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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Dec. 31, 2011	Feb. 17, 2012	Jun. 30, 2011
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Entity Registrant Name	PACIFIC BIOSCIENCES OF CALIFORNIA INC
Entity Central Index Key	0001299130
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,064,117
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 431,640,000
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 58,865	$ 147,650
Investments	118,569	136,024
Accounts receivable	4,557	341
Inventory	15,517	6,864
Prepaid expenses and other current assets	2,093	2,235
Total current assets	199,601	293,114
Property and equipment, net	18,398	12,311
Long-term assets	317	322
Total assets	218,316	305,747
Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)
Accounts payable	4,742	9,515
Accrued expenses and other current liabilities	10,258	7,994
Deferred revenue	4,236	3,221
Facility financing obligation	140	110
Total current liabilities	19,376	20,840
Deferred revenue, non-current	1,616
Lease incentives and other long-term liabilities	3,075	2,114
Facility financing obligation, non-current	2,786	2,927
Total liabilities	26,853	25,881
Commitments and contingencies (Note 6)
Stockholders' equity
Convertible Preferred Stock, $0.001 par value: Authorized 50,000,000 shares; No shares issued or outstanding at December 31, 2011 and 2010
Common Stock and additional paid-in-capital, $0.001 par value: Authorized 1,000,000,000 shares; Issued and outstanding 54,963,770 and 52,855,267 shares at December 31, 2011 and 2010, respectively	632,961	612,054
Accumulated other comprehensive income (loss)	57	(21)
Accumulated deficit	(441,555)	(332,167)
Total stockholders' equity	191,463	279,866
Total liabilities and stockholders' equity	$ 218,316	$ 305,747

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
Convertible preferred stock, par value	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	50,000,000	50,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	54,963,770	52,855,267
Common stock, shares outstanding	54,963,770	52,855,267

Consolidated Statements Of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenue:
Product revenue	$ 31,486
Service and other revenue	1,487
Grant revenue	890	$ 1,674	$ 135
Total revenue	33,863	1,674	135
Cost of Revenue:
Cost of product revenue	18,725
Cost of service and other revenue	2,104
Total cost of revenue	20,829
Gross profit	13,034	1,674	135
Operating Expense:
Research and development	76,080	111,821	75,879
Sales, general and administrative	46,710	30,087	12,326
Total operating expense	122,790	141,908	88,205
Operating loss	(109,756)	(140,234)	(88,070)
Other income, net	368	68	367
Net loss	$ (109,388)	$ (140,166)	$ (87,703)
Basic and diluted net loss per share	$ (2.03)	$ (14.10)	$ (173.03)
Shares used in computing basic and diluted net loss per share	53,873,928	9,938,411	506,865

Consolidated Statements Of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Deferred Stock-Based Compensation [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2008		$ 10,907	$ (42)	$ 44	$ (104,298)	$ (93,389)
Balance, shares at Dec. 31, 2008	577,021
Issuance of Common Stock upon exercise of stock options		303				303
Issuance of Common Stock upon exercise of stock options, shares	84,241
Repurchase of unvested Common Stock
Repurchase of unvested Common Stock, shares	(5,178)
Vesting of Common Stock options early exercised		79				79
Employee stock-based compensation expense recorded under the intrinsic value method		526	42			568
Employee stock-based compensation expense recorded under the fair value method		2,643				2,643
Nonemployee stock-based compensation		419				419
Other comprehensive loss				(43)		(43)
Net loss					(87,703)	(87,703)
Total comprehensive loss						(87,746)
Balance at Dec. 31, 2009		14,877		1	(192,001)	(177,123)
Balance, shares at Dec. 31, 2009	656,084
Conversion of redeemable convertible preferred stock to common stock at initial public offering	$ 37	374,927				374,964
Conversion of redeemable convertible preferred stock to common stock at initial public offering, shares	37,183,523
Conversion of warrants from warrants for preferred stock to warrants for common stock		326				326
Elimination of fractional shares resulting from reverse stock split		(1)				(1)
Elimination of fractional shares resulting from reverse stock split, shares	(25)
Issuance of common stock from Initial public offering, net of issuance costs	$ 15	210,766				210,781
Issuance of common stock from Initial public offering, net of issuance costs, shares	14,375,000
Issuance of Common Stock upon exercise of stock options	$ 1	707				708
Issuance of Common Stock upon exercise of stock options, shares	606,963
Issuance of Common Stock to consultant		281				281
Issuance of Common Stock to consultant, shares	20,930
Issuance of Common Stock in connection with exercise of warrants
Issuance of Common Stock in connection with exercise of warrants, shares	12,792
Vesting of Common Stock options early exercised		428				428
Employee stock-based compensation expense recorded under the intrinsic value method		845				845
Employee stock-based compensation expense recorded under the fair value method		7,880				7,880
Nonemployee stock-based compensation		965				965
Other comprehensive loss				(22)		(22)
Net loss					(140,166)	(140,166)
Total comprehensive loss						(140,188)
Balance at Dec. 31, 2010	$ 53	612,001		(21)	(332,167)	$ 279,866
Balance, shares at Dec. 31, 2010	52,855,267					52,855,267
Issuance of Common Stock	$ 2	7,741				$ 7,743
Issuance of Common Stock, shares	2,108,503
Vesting of Common Stock options early exercised		780				780
Employee stock-based compensation expense recorded under the fair value method		12,146				12,146
Nonemployee stock-based compensation		238				238
Other comprehensive loss				78		78
Net loss					(109,388)	(109,388)
Total comprehensive loss						(109,310)
Balance at Dec. 31, 2011	$ 55	$ 632,906		$ 57	$ (441,555)	$ 191,463
Balance, shares at Dec. 31, 2011	54,963,770					54,963,770

