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Pacific Biosciences Announces Fourth Quarter 2015 Financial Results

MENLO PARK, Calif., Feb. 03, 2016 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its fourth quarter ended December 31, 2015.

Revenue for the fourth quarter of 2015 increased 115% to $36.3 million, compared to $16.9 million for the fourth quarter of 2014. Fourth quarter 2015 revenue includes product and service revenue of $12.7 million and $23.6 million of contractual revenue, while fourth quarter 2014 revenue includes product and service revenue of $15.2 million and $1.7 million of contractual revenue. Fourth quarter 2015 contractual revenue includes a $20.0 million milestone from Roche and $3.6 million of quarterly amortization of the upfront Roche payment, while fourth quarter 2014 contractual revenue reflects $1.7 million of quarterly amortization of the upfront Roche payment.

Gross profit increased $22.1 million to $26.5 million for the fourth quarter of 2015, resulting in a gross margin of 72.9%, compared to gross profit of $4.4 million and a gross margin of 26.3% for the fourth quarter of 2014. The growth in gross profit and margin was primarily driven by an additional $21.9 million of contractual revenue from Roche, which has a gross margin of 100%.

Operating expenses totaled $27.5 million for the fourth quarter of 2015, compared to $22.3 million for the fourth quarter of 2014. Operating expenses for the fourth quarters of 2015 and 2014 included non-cash stock-based compensation of $3.6 million and $2.7 million, respectively.

The net loss for the fourth quarter of 2015 was $1.4 million, compared to $19.0 million for the fourth quarter of 2014.

Cash, cash equivalents and investments, excluding restricted cash at December 31, 2015 totaled $82.3 million, compared to $101.3 million at December 31, 2014.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth 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 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 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. 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 for Roche, the attributes of the Sequel System 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
Twelve-month Periods Ended

December 31,
December 31,

2015
2014
2015
2014
Revenue:
Product revenue$ 9,799 $ 12,923 $ 37,502 $ 35,299
Service and other revenue 2,886 2,285 10,896 8,511
Contractual revenue 23,596 1,696 44,384 16,784
Total revenue 36,281 16,904 92,782 60,594
Cost of Revenue:
Cost of product revenue 7,415 10,578 30,704 29,626
Cost of service and other revenue 2,400 1,888 8,628 7,566
Total cost of revenue 9,815 12,466 39,332 37,192
Gross profit 26,466 4,438 53,450 23,402
Operating Expense:
Research and development 14,752 12,331 60,440 48,230
Sales, general and administrative 12,776 10,001 45,187 38,026
Gain on lease amendments (23,043)
Total operating expense 27,528 22,332 82,584 86,256
Operating loss (1,062) (17,894) (29,134) (62,854)
Interest expense (773) (725) (2,926) (2,828)
Other income (expense), net 426 (356) 364 (478)
Net loss$ (1,409) $ (18,975) $ (31,696) $ (66,160)
Basic and diluted net loss per share$ (0.02) $ (0.26) $ (0.42) $ (0.94)
Shares used in computing basic and diluted net loss per share 78,327 72,729 75,614 70,475

Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
December 31, December 31,
2015 2014
Assets
Cash and investments$ 82,270 $ 101,348
Accounts receivable 5,245 3,406
Inventory 10,955 11,335
Prepaid and other current assets 12,071 1,671
Property and equipment 8,548 6,601
Long-term restricted cash 4,500
Other long-term Assets 7,518 29
Total Assets$ 131,107 $ 124,390
Liabilities and Stockholders' Equity
Accounts payable$ 4,749 $ 5,608
Accrued expenses 15,551 11,441
Deferred service revenue 7,958 7,250
Deferred contractual revenue 12,134 26,520
Other liabilities 1,627 3,687
Financing derivative 600 944
Notes payable 14,948 13,991
Stockholders' equity 73,540 54,949
Total Liabilities and Stockholders' Equity $ 131,107 $ 124,390


Contact: Trevin Rard 650.521.8450 ir@pacificbiosciences.com

Source:Pacific Biosciences, Inc.