognized in OCI | $ | 1,788 | $ | (297 | ) | |||||
Net gain (loss) reclassified from accumulated OCI into Revenue | 1,785 | (444 | ) | |||||||
Net loss reclassified from accumulated OCI into Other (expense) income, net | — | (10 | ) | |||||||
Net gain (loss) recognized in Other (expense) income, net | 14 | (18 | ) | |||||||
Derivatives not designated as hedging relationships: | ||||||||||
Net gain recognized in Other (expense) income, net | — | 1 | ||||||||
As of March 31, 2015, the deferred amount recorded in OCI related to the Company's derivatives recorded is a net gain of $2.9 million and is expected to be recognized into earnings over the next 12 months. |
STOCKHOLDERS_EQUITY_AND_SHAREB
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE | STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION EXPENSE | |||||||
At the Market Offering | ||||||||
On November 18, 2014, the Company entered into a sales agreement with Cantor Fitzgerald & Co. (“Cantor Fitzgerald”) to offer shares of its common stock, $0.01 par value per share, from time to time through Cantor Fitzgerald, as the Company’s sales agent for the offer and sale of the shares. The Company may offer and sell shares for an aggregate offering price of up to $50.0 million. The Company pays a commission equal to 3% of the gross proceeds from the sale of shares of its common stock under the sales agreement. The Company intends to use the net proceeds from this offering for general corporate purposes, including capital expenditures, debt repayments and working capital. The Company may also use a portion of the net proceeds from this offering to acquire or invest in complementary businesses, technologies, product candidates or other intellectual property, although there are no present commitments or agreements to do so. The Company is not obligated to make any sales of shares of common stock under the sales agreement. As of March 31, 2015, the Company has sold a total of 2.2 million shares of common stock at an average price of $11.80 through its “at-the-market” offering, for total net proceeds of $25.3 million. | ||||||||
Share-based Compensation Plans | ||||||||
The Company has a share-based compensation program, most recently the 2000 Amended and Restated Equity Incentive Plan (the “Plan”), that provides the Board of Directors broad discretion in creating equity incentives for employees, officers, directors and consultants. This program includes incentive and non-qualified stock options and non-vested stock awards (also known as restricted stock) granted under various stock plans. As of March 31, 2015, the Company had approximately 4.6 million shares of common stock reserved for future issuance under its share-based compensation plans. New shares are issued as a result of stock option exercises, restricted stock units vesting and restricted stock award grants. | ||||||||
The Company recognized share-based compensation expense in the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014 as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Costs of product sales | $ | 695 | $ | 537 | ||||
Research and development | 514 | 507 | ||||||
Selling, general and administrative | 2,854 | 2,101 | ||||||
Total share-based compensation expense | $ | 4,063 | $ | 3,145 | ||||
As of March 31, 2015, $16.4 million of total unrecognized share-based compensation expense related to non-vested awards is expected to be recognized over the respective vesting terms of each award through 2018. The weighted‑average terms of the unrecognized share-based compensation expense are 2.3 years for stock options and 2.0 years for restricted stock. | ||||||||
Performance-Based Awards | ||||||||
The Company's share-based awards program includes performance-based restricted stock awards ("PRSUs") that vest based upon the achievement of certain performance criteria and a service vesting criteria following the achievement of performance criteria. Performance criteria include various operational criteria of the Company such as revenues, earnings before interest, taxes, depreciation and amortization, earnings per share, and similar criteria, either on a Company-wide or business unit specific basis. The service vesting criteria ranges from two to four years. The Company recognizes the fair value of these awards to the extent the achievement of the related performance criteria is estimated to be probable. If a performance criteria is subsequently determined to not be probable of achievement, any related expense is reversed in the period such determination is made. Conversely, if a performance criteria is not currently expected to be achieved but is later determined to be probable of achievement, a “catch-up” entry is recorded in the period such determination is made for the expense that would have been recognized had the performance criteria been probable of achievement since the grant of the award. | ||||||||
During the first quarter of 2015, the Compensation Committee granted certain PRSUs associated with performance criteria referred to as the 2015 Program. The purpose of the 2015 Program is to retain key employees. The measurement period for the 2015 Program is the twelve month period ended December 31, 2015 and the awards granted under the 2015 Program were granted in the form of performance shares pursuant to the terms of our 2000 Plan. Based on the achievement of the performance conditions, shares of stock would vest in equal installments over three years. The level of achievement of 2015 financial performance will be assessed during the first quarter of 2016 after which the shares of stock will be issued to the participants, contingent upon the recipient’s continued service to the Company. In 2015, the Company awarded 243,000 PRSUs under the 2015 Program at a grant date fair value of $11.88 per PRSU. | ||||||||
As of March 31, 2015, there were 931,600 PRSUs outstanding with an average grant date fair value of $8.24 per PRSU. The Company expects that it is probable that 823,600 of these PRSUs will vest and that the related unrecognized stock compensation expense of $2.7 million will be recognized over the next three years. Changes in the Company’s assessment of the probability of achievement of performance criteria could have a material effect on the results of operations in future periods. There were no material changes in estimate related to the probability of vesting or recognition of expense related to PRSUs during either of the periods ended March 31, 2015 or 2014. | ||||||||
For additional information concerning the Company's share-based compensation plans, including performance-based awards programs, see Note 13, "Stockholders' Equity and Share-Based Compensation Expense", to the consolidated financial statements in Part II, Item 8 of the Company's 2014 Annual Report on Form 10-K. |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
