Affymetrix, Inc. (NASDAQ:AFFX)

Affy's technologies have the largest market share and are improving all the time. The company should continue to improve for at least the next few years.

outcome of pending patent litigation with ILMN

I work on microarray data in my lab. There's no question that there is a market for Affy and that they are making the right moves to get into mainstream health-care practice.

Affymetrix, Inc. is engaged in the development, manufacturing, sale and service of consumables and systems for genetic analysis in the life sciences and clinical healthcare. The company's integrated Gene Chip micro array platform includes disposable deoxyribonucleic acid (DNA) probe arrays (chips); certain reagents for use with the probe arrays; a scanner and other instruments used to process the probe arrays; and software to analyze and manage genomic or genetic information obtained from the probe arrays.

The company’s product caters to various sectors ranging from pharmaceutical companies to consumer product companies, as well as academic research centers, in North America and Europe.

In the last one year Affymetrix’s dominance in microarray market has been challenged by Illumina. Endorsing the same, the company recorded a negative topline growth of 6% for fiscal 2006. While Affymetrix was occupied with data quality issues, Illumina made rapid strides with its simpler and more robust products and dislodged the company from its leadership position in the SNP genotyping market. Though, it derives bulk of its revenues from gene expression, SNP genotyping still remains a major growth driver for the Affymetrix, as the market for the same is increasing at a very rapid pace.

Moreover, as a result of intense competition the company is losing its pricing power, which has lead to erosion of margins and loss of significant market share in the fast expanding segments. Adding to it all, Affymetrix is facing some tough operating environment, history of missing guidance and a seemingly overpriced valuation, making the company’s stock a likely under performer.

While the competition is heating up and might eat into margins, their position within the market has stopped it's slide and is now gaining ground.
We are now in the next generation of AFFX chips and selling has begun to pick up.

Current apps have established value. Silicon and s/w learning curve will accelerate wider use and spur wider apps. Expect to see the tools in use in thousands of Dr's offices in 5 years and virtually every office and lab in 10 years. ASFFX,ILMN and CRGN will all outperform over next few yrs. I own all as winner not yet clear.

DNA microarray market leader. Currently in a slump, but not for long!

With its pipeline of genomics tools running near an end, and a severe downturn following its recent chipsets and tools, management has really stumbled big time. If they don't shore up their new product pipeline in the next 6 - 12 months, look out below.

There's a better technology

key player as drug development partner

large cap company, oversold, with connections to a high growth sector

Genes on a chip leader with nonsense lawsuits pending.

Hopefully it has bottomed out now, or will pretty soon; depends on whether there is any more bad news.

huge upside $100+

highly speculative, low quality of earnings

Overvalued and is in trouble with the NASDAQ. Short it.

I've never liked Affymetrix. In the late 90's they had the opportunity to become a real RuleBreaker stock, but management squandered the opportunity. While they were polishing turds, the scientific community as a whole surpassed them and their technology. I say they continue to crash and burn.