EX-99.1 2 pacb-20151022ex991fbc355.htm EX-99.1 Q3FY2015 PR 8-K Furnished Exhibit 99.1

Exhibit 99.1

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

Menlo Park, Calif. – October 22, 2015 – 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.

 

 

Contact:

Trevin Rard

650.521.8450

ir@pacificbiosciences.com

 

 

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