At March 31, 2015 and December 31, 2014, inventories, net consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 10,839 | $ | 11,461 | ||||
Work-in-process | 19,382 | 18,147 | ||||||
Finished goods | 25,289 | 27,024 | ||||||
Total | $ | 55,510 | $ | 56,632 | ||||
Short-term portion | $ | 50,701 | $ | 50,676 | ||||
Long-term portion | $ | 4,809 | $ | 5,956 | ||||
Amortization expense related to the fair value step-up during the three months ended March 31, 2014 was approximately $2.9 million. The inventory fair value step-up was fully amortized as of June 30, 2014. |
WARRANTIES
WARRANTIES | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Product Warranties Disclosures [Abstract] | ||||
WARRANTIES | WARRANTIES | |||
The Company provides for anticipated warranty costs at the time the associated product revenue is recognized. Accrued warranties are included in Accounts payable and accrued liabilities in the accompanying Condensed Consolidated Balance Sheets. Product warranty costs are estimated based upon the Company’s historical experience and the applicable warranty period. The Company periodically reviews the adequacy of its warranty reserve and adjusts, if necessary, the warranty percentage and accrual based on actual experience and estimated costs to be incurred. Changes to the Company’s product warranty liability for the three months ended March 31, 2015 are as follows (in thousands): | ||||
Balance at December 31, 2014 | $ | 912 | ||
Additions charged to cost of product sales | 281 | |||
Repairs and replacements | (335 | ) | ||
Balance at March 31, 2015 | $ | 858 | ||
LONGTERM_DEBT_OBLIGATIONS
LONG-TERM DEBT OBLIGATIONS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT OBLIGATIONS | LONG-TERM DEBT OBLIGATIONS | |||||||
The following table summarizes the carrying amount of the Company's borrowings (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Term loan | $ | 21,950 | $ | 22,950 | ||||
Convertible notes | 105,000 | 105,000 | ||||||
Total debt | 126,950 | 127,950 | ||||||
Less: current portion of long-term debt | 4,000 | 4,000 | ||||||
Total long-term debt | $ | 122,950 | $ | 123,950 | ||||
Term Loan and Revolving Credit Facility | ||||||||
On June 25, 2012, in conjunction with the acquisition of eBioscience, Inc., the Company entered into a five year $100.0 million Senior Secured Credit Facility credit agreement (the “Credit Agreement”). The Credit Agreement provided for a Term Loan in an aggregate principal amount of $85.0 million and a revolving credit facility in an aggregate principal amount of $15.0 million. | ||||||||
On October 17, 2013, the Company refinanced its Senior Secured Credit Facility and entered into the Fourth Amendment to Credit Agreement (the "Fourth Amendment"). The Fourth Amendment provided, among other things, for a term loan in the aggregate principal amount of $38.0 million and revolving loan commitments in the aggregate principal amount of $10.0 million, each with a term of five years. The Company borrowed a total of $38.0 million under the Term Loan and $10.0 million under the revolving loan upon refinancing. | ||||||||
On July 28, 2014, the Company entered into the Fifth Amendment to Credit Agreement (the "Fifth Amendment" and the Credit Agreement as so amended, the "Amended Credit Agreement"). The Fifth Amendment provides, among other things, for (1) an uncommitted incremental term loan facility in an aggregate amount not to exceed $50.0 million and (2) the reduction of interest rate margins. As of March 31, 2015, the applicable interest rate was approximately 3.04%. | ||||||||
At the option of the Company (subject to certain limitations), borrowings under the Amended Credit Agreement bear interest at either a base rate or at the London Interbank Offered Rate (“LIBOR”), plus, in each case, an applicable margin. Under the Base Rate Option, interest will be at the base rate plus 1.5% to 1.75% dependent on the senior leverage ratio then in effect calculated on the basis of the actual number of days elapsed in a year of 365 or 366 days (as applicable) and payable quarterly in arrears. The base rate will be equal to the greatest of (a) the rate last quoted by The Wall Street Journal (or another national publication described in the Amended Credit Agreement) as the U.S. “Prime Rate,” (b) the federal funds rate, plus 0.50% per annum or (c) LIBOR for an interest period of one month, plus 1.00% per annum. Under the LIBOR Option, interest will be determined based on interest periods to be selected by Affymetrix of one, two, three or six months (and, to the extent available to all relevant lenders, nine or 12 years) and will be equal to LIBOR plus 2.50% and 2.75% dependent on the senior leverage ratio then in effect, calculated based on the actual number of days elapsed in a 360-day year. Interest will be paid at the end of each interest period or in the case of interest periods longer than three months, quarterly. | ||||||||
The loans and other obligations under the Senior Secured Credit Facility are (i) guaranteed by substantially all of the Company’s domestic subsidiaries (subject to certain exceptions and limitations) and (ii) secured by substantially all of the assets of Affymetrix and each guarantor (subject to certain exceptions and limitations). | ||||||||
The Amended Credit Agreement requires the Company to maintain an interest coverage ratio of at least 3.5 to 1.0 and a senior leverage ratio not exceeding initially 1.75 to 1.00 and stepping down to 1.20 to 1.00. The Amended Credit Agreement also includes other covenants, including negative covenants that, subject to certain exceptions, limit Affymetrix’, and that of certain of its subsidiaries’, ability to, among other things: (i) incur additional debt, including guarantees by the Company or its subsidiaries, (ii) make investments, pay dividends on capital stock, redeem or repurchase capital stock, redeem or repurchase the Company’s senior convertible notes or any subordinated obligations, (iii) create liens and negative pledges, (iv) make capital expenditures, (v) dispose of assets, (vi) make acquisitions, (vii) create or permit restrictions on the ability of Affymetrix’ subsidiaries to pay dividends or make distributions to Affymetrix, (viii) engage in transactions with affiliates, (ix) engage in sale and leaseback transactions, (x) consolidate or merge with or into other companies or sell all or substantially all the Company’s assets and (xi) change their nature of business, their organizational documents or their accounting policies. | ||||||||
The Company is required to make the following mandatory prepayments: (a) annual prepayments in an amount equal to 50% of excess cash flow (as defined in the Amended Credit Agreement), subject to leverage-based step-downs, (b) prepayments in an amount equal to 100% of the net cash proceeds of issuances or incurrences of debt obligations of Affymetrix and its subsidiaries (other than debt incurrences expressly permitted by the Credit Agreement), (c) prepayments in an amount equal to 100% of the net proceeds of asset sales in excess of $2.5 million annually (subject to certain reinvestment rights) and (d) prepayments in an amount equal to any indemnification payments or similar payments received under the Acquisition Agreement, subject to certain exclusions. | ||||||||