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities
Net loss	$ (109,388)	$ (140,166)	$ (87,703)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	5,803	5,160	4,104
Stock-based compensation	12,384	9,690	3,630
Other items	226	459	194
Changes in assets and liabilities
Accounts receivable	(4,216)	(341)
Inventory	(11,409)	(6,864)
Prepaid expenses and other assets	1,874	(1,336)	(30)
Accounts payable	(4,773)	3,637	3,891
Accrued expenses and other current liabilities	3,044	4,245	1,168
Deferred revenue	2,631	3,221
Lease incentives and other long-term liabilities	850	299	(92)
Net cash used in operating activities	(102,974)	(121,996)	(74,838)
Cash flows from investing activities
Purchase of property and equipment	(9,284)	(5,259)	(5,177)
Purchase of investments	(264,071)	(180,964)	(25,429)
Sales of investments	36,520
Maturities of investments	243,281	47,973	49,200
Net cash provided by (used in) investing activities	6,446	(138,250)	18,594
Cash flows from financing activities
Proceeds from issuance of Convertible Preferred Stock, net		106,145	68,010
Proceeds from issuance of Common Stock	7,743	1,738	311
Proceeds from exercise of Junior Preferred Stock options			1
Proceeds from issuance of Common stock in IPO, net of issuance costs		210,781
Repurchases of Common Stock			(8)
Payment of notes payable			(1,300)
Net cash provided by financing activities	7,743	318,664	67,014
Net (decrease) increase in cash and cash equivalents	(88,785)	58,418	10,770
Cash and cash equivalents at beginning of period	147,650	89,232	78,462
Cash and cash equivalents at end of period	58,865	147,650	89,232
Supplemental disclosure of cash flow information
Interest paid			$ (30)
Supplemental disclosure of non-cash investing and financing activities
Assets acquired under facility lease		2,971
Additions to property and equipment under tenant improvement allowances		1,910
Inventory transferred to property and equipment for internal use	2,756
Conversion of convertible preferred stock to common stock upon IPO		374,965
Reclassification of preferred warrants to common stock warrants		326
Issuance of common stock related to convertible preferred stock offering		281
Vesting of stock options related to early exercises	$ 780	$ 428

Overview	12 Months Ended
Overview	Dec. 31, 2011
Overview [Abstract]
Overview	1. Overview Pacific Biosciences of California, Inc., ("Pacific Biosciences", "PacBio", "we", "us") has commercialized a platform for single molecule, real-time detection of biological events. Our initial focus is on the DNA sequencing market where we have developed and introduced a third generation sequencing platform. The names "Pacific Biosciences," "PacBio," "SMRT," "SMRTbell" and our logo are our trademarks. *Initial Public Offering* On October 26, 2010, our registration statement on Form S-1 relating to our initial public offering ("IPO") was declared effective by the Securities and Exchange Commission ("SEC") and our IPO closed on November 1, 2010, whereby we sold 12,500,000 shares of common stock at a price of $16.00 per share. The shares began trading on the NASDAQ Global Select Market under the trading symbol "PACB" on October 27, 2010. Subsequently on November 1, 2010, our underwriters exercised their overallotment option to purchase an additional 1,875,000 shares of common stock at $16.00 per share, which transaction closed on November 4, 2010. We received net proceeds of approximately $210.8 million from the initial public offering, including proceeds from the underwriter overallotment option, net of underwriting discounts, commissions, and offering costs. In connection with the IPO, all outstanding convertible preferred stock converted into common stock, warrants to purchase convertible preferred stock converted into warrants to purchase common stock, and the convertible preferred stock warrant liability were reclassified to stockholders' equity.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation and Consolidation

Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP, as set forth in the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC. The consolidated financial statements include the accounts of PacBio and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Translation adjustments resulting from translating foreign subsidiaries' results of operations and assets and liabilities into U.S. dollars are immaterial for all periods presented.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Our estimates include, but are not limited to, useful lives assigned to long-lived assets, the valuation of common and preferred stock prior to the IPO and related warrants and options, assumptions used in computing stock-based compensation expense, provisions for income taxes, inventory and contingencies. Actual results could differ from our estimates, and such differences could be material to our financial position and results of operations.

Fair Value of Financial Instruments

The carrying amount of our financial assets and liabilities, including accounts receivable, prepaid expenses, other current assets, other long-term assets, accounts payable, accrued expenses and other current liabilities, approximate fair value due to their short maturities. The carrying value of the facility financing obligation approximates fair value based on currently available borrowing rates and after consideration of non-performance risk and credit risk.

A fair value hierarchy was established under GAAP that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are as follows:

•

Level 1: quoted prices in active markets for identical assets or liabilities;

•

Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

•

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and view an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our non-performance risk, or that of our counterparty, is considered in determining the fair values of liabilities and assets, respectively.

All of our cash and money market funds, which include bank deposits, are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy.

Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the entire fair value measurement requires management to make judgments and consider factors specific to the asset or liability.


	December 31, 2011								December 31, 2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Cash and money market funds	$	44,200	$	—	$	—	$	44,200	$	118,462	$	—	$	—	$	118,462
Certificates of deposits				4,034		—		4,034		—		—		—		—
Commercial paper		—		39,370		—		39,370		—		59,573		—		59,573
Corporate debt securities		—		37,386		—		37,386		—		49,970		—		49,970
Asset backed securities				9,909		—		9,909		—		—		—		—
U.S. government and agency securities		—		37,468		—		37,468		—		47,141		—		47,141

Total assets measured at fair value	$	44,200	$	128,167	$	—	$	172,367	$	118,462	$	156,684	$	—	$	275,146

During 2010 and 2009 we recognized a convertible preferred warrant liability. We classify our warrant liability within Level 3 and adjusted it for changes in fair value until our IPO, at which time all unexercised warrants were automatically converted into warrants to purchase common stock and the warrant liability was reclassified to additional paid-in capital. The change in the fair value of this convertible preferred stock warrant liability is summarized below (in thousands):


	2010			2009
Fair value at beginning of period	$	226		$	142
Change in fair value recorded in other expense, net		100			84
Liability reclassified to additional paid-in capital		(326	)		—

Fair value at end of period	$	—		$	226

Cash and cash equivalents

We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents consist of money market funds and commercial paper.

Investments

Our investments consist of U.S. treasury and U.S. government agency securities, asset backed securities, corporate notes and bonds, commercial paper, cash deposits and money market funds. We have designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in other income, net.

All of our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in the fair value of our investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investments fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, our intent to sell the security and whether or not we will be required to sell the security before the recovery of its amortized cost. During the years ended December 31, 2011, 2010 and 2009, we did not record any other-than-temporary impairment charges on our available for sale securities, because we do not intend to sell the security and it is not more likely than not that we will be required to sell these securities before the recovery of their amortized cost basis.

Concentration of Credit Risk

The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to our investment securities consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing.

Our accounts receivable are derived from net revenue to customers and distributors located in the United States and other countries. We perform credit evaluations of our customers' financial condition and, generally, require no collateral from our customers. We regularly review our accounts receivable including consideration of factors such as historical experience, credit quality, the age of the accounts receivable balances and current economic conditions that may affect a customer's ability to pay. We have not provided reserves for potential credit losses to date. As of December 31, 2011 and 2010, approximately 62% and 100%, respectively, of our accounts receivable were from domestic customers. As of December 31, 2011, approximately 85% of our net accounts receivable were from 5 individual customers, each representing at least 10% of our net accounts receivable. As of December 31, 2010, 100% of our net accounts receivable was from a single customer.

