Pacific Biosciences of California
PACIFIC BIOSCIENCES OF CALIFORNIA, INC. (Form: 8-K, Received: 08/02/2017 16:04:12)



 

 

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)

August 2 , 2017

 

 

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.)

1305 O’Brien Drive

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):



o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

   

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                   □

   



 

 


 







Item 2.02. Results of Operations and Financial Condition.

On August 2 , 2017, Pacific Biosciences of California, Inc. announced its financial results for its second fiscal quarter ended June 30 , 2017. A copy of the press release containing the announcement is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

This information, as well as Exhibit 99.1, 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”), nor 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.



 

5

 

 



 

 



 

(d)

 

Exhibits.



 

 

99.1

 

Press Release dated August 2, 2017 titled “Pacific Biosciences of California, Inc. Announces Second Quarter 2017 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).



 

 




 





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.

 

Susan

 

 



 

 

Pacific Biosciences of California, Inc.



 

By:

 

/s/ Susan K. Barnes         



 

Susan K. Barnes

Executive Vice President, Chief Financial Officer & Principal Accounting Officer



Date: August 2, 2017

 


 

EXHIBIT INDEX





 

 

Exhibit No.

 

Description

99.1

 

Press Release dated August 2 , 2017 titled “Pacific Biosciences of California, Inc. Announces Second Quarter 2017 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).




Exhibit 99.1

Pacific Biosciences of California, Inc. Announces Second Quarter 2017 Financial Results

Product and Service Revenue Increases by 17 % Over Same Period in Previous Year



Menlo Park, Calif. – August 2, 2017 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for its second quarter ended June 30, 2017.

Product ,   service and other revenue for the second quarter of 2017 increased by 17% to $20.1 million, compared to $17.2 million for the second quarter of 2016. Total revenue for the second quarter of 2017 was $20.1 million, compared to $20.7 million for the second quarter of 2016. Total r evenue for the second quarter of 2016 included $3.6 million of contractual revenue, whereas the second quarter of 2017 included no contractual revenue. 

Gross profit for the second quarter of 2017 was $8.0 million, resulting in a gross margin of 39.9%.  Gross profit for the second quarter of 2016 was $10.6 million, resulting in a gross margin of 51.3%. This included $3.6 million of contractual revenue at 100% gross margin. Excluding this contractual revenue and related margin, adjusted gross margin for the second quarter of 2016 would have been 41.1%. Adjusted gross margin is not meant to be considered in isolation or as a substitute for gross margin. Adjusted gross margin is subject to limitations and should be read only in conjunction with the Company’s condensed consolidated financial statements prepared in accordance with GAAP.

Operating expenses for the second quarter of 2017 totaled $32.4 million, compared to $28.7 million for the second quarter of 2016. Operating expenses for the second quarter of 2017 and 2016 included non-cash stock-based compensation of $4.4 million and $4.5 million, respectively.

Net loss for the second quarter of 2017 was $25.5 million, compared to $18.5 million for the second quarter of 2016.

Cash, cash equivalents and investments, excluding restricted cash, at June 30, 2017 totaled $102.6 million, compared to $72.0 million at December 31, 2016.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its second quarter 2017 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 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.

Contact:

Trevin Rard

650.521.8450

ir@pacificbiosciences. com


 



Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Statement of Operations  

(amounts in thousa nds, except per share amounts)



















 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 



Three Months Ended June 30,

 

Six Months Ended June 30,



2017

 

2016

 

2017

 

2016

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

16,548 

 

$

13,587 

 

$

37,842 

 

$

25,966 

Service and other revenue

 

3,525 

 

 

3,564 

 

 

7,146 

 

 

6,716 

Contractual revenue

 

 —

 

 

3,596 

 

 

 —

 

 

7,192 

Total revenue

 

20,073 

 

 

20,747 

 

 

44,988 

 

 

39,874 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

8,155 

 

 

7,115 

 

 

19,517 

 

 

13,995 

Cost of service and other revenue

 

3,917 

 

 

2,988 

 

 

8,533 

 

 

5,731 

Total cost of revenue

 

12,072 

 

 

10,103 

 

 

28,050 

 

 

19,726 

Gross profit

 

8,001 

 

 

10,644 

 

 

16,938 

 

 

20,148 

Operating Expense:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

16,883 

 

 

17,522 

 

 

33,854 

 

 

33,883 

Sales, general and administrative

 

15,505 

 

 

11,192 

 

 

30,770 

 

 

22,900 

Total operating expense

 

32,388 

 

 

28,714 

 

 

64,624 

 

 

56,783 

Operating loss

 

(24,387)

 

 

(18,070)

 

 

(47,686)

 

 

(36,635)

Interest expense

 

(826)

 

 

(795)

 

 

(1,664)

 

 

(1,574)

Other income (expense), net

 

(326)

 

 

366 

 

 

(56)

 

 

358 

Net loss

$

(25,539)

 

$

(18,499)

 

$

(49,406)

 

$

(37,851)

Basic and diluted net loss per share

$

(0.26)

 

$

(0.21)

 

$

(0.52)

 

$

(0.44)

Shares used in computing basic and diluted net loss per share

 

97,360 

 

 

88,148 

 

 

95,177 

 

 

85,876 




 



Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)















 

 

 

 

 



 

 

 

 

 



June 31,

 

December 31,



2017

 

2016

Assets

 

 

 

Cash and investments

$

102,596 

 

$

71,978 

Accounts receivable

 

9,525 

 

 

11,421 

Inventory

 

17,266 

 

 

15,634 

Prepaid and other current assets

 

3,545 

 

 

9,978 

Property and equipment

 

40,289 

 

 

14,560 

Long-term restricted cash

 

4,500 

 

 

4,500 

Other long-term Assets

 

184 

 

 

9,813 

Total Assets

$

177,905 

 

$

137,884 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Accounts payable

$

6,514 

 

$

8,359 

Accrued expenses

 

17,840 

 

 

16,604 

Deferred service revenue

 

8,078 

 

 

8,427 

Deferred rent

 

14,599 

 

 

19 

Other liabilities

 

1,915 

 

 

3,345 

Financing derivative

 

15 

 

 

356 

Notes payable

 

13,084 

 

 

16,106 

Stockholders' equity

 

115,860 

 

 

84,668 

Total Liabilities and Stockholders' Equity

$

177,905 

 

$

137,884