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)
November 30, 2010
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.) |
1380 Willow Road
Menlo Park, California 94025
(Address of principal executive offices, including 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):
| ¨ | 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)) |
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On November 30, 2010, Pacific Biosciences of California, Inc. announced its third quarter 2010 operating results. A copy of the press release containing the announcement is included as Exhibit 99.1 and is incorporated herein by reference.
This information 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”), or 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.
| Exhibit Number |
Description | |
| 99.1 | Press Release dated November 30, 2010 announcing Pacific Biosciences of California, Inc.’s Third Quarter 2010 Operating Results (furnished and not filed herewith solely pursuant to Item 2.02). | |
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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/ SUSAN K. BARNES | |
| Susan K. Barnes Senior Vice President and Chief Financial Officer | ||
Date: November 30, 2010
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EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Press Release dated November 30, 2010 announcing Pacific Biosciences of California, Inc.’s Third Quarter 2010 Operating Results (furnished and not filed herewith solely pursuant to Item 2.02). | |
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Exhibit 99.1
PACIFIC BIOSCIENCES OF CALIFORNIA ANNOUNCES THIRD QUARTER OF 2010 OPERATING RESULTS
Menlo Park, Calif., Nov. 30, 2010 (Globe Newswire) – Pacific Biosciences of California, Inc. (Nasdaq: PACB) today announced financial results for the third quarter ended September 30, 2010.
Financial Highlights
For the third quarter of 2010, the Company reported net losses of $40.7 million, compared to $24.5 million for the same period last year. The increase in net loss is largely due to an increase in purchases of material for the manufacture of prototype instruments and consumable products and the expansion of sales, service and manufacturing operations as the Company prepares for the commercial launch of the PacBio RS. Revenue for the third quarter of 2010, which was comprised of government grants, was $220,000 compared to no revenue for the same period last year. The Company has not yet recognized any revenue from the sale of its products.
Research and development expenses in the third quarter of 2010 totaled $32.9 million, compared to $21.1 million for the third quarter of 2009. Research and development expenses include all costs associated with manufacturing operations, as the Company does not yet generate revenues from sales of products and services. Selling, general and administrative expenses in the third quarter of 2010 increased to $8.0 million compared to $3.4 million for the same period of 2009. The Company added 146 employees over the past year, bringing the total to 406 employees as of September 30, 2010.
Cash and investments at September 30, 2010 were $112.9 million compared to $138.8 million at June 30, 2010. The Company received $210.4 million in net proceeds from its initial public offering during the fourth quarter of 2010.
The Company had a backlog of approximately $20 million as of September 30, 2010, which includes both orders for limited production release instruments and full commercial release instruments for its PacBio RS received as of that date. The Company is planning to commercially launch the PacBio RS during the first half of 2011.
Highlights of Limited Production Release Program
As of today, the Company has shipped all eleven systems included in its beta testing, or Limited Production Release program. Of those eleven systems, ten have been installed and eight have been accepted. The system performance specifications for the limited production release program include:
| • | Average readlength of 500 to 550 bases |
| • | 99.99% Consensus accuracy |
| • | 80% to 85% Single molecule raw read accuracy |
The installed beta systems have met these performance specifications.
Conference Call
Pacific Biosciences will host a conference call for investors on November 30, 2010 at 1:30 p.m. PST (4:30 p.m. EST). The conference call dial-in numbers are US: 888.989.5214 or International: 630.395.0127, access code “PACB”. A live webcast of the call will also be available from the Investor Relations section of www.pacb.com. A webcast replay from today’s call will also be available from the Investor Relations section of www.pacb.com approximately two hours after the call and will be available for up to thirty days.
About Pacific Biosciences
Pacific Biosciences’ mission is to transform the way humankind acquires, processes and interprets data from living systems through the design, development and commercialization of innovative tools for biological research. The company has developed a novel approach to studying the synthesis and regulation of DNA, RNA and proteins. Combining recent advances in nanofabrication, biochemistry, molecular biology, surface chemistry and optics, Pacific Biosciences has created a powerful technology platform called single molecule, real-time, or SMRT(tm), technology. SMRT technology enables real-time analysis of biomolecules with single molecule resolution, which has the potential to transform the understanding of biological systems by providing a window into these systems that has not previously been open for scientific study.
