Pacific Biosciences of California
Feb 2, 2017
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Pacific Biosciences Announces Fourth Quarter 2016 Financial Results

Product and Service Revenue Increases by 92% Over Same Period in Previous Year

MENLO PARK, Calif., Feb. 02, 2017 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its fourth quarter ended December 31, 2016.

Revenue for the fourth quarter of 2016 totaled $25.7 million, compared to $36.3 million for the fourth quarter of 2015. Product and service revenue for the fourth quarter of 2016 increased 92.2% to $24.4 million, compared to $12.7 million for the fourth quarter of 2015. Contractual revenue for the fourth quarter of 2016 was $1.3 million, reflecting the remaining $1.3 million of amortization of the upfront payment recognizable upon the termination of the Company's development, commercialization and license agreement with F. Hoffman-La Roche Ltd in December 2016. Contractual revenue for the fourth quarter of 2015 was $23.6 million, reflecting $20.0 million of milestone revenue from Roche and $3.6 million of quarterly amortization of the upfront Roche payment.

Gross profit for the fourth quarter of 2016 was $11.4 million, resulting in a gross margin of 44.2%, compared to gross profit of $26.5 million and a gross margin of 72.9% for the fourth quarter of 2015. The gross profit and margin for the fourth quarter of 2015 was primarily driven by the $20.0 million revenue milestone from Roche, which had a 100% gross margin. Excluding this milestone revenue, gross profit and gross margin for the fourth quarter of 2016 increased significantly over the same period in 2015 primarily as a result of the higher margin sales of the Company's SequelTM System which was launched in the fourth quarter of 2015.

Operating expenses totaled $29.3 million for the fourth quarter of 2016, compared to $27.5 million for the fourth quarter of 2015. Operating expenses for the fourth quarters of 2016 and 2015 included non-cash stock-based compensation of $4.3 million and $3.6 million, respectively.

The net loss for the fourth quarter of 2016 was $19.0 million, compared to a net loss of $1.4 million for the fourth quarter of 2015.

Cash, cash equivalents and investments, excluding restricted cash, at December 31, 2016 totaled $72.0 million, compared to $82.3 million at December 31, 2015

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth quarter 2016 results today at 4:30 p.m. Eastern Time. Investors may listen to the call by dialing 1.888.366.7247, or if outside the U.S., by dialing +1.707.287.9330,using an Audience Passcode of 6231-3559. 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 sequencing systems to help scientists resolve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) Technology, Pacific Biosciences' products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms in important gene families, and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and real-time kinetic information for epigenome characterization. Pacific Biosciences' technology provides high accuracy, ultra-long reads, uniform coverage, and is the only DNA sequencing technology that provides the ability to simultaneously detect epigenetic changes. PacBio® sequencing systems, including consumables and software, provide a simple, fast, end-to-end workflow for SMRT Sequencing.  More information is available at www.pacb.com

Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to the timeline for Pacific Biosciences' potential development of products, future uses, quality or performance of, or benefits of using, products or technologies and other future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in circumstances and other factors that are, in some cases, beyond Pacific Biosciences' control and could cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Factors that could materially affect actual results can be found in Pacific Biosciences' most recent filings with the Securities and Exchange Commission, including Pacific Biosciences' most recent reports on Forms 8-K, 10-K and 10-Q, and include those listed under the caption "Risk Factors." Pacific Biosciences undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future, even if new information becomes available. 

 
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
             
 Three-month Periods Ended  Twelve-month Periods Ended
 December 31, December 31,
 2016
 2015
 2016 
 2015
Revenue:           
Product revenue$20,593  $9,799  $64,609  $37,502 
Service and other revenue 3,783   2,886   13,971   10,896 
Contractual revenue 1,346   23,596   12,134   44,384  
Total revenue 25,722   36,281   90,714   92,782 
Cost of Revenue:           
Cost of product revenue 11,244   7,415    34,512   30,704 
Cost of service and other revenue 3,104   2,400   12,042   8,628 
Total cost of revenue 14,348   9,815   46,554   39,332 
Gross profit 11,374   26,466   44,160   53,450 
Operating Expense:            
Research and development 16,255   14,752   67,617   60,440 
Sales, general and administrative  12,993   12,776   47,787   45,187 
Gain on lease amendments          (23,043)
Total operating expense 29,248   27,528   115,404    82,584 
Operating loss (17,874)  (1,062)   (71,244)  (29,134)
Interest expense (839)  (773)  (3,234)  (2,926)
Other income (expense), net (317)  426   103   364 
Net loss$(19,030) $(1,409) $(74,375) $(31,696)
Basic and diluted net loss per share$(0.21) $(0.02) $(0.83) $(0.42)
Shares used in computing basic and diluted net loss per share 92,660   78,327   89,148   75,614 
                

 

Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
 
 December 31, December 31,
 2016 2015
Assets   
Cash and investments$71,978 $82,270
Accounts receivable 11,421  5,245
Inventory 15,634  10,955
Prepaid and other current assets 9,978  12,071
Property and equipment 14,560  8,548
Long-term restricted cash 4,500  4,500
Other long-term Assets 9,813  7,518
Total Assets$137,884 $131,107
      
Liabilities and Stockholders' Equity     
Accounts payable$8,359 $4,749
Accrued expenses 16,604  15,551
Deferred service revenue 8,427  7,958
Deferred contractual revenue   12,134
Other liabilities 3,364  1,627
Financing derivative 356  600
Notes payable 16,106  14,948
Stockholders' equity 84,668  73,540
Total Liabilities and Stockholders' Equity$137,884 $131,107
      

 

Contact:

Trevin Rard

650.521.8450

ir@pacificbiosciences.com

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Source: Pacific Biosciences, Inc.

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