The Amended Credit Agreement also contains events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-default and cross-acceleration to other indebtedness in excess of specified amounts, monetary judgment defaults in excess of specified amounts, bankruptcy or insolvency, actual or asserted invalidity or impairment of any part of the credit documentation (including the failure of any lien on a material portion of the collateral to remain perfected) and change of ownership or control defaults. In addition, the occurrence of a “fundamental change” under the indenture governing the 4.00% Convertible Notes would be an event of default under the Amended Credit Agreement. As of March 31, 2015, the Company was in compliance with the covenants. | ||||||||
The proceeds received on June 25, 2012 from the original Term Loan were net of debt issuance costs of approximately $4.5 million being amortized over the 5-year term of the Senior Secured Credit Facility. Following the refinancing under the Fourth Amendment, the Company wrote off unamortized debt issuance costs of $2.5 million associated with the original Term Loan, and received proceeds on October 17, 2013 from the new Term Loan and Revolver, net of debt issuance costs of approximately $0.8 million that amortize on the effective interest rate method beginning October 17, 2013. | ||||||||
As of March 31, 2015, the Company had an outstanding principal balance of approximately $22.0 million under the Term Loan and incurred $0.3 million in interest expense under the Senior Secured Credit Facility for the three months ended March 31, 2015. There were no amounts outstanding under the Revolving Credit Facility as of March 31, 2015. | ||||||||
Quarterly, principal payments are due under the Term Loan, which amortizes such that 10% of the outstanding principal is due during the first four years and the remaining 60% is due in the fifth year, including any remaining principal balance and any outstanding revolver balance at such time. The principal amount of unpaid maturities per the Amended Credit Agreement is as follows (in thousands): | ||||||||
2015, remainder thereof | $ | — | ||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 21,950 | |||||||
Total | $ | 21,950 | ||||||
The Company intends to continue making quarterly payments during 2015 and reclassified $4.0 million as current on the accompanying Condensed Consolidated Balance Sheet as of March 31, 2015. | ||||||||
4.00% Convertible Senior Notes | ||||||||
On June 25, 2012, the Company issued $105.0 million principal amount of 4.00% Convertible Senior Notes ("4.00% Convertible Notes") due July 1, 2019. The net proceeds, after debt issuance costs totaling $3.9 million from the 4.00% Convertible Notes offering, were $101.1 million. The 4.00% Convertible Notes bear interest of 4.00% per year payable semi-annually in arrears on January 1 and July 1 of each year, beginning on January 1, 2013 until the maturity date of July 1, 2019, unless converted, redeemed or repurchased earlier. The debt issuance costs are being amortized over the effective life of the 4.00% Convertible Notes, which is seven years. | ||||||||
Holders of the 4.00% Convertible Notes may convert their 4.00% Convertible Notes into shares of the Company’s stock at their option any time prior to the close of business on the business day immediately preceding the maturity date. The 4.00% Convertible Notes are initially convertible into approximately 170.0319 shares of the Company’s common stock per $1,000 principal amount of notes, which equates to 17,857,143 shares of common stock, or an initial conversion price of $5.88 per share of common stock. The conversion rate is subject to certain customary anti-dilution adjustments. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event in certain circumstances. Holders may also require the Company to repurchase for cash their notes upon certain fundamental changes. | ||||||||
On or after July 1, 2017, the Company can redeem for cash all or part of the 4.00% Convertible Notes if the last reported sale price per share of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period ending within 5 trading days prior to the date on which the Company provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 4.00% Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company calls the 4.00% Notes for redemption, a holder of notes may convert its notes only until the close of business on the scheduled trading day immediately preceding the redemption date unless the Company fails to pay the redemption price (in which case a holder of notes may convert such notes until the redemption price has been paid or duly provided for). | ||||||||
As of March 31, 2015, the outstanding balance on the 4.00% Convertible Notes was $105.0 million and interest incurred for the three months ended March 31, 2015 was $1.2 million. |
NET_INCOME_LOSS_PER_COMMON_SHA
NET INCOME (LOSS) PER COMMON SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
NET INCOME (LOSS) PER COMMON SHARE | NET INCOME (LOSS) PER COMMON SHARE | |||||||
Basic earnings per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted earnings per common share, if any, gives effect to dilutive common stock subject to repurchase, stock options (calculated based on the treasury stock method), shares purchased under the employee stock purchase plan and convertible debt (calculated using an as-if-converted method). | ||||||||
The following table sets forth a reconciliation of basic and diluted net income (loss) per common share (in thousands except per common share amounts): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 4,386 | $ | (10,474 | ) | |||
Shares used in computing basic net income (loss) per common share | 75,408 | 72,498 | ||||||
Add effect of dilutive securities: | ||||||||
Employee stock options | 1,639 | — | ||||||
Employee stock purchase plan | 71 | — | ||||||
Restricted stock and restricted stock units | 1,636 | — | ||||||
Shares used in computing diluted net income (loss) per common share | 78,754 | 72,498 | ||||||
Basic net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | |||
Diluted net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | |||
The potential dilutive securities excluded from diluted net income (loss) per common share were as follows (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Employee stock options | 2,309 | 5,068 | ||||||
Employee stock purchase plan | — | 173 | ||||||
Restricted stock and restricted stock units | 1,359 | 4,419 | ||||||
Convertible notes | 17,857 | 17,857 | ||||||
Total | 21,525 | 27,517 | ||||||
