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PACIFIC BIOSCIENCES OF CALIFORNIA, INC. Consolidated Balance Sheets (unaudited) December 31, (in thousands, except per share amounts) 2014 2013 Assets Current assets Cash and cash equivalents $ 36,449 $ 26,362 Investment

Key Takeaway: PACIFIC BIOSCIENCES OF CALIFORNIA, INC. Consolidated Balance Sheets December 31, (in thousands, except per share amounts) 2014 2013 Assets Current assets Cash and cash equivalents $ 36,449 $ 26,362 Investments 64,899 86,166 Accounts receivable 3,406 2,746 Inv

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PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Balance Sheets
December 31,
(in thousands, except per share amounts) 2014 2013
Assets
Current assets
Cash and cash equivalents $ 36,449 $ 26,362
Investments 64,899 86,166
Accounts receivable 3,406 2,746
Inventory, net 11,335 10,050
Prepaid expenses and other current assets 1,671 1,135
Total current assets 117,760 126,459
Property and equipment, net 6,601 9,236
Other long-term assets 162 490
Total assets $ 124,523 $ 136,185
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 5,608 $ 1,717
Accrued expenses 11,441 7,905
Deferred service revenue, current 6,121 4,046
Deferred contractual revenue, current 6,785 6,785
Other liabilities, current 1,534 2,102
Total current liabilities 31,489 22,555
Deferred service revenue, non-current 1,129 518
Deferred contractual revenue, non-current 19,735 26,519
Other liabilities, non-current 2,153 3,517
Notes payable 14,124 13,347
Financing derivative 944 549
Total liabilities 69,574 67,005
Commitments and contingencies
Stockholders' equity
Preferred Stock, $0.001 par value:
Authorized 50,000 shares; No shares issued or outstanding
Common Stock, $0.001 par value:
Authorized 1,000,000 shares; Issued and outstanding 73,927 and 66,275 shares at December 31, 2014 and 2013, respectively 74 66
Additional paid-in-capital 736,339 684,413
Accumulated other comprehensive income 9 14
Accumulated deficit (681,473) (615,313)
Total stockholders' equity 54,949 69,180
Total liabilities and stockholders' equity $ 124,523 $ 136,185
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Statements of Operations and Comprehensive Loss
Years ended December 31,
(in thousands, except per share amounts) 2014 2013 2012
Revenue:
Product revenue $ 35,299 $ 20,039 $ 20,089
Service and other revenue 8,511 6,446 5,894
Contractual revenue 16,784 1,696
Total revenue 60,594 28,181 25,983
Cost of Revenue:
Cost of product revenue 29,626 15,706 18,796
Cost of service and other revenue 7,566 6,056 6,247
Total cost of revenue 37,192 21,762 25,043
Gross profit 23,402 6,419 940
Operating Expense:
Research and development 48,230 45,217 47,623
Sales, general and administrative 38,026 38,745 47,655
Total operating expense 86,256 83,962 95,278
Operating loss (62,854) (77,543) (94,338)
Interest expense (2,828) (2,478) (274)
Other income (expense), net (478) 728 147
Net loss (66,160) (79,293) (94,465)
Other comprehensive loss:
Unrealized loss on investments (5) (16) (27)
Comprehensive loss $ (66,165) $ (79,309) $ (94,492)
Net loss per share:
Basic and diluted net loss per share $ (0.94) $ (1.26) $ (1.69)
Shares used in computing basic and diluted net loss per share 70,475 62,784 55,733
PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Consolidated Statements of Cash Flows
Years Ended December 31,
(in thousands) 2014 2013 2012
Cash flows from operating activities
Net loss $ (66,160) $ (79,293) $ (94,465)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 4,221 5,648 6,649
Amortization of debt discount and financing costs 793 595
Stock-based compensation 9,943 9,905 9,705
Other items 507 (352) 1,295
Changes in assets and liabilities
Accounts receivable (660) 76 1,735
Inventory (1,285) (60) 4,761
Prepaid expenses and other assets (224) 840 50
Accounts payable 3,891 (1,271) (1,754)
Accrued expenses 3,536 1,327 (1,333)
Deferred service revenue 2,686 386 (1,674)
Deferred contractual revenue (6,784) 33,304
Other liabilities (1,932) (938) (1,791)
Net cash used in operating activities (51,468) (29,833) (76,822)
Cash flows from investing activities
Purchase of property and equipment (1,609) (909) (1,703)
Purchase of investments (126,413) (201,547) (87,889)
Sales of investments 100 7,896
Maturities of investments 147,586 169,239 143,488
Net cash provided by (used in) investing activities 19,564 (33,117) 61,792
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans 3,968 3,079 2,705
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs 38,023 19,927
Proceeds from issuance of debt agreement, net of issuance costs 19,766
Net cash provided by financing activities 41,991 42,772 2,705
Net increase (decrease) in cash and cash equivalents 10,087 (20,178) (12,325)
Cash and cash equivalents at beginning of period 26,362 46,540 58,865
Cash and cash equivalents at end of period $ 36,449 $ 26,362 $ 46,540
Supplemental disclosure of cash flow information
Interest paid $ 1,342 $ 1,165 $
Supplemental disclosure of non-cash investing and financing activities
Inventory transferred to (from) property and equipment for internal use (558) 1,164
Last updated: Feb 3, 2015