Affymetrix Inc., which makes genetic testing technology, said Wednesday it is cutting revenue guidance for the second quarter, citing delayed equipment purchases, budget cuts, and a weaker euro.
The company now expects to report revenue between $71 million and $72 million, down from prior guidance of $80 million to $82 million.
Analysts polled by Thomson Reuters expected second-quarter revenue of about $82.2 million.
Shares fell $1.30, or 23 percent, to $4.25 in premarket trading.
"When the Company previously issued guidance for the second quarter of 2010, we anticipated that growth in product sales would offset an expected decline in services revenue as compared to the second quarter of 2009," said President and CEO Kevin M. King, in a statement. "However, instrument adoption was slower than anticipated, principally due to reduced foreign academic research spending."
In Europe, he added, business was hurt by government cuts meant to address debt issues and weakening currency.