During the year ended December 31, 2011, domestic revenue accounted for 81% of total revenue. Prior to 2011, revenue consisted solely of U.S. government grant revenue.

Inventory

Inventory is valued at the lower of the standard cost, which approximates actual cost, or market. Cost is determined using the FIFO (first-in, first-out) method. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess or obsolete balances.

Property and Equipment, Net

Property and equipment are generally stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset, generally two to three years for computer equipment and software, three to seven years for furniture and fixtures, three years for lab equipment and 30 years for buildings. Leasehold improvements are depreciated over the shorter of the lease term or the estimated useful life of the related asset. Major improvements are capitalized, while maintenance and repairs are expensed as incurred.

In connection with build-to-suit lease arrangements that we account for as if we own the facility, we record the facility at the fair value at the date construction commences, prior to significant renovations, plus the costs of the renovations. We determined the fair value of such facilities prior to renovation based on several factors, including an appraisal conducted by an independent licensed appraiser.

Impairment of Long-Lived Assets

We periodically review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. Fair value is estimated based on discounted future cash flows. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the asset, an impairment loss is recorded to write the asset down to its estimated fair values. To date, we have not recorded any impairment charges.

Revenue Recognition

Our revenue is generated primarily from the sale of products and services. Product revenue primarily consists of sales of our PacBio RS instrument and related consumables, and service and other revenue primarily consists of revenue earned from product maintenance agreements. Grant revenue reflects revenue from government grants that generally provide cost reimbursement for certain types of expenditures in return for research and development activities over a contractually defined period. Revenue from grants is recognized in the period during which the related costs are incurred, provided that the conditions under which the grants were provided have been met.

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. In instances where final acceptance of the product or system is required, revenue is deferred until all acceptance criteria have been met. Revenue for product sales is generally recognized upon customer acceptance. Revenue for product maintenance agreements is recognized when earned, which is generally ratably over the service period.

In order to assess whether the price is fixed or determinable, we evaluate whether refund rights exist. If there are refund rights or payment terms based on future performance, we defer revenue recognition until the price becomes fixed or determinable. We assess collectability based on a number of factors, including customer creditworthiness. If we determine that collection of amounts due is not reasonably assured, revenue recognition is deferred until receipt of payment.

We regularly enter into contracts where revenue is derived from multiple deliverables including a mix of products or services. Revenue recognition for contracts with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when 1) the delivered item has value to the customer on a stand-alone basis; and 2) when a general right of return exists, the delivery or performance of an undelivered item is considered probable and under the control of the Company. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Our revenue arrangements generally do not have a general right of return. When a deliverable does not meet the criteria to be considered a separate unit of accounting, we group it with other deliverables that, when combined, meet the criteria, and the appropriate allocation of arrangement consideration and revenue recognition is determined. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price. In order to determine the relative selling price of a deliverable, we apply the following hierarchy: 1) vendor-specific objective evidence ("VSOE"); 2) third-party evidence if VSOE is not available; and 3) our best estimate of selling price for the deliverable if neither VSOE nor third-party evidence is available.

In order to establish VSOE, we must regularly sell the product or service on a standalone basis with a substantial majority priced within a relatively narrow range. If there are not a sufficient number of standalone sales and VSOE cannot be determined, then we consider whether third party evidence can be used to establish selling price. Due to the lack of similar products and services sold by other companies within our industry, we have not established selling price using third-party evidence. If neither VSOE nor third party evidence of selling price exists, we determine our best estimate of selling price using a combination of prices set by our pricing committee adjusted for applicable discounts and customer orders received to date.

Deferred revenue primarily represents product maintenance agreement revenue that is expected to be recognized over the related service period.

Research and Development

We expense research and development costs during the period in which the costs are incurred. However, we defer and capitalize non-refundable advance payments made for research and development activities until the related goods are received or the related services are rendered.

Leases

We categorize leases at their inception as either operating or capital leases. On certain of our lease agreements, we may receive tenant improvement allowances, rent holidays and other incentives. Rent expense is recorded on a straight-line basis over the term of the lease. The difference between rent expense recognized and amounts paid under the lease agreement is recorded as lease incentives in the balance sheets. Leasehold improvements are capitalized at cost and depreciated over the lesser of their expected useful life or the life of the lease. Tenant improvements afforded to us by landlord incentives are recorded as leasehold improvement assets with corresponding lease incentives liabilities.

For build-to-suit lease arrangements, we evaluate the extent of our financial and operational involvement in the tenant improvements to determine whether we are considered the owner of the construction project under GAAP. When we are considered the owner of a project, we record the shell of the facility at its fair value at the date construction commences with a corresponding facility financing obligation. Improvements to the facility during the construction project are capitalized and, to the extent funded by lessor afforded incentives, with corresponding increases to the facility financing obligation. Payments we make under leases in which we are considered the owner of the facility are allocated to land rental expense, based on the relative values of the land and building at the commencement of construction, reductions of the facility financing obligation and interest expense recognized on the outstanding obligation. As the build-out was completed in 2010, the activity in 2011 consisted solely of lease payments. To the extent gross future payments do not equal the recorded liability, the liability is settled upon return of the facility to the lessor. Any difference between the book value of the assets and remaining facility obligation are recorded in other expense, net. For existing arrangements, the differences are expected to be immaterial.

Income Taxes

We account for income taxes under the asset and liability method, which requires, among other things, that deferred income taxes be provided for temporary differences between the tax basis of our assets and liabilities and the amounts reported in the financial statements. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research and development credit carryforwards. A full valuation allowance is provided against our net deferred tax assets as it is more likely than not that the deferred tax assets will not be fully realized.

We review our positions taken relative to income taxes. To the extent our tax positions are more likely than not to result in the payout of additional taxes, we accrue the estimated amount of tax for such uncertain positions.

Stock-based Compensation

Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated using the Black-Scholes option pricing model. We have limited historical information available to support the underlying estimates of certain assumptions required to value stock options. Because there is a market for options on our common stock, we have considered implied volatilities as well as our historical realized volatilities when developing an estimate of expected volatility. We estimate the term using historical data and peer data. We recognize compensation expense on a straight-line basis over the requisite service period. We have elected to use the simplified method to calculate the beginning pool of excess tax benefits.

We have employee and director stock option plans that are more fully described in Note 10.

Convertible Preferred Stock Warrants

Prior to our IPO in October 2010, we accounted for freestanding warrants to purchase shares of our convertible preferred stock at fair value on the balance sheet because we may have been obligated to redeem these warrants at some point in the future. The warrants were subject to remeasurement at each balance sheet date with changes in fair value recognized as other expense, net in the consolidated statement of operations. We continued to adjust the liability for changes in fair value until our IPO, at which time all unexercised warrants automatically converted into warrants to purchase common stock and the warrant liability was reclassified to additional paid-in capital.

