×

Pacific Biosciences of California, Inc. Announces Second Quarter 2015 Financial Results

MENLO PARK, Calif., Aug. 5, 2015 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today reported a 118% increase in revenue with $24.9 million for the second quarter ended June 30, 2015, compared to $11.4 million for the second quarter of 2014.

Second quarter 2015 revenue includes product and service revenue of $11.3 million and $13.6 million of contractual revenue, while second quarter 2014 revenue includes product and service revenue of $9.7 million and $1.7 million of contractual revenue. Second quarter 2015 contractual revenue includes $10 million of milestone revenue and also reflects a higher quarterly amortization of the upfront Roche payment.

Gross profit increased $11.4 million to $14.5 million for the quarter, resulting in a gross margin of 58.2%, compared to gross profit of $3.1 million and a gross margin of 27.4% for the second quarter of 2014. The growth in gross profit and margin was driven by the additional $11.9 million Roche revenue at 100% margin.

Operating expenses totaled $25.9 million for the quarter, compared to $21.4 million for the second quarter of 2014. Operating expenses for the second quarters of 2015 and 2014 included non-cash stock-based compensation of $3.0 million and $2.1 million, respectively.

The net loss for the quarter was $11.9 million, compared to $19.1 million for the second quarter of 2014.

Cash and investments at June 30, 2015 totaled $72.7 million, compared to $101.3 million at December 31, 2014.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its second quarter 2015 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 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 DNA base modification identification to help characterize epigenetic regulation and DNA damage. Pacific Biosciences' technology provides the industry's highest consensus accuracy over the longest read lengths in combination with the ability to detect real-time kinetic information. The PacBio RS II System, including consumables and software, provides 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 for Roche, future milestone achievement 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.

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,
2015 2014 2015 2014
Revenue:
Product revenue $8,825 $7,749 $20,133 $15,614
Service and other revenue 2,518 1,980 5,259 4,061
Contractual revenue 13,596 1,696 17,192 3,392
Total revenue 24,939 11,425 42,584 23,067
Cost of Revenue:
Cost of product revenue 8,438 6,271 18,170 13,440
Cost of service and other revenue 1,995 2,028 3,981 3,825
Total cost of revenue 10,433 8,299 22,151 17,265
Gross profit 14,506 3,126 20,433 5,802
Operating Expense:
Research and development 15,043 12,435 29,526 24,206
Sales, general and administrative 10,821 8,993 21,593 18,143
Total operating expense 25,864 21,428 51,119 42,349
Operating loss (11,358) (18,302) (30,686) (36,547)
Interest expense (715) (701) (1,412) (1,387)
Other income (expense), net 138 (133) (10) (88)
Net loss $(11,935) $(19,136) $(32,108) $(38,022)
Basic and diluted net loss per share $(0.16) $(0.27) $(0.43) $(0.55)
Shares used in computing basic and diluted net loss per share 74,733 70,515 74,442 69,195
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
June 30, December 31,
2015 2014
Assets
Cash and investments $72,674 $101,348
Accounts receivable 3,950 3,406
Inventory 11,978 11,335
Prepaid and other current assets 1,587 1,671
Property and equipment 6,428 6,601
Other long-term Assets 153 162
Total Assets $96,770 $124,523
Liabilities and Stockholders' Equity
Accounts payable $5,818 $5,608
Accrued expenses 11,316 11,441
Deferred service revenue 7,823 7,250
Deferred contractual revenue 19,328 26,520
Other liabilities 3,183 3,687
Financing derivative 899 944
Notes payable 14,567 14,124
Stockholders' equity 33,836 54,949
Total Liabilities and Stockholders' Equity $96,770 $124,523

CONTACT: Trevin Rard 650.521.8450 ir@pacificbiosciences.com

Source:Pacific Biosciences of California, Inc.