July 24, 2014

Pacific Biosciences Reports Second Quarter 2014 Financial Results

MENLO PARK, Calif., July 24, 2014 (GLOBE NEWSWIRE) — Pacific Biosciences of California, Inc. (Nasdaq:PACB) today reported an 89% increase in revenue to $11.4 million for the second quarter, compared to $6.0 million for the second quarter of 2013.

Second quarter 2014 revenue reflects the delivery of eight PacBio® RS II systems, compared to three systems during the second quarter of 2013. Total revenue for the second quarter of 2014 also included $1.7 million of contractual revenue. The Company booked five PacBio RS II instrument orders during the period and ended the quarter with 10 instruments in backlog.

Gross profit for the quarter increased 195% to $3.1 million, resulting in a gross margin of 27.4%, compared to gross profit of $1.1 million and a gross margin of 17.5% for the second quarter of 2013.

Operating expenses totaled $21.4 million for the quarter, compared to $21.1 million for the second quarter of 2013. Operating expenses for the second quarters of 2014 and 2013 included non-cash stock-based compensation of $2.1 million and $2.3 million, respectively.

The net loss for the quarter was $19.1 million, compared to $20.5 million for the second quarter of 2013.

Cash and investments at June 30, 2014 totaled $105.0 million, compared to $112.5 million at December 31, 2013.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its second quarter 2014 results today at 4:30 p.m. Eastern Time. Investors may listen to the call by dialing 1.888.366.7247, or if outside the U.S., by dialing +1.707.287.9330. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at http://investor.pacificbiosciences.com/.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (Nasdaq:PACB) offers the PacBio® RS II Sequencing System to help scientists solve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) Sequencing technology, the company’s products enable: targeted sequencing to more comprehensively characterize genetic variations; de novo genome assembly to more fully identify, annotate and decipher genomic structures; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. By providing access to information that was previously inaccessible, Pacific Biosciences enables scientists to increase their understanding of biological systems.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to them. The Company’s actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us and described in the Company’s most recently filed Quarterly Report on Form 10-Q, Annual Report on Form 10-K, or the Company’s other filings with the SEC, as the case may be. You should not place undue reliance on forward-looking statements, which apply only as of the date of this press release. The Company assumes no obligation to update these forward-looking statements.

 

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Statement of Operations 

 (amounts in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Three-month Periods Ended June 30,

Six-month Periods Ended June 30,

 

2014

2013

2014

2013

Revenue:

 

 

 

 

Product revenue 

 $ 7,749

 $ 4,601

 $ 15,614

 $ 8,434

Service and other revenue 

1,980

1,447

4,061

3,192

Contractual revenue 

1,696

 —

3,392

 —

Total revenue 

11,425

6,048

23,067

11,626

Cost of Revenue:

 

 

 

 

Cost of product revenue 

6,271

3,322

13,440

6,522

Cost of service and other revenue 

2,028

1,667

3,825

3,115

Total cost of revenue 

8,299

4,989

17,265

9,637

Gross profit 

3,126

1,059

5,802

1,989

Operating Expense:

 

 

 

 

Research and development 

12,435

11,682

24,206

23,665

Sales, general and administrative 

8,993

9,374

18,143

18,928

Total operating expense 

21,428

21,056

42,349

42,593

Operating loss 

(18,302)

(19,997)

(36,547)

(40,604)

Interest expense 

(701)

(673)

(1,387)

(1,098)

Other income (expense), net 

(133)

199

(88)

127

Net loss 

 $ (19,136)

 $ (20,471)

 $ (38,022)

 $ (41,575)

Basic and diluted net loss per share 

 $ (0.27)

 $ (0.33)

 $ (0.55)

 $ (0.70)

Shares used in computing basic and diluted net loss per share 

70,515

61,922

69,195

59,660

 

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

 (amounts in thousands)

 

 

 

 

 

 

 

 

 

June 30,

March 31,

December 31,

 

2014

2014

2013

Assets

 

 

 

Cash and investments

 $ 105,034

 $ 118,736

 $ 112,528

Accounts receivable

4,255

3,383

2,746

Inventory

9,440

8,301

10,050

Prepaid and other current assets 

1,169

1,642

1,135

Property and equipment

7,861

8,492

9,236

Other long-term Assets

482

486

490

Total Assets

 $ 128,241

 $ 141,040

 $ 136,185

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Accounts payable

 $ 5,379

 $ 3,926

 $ 1,717

Accrued expenses 

9,225

6,625

8,766

Deferred service revenue

6,146

4,822

4,564

Deferred contractual revenue

29,912

31,608

33,304

Other liabilities

4,151

4,460

4,758

Financing derivative

699

549

549

Notes payable

13,714

13,525

13,347

Stockholders’ equity

59,015

75,525

69,180

Total Liabilities and Stockholders’ Equity

 $ 128,241

 $ 141,040

 $ 136,185

CONTACT: Trevin Rard

         650.521.8450

         ir@pacificbiosciences.com

Source: Pacific Biosciences of California, Inc.

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