Pacific Biosciences of California, Inc. Announces First Quarter 2012 Financial Results

MENLO PARK, Calif., May 1, 2012 (GLOBE NEWSWIRE) — Pacific Biosciences of California, Inc. (Nasdaq:PACB) today announced financial results for the first quarter ended March 31, 2012.

During the first quarter of 2012, the Company recognized revenue from installations of its PacBio RS systems, SMRT^® cell and reagent consumables, instrument service contracts and grants. Revenue totaled $10.0 million for the quarter, compared to revenue recognized of $12.4 million for the fourth quarter of 2011. Net loss for the quarter was $27.6 million compared to the $22.8 million net loss recognized during the fourth quarter of 2011.

Gross loss for the first quarter totaled $0.2 million, resulting in a negative margin of 2%, compared to gross profit for the fourth quarter of 2011 of $1.5 million and a positive gross margin of 12%.

Operating expenses comprised of research and development and selling, general and administrative expenses for the first quarter of 2012 totaled $27.4 million, representing a 13% increase compared to $24.2 million for the fourth quarter of 2011. The first quarter operating expenses include $2.0 million of non-cash stock-based compensation with $1.1 million and $0.9 million recorded in research and development and selling, general and administrative expenses, respectively.

Research and development expense during the first quarter of 2012 totaled $12.1 million, representing a 3% decrease compared to $12.4 million for the fourth quarter of 2011. Selling, general and administrative expense during the first quarter of 2012 totaled $15.3 million, representing a 29% increase compared to $11.8 million for the fourth quarter of 2011. The $3.5 million increase in quarterly SG&A expense includes a $2.6 million increase in legal expense, of which $1.8 million relates to the settlement of two intellectual property matters.

Cash and investments at March 31, 2012 totaled $161.3 million compared to $177.4 million at December 31, 2011.

The Company’s system revenue backlog totaled approximately $4.7 million as of March 31, 2012, which represents orders for seven PacBio RS instruments received as of that date. The backlog of seven instruments reflects the 16 instruments in backlog as of December 31, 2011, 11 installations and two additions during the first quarter.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its First Quarter 2012  results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to the call by dialing 866.783.2137, or if outside the U.S., by dialing +1.857.350.1596, and entering passcode 916.273.13. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at http://investor.pacificbiosciences.com/.

Forward-Looking Statements

This press release contains forward-looking statements relating to the Company’s operations and operating results, including statements relating to the Company’s revenue. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control and that could materially affect actual results. Factors that could materially affect actual results can be found in Pacific Biosciences of California’s filings with the Securities and Exchange Commission, including the most recently filed Annual Report on Form 10-K, including those listed under the caption “Risk Factors.” Pacific Biosciences of California expressly disclaims any intent or obligation
to update these forward-looking statements, except as required by law.

CONTACT: Trevin Rard

         650.521.8450

         ir@pacificbiosciences.com

Source: Pacific Biosciences of California, Inc.

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