Feb 10, 2021
Pacific Biosciences of California, Inc. Announces Fourth Quarter and Fiscal Year 2020 Financial Results

MENLO PARK, Calif., Feb. 10, 2021 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for the quarter and fiscal year ended December 31, 2020. Reported revenue is consistent with the Company’s press release issued on January 11, 2021.

Q4 2020 Financial Highlights

Revenue for the fourth quarter of 2020 was $27.1 million, representing a 42% increase sequentially compared with $19.1 million for the third quarter of 2020 and a 3% decrease compared with $27.9 million for the fourth quarter of 2019. The Company placed 35 Sequel II/IIe systems during the fourth quarter, bringing the total installed base of Sequel II/IIe systems up to 203 as of December 31, 2020, compared with 168 as of September 30, 2020.

Gross profit for the fourth quarter of 2020 was $11.4 million, representing a 61% increase sequentially compared with $7.1 million for the third quarter of 2020 and a 12% decrease compared with $12.9 million for the fourth quarter of 2019. Gross margin for the fourth quarter of 2020 was 42%, compared to 37% for the third quarter of 2020 and 46% for the fourth quarter of 2019.

Operating expenses totaled $35.4 million for the fourth quarter of 2020, compared to $31.2 million for the third quarter of 2020 and $30.8 million for the fourth quarter of 2019. Operating expenses for the fourth quarter of 2020, third quarter of 2020 and fourth quarter of 2019 included non-cash stock-based compensation of $4.8 million, $4.3 million and $3.4 million, respectively.

Net income for the fourth quarter of 2020 was $74.9 million, compared to a net loss of $23.7 million for the third quarter of 2020 and a net loss of $0.1 million for the fourth quarter of 2019. The increase in net income for the fourth quarter of 2020 was primarily driven by the recognition of the $98.0 million Reverse Termination Fee received from Illumina in January 2020 and reflected as other income after the associated contingency clauses lapsed on October 1, 2020.

Basic and diluted net income per share for the fourth quarter of 2020 was $0.40 per share and $0.37 per share, respectively, compared to basic and diluted net loss of $0.14 per share and $0.00 per share for the third quarter of 2020and the fourth quarter of 2019, respectively.

The Company received $93.6 million in net proceeds from an underwritten public offering of its common stock in November 2020. Cash, cash equivalents and investments, excluding short-term restricted cash and long-term restricted cash, at December 31, 2020 totaled $318.8 million, compared to $208.6 million at September 30, 2020 and $49.1 million at December 31, 2019.

Recent Company Highlights

  • As separately announced, SB Management, a subsidiary of SoftBank Group Corp., will make an investment of $900 million in convertible senior notes to support the Company’s future growth initiatives.
  • The Company announced a multi-year collaboration with Invitae Corporation to begin development of a production-scale high-throughput sequencing platform leveraging the power of PacBio’s highly accurate HiFi sequencing to expand Invitae’s whole genome testing capabilities.
  • Mark Van Oene joined PacBio as Chief Operating Officer and Peter Fromen joined the Company as Chief Commercial Officer, both newly established roles which expand the company’s management strength.
  • Wellcome Sanger Institute committed to purchase seven new Sequel IIe systems to support the Darwin Tree of Life initiative, making it one of the world’s largest SMRT sequencing facilities.

Commenting on the announcement, Christian Henry, President and Chief Executive Officer of Pacific Biosciences said, “Our financial performance in the fourth quarter was above our expectations and we were pleased that the global pandemic did not significantly impact our business in the quarter. We are thrilled to have started the new year with a strategic partnership with Invitae and a transformative investment from SoftBank.”

Impact of COVID-19 Pandemic

Financial results for the twelve months of 2020 were negatively impacted as many of our customers in multiple regions around the world shut down operations for various periods of time in efforts to curb the spread of the COVID-19 pandemic. This resulted in lower product revenues of $65.4 million for the twelve months of 2020 compared to $77.7 million for the same period of 2019. Uncertainties associated with the pandemic, including recent resurgences in infection rates, may cause further impacts to our operations and financial results.