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS |
The Company has been in the past, and continues to be, a party to litigation, which has consumed, and may continue to consume, substantial financial and managerial resources. The Company could incur substantial costs and divert the attention of management and technical personnel in defending against litigation, and any adverse ruling or perception of an adverse ruling could have a material adverse impact on the Company’s stock price. In addition, any adverse ruling could have a material adverse impact on the Company’s cash flows and financial condition. The results of any litigation or any other legal proceedings are uncertain and, as of the date of this report, the Company has not accrued any liability with respect to any of the litigation matters listed below: | |
Enzo Litigation | |
Southern District of New York Case: On October 28, 2003, Enzo Life Sciences, Inc., a wholly-owned subsidiary of Enzo Biochem, Inc. (collectively "Enzo"), filed a complaint against the Company that is pending in the United States District Court for the Southern District of New York for breach of contract, injunctive relief and declaratory judgment. The Enzo complaint relates to a 1998 distributorship agreement with Enzo under which the Company served as a non-exclusive distributor of certain reagent labeling kits supplied by Enzo. On November 10, 2003, the Company filed a complaint against Enzo in the United States District Court for the Southern District of New York for declaratory judgment, breach of contract and injunctive relief relating to the 1998 agreement. On April 22, 2014, the Company entered into a settlement agreement with Enzo with respect to these two lawsuits. Pursuant to the agreement the Company agreed to pay Enzo $5.1 million and recorded the litigation settlement charge within the results of operations in the first three months of 2014. The settlement agreement does not include the Delaware Case described below. | |
Delaware Case: On April 6, 2012, Enzo filed a complaint against the Company in the United States District Court for the District of Delaware. In the complaint, plaintiff alleges that Affymetrix is infringing U.S. Patent No. 7,064,197 by making and selling certain GeneChip® products. The plaintiff seeks a preliminary and permanent injunction enjoining the Company from further infringement and unspecified monetary damages. The Company will vigorously defend against the plaintiff’s case. No trial date is set for this action. | |
Administrative Proceedings | |
The Company’s intellectual property is subject to a number of significant administrative actions. These proceedings could result in the Company’s patent protection being significantly modified or reduced, and the incurrence of significant costs and the consumption of substantial managerial resources. For the three months ended March 31, 2015 and 2014, the Company did not incur significant costs in connection with administrative proceedings. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
During the three months ended March 31, 2015, the Company recognized an income tax expense of $0.7 million. The provision for income taxes during the three months ended March 31, 2015 primarily consists of foreign taxes. | |
Due to the Company’s history of cumulative operating losses, management concluded that, after considering all the available objective evidence, it is not more likely than not that all the Company’s net deferred tax assets will be realized. Accordingly, all of the Company's U.S. deferred tax assets continue to be subject to a valuation allowance as of March 31, 2015. | |
As of March 31, 2015, the total amount of unrecognized tax benefits increased minimally compared to December 31, 2014. As a result of settlements of ongoing tax examinations and/or expiration of statues of limitations without the assessment of additional income taxes, the amount of unrecognized tax benefits that could be recognized in earnings in the next 12 months could range from zero to approximately $1.7 million. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||
The Company reports segment information on the "management" approach which designates the internal reporting used by management for making decisions and assessing performance as the source of the Company's reportable segments. The Company has determined that the combined presence of its Chief Executive Officer and Chief Operating Officer is the Company's chief operating decision maker ("CODM") as they are responsible for reviewing and approving investments in the Company's technology platforms and manufacturing infrastructure. The Company is organized into two reportable segments: Affymetrix Core and eBioscience. | ||||||||
Affymetrix Core is divided into four business units, with each business unit having its own strategic marketing and research and development groups to better serve customers and respond quickly to market needs. Affymetrix Core manufacturing operations are based on platforms that are used to produce various Affymetrix Core products that serve multiple applications and markets and similar customer and economic characteristics. Additionally, the business units share certain research, development and common corporate services that provide capital, infrastructure and functional support. As such, the Company concluded that the four business units represent one reportable operating segment. The following describes the four business units that form Affymetrix Core: | ||||||||
• | Expression: This business unit markets the Company's GeneChip® gene expression products and services; | |||||||
• | Genetic Analysis and Clinical Applications: This business unit markets the Company's Axiom® genotyping product line, as well as products with clinical diagnostic and research applications including CytoScan® HD, OncoScan products, and the ViewRNA insitu hybridization platform for clinical translational research. In addition, the business unit is responsible for managing the PbA clinical partnering and licensing program which enables third-party diagnostic companies to access and develop DNA and RNA-based diagnostic tests based on Affymetrix technology platforms. This business unit also markets the CytoScan Dx product, the recently FDA approved microarray system for post natal diagnostics of children with developmental delays and intellectual disabilities; | |||||||
• | Life Science Reagents: This business unit sells reagents, enzymes, purification kits and biochemicals used by life science researchers and other biological and health care manufacturers, including those developing and marketing Next Generation Sequencing (“NGS”) products and molecular diagnostics; and | |||||||
• | Corporate: This business unit is comprised primarily of incidental revenue from royalty arrangements and field revenue from field-services provided to customers of the Company. | |||||||
