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, 2018
Pacific Biosciences of California, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-34899 |
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16-1590339 |
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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, 2018, Pacific Biosciences of California, Inc. reported its financial results for its fourth fiscal quarter and year ended December 31, 2017. 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.
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ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS. |
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(d) |
Exhibits. |
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99.1 |
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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.
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Pacific Biosciences of California, Inc. |
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By: |
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/s/ Susan K. Barnes |
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Susan K. Barnes Executive Vice President, Chief Financial Officer & Principal Accounting Officer |
Date: February 1, 2018
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 revenue 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 revenue 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, 2017 totaled $62.9 million, compared to $72.0 million at December 31, 2016.
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 thousands, except per share amounts)
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Three-month Periods Ended |
Twelve-month Periods Ended |
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December 31, |
December 31, |
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2017 |
2016 |
2017 |
2016 |
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Revenue: |
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Product revenue |
$ |
21,845 |
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20,593 |
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80,030 |
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64,609 | |||||||||||||||||
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Service and other revenue |
3,090 | 3,783 | 13,438 | 13,971 | |||||||||||||||||||||
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Contractual revenue |
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1,346 |
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12,134 | |||||||||||||||||||||
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Total revenue |
24,935 | 25,722 | 93,468 | 90,714 | |||||||||||||||||||||
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Cost of Revenue: |
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Cost of product revenue |
11,836 | 11,244 | 42,900 | 34,512 | |||||||||||||||||||||
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Cost of service and other revenue |
3,605 | 3,104 | 15,909 | 12,042 | |||||||||||||||||||||
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Total cost of revenue |
15,441 | 14,348 | 58,809 | 46,554 | |||||||||||||||||||||
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Gross profit |
9,494 | 11,374 | 34,659 | 44,160 | |||||||||||||||||||||
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Operating Expense: |
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Research and development |
15,626 | 16,255 | 65,324 | 67,617 | |||||||||||||||||||||
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Sales, general and administrative |
14,397 | 12,993 | 59,119 | 47,787 | |||||||||||||||||||||
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Total operating expense |
30,023 | 29,248 | 124,443 | 115,404 | |||||||||||||||||||||
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Operating loss |
(20,529) | (17,874) | (89,784) | (71,244) | |||||||||||||||||||||
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Interest expense |
(624) | (839) | (2,921) | (3,234) | |||||||||||||||||||||
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Other income (expense), net |
391 | (317) | 516 | 103 | |||||||||||||||||||||
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Net loss |
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(20,762) |
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(19,030) |
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(92,189) |
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(74,375) | |||||||||||||||||
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Basic and diluted net loss per share |
$ |
(0.18) |
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(0.21) |
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(0.87) |
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(0.83) | |||||||||||||||||
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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)
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December 31, |
December 31, |
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2017 |
2016 |
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Assets |
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Cash and investments |
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62,872 |
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71,978 | |
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Accounts receivable |
13,433 | 11,421 | |||
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Inventory |
23,065 | 15,634 | |||
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Prepaid and other current assets |
2,249 | 9,978 | |||
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Property and equipment |
37,920 | 14,560 | |||
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Long-term restricted cash |
4,500 | 4,500 | |||
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Other long-term Assets |
45 | 9,813 | |||
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Total Assets |
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144,084 |
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137,884 | |
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Liabilities and Stockholders' Equity |
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Accounts payable |
$ |
9,093 |
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8,359 | |
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Accrued expenses |
12,618 | 16,604 | |||
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Deferred service revenue |
7,394 | 8,427 | |||
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Deferred rent |
14,453 | 19 | |||
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Other liabilities |
605 | 3,345 | |||
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Financing derivative |
183 | 356 | |||
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Notes payable |
13,635 | 16,106 | |||
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Stockholders' equity |
86,103 | 84,668 | |||
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Total Liabilities and Stockholders' Equity |
$ |
144,084 |
$ |
137,884 | |
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