Other Comprehensive Income (loss)

Other comprehensive income (loss) is comprised of unrealized gains (losses) on our investment securities. Total comprehensive income (loss) for all periods presented has been disclosed in the consolidated statements of stockholders' equity (deficit).

Recent Accounting Pronouncements

In 2011 the FASB issued Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS. This update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRS. ASU 2011-04 is required to be applied prospectively in interim and annual periods beginning after December 15, 2011. Early application is not permitted. The adoption of this amendment will not have a material effect on our Consolidated Financial Statements.

In 2011 the FASB issued Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. This statement requires companies to present the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements of net income and other comprehensive income. This statement is effective for interim and annual periods beginning after December 15, 2011. Full retrospective application is required. We will adopt this guidance beginning Q1 2012. The adoption of this amendment will not have a material effect on our Consolidated Financial Statements as the amendment impacts presentation only.

Investments

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments

3. Investments

The following table summarizes our investments as of December 31, 2011 and 2010 (in thousands):


	As of December 31, 2011
	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
Cash and cash equivalents:
Cash and money market funds	$	44,200	$	—	$	—		$	44,200
Commercial paper		9,599		—		(1	)		9,598

Total cash and cash equivalents		53,799		—		(1	)		53,798

Investments:
Commercial paper		29,767		5		—			29,772
Corporate debt securities		37,379		65		(57	)		37,387
Asset backed securities		9,904		7		(2	)		9,909
Certificates of deposit		4,026		9		(1	)		4,034
U.S. government and agency securities		37,436		34		(3	)		37,467

Total investments		118,512		120		(63	)		118,569

Total cash, cash equivalents and investments	$	172,311	$	120	$	(64	)	$	172,367


	As of December 31, 2010
	Amortized Cost		Gross unrealized gains		Gross unrealized losses			Fair Value
Investments:
Commercial paper	$	59,572	$	1	$	—		$	59,573
Corporate debt securities		49,987		11		(28	)		49,970
U.S. government and agency securities		47,146		3		(8	)		47,141

Total cash, cash equivalents and investments	$	156,705	$	15	$	(36	)	$	156,684

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 2
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-SubTopic 10
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-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6509901
-Topic 320

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694
-Topic 320

+ Details

Balance Sheet Components

12 Months Ended

Dec. 31, 2011

Balance Sheet Components [Abstract]

Balance Sheet Components

4. Balance Sheet Components

Inventory:

As of December 31, 2011 and 2010, our inventory, net consisted of the following components (in thousands):


	December 31,
	2011		2010
Purchased materials	$	5,273	$	4,051
Work in process		5,347		2,813
Finished goods		4,897		—

Inventory, net	$	15,517	$	6,864

Property and Equipment:

As of December 31, 2011 and 2010, our property and equipment, net consisted of the following components (in thousands):


	December 31,
	2011			2010
Building	$	1,160		$	1,160
Laboratory equipment and machinery		15,664			10,998
Leasehold improvements		7,636			7,130
Computer equipment		3,450			3,033
Software		1,577			1,709
Furniture and fixtures		859			801
Construction in progress		3,222			8

		33,568			24,839
Less: Accumulated depreciation		(15,170	)		(12,528	)

Property and equipment, net	$	18,398		$	12,311

Depreciation expense during 2011, 2010 and 2009 was $5.8 million, $5.2 million and $4.1 million, respectively.

During December 2009, we entered into a lease agreement for a manufacturing and office facility, and in 2010 commenced renovations specific to our needs and operating requirements, including improvements and modifications to the facility's structure and principal operating systems. Pursuant to GAAP, this direct involvement renders us the owner of the facility for accounting purposes. Accordingly, upon commencement of construction activities, we recorded $1.2 million for the fair value of the facility within property and equipment, net with a corresponding liability recorded to facility financing obligation.

In addition, pursuant to the terms of the lease arrangement, the landlord provided incentives to fund aspects of the construction project totaling $1.8 million. The tenant improvement allowances afforded by the landlord are reflected on the balance sheet as a component of property and equipment. As we account for the leased facility as if we are the owner of the facility, we depreciate the assets over their expected useful lives.

Accrued liabilities and other current liabilities:

As of December 31, 2011 and 2010, our accrued expenses and other current liabilities consisted of the following (in thousands):


	December 31, 2011		December 31, 2010
Salaries and benefits	$	5,284	$	5,494
Professional services		1,915		659
Short-term portion of deferred rent		844		573
Customer deposits		1,503		—
Other		712		1,268

Accrued expenses and other current liabilities	$	10,258	$	7,994

Facility Financing And Debt Obligations

12 Months Ended

Dec. 31, 2011

Facility Financing And Debt Obligations [Abstract]

Facility Financing And Debt Obligations

5. Facility Financing and Debt Obligations

Facility Financing Obligation

In December 2009 we entered into a lease agreement for a manufacturing and office facility. In order for the facility to meet our needs and operating requirements, substantial tenant improvements, including improvements to the structural elements and principal operating systems of the facility, were necessary. The lessor provided a tenant improvement allowance of $1.8 million to apply towards the necessary improvements and we remained obligated for additional amounts over the afforded allowance.

Due to our involvement in and the nature of the renovations made to the facility and our obligations to fund the costs of renovations exceeding the incentives afforded to us, we account for the facility as if we are the owner. Accordingly we recorded $3.0 million of building and leasehold improvement assets, reflecting the $1.2 million fair value of the facility prior to commencing renovations and the $1.8 million of landlord incentives within property and equipment, net and a corresponding liability recorded to facility financing obligation.

Based on the allocation of payments, the facility financing obligation bears an implied interest rate of 9.0%. During 2011 and 2010, we recognized $0.3 million and $0.2 million, respectively of interest expense in our consolidated statement of operations relating to the facility financing obligation.

As of December 31, 2011, the future minimum payments due under the facility financing obligation were as follows (in thousands):


	Financing obligation
2012	$	415
2013		433
2014		452
2015		472

Total payments		1,772
Less amount representing interest		(997	)

Total net payments under facility financing obligation		775
Property reverting to landlord		2,151

Present value of obligation		2,926
Less current portion of obligation		(140	)

Long-term portion of obligation	$	2,786

Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

6. Commitments and Contingencies

Operating Lease Commitment

As of December 31, 2011 we have noncancelable operating lease agreements for research and development, office, manufacturing and training facilities in Menlo Park, California that expire at various dates, with the latest expiration in December 2015. Our leases run have various options for renewal.

Rent expense for 2011, 2010, and 2009, was $2.8 million, $2.1 million, and $1.4 million, respectively. We are also required to pay our share of operating expenses with respect to the facilities in which we operate.