The eBioscience business unit operates with its own manufacturing, research and development, and marketing groups. The business unit does utilize certain Corporate functions such as finance, legal and human resources. This reportable segment specializes in the areas of flow cytometry reagents, immunoassays, microscopic imaging, other protein-based analyses, QuantiGene single and multiplex RNA solution assays (not including the View RNA insitu hybridization platform) and the Procarta multiplex immunoassay product lines. | ||||||||
All business units sell their products through the Global Commercial Organization comprised of sales, field application and engineering support personnel. The Company markets and distributes its products directly to customers in North America, Japan and major European markets. In these markets, the Company has its own sales, service and application support personnel responsible for expanding and managing their respective customer bases. In other markets, such as Mexico, India, Brazil, the Middle East and Asia Pacific, including China, the Company sells its products principally through third-party distributors that specialize in life science supply. The Company is selectively expanding its presence in the larger and more attractive markets, such as China. For certain molecular diagnostic and industrial opportunities, the Company supplies its partners with arrays and instruments, which they incorporate into diagnostic products or other routine applications and assume the primary commercialization responsibilities. | ||||||||
During 2015, the commercial organization and general and administrative functions are fully integrated. The Company no longer reports these operating expenses at a segment level and began evaluating the performance of its reportable segments based on revenue and gross profit. Revenue is allocated to each business unit based on product codes. The 2014 amounts have been recast to conform to the current presentation. | ||||||||
The following table shows revenue and gross profit by reportable operating segment for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Affymetrix Core | $ | 64,445 | $ | 59,447 | ||||
eBioscience | 24,272 | 23,524 | ||||||
Total revenue | $ | 88,717 | $ | 82,971 | ||||
Gross Profit: | ||||||||
Affymetrix Core | $ | 40,627 | $ | 35,004 | ||||
eBioscience | 14,211 | 11,551 | ||||||
Total gross profit | $ | 54,838 | $ | 46,555 | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS |
In December 2011, the Company entered into an agreement under which it assigned one patent application and related know-how to Cellular Research, Inc. (“Cellular Research”), a company founded by the Company’s former Chairman, Dr. Stephen P.A. Fodor. Dr. Fodor also owns a majority of the shares of Cellular Research. Pursuant to the agreement, Cellular Research shall pay single digit royalties to Affymetrix on sales of products covered by the assigned technology, and starting in December 2016, an annual minimum fee of $100,000. Affymetrix shall also have a right of first refusal to collaborate with Cellular Research for the development of certain new products and to supply arrays to Cellular Research under certain terms and conditions. As of March 31, 2015, no significant royalties have been earned from this agreement. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||
Components of accumulated other comprehensive income, net of tax | The following table summarizes the amounts reclassified out of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2015 (in thousands): | |||||||||||||||
December 31, | (Decrease)/ Increase | Reclassification | March 31, | |||||||||||||
2014 | Adjustments | 2015 | ||||||||||||||
Foreign currency translation adjustment | $ | (2,933 | ) | $ | (8,122 | ) | $ | — | $ | (11,055 | ) | |||||
Unrealized change in non-marketable securities | 1,219 | 224 | — | 1,443 | ||||||||||||
Unrealized change in cash flow hedges | 1,102 | 3,573 | (1,785 | ) | 2,890 | |||||||||||
Total accumulated other comprehensive loss, net of tax | $ | (612 | ) | $ | (4,325 | ) | $ | (1,785 | ) | $ | (6,722 | ) |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | As of March 31, 2015 and December 31, 2014, the assets and liabilities measured at fair value consisted of the following (in thousands): | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
Fair Value Measurements Using Input Types | Fair Value Measurements Using Input Types | |||||||||||||||||||||||
Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Derivative assets | $ | 3,063 | $ | — | $ | 3,063 | $ | 1,258 | $ | — | $ | 1,258 | ||||||||||||
Non-marketable securities | — | 3,667 | 3,667 | — | 3,384 | 3,384 | ||||||||||||||||||
Total assets | $ | 3,063 | $ | 3,667 | $ | 6,730 | $ | 1,258 | $ | 3,384 | $ | 4,642 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivatives liabilities | $ | 12 | $ | — | $ | 12 | $ | — | $ | — | $ | — | ||||||||||||
Fair value of non-marketable securities | The following table summarizes the change in the fair value of the Company's non-marketable securities during the three months ended March 31, 2015 (in thousands). | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 3,384 | ||||||||||||||||||||||
Sales | — | |||||||||||||||||||||||
Realized gains | 59 | |||||||||||||||||||||||
Unrealized gains | 224 | |||||||||||||||||||||||
Balance as of March 31, 2015 | $ | 3,667 | ||||||||||||||||||||||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Notional values of entity's foreign currency forward contracts mature within 12 months | As of March 31, 2015 and December 31, 2014, the total notional values of the Company’s derivative assets and liabilities were as follows (in thousands): | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Euro | $ | 27,384 | $ | 15,982 | ||||||
Japanese Yen | 2,656 | 3,391 | ||||||||
British Pound | 6,941 | 1,784 | ||||||||
Total | $ | 36,981 | $ | 21,157 | ||||||
Entity's foreign currency derivatives measured at fair value | The Company records all derivative assets and liabilities on the accompanying Condensed Consolidated Balance sheets at fair value. The following table shows the Company’s derivatives as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||
March 31, | December 31, | Balance Sheet | ||||||||
2015 | 2014 | Classification | ||||||||
Derivative assets: | ||||||||||
Foreign exchange contracts | $ | 3,063 | $ | 1,258 | Prepaid expenses and other current assets | |||||
Derivative liabilities: | ||||||||||
Foreign exchange contracts | 12 | — | Accounts payable and accrued liabilities | |||||||
Effect of entity's derivative instruments, net of tax, on Condensed Statements of Operations | The following table shows the effect, net of tax, of the Company’s derivative instruments on the accompanying Condensed Consolidated Statements of Operations and OCI for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2015 | 2014 | |||||||||
