Pacific Biosciences of California, Inc. Announces Third Quarter 2015 Financial Results
October 22 2015 - 4:00PM
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:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com
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