As of December 31, 2011, the future annual minimum lease payments under all noncancelable operating leases with an initial term in excess of one year are as follows (in thousands):


Years ending December 31:	Amount
2012	$	3,560
2013		3,670
2014		3,780
2015		3,850

Total minimum lease payments	$	14,860

License Agreements

We have entered into cancelable license agreements, as amended, with third parties for certain patent rights and technology. Under the terms of these agreements, we may be obligated to pay minimum royalty and license maintenance fees. License and maintenance fees for 2011, 2010 and 2009 were $0.3 million, $0.3 million, and $0.2 million, respectively.

Contingencies

We may become subject to claims and assessments from time to time in the ordinary course of business. We accrue liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated.

On August 27, 2010, we were named as a defendant in a complaint filed by Helicos Biosciences Corporation, or Helicos, alleging infringement of patents owned and in–licensed by the plaintiffs. Helicos seeks a permanent injunction enjoining us from further infringement of the asserted patents, and unspecified monetary damages. On October 22, 2010, Helicos filed an amended complaint naming additional defendants in the lawsuit. On November 8, 2010, we filed our answer to Helicos' complaint denying Helicos' allegations, asserting affirmative defenses of noninfringement, invalidity and unenforceability of the claims of the patents in suit, and asserting counterclaims for declaratory judgment that our products do not infringe the claims of the patents in suit, and that those claims are invalid and unenforceable. On December 16, 2011, the court granted Helicos' motion to file a second amended complaint adding Arizona Science and Technology Enterprises LLC d/b/a Arizona Technology Enterprises as an additional plaintiff in the lawsuit.

On October 21, 2011 and October 24, 2011 we and certain of our officers and directors were named in two identical purported class action lawsuits filed in the Superior Court of the State of California, County of San Mateo. Plaintiffs have brought claims alleging violation of several provisions of federal securities laws in connection with our August 16, 2010 registration statement (as amended, effective as of October 26, 2010) on behalf of all persons or entities who purchased Pacific Biosciences stock pursuant or traceable to our initial public offering and were damaged thereby. The complaints allege violations of the Securities Act of 1933 in connection with our initial public offering, arising out of alleged omissions and misrepresentations in our 2010 registration statement. The complaints seek, among other things, compensatory damages, rescission, and attorney's fees and costs.

On December 21, 2011, we and certain of our officers and directors were named in a purported class action lawsuit filed in United States District Court for the Northern District of California, on behalf of all persons or entities who bought Pacific Biosciences stock between October 27, 2010 and September 20, 2011. The complaint alleges violations of the Exchange Act of 1934, arising out of alleged misstatements or omissions by the Company and/or its employees during the class period. The complaint seeks, among other things, compensatory damages, rescission, and attorneys' fees and costs.

On December 29, 2011, we were named as a nominal defendant, along with certain of our directors as individual defendants, in a purported shareholder derivative lawsuit filed in United States District Court for the Northern District of California. The complaint alleges that the director defendants breached various fiduciary duties owed to the Company, engaged in waste of corporate assets, and were, as a result, unjustly enriched. The complaint seeks, among other things, restitution of director profits allegedly obtained as a result of the aforesaid conduct, improvement of our corporate governance procedures, and attorneys' fees and costs.

Pursuant to Delaware law, we may have obligations, under certain circumstances, to hold harmless and indemnify each of our directors and certain officers, including those named in the actions, against judgments, fines, settlements and expenses related to claims arising against such directors and officers to the fullest extent permitted under Delaware law, our bylaws and certificate of incorporation. Such obligations for indemnification may apply to these lawsuits. In addition, we may have obligations to hold harmless and indemnify each of the underwriters from our initial public offering and their respective affiliates, directors and officers against any and all losses, claims, damages and liabilities related to claims arising against such parties pursuant to the terms of the underwriting agreement between the underwriters and the Company.

Despite our defenses and counterclaims, we cannot guarantee any outcome of any lawsuit. An estimate of the possible loss or possible range of loss associated with the resolution of the aforementioned contingencies cannot be provided with certainty or confidence, and therefore no estimate is provided and we have not recorded a liability.

Indemnification

In the ordinary course of business, we enter into standard indemnification arrangements. Pursuant to these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology, or from claims relating to our performance or non-performance under a contract, any defective products supplied by us, or any negligent acts or omissions, or willful misconduct, committed by us or any of our employees, agents or representatives. The term of these indemnification agreements is generally perpetual anytime after the execution of the agreement. The maximum potential amount of future payments we could be required to make under these agreements is not determinable because it involves claims that may be made against us in future periods, but have not yet been made. To date, we have not incurred costs to defend lawsuits or settle claims related to these indemnification agreements.

We entered into indemnification agreements with our directors and officers that may require us to indemnify our directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. No liability associated with such indemnifications has been recorded at December 31, 2011.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
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-Paragraph 4
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 8
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

A reconciliation between the statutory federal income tax and our effective tax rates as a percentage of loss before income taxes are as follows:


	Years Ended December 31,
	2011			2010			2009
Statutory tax rate		(35.0	)%		(35.0	)%		(34.0	)%
State tax rate, net of federal benefit		(5.0	)		(5.7	)		(5.8	)
Stock-based compensation		2.0			1.6			1.0
Federal R&D credit		(2.8	)		(2.0	)		(2.6	)
CA R&D credit		(2.3	)		(1.1	)		(1.8	)
Other		0.0			0.2			0.3
Change in valuation allowance		43.1			43.5			42.9
Change of implied statutory tax rate to prior years		0.0			(1.5	)		0.0

Effective income tax rate		0.0	%		0.0	%		0.0	%

Temporary differences and carryforwards that gave rise to significant portions of deferred taxes are as follows (in thousands):


	December 31,
	2011			2010
Net operating loss carryforwards	$	154,118		$	117,031
Research and development credits		17,814			12,391
Depreciation		2,708			1,342
Accruals and reserves		6,170			4,282

Total deferred tax assets		180,810			135,046
Less: Valuation allowance		(180,810	)		(135,046	)

Net deferred tax assets	$	—		$	—

Due to uncertainties surrounding the realization of deferred tax assets through future taxable income, we have provided a full valuation allowance and, therefore, have not recognized any benefits from net operating losses and other deferred tax assets. The valuation allowance increased $45.8 million, $61.0 million and $37.7 million during the years ended December 31, 2011, 2010 and 2009, respectively.

Recognition of deferred tax assets is appropriate when realization of such assets is more likely than not. Based upon the weight of available evidence, we believe it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, we have provided a full valuation allowance against our net deferred tax assets as of December 31, 2011.