Derivatives in cash flow hedging relationships: | ||||||||||
Net gain (loss) recognized in OCI | $ | 1,788 | $ | (297 | ) | |||||
Net gain (loss) reclassified from accumulated OCI into Revenue | 1,785 | (444 | ) | |||||||
Net loss reclassified from accumulated OCI into Other (expense) income, net | — | (10 | ) | |||||||
Net gain (loss) recognized in Other (expense) income, net | 14 | (18 | ) | |||||||
Derivatives not designated as hedging relationships: | ||||||||||
Net gain recognized in Other (expense) income, net | — | 1 | ||||||||
STOCKHOLDERS_EQUITY_AND_SHAREB1
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Share-based compensation expense | The Company recognized share-based compensation expense in the accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014 as follows (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Costs of product sales | $ | 695 | $ | 537 | ||||
Research and development | 514 | 507 | ||||||
Selling, general and administrative | 2,854 | 2,101 | ||||||
Total share-based compensation expense | $ | 4,063 | $ | 3,145 | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | At March 31, 2015 and December 31, 2014, inventories, net consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 10,839 | $ | 11,461 | ||||
Work-in-process | 19,382 | 18,147 | ||||||
Finished goods | 25,289 | 27,024 | ||||||
Total | $ | 55,510 | $ | 56,632 | ||||
Short-term portion | $ | 50,701 | $ | 50,676 | ||||
Long-term portion | $ | 4,809 | $ | 5,956 | ||||
WARRANTIES_Tables
WARRANTIES (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Product Warranties Disclosures [Abstract] | ||||
Changes in entity's product warranty liability | Changes to the Company’s product warranty liability for the three months ended March 31, 2015 are as follows (in thousands): | |||
Balance at December 31, 2014 | $ | 912 | ||
Additions charged to cost of product sales | 281 | |||
Repairs and replacements | (335 | ) | ||
Balance at March 31, 2015 | $ | 858 | ||
LONGTERM_DEBT_OBLIGATIONS_Tabl
LONG-TERM DEBT OBLIGATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Debt | The following table summarizes the carrying amount of the Company's borrowings (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Term loan | $ | 21,950 | $ | 22,950 | ||||
Convertible notes | 105,000 | 105,000 | ||||||
Total debt | 126,950 | 127,950 | ||||||
Less: current portion of long-term debt | 4,000 | 4,000 | ||||||
Total long-term debt | $ | 122,950 | $ | 123,950 | ||||
Schedule of Maturities of Long-term Debt | The principal amount of unpaid maturities per the Amended Credit Agreement is as follows (in thousands): | |||||||
2015, remainder thereof | $ | — | ||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | 21,950 | |||||||
Total | $ | 21,950 | ||||||
NET_INCOME_LOSS_PER_COMMON_SHA1
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of basic and diluted earnings per share | The following table sets forth a reconciliation of basic and diluted net income (loss) per common share (in thousands except per common share amounts): | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 4,386 | $ | (10,474 | ) | |||
Shares used in computing basic net income (loss) per common share | 75,408 | 72,498 | ||||||
Add effect of dilutive securities: | ||||||||
Employee stock options | 1,639 | — | ||||||
Employee stock purchase plan | 71 | — | ||||||
Restricted stock and restricted stock units | 1,636 | — | ||||||
Shares used in computing diluted net income (loss) per common share | 78,754 | 72,498 | ||||||
Basic net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | |||
Diluted net income (loss) per common share | $ | 0.06 | $ | (0.14 | ) | |||
Securities excluded from diluted earnings per common share on an actual outstanding basis | The potential dilutive securities excluded from diluted net income (loss) per common share were as follows (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Employee stock options | 2,309 | 5,068 | ||||||
Employee stock purchase plan | — | 173 | ||||||
Restricted stock and restricted stock units | 1,359 | 4,419 | ||||||
Convertible notes | 17,857 | 17,857 | ||||||
Total | 21,525 | 27,517 | ||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule of Segment Reporting Information, by Segment | The following table shows revenue and gross profit by reportable operating segment for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Affymetrix Core | $ | 64,445 | $ | 59,447 | ||||
eBioscience | 24,272 | 23,524 | ||||||
Total revenue | $ | 88,717 | $ | 82,971 | ||||
Gross Profit: | ||||||||
Affymetrix Core | $ | 40,627 | $ | 35,004 | ||||
eBioscience | 14,211 | 11,551 | ||||||
Total gross profit | $ | 54,838 | $ | 46,555 | ||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Total accumulated other comprehensive income, net of tax, beginning balance | ($612) |
(Decrease)/ Increase | -4,325 |
Reclassification Adjustments | -1,785 |
Total accumulated other comprehensive income, net of tax, ending balance | -6,722 |
Foreign currency translation adjustment [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Total accumulated other comprehensive income, net of tax, beginning balance | -2,933 |
(Decrease)/ Increase | -8,122 |
Reclassification Adjustments | 0 |
Total accumulated other comprehensive income, net of tax, ending balance | -11,055 |
Unrealized change in non-marketable securities [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Total accumulated other comprehensive income, net of tax, beginning balance | 1,219 |
(Decrease)/ Increase | 224 |
Reclassification Adjustments | 0 |
Total accumulated other comprehensive income, net of tax, ending balance | 1,443 |
Unrealized change in cash flow hedges [Member] | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Total accumulated other comprehensive income, net of tax, beginning balance | 1,102 |
(Decrease)/ Increase | 3,573 |
Reclassification Adjustments | -1,785 |
Total accumulated other comprehensive income, net of tax, ending balance | $2,890 |
FAIR_VALUE_MEASUREMENTS_Schedu
FAIR VALUE MEASUREMENTS Schedule of Fair Value Hierarchy (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $3,063 | $1,258 |
Non-marketable securities | 3,667 | 3,384 |
Total assets | 6,730 | 4,642 |
Derivatives liabilities | 12 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3,063 | 1,258 |
Total assets | 3,063 | 1,258 |
Derivatives liabilities | 12 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-marketable securities | 3,667 | 3,384 |
Total assets | $3,667 | $3,384 |
FAIR_VALUE_MEASUREMENTS_FAIR_V
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other-than-temporary impairment charges | $0 | $100,000 |
4.00% Convertible Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Convertible debt fair value | $241,200,000 |
FAIR_VALUE_MEASUREMENTS_CHANGE
FAIR VALUE MEASUREMENTS CHANGES IN FAIR VALUE MEASUREMENT OF LEVEL 3 ITEMS (Details) (Fair Value, Measurements, Recurring [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2014 | $3,384 | |
