Nov 30, 2010
Pacific Biosciences 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)
     
  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)
     
  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
Source: Pacific Biosciences of California, Inc.

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Contact

Pacific Biosciences

1305 O’Brien Drive

Menlo Park, CA  94025

ir@pacb.com