As of December 31, 2011, we had federal and state net operating loss carryforwards of approximately $391.8 million and $375.2 million, respectively, available to reduce future taxable income, if any.

The federal net operating loss carryforward begins expiring in 2024, and the state net operating loss carryforward begins expiring in 2014.

We also had federal and California state research and development credit carryforwards of approximately $15.3 million and $15.7 million, respectively, as of December 31, 2011. The federal research and development credits begin expiring in 2024 if not utilized. The California tax research and development credits can be carried forward indefinitely.

Tax attributes related to stock option windfall deductions are not recorded until they result in a reduction of cash tax payable. Our federal and state net operating losses from windfall deductions were excluded from our deferred tax asset balance as of December 31, 2011. The benefit of the federal and state net operating loss deferred tax assets of $3.2 million and $0.5 million, respectively, will be recorded to additional paid-in capital when they reduce cash tax payable.

The Tax Reform Act of 1986 limits the use of net operating loss and tax credit carryforwards in certain situations where equity transactions result in a change of ownership as defined by Internal Revenue Code Section 382. In the event we experience an ownership change, utilization of our United States net operating loss and tax credit carryforwards could be limited.

As of December 31, 2011, our total unrecognized tax benefit was $9.3 million, of which none of the tax benefit, if recognized, would affect the effective income tax rate due to the valuation allowance that currently offsets deferred tax assets. We do not anticipate the total amount of unrecognized income tax benefits to significantly increase or decrease in the next 12 months.

A reconciliation of the beginning and ending unrecognized tax benefit accounts is as follows (in thousands):


Balance as of December 31, 2008	$	1,912
Increase in balance related to tax positions taken in prior year		2,025

Balance as of December 31, 2009		3,937
Increase in balance related to tax positions taken in prior year		198
Increase in balance related to tax positions taken during current year		2,222

Balance as of December 31, 2010		6,357
Increase in balance related to tax positions taken in prior year		832
Increase in balance related to tax positions taken during current year		2,098

Balance as of December 31, 2011	$	9,287

Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2011 and 2010, we had no accrued interest or penalties due to our net operating losses available to offset any tax adjustment. We file U.S. federal and various state income tax returns. For U.S. federal and state income tax purposes, the statute of limitation currently remains open for the years ending December 31, 2008 to present and December 31, 2007 to present, respectively. In addition, all of the net operating losses and research and development credit carryforwards that may be utilized in future years may be subject to examination. We are not currently under examination by income tax authorities in any jurisdiction.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Convertible Preferred Stock	12 Months Ended
Convertible Preferred Stock	Dec. 31, 2011
Convertible Preferred Stock [Abstract]
Convertible Preferred Stock	8. Convertible Preferred Stock As of December 31, 2011 and 2010, there were no shares of convertible preferred stock issued or outstanding as all shares of preferred stock converted to shares of common stock upon completion of the IPO in 2010. During June and July 2010, we issued an aggregate of 14.3 million shares of Series F convertible preferred stock at $7.63 per share and received proceeds of $106.1 million, net of issuance costs of $2.9 million, bringing our aggregate preferred stock outstanding at the time of the IPO to 74.4 million shares. Each share of convertible preferred stock converted on a two-for one basis into common stock upon the closing of our IPO declared effective by the SEC on October 26, 2010. Warrants to Purchase Convertible Preferred Stock In connection with loan and security agreements entered into in 2004 and 2006 which have since been fully repaid, we issued 50,569 warrants to purchase convertible preferred stock. The fair value of the warrants was estimated using the Black-Scholes valuation model at the dates of issuance and recorded as debt issuance costs that were amortized to interest expense over the contractual life of 7 years. The fair value of the warrants outstanding was recorded as a liability and revalued each subsequent reporting period with the resulting gains and losses recorded in other expense, net. In accordance with these revaluations, we recorded expense of approximately $0, $100,000 and $84,000 for the years ended December 31, 2011, 2010 and 2009. We continued to adjust the liability for changes in fair value until the completion of our IPO, at which time all unexercised warrants converted into warrants to purchase 25,000 shares of common stock and the liability was reclassified to stockholders equity. At December 31, 2011 warrants to purchase 10,000 shares remain outstanding.

Common Stock	12 Months Ended
Common Stock	Dec. 31, 2011
Common Stock [Abstract]
Common Stock	9. Common Stock Our Certificate of Incorporation, as amended and restated in October 2010 in connection with the closing of our IPO, authorizes us to issue 1,000,000,000 shares of $0.001 par value common stock and 50,000,000 shares of $0.001 par value preferred stock. As of December 31, 2011 and 2010, there were no shares of preferred stock issued or outstanding. Common stockholders are entitled to dividends when and if declared by our board of directors. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote. Early Exercise of Employee Options Stock options granted under the 2005 Stock Plan provide employee option holders the right to exercise unvested options in exchange for restricted common stock. The stock option tables in Note 10 include unvested shares which amounted to none, 169,000 and 59,000 at December 31, 2011, 2010, and 2009, respectively, which are subject to a repurchase right held by us at the original issuance price in the event the optionees' employment is terminated either voluntarily or involuntarily. Generally, this right lapses as to 25% on the first anniversary of the vesting start date and in 36 equal monthly amounts thereafter. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. The restricted shares issued upon early exercise of stock options are legally issued and outstanding. However, these restricted shares are only deemed outstanding for basic earnings per share computation purposes upon the respective repurchase rights lapsing. We treat cash received from employees for the exercise of unvested options as a refundable deposit shown as a liability in our balance sheets. As of December 31, 2011, 2010, and 2009, we included cash received for early exercise of options of none, $0.8 million and $0.2 million, respectively, in accrued liabilities. Amounts from accrued liabilities are transferred into common stock and additional paid-in capital as the shares vest.

Stock Option Plans

12 Months Ended

Dec. 31, 2011

Stock Option Plans [Abstract]

Stock Option Plans

10. Stock Option Plans

As of December 31, 2011, we had two active equity compensation plans, the 2010 Equity Incentive Plan, or 2010 Plan, and the 2010 Outside Director Equity Incentive Plan, or 2010 Director Plan, both of which we adopted upon the effectiveness of our IPO during October 2010. Prior to the adoption of these plans, we granted options pursuant to the 2004 Equity Incentive Plan, through August 2005, and the 2005 Stock Plan, through October 2010. Upon termination of the predecessor plans, the shares available for grant at the time of termination, and shares subsequently returned to the plans upon forfeiture or option termination, were transferred to the successor plan in effect at the time of share return.

