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Pacific Biosciences of California, Inc. Announces Second Quarter 2013 Financial Results

MENLO PARK, Calif., Aug. 1, 2013 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (Nasdaq:PACB) today announced financial results for the second quarter ended June 30, 2013.

Revenue for the second quarter of 2013 totaled $6.0 million, compared to $5.6 million for the first quarter of 2013. Revenue reflected the installation of three PacBio RS II systems, compared to three systems in the first quarter of 2013, SMRT® Cell and reagent consumables and instrument service contracts. Net loss for the quarter was $20.5 million, compared to $21.1 million during the first quarter of 2013.

Gross profit for the second quarter of 2013 was $1.1 million, resulting in a gross margin of 18%, compared to gross profit of $0.9 million and a resulting gross margin of 17% for the first quarter of 2013.

Operating expenses totaled $21.1 million for the second quarter of 2013, compared to $21.5 million for the first quarter of 2013. Operating expenses in the second quarter of 2013 included $2.3 million of non-cash stock-based compensation compared to $2.6 million in non-cash stock-based compensation in the first quarter of 2013.

Cash and investments at June 30, 2013 totaled $107.0 million compared to $112.3 million at March 31, 2013. The decrease in cash and investments during the period reflects cash use of $16.6 million partially offset by $11.3 million of cash received from the sale of stock.

The Company added seven PacBio RS II instrument bookings during the quarter and ended the quarter with 10 instruments in backlog.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its second quarter 2013 results today at 4:30pm Eastern Time / 1:30pm Pacific 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 relating to the Company's operations and operating results, including statements relating to the Company's backlog and future revenue implied by such backlog. 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 the Company's filings with the Securities and Exchange Commission, including the most recently filed Quarterly Report on Form 10-Q, and include those listed under the caption "Risk Factors." The Company expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations and Comprehensive Loss
(amounts in thousands, except per share amounts)
Quarters Ended
June 30, March 31, June 30,
2013 2013 2012
Revenue:
Product revenue $4,601 $3,833 $5,827
Service and other revenue 1,447 1,475 1,284
Grant revenue -- 270 180
Total revenue 6,048 5,578 7,291
Cost of revenue:
Cost of product revenue 3,322 3,200 5,382
Cost of service and other revenue 1,667 1,448 1,634
Total cost of revenue 4,989 4,648 7,016
Gross profit (loss) 1,059 930 275
Operating expense:
Research and development 11,682 11,983 11,272
Sales, general and administrative 9,374 9,554 11,558
Total operating expense 21,056 21,537 22,830
Operating loss (19,997) (20,607) (22,555)
Interest Expense (673) (426) (69)
Other income (expense), net 199 (71) 137
Net loss $(20,471) $(21,104) $(22,487)
Basic and diluted net loss per share $(0.33) $(0.37) $(0.40)
Shares used in computing basic and diluted net loss per share 61,922 57,372 55,658
Comprehensive loss $(20,484) $(21,123) $(22,547)
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations and Comprehensive Income
(amounts in thousands, except per share amounts)
Year to Date
June 30, June 30,
2013 2012
Revenue:
Product revenue $8,434 $14,542
Service and other revenue 2,922 2,337
Grant revenue 270 450
Total revenue 11,626 17,329
Cost of revenue:
Cost of product revenue 6,522 13,989
Cost of service and other revenue 3,115 3,217
Total cost of revenue 9,637 17,206
Gross profit 1,989 123
Operating expense:
Research and development 23,665 23,345
Sales, general and administrative 18,928 26,843
Total operating expense 42,593 50,188
Operating loss (40,604) (50,065)
Interest expense (1,098) (139)
Other income (expense), net 127 137
Net loss $(41,575) $(50,067)
Basic and diluted net loss per share $(0.70) $(0.90)
Shares used in computing basic and diluted net loss per share 59,660 55,433
Comprehensive loss $(41,607) $(50,049)
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
June 30, March 31, December 31,
2013 2013 2012 (1)
Assets (unaudited) (unaudited)
Cash and investments $106,968 $112,305 $100,580
Accounts receivable 4,104 2,009 2,822
Inventory 10,283 10,597 9,592
Prepaid and other current assets 759 1,570 2,006
Total current assets 122,114 126,481 115,000
Property and equipment 11,655 12,779 14,329
Other assets 508 514 354
Total Assets $134,277 $139,774 $129,683
Liabilities and Stockholders' Equity
Accounts payable $2,605 $3,011 $2,988
Deferred revenue 3,347 2,961 3,378
Accrued and other current liabilities 9,141 7,607 8,377
Total current liabilities 15,093 13,579 14,743
Facility financing and other non-current liabilities 4,885 5,254 5,558
Financing derivative 894 999 --
Notes Payable 13,007 12,851 --
Stockholders' equity 100,398 107,091 109,382
Total Liabilities and Stockholders' Equity $134,277 $139,774 $129,683
Note 1: The condensed consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements at that date included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

CONTACT: Trevin Rard 650.521.8450 ir@pacificbiosciences.comSource:Pacific Biosciences of California, Inc.