CONTACTS:
| Trevin Rard | Ben Gong | |
| 650.521.8450 | 650.521.8203 | |
| ir@pacificbiosciences.com |
Forward-Looking Statements
This press release contains forward-looking statements relating to the company’s operations and operating results, including the statement that the Company plans to begin selling the PacBio RS during the first half of 2011. 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 our control and that could materially affect actual results. Factors that could materially affect actual results can be found in Pacific Biosciences of California’s Registration Statement and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, 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.
Consolidated Balance Sheets
(Unaudited, in thousands)
| September 30, 2010 |
June 30, 2010 |
December 31, 2009 |
||||||||||
| Assets |
||||||||||||
| Cash and investments |
$ | 112,932 | $ | 138,756 | $ | 92,735 | ||||||
| Accounts receivable |
1,052 | — | — | |||||||||
| Prepaids and other current assets |
3,302 | 1,251 | 1,010 | |||||||||
| Total current assets |
117,286 | 140,007 | 93,745 | |||||||||
| Property and equipment |
12,350 | 12,669 | 7,142 | |||||||||
| Other assets |
300 | 221 | 211 | |||||||||
| Total Assets |
$ | 129,936 | $ | 152,897 | $ | 101,098 | ||||||
| Liabilities and Stockholders Deficit |
||||||||||||
| Accounts payable |
$ | 13,211 | $ | 7,613 | $ | 5,778 | ||||||
| Deferred revenue |
1,052 | __ | __ | |||||||||
| Accrueds and other current liabilities |
8,650 | 8,498 | 2,641 | |||||||||
| Total current liabilities |
22,913 | 16,111 | 8,419 | |||||||||
| Faciltiy financing and deferred rent |
5,056 | 5,118 | 475 | |||||||||
| Preferred stock warrant liability |
292 | 282 | 226 | |||||||||
| Convertible preferred stock |
374,975 | 367,036 | 269,101 | |||||||||
| Stockholders’ deficit |
(273,300 | ) | (235,650 | ) | (177,123 | ) | ||||||
| Total Liabilities and Stockholders’ Equity |
$ | 129,936 | $ | 152,897 | $ | 101,098 | ||||||
Pacific Biosciences of California, Inc.
Consolidated Statements of Operations
(Unaudited, in thousands, except share data)
| Quarter ended | ||||||||
| September 30, 2010 |
September 30, 2009 |
|||||||
| Grant Revenue |
$ | 220 | $ | — | ||||
| Operating expenses |
||||||||
| Research and development |
32,873 | 21,121 | ||||||
| Sales, general and administrative |
8,043 | 3,447 | ||||||
| Total operating expense |
40,916 | 24,568 | ||||||
| Operating Loss |
(40,696 | ) | (24,568 | ) | ||||
| Other income (expense), net |
(12 | ) | 39 | |||||
| Net loss |
$ | (40,708 | ) | $ | (24,529 | ) | ||
| Basic and diluted net loss per share |
$ | (39.70 | ) | $ | (46.74 | ) | ||
| Shares used in computing basic and net loss per share |
1,025,326 | 524,840 | ||||||
Pacific Biosciences of California, Inc.
Consolidated Statements of Operations
(Unaudited, in thousands, except share data)
| Year-to-date September 30, | ||||||||
| 2010 | 2009 | |||||||
| Grant Revenue |
$ | 1,394 | $ | — | ||||
| Operating expenses |
||||||||
| Research and development |
85,279 | 51,211 | ||||||
| Sales, general and administrative |
19,760 | 8,785 | ||||||
| Total operating expense |
105,039 | 59,996 | ||||||
| Operating Loss |
(103,645 | ) | (59,996 | ) | ||||
| Other income (expense), net |
(102 | ) | 356 | |||||
| Net loss |
$ | (103,747 | ) | $ | (59,640 | ) | ||
| Basic and diluted net loss per share |
$ | (134.07 | ) | $ | (122.34 | ) | ||
| Shares used in computing basic and net loss per share |
773,839 | 487,483 | ||||||