Full Press Release Details
Pacific Biosciences of California, Inc. Announces
Menlo Park, Calif. July 26, 2012 Pacific Biosciences of California, Inc. (Nasdaq: PACB) today
announced financial results for the second quarter ended June 30, 2012.
During the second quarter of 2012, the
Company recognized revenue from installations of its PacBio RS systems, SMRT Cell and reagent
consumables, instrument service contracts and grants. Revenue for the second quarter of 2012 totaled $7.3 million and net loss was $22.5 million.
Gross profit for the second quarter of 2012 totaled $0.3 million, resulting in a gross margin of 4%, compared to a $0.2 million gross loss for the first quarter of 2012 and a negative margin of 2%. Gross
profit for the second quarter of 2011 was $7.9 million representing a gross margin of 74%. The margin for the second quarter 2011 reflects the positive margin impact of instrument components expensed during earlier periods when the Company was in
the development stage.
Operating expenses comprised of research and development and selling, general and administrative expenses for the
second quarter of 2012 totaled $22.8 million, representing a 17% decrease compared to $27.4 million for the first quarter of 2012. Operating expenses in the second quarter of 2012 include $2.5 million of non-cash stock-based compensation with $1.1
million and $1.4 million recorded in research and development and selling, general and administrative expenses, respectively. Operating expenses in the second quarter of 2011 were $30.6 million.
Research and development expense during the second quarter of 2012 totaled $11.3 million, representing a 7% decrease compared to $12.1 million for the
first quarter of 2012. Selling, general and administrative expense during the second quarter of 2012 totaled $11.5 million, representing a 24% decrease compared to $15.3 million for the first quarter of 2012. The $3.8 million decrease in quarterly
SG&A expense reflects a $3.2 million decrease in outside legal expense as we settled two intellectual property matters in the first quarter of 2012. During the second quarter of 2011, research and development expense totaled $19.5 million and
selling, general and administrative expense totaled $11.0 million.
Cash and investments at June 30, 2012 totaled $137.1 million compared
to $161.3 million at March 31, 2012.
The Company s system revenue backlog was less than $1.0 million as of June 30, 2012,
which represents an order for one PacBio RS instrument received during the second quarter of 2012. Installation has been completed for all instruments that were in backlog as of March 31, 2012.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its second quarter 2012 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen
to the call by dialing 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 High Resolution Genetic Analyzer to help scientists solve genetically complex problems. Based
on its novel Single Molecule, Real-Time (SMRT ) 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 genetic 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 revenue. 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 Pacific Biosciences of California s filings with
the Securities and Exchange Commission, including the most recently filed Quarterly Report on Form 10-Q, including those listed under the caption Risk Factors. Pacific Biosciences of California 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 and Comprehensive Income
(amounts in thousands, except per share amounts)
| Quarters Ended | ||||||||||||
| June 30, 2012 | March 31, 2012 | June 30, 2011 | ||||||||||
| Revenue: | ||||||||||||
| Product revenue | $ | 5,827 | $ | 8,715 | $ | 10,148 | ||||||
| Service and other revenue | 1,284 | 1,053 | 192 | |||||||||
| Grant revenue | 180 | 270 | 290 | |||||||||
| Total revenue | 7,291 | 10,038 | 10,630 | |||||||||
| Cost of revenue: | ||||||||||||
| Cost of product revenue | 5,382 | 8,607 | 2,537 | |||||||||
| Cost of service and other revenue | 1,634 | 1,583 | 194 | |||||||||
| Total cost of revenue | 7,016 | 10,190 | 2,731 | |||||||||
| Gross profit (loss) | 275 | (152 | ) | 7,899 | ||||||||
| Operating expense: | ||||||||||||
| Research and development | 11,272 | 12,073 | 19,546 | |||||||||
| Sales, general and administrative | 11,558 | 15,285 | 11,016 | |||||||||
| Total operating expense | 22,830 | 27,358 | 30,562 | |||||||||
| Operating loss | (22,555 | ) | (27,510 | ) | (22,663 | ) | ||||||
| Other income (expense), net | 68 | (70 | ) | 188 | ||||||||
| Net loss | $ | (22,487 | ) | $ | (27,580 | ) | $ | (22,475 | ) | |||
| Basic and diluted net loss per share | $ | (0.40 | ) | $ | (0.50 | ) | $ | (0.42 | ) | |||
| Shares used in computing basic and diluted net loss per share | 55,658 | 55,201 | 53,414 | |||||||||
| Comprehensive loss | $ | (22,547 | ) | $ | (27,502 | ) | $ | (22,297 | ) |
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations and Comprehensive Income
(amounts in thousands, except per share amounts)
| Year to Date | ||||||||
| June 30, 2012 | June 30, 2011 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 14,542 | $ | 10,148 | ||||
| Service and other revenue | 2,337 | 192 | ||||||
| Grant revenue | 450 | 560 | ||||||
| Total revenue | 17,329 | 10,900 | ||||||
| Cost of revenue: | ||||||||
| Cost of product revenue | 13,989 | 2,537 | ||||||
| Cost of service and other revenue | 3,217 | 194 | ||||||
| Total cost of revenue | 17,206 | 2,731 | ||||||
| Gross profit | 123 | 8,169 | ||||||
| Operating expense: | ||||||||
| Research and development | 23,345 | 43,664 | ||||||
| Sales, general and administrative | 26,843 | 22,135 | ||||||
| Total operating expense | 50,188 | 65,799 | ||||||
| Operating loss | (50,065 | ) | (57,630 | ) | ||||
| Other income (expense), net | (2 | ) | 346 | |||||
| Net loss | $ | (50,067 | ) | $ | (57,284 | ) | ||
| Basic and diluted net loss per share | $ | (0.90 | ) | $ | (1.08 | ) | ||
| Shares used in computing basic and diluted net loss per share | 55,433 | 53,057 | ||||||
| Comprehensive loss | $ | (50,049 | ) | $ | (57,082 | ) |
Pacific Biosciences of California, Inc.
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
| June 30, 2012 | March 31, 2012 | December 31, 2011 (1) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets | ||||||||||||
| Cash and investments | $ | 137,108 | $ | 161,349 | $ | 177,434 | ||||||
| Accounts receivable | 3,371 | 1,505 | 4,557 | |||||||||
| Inventory | 10,271 | 11,821 | 15,517 | |||||||||
| Prepaid and other current assets | 1,893 | 2,131 | 2,093 | |||||||||
| Total current assets | 152,643 | 176,806 | 199,601 | |||||||||
| Property and equipment | 16,937 | 17,592 | 18,398 | |||||||||
| Other assets | 350 | 340 | 317 | |||||||||
| Total Assets | $ | 169,930 | $ | 194,738 | $ | 218,316 | ||||||
| Liabilities and Stockholders Equity | ||||||||||||
| Accounts payable | $ | 4,061 | $ | 4,250 | $ | 4,742 | ||||||
| Deferred revenue | 4,170 | 3,920 | 4,236 | |||||||||
| Accrued and other current liabilities | 6,695 | 11,626 | 10,398 | |||||||||
| Total current liabilities | 14,926 | 19,796 | 19,376 | |||||||||
| Facility financing and other non-current liabilities | 6,800 | 7,039 | 7,477 | |||||||||
| Stockholders equity | 148,204 | 167,903 | 191,463 | |||||||||
| Total Liabilities and Stockholders Equity | $ | 169,930 | $ | 194,738 | $ | 218,316 |