Full Press Release Details
Pacific Biosciences of California, Inc. Announces
Menlo Park, Calif. October 27, 2011 Pacific Biosciences of California, Inc. (Nasdaq: PACB)
today announced financial results for the third quarter ended September 30, 2011.
During the third quarter of 2011,
the Company recognized revenue from deliveries of its third generation sequencing platform, the PacBio RS, SMRT
cell and reagent consumables, as well as revenue derived from instrument service contracts, totaling $10.5 million, compared to revenue recognized of $10.6 million for the second quarter of 2011. Net loss for the quarter increased to $29.3 million,
including workforce reduction charges of $4.9 million, compared to the $22.5 million net loss recognized during the second quarter of 2011.
Gross profit for the third quarter totaled $3.3 million, resulting in a gross margin of 32%, compared to gross profit for the second quarter 2011 of $7.9
million and a gross margin of 74%. Gross margin for both the third and second quarter reflect the ongoing, but declining, margin positive impact of significant instrument component costs that were expensed during prior periods. During development,
costs relating to instrument components and manufacturing costs were expensed until commercial production started.
Research and development
expense during the third quarter of 2011 totaled $20.0 million representing a 2% increase compared to $19.5 million for the second quarter. The reported expense includes non-cash stock-based compensation totaling $1.6 million and $1.5 million for
the third and second quarters of 2011, respectively.
Selling, general, and administrative expense during the third quarter of 2011 totaled
$12.8 million representing a 16% increase compared to $11.0 million for the second quarter. The reported expense includes non-cash stock-based compensation totaling $1.4 million and $1.3 million for the third and second quarters of 2011,
As announced on September 20, 2011, in consideration of uncertainties associated with the economic environment and to
position the Company for long-term success, the Company implemented a reduction of approximately 28% of its total workforce. During the third quarter the Company recorded reduction related charges totaling $4.9 million, comprised primarily of
personnel separation costs paid during the third quarter and those expected to be paid during the fourth quarter. Research and development and sales, general and administrative expenses for the quarter include workforce reduction related charges of
$3.5 million and $1.4 million, respectively.
Cash and investments at September 30, 2011 totaled $193.7 million compared to $216.6
million at June 30, 2011.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its Third Quarter 2011 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to the call by dialing 866.831.6267, or if outside
the U.S., by dialing +1.617.213.8857, and entering passcode 76006005. The call will be webcast live and will be available for replay at Pacific Biosciences website at http://investor.pacificbiosciences.com/.
Forward-Looking Statements
release contains forward-looking statements relating to the Company s operations and operating results, including statements relating to the Company s margins and restructuring costs. 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 | ||||||||||||
| September 30, 2011 | June 30, 2011 | September 30, 2010 | ||||||||||
| Revenue: | ||||||||||||
| Product revenue | $ | 9,819 | $ | 10,148 | $ | |||||||
| Service and other revenue | 535 | 192 | ||||||||||
| Grant revenue | 165 | 290 | 220 | |||||||||
| Total revenue | 10,519 | 10,630 | 220 | |||||||||
| Cost of revenue: | ||||||||||||
| Cost of product revenue | 6,546 | 2,537 | ||||||||||
| Cost of service and other revenue | 645 | 194 | ||||||||||
| Total cost of revenue | 7,191 | 2,731 | ||||||||||
| Gross profit | 3,328 | 7,899 | 220 | |||||||||
| Operating expense: | ||||||||||||
| Research and development | 20,001 | 19,546 | 32,873 | |||||||||
| Sales, general and administrative | 12,764 | 11,016 | 8,043 | |||||||||
| Total operating expense | 32,765 | 30,562 | 40,916 | |||||||||
| Operating loss | (29,437 | ) | (22,663 | ) | (40,696 | ) | ||||||
| Other income (expense), net | 156 | 188 | (12 | ) | ||||||||
| Net loss | $ | (29,281 | ) | $ | (22,475 | ) | $ | (40,708 | ) | |||
| Basic and diluted net loss per share | $ | (0.54 | ) | $ | (0.42 | ) | $ | (39.70 | ) | |||
| Shares used in computing basic and diluted net loss per share | 54,283,162 | 53,413,565 | 1,025,326 |
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
| Year to Date | ||||||||
| September 30, 2011 | September 30, 2010 | |||||||
| Revenue: | ||||||||
| Product revenue | $ | 19,966 | $ | |||||
| Service and other revenue | 728 | |||||||
| Grant revenue | 725 | 1,394 | ||||||
| Total revenue | 21,419 | 1,394 | ||||||
| Cost of revenue: | ||||||||
| Cost of product revenue | 9,083 | |||||||
| Cost of service and other revenue | 839 | |||||||
| Total cost of revenue | 9,922 | |||||||
| Gross profit | 11,497 | 1,394 | ||||||
| Operating expense: | ||||||||
| Research and development | 63,665 | 85,279 | ||||||
| Sales, general and administrative | 34,899 | 19,760 | ||||||
| Total operating expense | 98,564 | 105,039 | ||||||
| Operating loss | (87,067 | ) | (103,645 | ) | ||||
| Other income (expense), net | 502 | (102 | ) | |||||
| Net loss | $ | (86,565 | ) | $ | (103,747 | ) | ||
| Basic and diluted net loss per share | $ | (1.62 | ) | $ | (134.07 | ) | ||
| Shares used in computing basic and diluted net loss per share | 53,465,836 | 773,839 |
Pacific Biosciences of California, Inc.
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
| September 30, 2011 | June 30, 2011 | December 31, 2010 (1) | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets | ||||||||||||
| Cash and investments | $ | 193,696 | $ | 216,588 | $ | 283,674 | ||||||
| Accounts receivable | 4,434 | 5,437 | 341 | |||||||||
| Inventory | 20,262 | 19,552 | 6,864 | |||||||||
| Prepaid and other current assets | 1,890 | 3,151 | 2,235 | |||||||||
| Total current assets | 220,282 | 244,728 | 293,114 | |||||||||
| Property and equipment | 17,359 | 16,180 | 12,311 | |||||||||
| Other assets | 319 | 312 | 322 | |||||||||
| Total Assets | $ | 237,960 | $ | 261,220 | $ | 305,747 | ||||||
| Liabilities and Stockholders Equity | ||||||||||||
| Accounts payable | $ | 8,158 | $ | 9,032 | $ | 9,515 | ||||||
| Deferred revenue | 3,970 | 2,381 | 3,221 | |||||||||
| Accrued and other current liabilities | 9,004 | 10,050 | 8,104 | |||||||||
| Total current liabilities | 21,132 | 21,463 | 20,840 | |||||||||
| Facility financing and deferred rent | 6,145 | 6,431 | 5,041 | |||||||||
| Stockholders equity | 210,684 | 233,326 | 279,866 | |||||||||
| Total Liabilities and Stockholders Equity | $ | 237,961 | $ | 261,220 | $ | 305,747 |