Balance as of March 31, 2015 | 3,667 | 3,384 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance as of December 31, 2014 | 3,384 | |
Sales | 0 | |
Realized gains | 59 | |
Unrealized gains | 224 | |
Balance as of March 31, 2015 | $3,667 |
Recovered_Sheet1
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Expected deferred loss amount to be recognized in OCI | $2.90 |
Maximum expected period to recognized deferred amount into earnings | 12 months |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS Schedule of Total Notional Values (Details) (Net Investment Hedging [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Notional amount of derivative | $36,981 | $21,157 |
Euro [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 27,384 | 15,982 |
Japanese Yen [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | 2,656 | 3,391 |
British Pound [Member] | ||
Derivative [Line Items] | ||
Notional amount of derivative | $6,941 | $1,784 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS Entity's foreign currency derivatives measured at fair value (Details) (Foreign exchange contracts [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets [Member] | ||
Derivative [Line Items] | ||
Derivative assets: | $3,063 | $1,258 |
Accounts payable and accrued liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities: | $12 | $0 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS Gain (Loss) by Hedging Relationship (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivatives in cash flow hedging relationships [Member] | ||
Effect of derivative instruments on statements of operations [Abstract] | ||
Net (loss) gain recognized in OCI, net of tax | $1,788 | ($297) |
Net (loss) gain reclassified from accumulated OCI into Revenue, net of tax | 1,785 | -444 |
Net (loss) gain reclassified from accumulated OCI into Interest income and other, net, net of tax | 0 | -10 |
Net (loss) gain recognized in Interest income and other, net, net of tax | 14 | -18 |
Derivatives not designated as hedging relationships [Member] | ||
Effect of derivative instruments on statements of operations [Abstract] | ||
Net gain recognized in Interest income and other, net, net of tax | $0 | $1 |
STOCKHOLDERS_EQUITY_AND_SHAREB2
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE At the Market Offering Narrative (Details) (USD $) | 3 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Nov. 18, 2014 |
Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $0.01 | |
Aggregate amount of offer | $50,000,000 | |
Commission percent on gross proceeds from sale of stock | 3.00% | |
Common stock sold (in shares) | 2.2 | |
Average share price (in usd per share) | $11.80 | |
Net proceeds from sale of stock | $25,300,000 |
STOCKHOLDERS_EQUITY_AND_SHAREB3
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE Share-based Compensation Plans Narrative (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common stock reserved for future issuance (in shares) | 4.6 |
Unrecognized share-based compensation expense | $16.40 |
Weighted-average term of unrecognized share-based compensation expense, Stock Options | 2 years 4 months 2 days |
Weighted-average term of unrecognized share-based compensation expense, Restricted Stock | 1 year 11 months 16 days |
STOCKHOLDERS_EQUITY_AND_SHAREB4
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE Share-based Compensation Expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Recognized share-based compensation expense [Abstract] | ||
Total stock-based compensation expense | $4,063 | $3,145 |
Costs of product sales [Member] | ||
Recognized share-based compensation expense [Abstract] | ||
Total stock-based compensation expense | 695 | 537 |
Research and development [Member] | ||
Recognized share-based compensation expense [Abstract] | ||
Total stock-based compensation expense | 514 | 507 |
Selling, general and administrative [Member] | ||
Recognized share-based compensation expense [Abstract] | ||
Total stock-based compensation expense | $2,854 | $2,101 |
STOCKHOLDERS_EQUITY_AND_SHAREB5
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE Performance-Based Awards Narrative (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $16.40 |
Performance-Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period for recognition | 3 years |
Average grant date fair value | $8.24 |
Outstanding | 931,600 |
PRSU's expected to vest | 823,600 |
Unrecognized share-based compensation expense | $2.70 |
Performance-Based Awards [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Performance-Based Awards [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
2015 Program [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 12 months |
Period for recognition | 3 years |
Average grant date fair value | $11.88 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 243,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials | $10,839 | $11,461 |
Work-in-process | 19,382 | 18,147 |
Finished goods | 25,289 | 27,024 |
Total | 55,510 | 56,632 |
Short-term portion | 50,701 | 50,676 |
Long-term portion | $4,809 | $5,956 |
INVENTORIES_Fair_Value_StepUp_
INVENTORIES, Fair Value Step-Up in Basis (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Amortization of inventory step-up in fair value | $0 | $2,896 |
WARRANTIES_Details
WARRANTIES (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Changes in Entity's Product Warranty Liability [Abstract] | |
Product warranty, beginning balance | $912 |
Additions charged to cost of product sales | 281 |
Repairs and replacements | -335 |
Product warranty, ending balance | $858 |
LONGTERM_DEBT_OBLIGATIONS_LONG
LONG-TERM DEBT OBLIGATIONS LONG-TERM DEBT OBLIGATIONS, Schedule of Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total debt | $126,950 | $127,950 |
Less: current portion of long-term debt | 4,000 | 4,000 |
Total long-term debt | 122,950 | 123,950 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 21,950 | 22,950 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $105,000 | $105,000 |
LONGTERM_DEBT_OBLIGATIONS_Term
LONG-TERM DEBT OBLIGATIONS, Term Loan and Revolving Credit Facility Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | ||
Jun. 25, 2012 | Mar. 31, 2015 | Oct. 17, 2013 | Oct. 31, 2013 | Dec. 31, 2014 | Jul. 28, 2014 | |
Debt Instrument [Line Items] | ||||||
Current portion of long-term debt | $4,000,000 | $4,000,000 | ||||
Interest rate at period end | 3.04% | |||||
Uncommitted incremental term loan facility capacity | 50,000,000 | |||||
Debt-related covenants | As of March 31, 2015, the Company was in compliance with the covenants. | |||||
Debt issuance cost related to term loan | 4,500,000 | |||||
Amortization period For debt issuance cost term loan | 5 years | |||||
Outstanding principal balance of term loan as of balance sheet date | 22,000,000 | |||||
Interest expense incurred | 300,000 | |||||
Outstanding balance under revolving credit facility | 0 | |||||
