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

MENLO PARK, Calif., Oct. 22, 2015 (GLOBE NEWSWIRE) — Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its third quarter ended September 30, 2015.

Revenue for the third quarter of 2015 totaled $13.9 million, compared to $20.6 million for the third quarter of 2014. Third quarter 2015 revenue includes product and service revenue of $10.3 million and $3.6 million of contractual revenue, while third quarter 2014 revenue includes product and service revenue of $8.9 million and $11.7 million of contractual revenue. Third quarter 2015 contractual revenue reflects $3.6 million of quarterly amortization of the upfront Roche payment while third quarter 2014 contractual revenue includes $10.0 million of milestone revenue and $1.7 million of quarterly amortization of the upfront Roche payment.

Gross profit for the third quarter of 2015 was $6.6 million, resulting in a gross margin of 47.1%, compared to gross profit of $13.2 million and a gross margin of 63.8% for the third quarter of 2014.

Operating expenses totaled $3.9 million for the third quarter of 2015, which consisted of aggregate expenses of $26.9 million offset by a one-time gain on lease amendments of $23.0 million, compared to the operating expenses of $21.6 million for the third quarter of 2014. Operating expenses for the third quarters of 2015 and 2014 included non-cash stock-based compensation of $2.9 million and $2.2 million, respectively.

Net income for the third quarter of 2015 was $1.8 million primarily driven by the one-time gain on lease amendments of $23.0 milion, compared to a net loss of $9.2 million for the third quarter of 2014. Net income per share for both basic and diluted for the third quarter of 2015 was $0.02 per share as compared to net loss per share for the third quarter of 2014 of $0.13 per share.

Cash and investments at September 30, 2015 totaled $58.9 million, compared to $101.3 million at December 31, 2014. 

Quarterly Conference Call Information 

Management will host a quarterly conference call to discuss its third 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. The Sequel 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 payments from our landlord in return for our agreement to amend our current leases, 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   Nine-month Periods Ended
  September 30,   September 30,
  2015   2014   2015   2014
Revenue:                      
Product revenue $    7,570     $    6,762     $    27,703     $    22,376  
Service and other revenue      2,751          2,165          8,010          6,226  
Contractual revenue      3,596          11,696          20,788          15,088  
Total revenue      13,917          20,623          56,501          43,690  
Cost of Revenue:                      
Cost of product revenue      5,119          5,608          23,289          19,048  
Cost of service and other revenue      2,247          1,853          6,228          5,678  
Total cost of revenue      7,366          7,461          29,517          24,726  
Gross profit      6,551          13,162          26,984          18,964  
Operating Expense:                      
Research and development      16,162          11,693          45,688          35,899  
Sales, general and administrative      10,818          9,882          32,411          28,025  
Gain on lease amendments      (23,043 )      —        (23,043 )      —
Total operating expense      3,937          21,575          55,056          63,924  
Operating income (loss)      2,614          (8,413 )        (28,072 )        (44,960 )
Interest expense      (741 )        (716 )        (2,153 )        (2,103 )
Other expense, net      (52 )        (34 )        (62 )        (122 )
Net income (loss) $    1,821     $    (9,163 )   $    (30,287 )   $    (47,185 )
                       
Net income (loss) per share:                      
Basic $    0.02     $    (0.13 )   $    (0.41 )   $    (0.68 )
Diluted $    0.02     $    (0.13 )   $    (0.41 )   $    (0.68 )
                       
Weighted average shares outstanding used in calculating net income (loss) per share                      
Basic      75,205          70,740          74,699          69,716  
Diluted      80,176          70,740          74,699          69,716  

Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
           
  September 30,   December 31,
  2015   2014
Assets      
Cash and investments $  58,909   $  101,348
Accounts receivable    4,164      3,406
Inventory    11,621      11,335
Prepaid and other current assets    11,513      1,671
Property and equipment    7,855      6,601
Other long-term Assets    5,715      162
Total Assets $  99,777   $  124,523
           
Liabilities and Stockholders’ Equity          
Accounts payable $  6,097   $  5,608
Accrued expenses    11,342      11,441
Deferred service revenue    7,553      7,250
Deferred contractual revenue    15,732      26,520
Other liabilities    1,950      3,687
Financing derivative    925      944
Notes payable    14,808      14,124
Stockholders’ equity    41,370      54,949
Total Liabilities and Stockholders’ Equity $  99,777   $  124,523
           

 

CONTACT: Contact: 
Trevin Rard 
650.521.8450
ir@pacificbiosciences.com

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