Quarterly Conference Call Information 

Management will host a quarterly conference call to discuss its fourth quarter and year ended December 31, 2020 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 Conference ID # 8096067. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at https://investor.pacificbiosciences.com/.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (NASDAQ: PACB), is empowering life scientists with highly accurate long-read sequencing. The company’s innovative instruments are based on Single Molecule, Real-Time (SMRT®) Sequencing technology, which delivers a comprehensive view of genomes, transcriptomes, and epigenomes, enabling access to the full spectrum of genetic variation in any organism. Cited in thousands of peer-reviewed publications, PacBio® sequencing systems are in use by scientists around the world to drive discovery in human biomedical research, plant and animal sciences, and microbiology.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements, including, among other things, our preliminary financial results for the fourth quarter ended December 31, 2020, including our revenue, instrument revenue, consumable revenue and service and other revenue and our installed instruments during the quarter, customer interest in SMRT Sequencing with HiFi reads, sales momentum, the impact of COVID-19 on our business, 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.

The condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in the Pacific Biosciences’ Annual Report on Form 10-K when filed with the Securities and Exchange Commission.

Contact:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com


Pacific Biosciences of California, Inc.

Unaudited Quarterly Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)

  Three Months Ended
  December 31, 2020 September 30, 2020 December 31, 2019
Revenue:         
Product revenue $23,626  $15,749  $24,551 
Service and other revenue  3,510   3,333   3,379 
Total revenue  27,136   19,082   27,930 
Cost of Revenue:         
Cost of product revenue  12,550   9,228   11,985 
Cost of service and other revenue  3,185   2,790   3,013 
Total cost of revenue  15,735   12,018   14,998 
Gross profit  11,401   7,064   12,932 
Operating Expense:         
Research and development  17,425   16,467   14,273 
Sales, general and administrative  17,953   14,772   16,576 
Total operating expense  35,378   31,239   30,849 
          
Operating loss  (23,977)  (24,175)  (17,917)
Gain from Reverse Termination Fee from Illumina  98,000       
Gain from Continuation Advances from Illumina        18,000 
Interest expense        (678)
Other income, net  912   467   504 
Net income (loss) $74,935  $(23,708) $(91)
          
Net income (loss) per share         
Basic $0.40  $(0.14) $(0.00)
Diluted $0.37  $(0.14) $(0.00)
Weighted average shares outstanding used in calculating net income (loss) per share         
Basic  186,013   166,862   153,051 
Diluted  203,822   166,862   153,051 


Pacific Biosciences of California, Inc.

Unaudited Twelve Months Ended Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)

  Twelve Months Ended December 31,
  2020 2019
Revenue:      
Product revenue $65,424  $77,742 
Service and other revenue  13,469   13,149 
Total revenue  78,893   90,891 
Cost of Revenue:      
Cost of product revenue  35,424   44,771 
Cost of service and other revenue  10,903   11,544 
Total cost of revenue  46,327   56,315 
Gross profit  32,566   34,576 
Operating Expense:      
Research and development  64,152   59,630 
Sales, general and administrative  72,799   75,491 
Total operating expense  136,951   135,121 
       
Operating loss  (104,385)  (100,545)
Gain from Reverse Termination Fee from Illumina  98,000    
Gain from Continuation Advances from Illumina  34,000   18,000 
Interest expense  (267)  (2,611)
Other income, net  2,055   1,022 
Net income (loss) $29,403  $(84,134)
       
Net income (loss) per share      
Basic $0.18  $(0.55)
Diluted $0.17  $(0.55)
Weighted average shares outstanding used in calculating net income (loss) per share      
Basic  165,187   152,527 
Diluted  174,970   152,527 


Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)

  December 31,  December 31,
  2020 2019
Assets    
Cash and investments $318,814  $49,099 
Accounts receivable  16,837   15,266 
Inventory  14,230   13,312 
Prepaid and other current assets  4,870   3,069 
Property and equipment, net  24,899   30,070 
Operating lease right-of-use assets, net  29,951   32,827 
Restricted cash  4,336   4,300 
Other long-term assets  43   42 
Total Assets $413,980  $147,985 
         
Liabilities and Stockholders' Equity        
Accounts payable $3,579  $8,368 
Accrued expenses  17,350   13,242 
Deferred revenue  10,290   9,561 
Operating lease liabilities  41,999   45,801 
Notes payable     15,871 
Other liabilities  5,271   225 
Stockholders' equity  335,491   54,917 
Total Liabilities and Stockholders' Equity $413,980  $147,985 

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Contact

Pacific Biosciences

1305 O’Brien Drive

Menlo Park, CA  94025

ir@pacb.com