4.00% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |||||
Base Rate [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Base Rate [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Sum of LIBOR interest period advance determination | 1 month | |||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Sum of LIBOR interest period advance determination | 2 months | |||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Sum of LIBOR interest period advance determination | 3 months | |||||
London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Sum of LIBOR interest period advance determination | 6 months | |||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Term Loan and Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 100,000,000 | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Face amount | 85,000,000 | |||||
Debt outstanding | 38,000,000 | |||||
Debt issuance cost | 2,500,000 | |||||
Annual amortization year one | 10.00% | |||||
Amortization year two | 10.00% | |||||
Amortization year three | 10.00% | |||||
Amortization year four | 10.00% | |||||
Amortization year five and after | 60.00% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt term | 5 years | |||||
Face amount | 10,000,000 | |||||
Original revolving credit facility | 15,000,000 | |||||
Debt outstanding | 10,000,000 | |||||
Refinanced Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | 38,000,000 | |||||
Debt issuance cost | 800,000 | |||||
Senior Secured Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Minimum prepayment percentage of excess cash flow | 50.00% | |||||
Minimum prepayment percentage of net cash proceeds of issuances or incurrences of debt obligations | 100.00% | |||||
Minimum prepayment percentage of net proceeds of asset sales over threshold amount | 100.00% | |||||
Net proceeds of asset sales threshold to trigger prepayment | $2,500,000 | |||||
Senior Secured Credit Facility [Member] | Interest Period Option 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt used to determine interest rate | 9 years | |||||
Senior Secured Credit Facility [Member] | Interest Period Option 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term of debt used to determine interest rate | 12 years | |||||
Senior Secured Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days in a year used to calculate rate | 365 days | |||||
Interest coverage ratio | 3.5 | |||||
Senior leverage ratio | 1.2 | |||||
Senior Secured Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days in a year used to calculate rate | 366 days | |||||
Senior leverage ratio | 1.75 | |||||
Senior Secured Credit Facility [Member] | Federal Funds Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Senior Secured Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Number of days in a year used to calculate rate | 360 days | |||||
Sum of LIBOR interest period | 1 month |
LONGTERM_DEBT_OBLIGATIONS_Term1
LONG-TERM DEBT OBLIGATIONS, Term Loan Maturities (Details) (Secured Debt [Member], USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
2015, remainder thereof | $0 |
2016 | 0 |
2017 | 0 |
2018 | 21,950 |
Total debt | $21,950 |
LONGTERM_DEBT_OBLIGATIONS_Conv
LONG-TERM DEBT OBLIGATIONS, Convertible Senior Notes (Details) (4.00% Convertible Senior Notes, USD $) | 0 Months Ended | 3 Months Ended | |
Jul. 25, 2012 | Jun. 25, 2012 | Mar. 31, 2015 | |
4.00% Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $105,000,000 | $105,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||
Debt issuance costs | 3,900,000 | ||
Net proceeds from issuance of 4.00% convertible senior notes | 101,100,000 | ||
Amortization period for debt issuance cost related to convertible notes | 7 years | ||
Debt Instrument, Convertible, Shares per $1,000 principal amount of 4.00% Convertible Senior Notes | 170.0319 | ||
Aggregate principal amount of senior convertible notes repurchased | 1,000 | ||
Maximum number of shares upon conversion of the 4.00% Notes | 17,857,143 | ||
Debt Instrument, Convertible, Conversion Price | $5.88 | ||
Percentage of common stock above conversion price (in hundredths) | 130.00% | ||
Number of consecutive trading days within measurement period | 20 days | ||
Number of consecutive trading days on which trading price is examined for triggering of conversion | 30 days | ||
Number of trading days to trigger measurement period within date company provides notice of redemption | 5 days | ||
Percentage of Principal Amount That The Redemption Price Will Be Equal To | 100.00% | ||
Debt Instrument, 4.00% Convertible, Interest Expense | $1,200,000 |
NET_INCOME_LOSS_PER_COMMON_SHA2
NET INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) | $4,386 | ($10,474) |
Shares used in computing basic net income (loss) per common share | 75,408 | 72,498 |
Employee stock options | 1,639 | 0 |
Employee stock purchase plan | 71 | 0 |
Restricted stock and restricted stock units | 1,636 | 0 |
Shares used in computing diluted net income (loss) per common share | 78,754 | 72,498 |
Basic net income (loss) per common share | $0.06 | ($0.14) |
Diluted net income (loss) per common share | $0.06 | ($0.14) |
NET_INCOME_LOSS_PER_COMMON_SHA3
NET INCOME (LOSS) PER COMMON SHARE, Schedule of Potentially Antidilutive Securities (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 21,525 | 27,517 |
Employee stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 2,309 | 5,068 |
Employee stock purchase plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 0 | 173 |
Restricted stock and restricted stock units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 1,359 | 4,419 |
Convertible notes [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 17,857 | 17,857 |
LEGAL_PROCEEDINGS_LEGAL_PROCEE
LEGAL PROCEEDINGS LEGAL PROCEEDINGS (Details) (Settled Litigation [Member], Southern District of New York [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Settled Litigation [Member] | Southern District of New York [Member] | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount | $5.10 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Income tax expense (benefit) | $743,000 | $272,000 |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 0 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $1,700,000 |
SEGMENT_INFORMATION_Revenue_an
SEGMENT INFORMATION, Revenue and Gross Profit (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Number of business units | 4 | |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | $88,717 | $82,971 |
Gross Profit: | 54,838 | 46,555 |
Operating Segments [Member] | Affymetrix Core [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 64,445 | 59,447 |
Gross Profit: | 40,627 | 35,004 |
Operating Segments [Member] | eBioscience [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue: | 24,272 | 23,524 |
Gross Profit: | $14,211 | $11,551 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Minimum royalty fee from related party | $100,000 |