2010 Equity Incentive Plan

Stock options granted under the 2010 Plan may be either ISOs or NSOs. ISOs may be granted only to employees. NSOs may be granted to employees, consultants and directors. Stock options under the 2010 Plan may be granted with a term of up to ten years and at prices no less than the fair market value of our common stock on the date of grant. To date, stock options granted generally vest over four years and vest at a rate of 25% upon the first anniversary of the vesting commencement date and 1/48th per month thereafter. As of December 31, 2011 we had reserved 3.7 million shares of common stock for issuance under the 2010 Plan.

We issue new shares of common stock upon exercise of stock options.

2010 Outside Director Equity Incentive Plan

Stock options granted under the 2010 Director Plan provide for the grant of NSOs. Stock options under the 2010 Plan may be granted with a term of up to ten years and at prices no less than the fair market value of our common stock on the date of grant. To date, stock options granted generally vest over one year on a monthly basis or three years at a rate of one-third upon the first anniversary of the vesting commencement date and 1/36th per month thereafter. As of December 31, 2011 we had reserved 500,000 shares of common stock for issuance under the 2010 Director Plan.

2010 Employee Stock Purchase Plan

We adopted the 2010 Employee Stock Purchase Plan, or ESPP, in October 2010 under which 130,000 shares of our common stock have been reserved for issuance as of December 31, 2011. Our ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Each offering period will generally consist of four purchase periods, each purchase period being approximately six months. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. Each offering period will generally end and the shares will be purchased twice yearly on March 1 and September 1. Shares purchased and issued under the ESPP totaled 620,000 shares during 2011 at a weighted average price of $5.47 per share. We estimate the value of the employee stock purchase rights on the date of grant using the Black-Scholes option pricing model.

We issue new shares of common stock upon the purchase of shares under the plan.

Stock Options

The following table summarizes stock option activity for all stock option plans for the year ended December 31, 2011:


				Common Stock Options Outstanding
	Shares available for grant			Number of shares			Exercise price		Weighted average exercise price
Balances, December 31, 2008		976,522			4,959,748		$	0.20 – 6.96	$	3.22

Additional shares reserved		2,705,678
Options granted		(1,786,251	)		1,786,251		$	3.86 – 8.50	$	5.66
Options exercised		—			(89,241	)	$	0.26 – 6.96	$	3.50
Options repurchased		5,177
Options canceled		81,923			(81,923	)	$	1.96 – 6.96	$	5.35

Balances, December 31, 2009		1,983,049			6,574,835		$	0.20 – 8.50	$	3.85

Additional shares reserved		5,500,000
Options granted		(4,139,143	)		4,139,143		$	8.50 – 16.00	$	10.85
Options exercised					(606,963	)	$	0.70 – 10.84	$	2.86
Options canceled		293,642			(293,642	)	$	1.96 – 13.42	$	6.84

Balances, December 31, 2010		3,637,548			9,813,373		$	0.20 – 16.00	$	6.78

Additional shares reserved
Options granted		(3,824,220	)		3,824,220		$	2.61 – 15.98	$	5.91
Options exercised		—			(1,488,930	)	$	0.20 – 10.84	$	2.92
Options repurchased		851			—		$	—	$	—
Options canceled		1,626,970			(1,626,970	)	$	1.96 – 16.00	$	8.95

Balances, December 31, 2011		1,441,149			10,521,693		$	0.20 – 16.00	$	6.69

On January 1, 2012, an additional 2.7 million shares were reserved under the 2010 Plan.

The following table summarizes information with respect to stock options outstanding and exercisable under the plans at December 31, 2011 (dollars in thousands, except per share values):


	Options vested and exercisable
Exercise price	Number outstanding		Weighted average remaining contractual life (Years)		Weighted average exercise price		Number vested		Weighted average exercise price
$ 0.00 – 1.60		440,210		3.70	$	0.60		440,210	$	0.60
$ 1.60 – 2.80		1,219,557		5.28	$	2.13		1,135,013	$	2.11
$ 2.80 – 4.80		3,036,649		9.31	$	3.42		404,066	$	3.86
$ 4.81 – 6.40		818,771		8.44	$	5.80		286,684	$	5.64
$ 6.41 – 8.00		781,686		6.31	$	6.96		593,553	$	6.96
$ 8.01 – 9.60		1,711,502		7.90	$	8.50		906,378	$	8.50
$ 9.61 – 11.20		469,969		8.54	$	10.80		172,623	$	10.84
$11.20 – 12.80		956,099		9.05	$	12.10		129,671	$	12.68
$12.80 – 14.40		719,516		8.83	$	13.69		155,676	$	13.49
$14.41 – 16.00		367,734		8.86	$	15.99		140,287	$	16.00

		10,521,693			$	6.69		4,364,161	$	5.85

The aggregate intrinsic value of the outstanding and vested options presented in the table above totaled $1.8 million and $1.7 million, respectively. The aggregate intrinsic value represents the total pretax intrinsic value (i.e., the difference between $2.80, our closing stock price on the last trading day of our fourth quarter of 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2011. The amount changes based on the fair market value of the Company's common stock.

The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $11.0 million, $6.0 million and $0.3 million, respectively.

Stock-based Compensation

Total stock-based compensation expense for employee stock options and stock purchases under the ESPP consists of the following (in thousands):


	Years Ended December 31,
	2011		2010		2009
Cost of revenue	$	490	$	—	$	—
Research and development		5,882		5,733		2,314
Sales, general and administrative		6,012		3,112		748

Total stock-based compensation expense	$	12,384	$	8,845	$	3,062

Employee Stock-based Compensation

During the years ended December 31, 2011, 2010 and 2009, we granted stock options to purchase 3,824,220, 4,126,393 and 1,712,500 shares of common stock, respectively, to employees with a weighted-average grant date fair value of $3.33, $5.49 and $2.58 per share, respectively. As of December 31, 2011 there was unrecognized compensation costs of $24.9 million related to these stock options. We expect to recognize those costs over a weighted-average period of 3.2 years as of December 31, 2011. Future option grants will increase the amount of compensation expense to be recorded in those future periods.

We estimated the fair value of employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following assumptions:


	Years ended December 31,
	2011	2010	2009
Expected term	6.1 years	6.0 years	5.7 years
Expected volatility	56 - 65%	46 - 55%	46 - 48%
Risk-free interest rate	1.2 -2.6%	1.6 -2.7%	1.8 -3.0%
Dividend yield	—	—	—

Expected term — Expected term represents the period that our stock-based awards are expected to be outstanding. Our assumptions about the expected term have been on our historic cancellation and exercise experience and trends as well as our expectations for future periods.

Expected volatility — We do not have sufficient trading history to use the volatility of our own common stock for establishing expected volatility. Therefore, we base our expected volatility on the stock volatilities of certain publicly listed peer companies.

