Pacific Biosciences of California Announces Third Quarter 2017 Financial Results

MENLO PARK, Calif., Nov. 02, 2017 (GLOBE NEWSWIRE) -- Pacific Biosciences (NASDAQ:PACB) today announced financial results for its third quarter ended September 30, 2017.

Product, service and other revenue for the third quarter of 2017 increased by 9% to $23.5 million, compared to $21.5 million for the third quarter of 2016. Total revenue for the third quarter of 2017 was $23.5 million, compared to $25.1 million for the third quarter of 2016. Total revenue for the third quarter of 2016 included $3.6 million of contractual revenue, whereas the third quarter of 2017 included no contractual revenue. 

Gross profit for the third quarter of 2017 was $8.2 million, resulting in a gross margin of 35%. Gross profit for the third quarter of 2016 was $12.6 million, resulting in a gross margin of 50%. This included $3.6 million of contractual revenue at a 100% gross margin. Excluding this contractual revenue and related margin, adjusted gross margin for the third quarter of 2016 would have been 42%. Adjusted gross margin is not meant to be considered in isolation or as a substitute for gross margin. Adjusted gross margin is subject to limitations and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP.

Operating expenses for the third quarter of 2017 totaled $29.8 million, compared to $29.4 million for the third quarter of 2016. Operating expenses for the third quarter of 2017 and 2016 included non-cash stock-based compensation of $4.4 million and $4.6 million, respectively.

Net loss for the third quarter of 2017 was $22.0 million, compared to $17.5 million for the third quarter of 2016.

Cash, cash equivalents and investments, excluding restricted cash, at September 30, 2017 totaled $84.0 million, compared to $72.0 million at December 31, 2016.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its third quarter 2017 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, using an Audience Passcode of 329-7738. 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 sequencing systems to help scientists resolve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) Technology, Pacific Biosciences’ products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms in important gene families, and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and real-time kinetic information for epigenome characterization. Pacific Biosciences’ technology provides high accuracy, ultra-long reads, uniform coverage, and the ability to simultaneously detect epigenetic changes. PacBio® sequencing systems, including consumables and software, provide a simple, fast, end-to-end workflow for SMRT Sequencing.  More information is available at www.pacb.com

Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to the timeline for Pacific Biosciences’ potential development of products, future uses, quality or performance of, or benefits of using, products or technologies and other future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in circumstances and other factors that are, in some cases, beyond Pacific Biosciences’ control and could cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Factors that could materially affect actual results can be found in Pacific Biosciences’ most recent filings with the Securities and Exchange Commission, including Pacific Biosciences’ most recent reports on Forms 8-K, 10-K and 10-Q, and include those listed under the caption “Risk Factors.” Pacific Biosciences undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future, even if new information becomes available.

Contact:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com

                       
 
 Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
 (amounts in thousands, except per share amounts) 
 
                       
  Three Months Ended September 30,   Nine Months Ended September 30,
  2017     2016     2017     2016  
Revenue:                      
Product revenue $  20,343     $  18,050     $  58,185     $  44,016  
Service and other revenue    3,202        3,472        10,348        10,188  
Contractual revenue    —        3,596        —        10,788  
Total revenue    23,545        25,118        68,533        64,992  
Cost of Revenue:                      
Cost of product revenue    11,547        9,273        31,064        23,268  
Cost of service and other revenue    3,771        3,207        12,304        8,938  
Total cost of revenue    15,318        12,480        43,368        32,206  
Gross profit    8,227        12,638        25,165        32,786  
Operating Expense:                      
Research and development    15,844        17,479        49,698        51,362  
Sales, general and administrative    13,952        11,894        44,722        34,794  
Total operating expense    29,796        29,373        94,420        86,156  
Operating loss    (21,569 )      (16,735 )      (69,255 )      (53,370 )
Interest expense    (633 )      (821 )      (2,297 )      (2,395 )
Other income (expense), net    181        62        125        420  
Net loss $  (22,021 )   $  (17,494 )   $  (71,427 )   $  (55,345 )
Basic and diluted net loss per share $  (0.19 )   $  (0.19 )   $  (0.70 )   $  (0.63 )
Shares used in computing basic and diluted net loss per share    115,771        92,110        102,117        87,969  

 

           
 Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
 (amounts in thousands)
           
  September 30,   December 31,
  2017   2016
Assets      
Cash and investments $  83,965   $  71,978
Accounts receivable    8,897      11,421
Inventory    18,201      15,634
Prepaid and other current assets    2,548      9,978
Property and equipment    39,605      14,560
Long-term restricted cash    4,500      4,500
Other long-term Assets    188      9,813
Total Assets $  157,904   $  137,884
           
Liabilities and Stockholders' Equity          
Accounts payable $  8,574   $  8,359
Accrued expenses    11,232      16,604
Deferred service revenue    7,225      8,427
Deferred rent    14,504      19
Other liabilities    1,428      3,345
Financing derivative    170      356
Notes payable    13,363      16,106
Stockholders' equity    101,408      84,668
Total Liabilities and Stockholders' Equity $  157,904   $  137,884

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