8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 3, 2021

Pacific Biosciences of California, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-34899	16-1590339
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1305 O’Brien Drive

Menlo Park, California 94025

(Address of principal executive offices) (Zip Code)

(650) 521-8000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	PACB	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.    Results of Operations and Financial Condition.

On August 3, 2021, Pacific Biosciences of California, Inc. (the “Company”) announced its financial results for its second fiscal quarter ended June 30, 2021. A copy of the press release containing the announcement is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

This information, as well as Exhibit 99.1, is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS.

(d)	Exhibits.
99.1	Press Release dated August 3, 2021, titled “Pacific Biosciences of California, Inc. Announces Second Quarter 2021 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

‎

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Pacific Biosciences of California, Inc.
	By:	/s/ Michele Farmer
		Michele Farmer
		Vice President and Chief Accounting Officer
Date: August 3, 2021

EX-99.1

Exhibit 99.1

Pacific Biosciences of California, Inc. Announces Second Quarter 2021 Financial Results

Menlo Park, Calif. – August 3, 2021 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for the quarter ended June 30, 2021.

Record second quarter revenue reflects continued quarter-over-quarter growth

Revenue for the second quarter of 2021 was $30.6 million, representing an 79% increase compared with $17.1 million for the second quarter of 2020. The Company placed 38 Sequel II/IIe systems during the second quarter of 2021 compared to 23 Sequel II systems placed in the second quarter of 2020 and 41 Sequel II/IIe systems placed during the first quarter of 2021, bringing the total installed base of Sequel II/IIe systems to 282 as of June 30, 2021, compared with 148 as of June 30, 2020 and 244 as of March 31, 2021. Instrument revenue for the second quarter of 2021 was $14.3 million, compared with $8.9 million for the second quarter of 2020.  Consumables revenue for the second quarter of 2021 was $12.2 million compared with $4.8 million for the second quarter of 2020.  Service and other revenue for the second quarter of 2021 was $4.1 million compared with $3.3 million for the second quarter of 2020.

Gross profit for the second quarter of 2021 was $13.8 million, representing a 108% increase compared with $6.6 million for the second quarter of 2020. Gross margin for the second quarter of 2021 was 45%, compared to 39% for the second quarter of 2020.

Operating expenses totaled $51.3 million for the second quarter of 2021, compared to $30.1 million for the second quarter of 2020. Operating expenses for the second quarter of 2021 and the second quarter of 2020 included non-cash stock-based compensation of $13.9 million and $2.8 million, respectively.

Net loss for the second quarter of 2021 was $41.0 million, compared to a net loss of $23.1 million for the second quarter of 2020.

Basic and diluted net loss for the second quarter of 2021 was $0.21 per share compared to basic and diluted net loss of $0.15 per share for the second quarter of 2020.

Cash, cash equivalents and investments, excluding short and long-term restricted cash, at June 30, 2021 totaled $1,144.4 million, compared to $318.8 million at December 31, 2020.

Updates since our last earnings release

· Signed definitive agreement to acquire Omniome, Inc. (Omniome), a San Diego-based company developing a highly differentiated, proprietary short-read sequencing platform capable of delivering high accuracy.

· Announced intent to expand collaboration with Invitae Corporation (Invitae) to include Omniome’s technology enabled by Sequencing by Binding (SBB) chemistry upon close of ourproposed acquisition.

· Entered into a  definitive agreement to raise $300 million in a private placement transaction from a premier syndicate of life sciences investors upon closing the Omniome acquisition.

· Acquired Circulomics Inc (Circulomics), a leader in high molecular weight DNA extraction to enable path toward an end-to-end automated workflow.

· Collaborated with Rady Children’s Institute for Genomic Medicine on a study aiming to identify potential disease-causing genetic variants and increase the solve rates of rare diseases using HiFi Sequencing.

· Strengthened our leadership team with the addition of Dr. Catherine Ball as Senior Vice President of Research, Neil Ward as Vice President and General Manager for Europe, Middle East, and Africa, Michele Farmer as Chief Accounting Officer, and Kathy Lynch as Head of Global Government Affairs and Corporate Communications.

“We delivered another record quarter in Q2, and since the second quarter of last year, we’ve nearly doubled our Sequel II installed base” said Christian Henry, President and Chief Executive Officer. “We’re making great progress in scaling our business with our agreement to acquire Omniome and the acquisition of Circulomics. These acquisitions will help us achieve our mission to enable the promise of genomics to better human health.”  

Impact of COVID-19 Pandemic

Financial results for the second quarter of 2020 were negatively impacted as multiple customers postponed system deliveries, and the financial results for much of 2020 were further impacted as several customers shut down or limited operations for various periods to help curb the spread of the COVID-19 pandemic. Instrument utilization largely returned to normal by the fourth quarter of 2020, and we subsequently have not seen significant issues with deliveries or operations at customer sites.  This resulted in higher product revenues of $26.5 million for the second quarter of 2021 compared to $13.8 million for the same period of 2020. Uncertainties associated with the pandemic, including recent resurgences in infection rates, may cause further impacts to our operations and financial results.

