Pacific Biosciences of California
PACIFIC BIOSCIENCES OF CALIFORNIA, INC. (Form: 8-K, Received: 02/01/2018 16:19:30)





 

 

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)

February 1 , 201 8  

 

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.)

13 05 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 February 1 ,   201 8 , Pacific Biosciences of California, Inc. reported its financial results for its fourth fiscal quarter and year ended December 3 1 , 201 7 . A copy of the press release containing the announcement is included as Exhibit 99.1 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.



 



 

(d)

 

Exhibits.





 

 



 

 



 



 

 

 99.1

 

Press Release dated February 1, 2018 titled “Pacific Biosciences Reports Fourth Quarter and Year Ended December 31, 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: February 1 ,   201 8


Exhibit 99.1

Pacific Biosciences Announces Fourth Quarter and Annual 2017 Financial Results

Annual Product and Service Revenue Increases 19% Year over Year

Menlo Park, Calif. – February 1, 2018 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for its fourth quarter and year ended December 31, 2017.

Product, service and other revenue for the year ended December 31, 2017 increased by 19% to $93.5 million, compared to $78.6 million for 2016. Total revenue for the year ended December 31, 2017 was $93.5 million, compared to $90.7 million for 2016. Total r evenue for 2016 included $12.1 million of contractual revenue, whereas 2017 included no contractual revenue.   Product, service and other revenue for the fourth quarter of 2017 increased by 2% to $24.9 million, compared to $24.4 million for the fourth quarter of 2016. Total revenue for the fourth quarter of 2017 was $24.9 million, compared to $25.7 million for the fourth quarter of 2016. Total r evenue for the fourth quarter of 2016 included $1.3 million of contractual revenue, whereas the fourth quarter of 2017 included no contractual revenue. 

Gross profit for the year ended December 31, 2017 was $34.7 million, resulting in a gross margin of 37%. Gross profit for the year ended December 31, 2016 was $44.2 million, resulting in a gross margin of 49%. This included $12.1 million of contractual revenue at a 100% gross margin. Excluding this contractual revenue and related margin, adjusted gross margin for the year ended December 31, 2016 would have been 41%, and adjusted for the contractual revenue .   Gross profit for the fourth quarter of 2017 was $9.5 million, resulting in a gross margin of 38%. Gross profit for the fourth quarter of 2016 was $11.4 million, resulting in a gross margin of 44%. This included $1.3 million of contractual revenue at a 100% gross margin. Excluding this contractual revenue and related margin, adjusted gross margin for the fourth quarter of 2016 would have been 41%, and adjusted for the contractual revenue .   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 totaled $124.4 million for the year ended December 31, 2017, compared to $115.4 million for 2016. Operating expenses for the year ended December 31, 2017 and 2016 included non-cash stock-based compensation of $18.0 million and $17.4 million, respectively. Operating expenses totaled $30.0 million for the fourth quarter of 2017, compared to $29.2 million for the fourth quarter of 2016. Operating expenses for the fourth quarters of 2017 and 2016 included non-cash stock-based compensation of $4.8 million and $4.3 million, respectively.

The net loss for the year ended December 31, 2017 was $92.2 million, compared to a net loss of $74.4 million for 2016. The net loss for the fourth quarter of 2017 was $20.8 million, compared to a net loss of $19.0 million for the fourth quarter of 2016.

Cash, cash equivalents and investments, excluding restricted cash, at December 31, 201 7 totaled $ 62.9 million, compared to $ 72.0 million at December 31, 201 6

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth quarter and year ended December 31, 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 936-7938 . 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 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-month Periods Ended

 

Twelve-month Periods Ended



December 31,

 

December 31,



2017

 

2016

 

2017

 

2016

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

21,845 

 

$

20,593 

 

$

80,030 

 

$

64,609 

Service and other revenue

 

3,090 

 

 

3,783 

 

 

13,438 

 

 

13,971 

Contractual revenue

 

 —

 

 

1,346 

 

 

 —

 

 

12,134 

Total revenue

 

24,935 

 

 

25,722 

 

 

93,468 

 

 

90,714 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

11,836 

 

 

11,244 

 

 

42,900 

 

 

34,512 

Cost of service and other revenue

 

3,605 

 

 

3,104 

 

 

15,909 

 

 

12,042 

Total cost of revenue

 

15,441 

 

 

14,348 

 

 

58,809 

 

 

46,554 

Gross profit

 

9,494 

 

 

11,374 

 

 

34,659 

 

 

44,160 

Operating Expense:

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

15,626 

 

 

16,255 

 

 

65,324 

 

 

67,617 

Sales, general and administrative

 

14,397 

 

 

12,993 

 

 

59,119 

 

 

47,787 

Total operating expense

 

30,023 

 

 

29,248 

 

 

124,443 

 

 

115,404 

Operating loss

 

(20,529)

 

 

(17,874)

 

 

(89,784)

 

 

(71,244)

Interest expense

 

(624)

 

 

(839)

 

 

(2,921)

 

 

(3,234)

Other income (expense), net

 

391 

 

 

(317)

 

 

516 

 

 

103 

Net loss

$

(20,762)

 

$

(19,030)

 

$

(92,189)

 

$

(74,375)

Basic and diluted net loss per share

$

(0.18)

 

$

(0.21)

 

$

(0.87)

 

$

(0.83)

Shares used in computing basic and diluted net loss per share

 

116,259 

 

 

92,660 

 

 

105,682 

 

 

89,148 










 







Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)











 

 

 

 

 



 

 

 

 

 



December 31,

 

December 31,



2017

 

2016

Assets

 

 

 

Cash and investments

$

62,872 

 

$

71,978 

Accounts receivable

 

13,433 

 

 

11,421 

Inventory

 

23,065 

 

 

15,634 

Prepaid and other current assets

 

2,249 

 

 

9,978 

Property and equipment

 

37,920 

 

 

14,560 

Long-term restricted cash

 

4,500 

 

 

4,500 

Other long-term Assets

 

45 

 

 

9,813 

Total Assets

$

144,084 

 

$

137,884 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Accounts payable

$

9,093 

 

$

8,359 

Accrued expenses

 

12,618 

 

 

16,604 

Deferred service revenue

 

7,394 

 

 

8,427 

Deferred rent

 

14,453 

 

 

19 

Other liabilities

 

605 

 

 

3,345 

Financing derivative

 

183 

 

 

356 

Notes payable

 

13,635 

 

 

16,106 

Stockholders' equity

 

86,103 

 

 

84,668 

Total Liabilities and Stockholders' Equity

$

144,084 

 

$

137,884