Full Press Release Details
Pacific Biosciences of California, Inc. Announces
Menlo Park, Calif. August 4, 2011 Pacific Biosciences of California, Inc. (Nasdaq: PACB)
today announced financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Financial Results:
During the second quarter of 2011, the Company began recognizing revenue from the initial commercial deliveries of its third generation sequencing
platform, the PacBio RS. Revenue for the second quarter of 2011 totaled $10.6 million, reflecting the delivery of 16 commercial PacBio RS instruments to customers, initial revenue from commercial shipments of the Company s SMRT cell and reagent
consumables, as well as revenue derived from instrument service contracts. Net loss decreased to $22.5 million as compared to the $34.8 million loss recognized for the first quarter of 2011.
The second quarter of 2011 marks a significant milestone as PacBio has now delivered the first third generation sequencing platform to the market, noted Hugh Martin, the Company s Chief
Executive Officer. Researchers in North America and Europe are now armed with a technology that will enable insights into genomic research not previously possible.
Gross profit for the second quarter totaled $7.9 million, resulting in a gross margin of 74%. Gross margin for the quarter was substantially higher than we expect to achieve in the future due to the fact
that significant costs associated with the instruments sold during the second quarter were expensed during prior periods. During development, costs relating to instrument components and manufacturing costs were expensed until commercial production
Research and development expense during the second quarter of 2011 totaled $19.5 million representing a 19% decrease compared to
$24.1 million for the first quarter. The reported expense includes non-cash stock-based compensation totaling $1.5 million and $1.4 million for the second and first quarters of 2011, respectively.
Selling, general, and administrative expense during the second quarter of 2011 of $11.0 million remained consistent with the $11.1 million for the first
quarter. The reported expense includes non-cash stock-based compensation totaling $1.3 million and $1.7 million for the second and first quarters of 2011, respectively.
Cash and investments at June 30, 2011 totaled $216.6 million compared to $248.5 million at March 31, 2011.
Second Quarter 2011 Highlights
Quarterly Conference Call Information
Management will host a quarterly conference call to
discuss its Second Quarter 2011 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to the call by dialing 877-415-3182, or if outside the U.S., by dialing +1-857-244-7325, and entering passcode 63187118. The call will be webcast
live and will be available for replay at Pacific Biosciences website at http://investor.pacificbiosciences.com/.
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 plans for product upgrades. 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 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
(amounts in thousands, except share and per share amounts)
| Quarters Ended | ||||||||||||
| June 30, 2011 | March 31, 2011 | June 30, 2010 | ||||||||||
| Revenue: | ||||||||||||
| Product revenue | $ | 10,148 | $ | $ | ||||||||
| Service and other revenue | 192 | |||||||||||
| Grant revenue | 290 | 270 | 629 | |||||||||
| Total revenue | 10,630 | 270 | 629 | |||||||||
| Cost of revenue: | ||||||||||||
| Cost of product revenue | 2,537 | |||||||||||
| Cost of service and other revenue | 194 | |||||||||||
| Total cost of revenue | 2,731 | |||||||||||
| Gross profit | 7,899 | 270 | 629 | |||||||||
| Operating expense: | ||||||||||||
| Research and development | 19,546 | 24,118 | 27,082 | |||||||||
| Sales, general and administrative | 11,016 | 11,119 | 6,222 | |||||||||
| Total operating expense | 30,562 | 35,237 | 33,304 | |||||||||
| Operating loss | (22,663 | ) | (34,967 | ) | (32,675 | ) | ||||||
| Other income (expense), net | 188 | 158 | (39 | ) | ||||||||
| Net loss | $ | (22,475 | ) | $ | (34,809 | ) | $ | (32,714 | ) | |||
| Basic and diluted net loss per share | $ | (0.42 | ) | $ | (0.66 | ) | $ | (51.20 | ) | |||
| Shares used in computing basic and diluted net loss per share | 53,413,565 | 52,756,116 | 639,007 |
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
| Year to Date | ||||||||
| June 30, 2011 | June 30, 2010 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 10,148 | $ | |||||
| Service and other revenue | 192 | |||||||
| Grant revenue | 560 | 1,174 | ||||||
| Total revenue | 10,900 | 1,174 | ||||||
| Cost of revenue: | ||||||||
| Cost of product revenue | 2,537 | |||||||
| Cost of service and other revenue | 194 | |||||||
| Total cost of revenue | 2,731 | |||||||
| Gross profit | 8,169 | 1,174 | ||||||
| Operating expense: | ||||||||
| Research and development | 43,664 | 52,406 | ||||||
| Sales, general and administrative | 22,135 | 11,717 | ||||||
| Total operating expense | 65,799 | 64,123 | ||||||
| Operating loss | (57,630 | ) | (62,949 | ) | ||||
| Other income (expense), net | 346 | (90 | ) | |||||
| Net loss | $ | (57,284 | ) | $ | (63,039 | ) | ||
| Basic and diluted net loss per share | $ | (1.08 | ) | $ | (99.58 | ) | ||
| Shares used in computing basic and diluted net loss per share | 53,056,745 | 633,019 |
Pacific Biosciences of California, Inc.
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
| June 30, 2011 | March 31, 2011 | December 31, 2010 (1) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets | ||||||||||||
| Cash and investments | $ | 216,588 | $ | 248,548 | $ | 283,674 | ||||||
| Accounts receivable | 5,437 | 59 | 341 | |||||||||
| Inventory | 19,552 | 13,539 | 6,864 | |||||||||
| Prepaid and other current assets | 3,151 | 2,124 | 2,235 | |||||||||
| Total current assets | 244,728 | 264,270 | 293,114 | |||||||||
| Property and equipment | 16,180 | 13,932 | 12,311 | |||||||||
| Other assets | 312 | 356 | 322 | |||||||||
| Total Assets | $ | 261,220 | $ | 278,558 | $ | 305,747 | ||||||
| Liabilities and Stockholders Equity | ||||||||||||
| Accounts payable | $ | 9,032 | $ | 9,432 | $ | 9,515 | ||||||
| Deferred revenue | 2,381 | 4,350 | 3,221 | |||||||||
| Accrued and other current liabilities | 10,050 | 10,350 | 8,104 | |||||||||
| Total current liabilities | 21,463 | 24,132 | 20,840 | |||||||||
| Facility financing and deferred rent | 6,431 | 5,755 | 5,041 | |||||||||
| Stockholders equity | 233,326 | 248,671 | 279,866 | |||||||||
| Total Liabilities and Stockholders Equity | $ | 261,220 | $ | 278,558 | $ | 305,747 |