10-22-13 4:00 PM EDT | Email Article

MENLO PARK, Calif., Oct. 22, 2013 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (Nasdaq:PACB) today announced financial results for the third quarter ended September 30, 2013.

Total revenue for the third quarter of 2013 totaled $7.4 million, compared to $6.0 million for the second quarter of 2013. Third quarter revenue reflects the installation of six PacBio RS II systems, compared to three systems in the second quarter of 2013. The Company added five PacBio RS II instrument bookings during the third quarter and ended the quarter with nine instruments in backlog.

Gross profit for the third quarter of 2013 was $1.2 million, resulting in a gross margin of 17%, compared to gross profit of $1.1 million and a gross margin of 18% for the second quarter of 2013.

Operating expenses totaled $21.2 million for the third quarter of 2013, compared to $21.1 million for the second quarter of 2013. Operating expenses included $2.0 million of advisory and professional fees incurred in connection with the Company's Development, Commercialization and License Agreement with Roche Diagnostics announced on September 25, 2013. Operating expenses for the third quarter of 2013 also included $2.2 million of non-cash stock-based compensation compared to $2.4 million of non-cash stock-based compensation in the second quarter of 2013.

The net loss for the quarter was $20.5 million, the same as the net loss for the second quarter of 2013.

Cash and investments at September 30, 2013 totaled $126.9 million compared to $107.0 million at June 30, 2013. The increase in cash and investments reported for the third quarter reflects an up-front, non-refundable $35.0 million payment received from Roche Diagnostics. Excluding the proceeds received from Roche Diagnostics, net cash and investments used during the period reflects cash used of $15.1 million.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its third 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 
 (amounts in thousands, except per share amounts)
       
 Quarters Ended 
 September 30,
2013
June 30,
2013
September 30,
2012
Revenue:      
Product revenue   $ 5,814  $ 4,601  $ 1,268
Service and other revenue  1,607 1,447 1,283
Grant revenue   —  — 225
Total revenue  7,421 6,048 2,776
Cost of revenue:      
Cost of product revenue  4,616 3,322 960
Cost of service and other revenue  1,564 1,667 1,626
Total cost of revenue  6,180 4,989 2,586
Gross profit  1,241 1,059 190
Operating expense:      
Research and development  10,419 11,682 12,626
Sales, general and administrative  10,757 9,374 10,143
Total operating expense  21,176 21,056 22,769
Operating loss  (19,935) (19,997) (22,579)
Interest expense  (686) (673) (68)
Other income (expense), net  134 199 (82)
Net loss   $ (20,487)  $ (20,471)  $ (22,729)
Basic and diluted net loss per share  $ (0.31)  $ (0.33)  $ (0.41)
Shares used in computing basic and diluted net loss per share  65,523 61,922 55,877
 
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
 (amounts in thousands, except per share amounts)
     
 Year to Date
 September 30,
2013
September 30,
2012
Revenue:    
Product revenue   $ 14,248  $ 15,810
Service and other revenue  4,528 3,620
Grant revenue  272 675
Total revenue  19,048 20,105
Cost of Revenue:    
Cost of product revenue  11,138 14,949
Cost of service and other revenue  4,680 4,843
Total cost of revenue  15,818 19,792
Gross profit  3,230 313
Operating Expense:    
Research and development  34,084 35,971
Sales, general and administrative  29,685 36,986
Total operating expense  63,769 72,957
Operating loss  (60,539) (72,644)
Interest expense  (1,785) (207)
Other income (expense), net  262 55
Net loss   $ (62,062)  $ (72,796)
Basic and diluted net loss per share   $ (1.01)  $ (1.31)
Shares used in computing basic and diluted net loss per share  61,636 55,582
 
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
 (amounts in thousands)
       
 September 30,
2013
June 30,
2013
December 31,
2012
Assets      
Cash and investments  $ 126,936  $ 106,968  $ 100,580
Accounts receivable 3,814 4,104 2,822
Inventory 9,819 10,283 9,592
Prepaid and other current assets  1,194 759 2,006
Property and equipment 10,544 11,655 14,329
Other long-term Assets 493 508 354
Total Assets  $ 152,800  $ 134,277  $ 129,683
       
Liabilities and Stockholders' Equity      
Accounts payable  $ 3,413  $ 2,605  $ 2,988
Accrued and other current liabilities 8,707 9,141 8,377
Deferred revenue 4,234 4,081 4,178
Deferred development revenue 35,000  —  —
Facility financing and other non-current liabilities 3,836 4,151 4,758
Financing Derivative 894 894  —
Notes Payable 13,173 13,007  —
Stockholders' equity 83,543 100,398 109,382
Total Liabilities and Stockholders' Equity  $ 152,800  $ 134,277  $ 129,683
CONTACT: Trevin Rard
         650.521.8450
         ir@pacificbiosciences.com
GlobeNewswire, Inc. 2013
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