Quarterly Conference Call Information 

Management will host a quarterly conference call to discuss its second quarter ended June 30, 2021 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, using Conference ID # 6914707. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at https://investor.pacificbiosciences.com/.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (NASDAQ: PACB), is empowering life scientists with highly accurate long-read sequencing. The company’s innovative instruments are based on Single Molecule, Real-Time (SMRT®) Sequencing technology, which delivers a comprehensive view of genomes, transcriptomes, and epigenomes, enabling access to the full spectrum of genetic variation in any organism. Cited in thousands of peer-reviewed publications, PacBio® sequencing systems are in use by scientists around the world to drive discovery in human biomedical research, plant and animal sciences, and microbiology.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements, including, among other things, statements regarding our intentions to acquire Omniome; our intentions to expand our collaboration with Invitae to include Omniome’s SBB chemistry-enabled technology upon the closing of the proposed acquisition of Omniome; the anticipated private placement transaction that is subject to closing of the Omniome transaction; anticipated progress in scaling the business, including as a result of the agreement to acquire Ominome and the acquisition of Circulomics; our intention to advance our mission to become the most advanced biological solutions provider; the strengthening of our leadership team as the result of recent new hires; the impact of COVID-19 on our business, 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.

The condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in the Pacific Biosciences’ Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.

Contacts

Investors:

Todd Friedman

650.521.8450

ir@pacificbiosciences.com

Media:
Jen Carroll
+1 (858) 449-8082
pr@pacificbiosciences.com

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Statement of Operations

(amounts in thousands, except per share amounts)

	Three Months Ended
	June 30, 2021		March 31, 2021		June 30, 2020
Revenue:
Product revenue	$	26,533	$	25,303	$	13,756
Service and other revenue		4,077		3,694		3,321
Total revenue		30,610		28,997		17,077
Cost of Revenue:
Cost of product revenue		13,222		12,697		8,225
Cost of service and other revenue		3,635		3,323		2,239
Total cost of revenue		16,857		16,020		10,464
Gross profit		13,753		12,977		6,613
Operating Expense:
Research and development		22,266		20,548		15,010
Sales, general and administrative		29,060		26,139		15,127
Total operating expense		51,326		46,687		30,137
Operating loss		(37,573)		(33,710)		(23,524)
Loss from Continuation Advances from Illumina		—		(52,000)		—
Interest expense		(3,589)		(1,789)		—
Other income, net		161		64		438
Net loss	$	(41,001)	$	(87,435)	$	(23,086)
Basic and diluted net loss per share	$	(0.21)	$	(0.45)	$	(0.15)
Shares used in computing basic and diluted net loss per share		198,568		194,790		154,172

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Statement of Operations 

(amounts in thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenue:
Product revenue	$	26,533	$	13,756	$	51,836	$	26,049
Service and other revenue		4,077		3,321		7,771		6,626
Total revenue		30,610		17,077		59,607		32,675
Cost of Revenue:
Cost of product revenue		13,222		8,225		25,919		13,646
Cost of service and other revenue		3,635		2,239		6,958		4,928
Total cost of revenue		16,857		10,464		32,877		18,574
Gross profit		13,753		6,613		26,730		14,101
Operating Expense:
Research and development		22,266		15,010		42,815		30,260
Sales, general and administrative		29,060		15,127		55,198		40,074
Total operating expense		51,326		30,137		98,013		70,334
Operating loss		(37,573)		(23,524)		(71,283)		(56,233)
Gain (loss) from Continuation Advances from Illumina		—		—		(52,000)		34,000
Interest expense		(3,589)		—		(5,378)		(267)
Other income, net		161		438		225		676
Net loss	$	(41,001)	$	(23,086)	$	(128,436)	$	(21,824)
Basic and diluted net loss per share	$	(0.21)	$	(0.15)	$	(0.65)	$	(0.14)
Shares used in computing basic and diluted net loss per share		198,568		154,172		196,690		153,229

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)

	June 30,		December 31,
	2021		2020
Assets
Cash and investments	$	1,144,373	$	318,814
Accounts receivable		19,936		16,837
Inventory		17,985		14,230
Prepaid and other current assets		6,542		4,870
Property and equipment, net		25,000		24,899
Operating lease right-of-use assets, net		28,580		29,951
Restricted cash		3,300		4,336
Other long-term assets		65		43
Total Assets	$	1,245,781	$	413,980
Liabilities and Stockholders' Equity
Accounts payable	$	4,761	$	3,579
Accrued expenses		22,907		17,350
Deferred revenue		19,692		10,290
Operating lease liabilities		40,075		41,999
Convertible senior notes, net		895,762		—
Other liabilities		4,339		5,271
Stockholders' equity		258,245		335,491
Total Liabilities and Stockholders' Equity	$	1,245,781	$	413,980

XML

Document And Entity Information	Aug. 03, 2021
Document And Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Aug. 03, 2021
Entity Registrant Name	Pacific Biosciences of California, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-34899
Entity Tax Identification Number	16-1590339
Entity Address, Address Line One	1305 O’Brien Drive
Entity Address, City or Town	Menlo Park
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94025
City Area Code	650
Local Phone Number	521-8000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PACB
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001299130