Risk-free interest rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option's expected term.

Dividend yield — We have never paid dividends and do not expect to pay dividends for the foreseeable future.

Fair value of common stock — The fair values of the common stock underlying stock options granted through September 2010 were estimated by our board of directors, which intended all options granted to be exercisable at a price per share not less than the per share fair value of our common stock underlying those options on the date of grant. The fair value of the shares of common stock underlying the stock options has historically been the responsibility of and determined by our board of directors. Because there has been no public market for our common stock, our board of directors has determined fair value of the common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third-party valuations of our common stock, sales of convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, amongst other factors. The fair value of the underlying common stock shall be determined by our board of directors until such time as our common stock is listed on an established stock exchange or national market system.

Our common stock became publicly listed upon our IPO at which time options granted are issued at a price equal to the closing price on the date of grant.

Forfeiture rate — We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from that estimated, we may be required to record adjustments to stock-based compensation expense in future periods.

Each of the inputs discussed above is subjective and generally requires significant management assumptions and estimates to determine and use of different assumptions or estimates could result in materially different results.

Stock-based Compensation Associated with Junior Preferred Stock

In connection with our equity restructuring in 2005 in which all authorized and issued shares of common stock were converted into shares of junior preferred stock, all outstanding options to purchase common stock were converted into options to purchase junior preferred stock. We recorded deferred stock-based compensation of $5.6 million in connection with the exchange of common stock options for junior preferred stock options which was fully amortized during 2009 as all the options became fully vested. As a result of a repricing which occurred in 2005, we applied variable accounting to the junior preferred stock options resulting in additional stock-based compensation of $0.0 million, $0.8 million and $0.5 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Options Granted to Non-employees

During the years ended December 31, 2011, 2010 and 2009 we granted options to purchase 60,000, 12,750 and 73,750 shares of common stock, respectively, to non-employees at exercise prices ranging from $3.30 to $13.50 per share.

Stock-based compensation expense will fluctuate as the estimated fair value of the common stock fluctuates over the vesting period. In connection with the grant of stock options to non-employees, we recognized stock-based compensation expense of $0.2 million, $1.0 million and $0.4 million, for the years ended December 31, 2011, 2010 and 2009, respectively.

Stock-based compensation expense related to stock options granted to non-employees is recognized as the stock options are earned. We believe that the estimated fair value of the stock options is more readily measurable than the fair value of the services rendered. The fair value of the stock options granted to non-employees is calculated at each reporting date using the Black-Scholes option pricing model using the following assumptions:


	Years ended December 31,
	2011	2010	2009
Contractual life	10 years	10 years	10 years
Expected volatility	56% -65%	60% -75%	75%
Risk-free interest rate	1.7 –3.5%	3.3 –3.9%	2.8 –3.7%
Dividend yield	—	—	—

Shares Reserved for Future Issuance

As of December 31, 2011 and 2010 we had reserved shares of Common Stock for issuance as follows (in thousands):


	December 31, 2011		December 31, 2010
Exercise of Options		11,963		13,451
Exercise of warrants		10		10

		11,973		13,461

Employee Benefit And Employee Stock Purchase Plan

12 Months Ended

Dec. 31, 2011

Employee Benefit And Employee Stock Purchase Plan [Abstract]

Employee Benefit And Employee Stock Purchase Plan

11. Employee Benefit and Employee Stock Purchase Plan

Retirement Plans

We maintain a 401(k) Plan to provide tax deferred salary deductions for all eligible employees. Participants may make voluntary contributions to the 401(k) Plan up to 90% of their eligible compensation, limited by certain Internal Revenue Service restrictions. We do not match employee contributions.

Employee Stock Purchase Plan

Upon the effectiveness of our IPO in October 2010, we adopted the 2010 Employee Stock Purchase Plan, or ESPP. We reserved a total of 750,000 shares of common stock for issuance under the ESPP. We issue new shares of common stock upon the purchase of the option. Our ESPP permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Each offering period will generally consist of four purchase periods, each purchase period being approximately six months. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or at the end of a purchase period. For the years ended December 31, 2011 and 2010, 620,424 and no shares of common stock were purchased under the Plan, respectively.

Under the ESPP, rights to purchase shares are generally granted during the first and third quarter of each year. The fair value of rights granted under the ESPP was estimated at the date of grant using the Black-Scholes option-pricing model. The estimated weighted average value of rights granted under the Employee Stock Purchase Plan during 2011 and 2010 was $3.54 and $6.34, respectively. The fair value of rights granted during 2011 and 2010 were estimated at the date of grant using the following weighted-average assumptions:


	December 31, 2011	December 31, 2010
Expected term	0.5 - 2.0 years	1.3 years
Expected volatility	60 - 85%	55%
Risk-free interest rate	0.1 - 0.4%	0.3%
Expected Dividend yield	—	—

Expected term — Expected term represents the period that awards are expected to be outstanding and correlate to the respective offering periods of the rights granted.

Expected volatility — The expected volatility was based on the historical stock volatilities of several publicly listed comparable companies over a period equal to the expected terms of the options, as we do not have any trading history to use the volatility of our own common stock.

Expected dividend yield — We have never paid dividends and do not expect to pay dividends.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Net Loss Per Share

12 Months Ended

Dec. 31, 2011

Net Loss Per Share [Abstract]

Net Loss Per Share

12. Net Loss Per Share

We calculate basic net loss per share by dividing the net loss by the weighted-average number of unrestricted common shares outstanding for the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of unrestricted common shares and potentially dilutive securities outstanding for the period, determined using the treasury-stock method and the as if converted method. For purposes of this calculation, convertible preferred stock, stock options and common stock subject to repurchase, and warrants are considered to be potentially dilutive securities and are only included in the calculation of diluted net loss per share when their effect is dilutive.

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share values):


	Years Ended December 31,
	2011			2010			2009
Net loss per share:
Numerator
Net loss	$	(109,388	)	$	(140,166	)	$	(87,703	)

Denominator:
Weighted average shares of common stock outstanding		53,874			10,024			602
Less: Shares of common stock subject to repurchase		—			(86	)		(95	)

Weighted average shares used in computation of basic and diluted net loss per share		53,874			9,938			507

Basic and diluted net loss per share	$	(2.03	)	$	(14.10	)	$	(173.03	)

The following convertible preferred stock, options outstanding, common stock subject to repurchase, and warrants to purchase common stock were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:


	Years Ended December 31, (in thousands)
	2011		2010		2009
Convertible Preferred Stock (on an as if converted basis)		—		—		30,051
Options outstanding		10,522		9,813		6,575
Common Stock subject to repurchase		—		169		59
Warrants to purchase Common Stock		10		10		25

Restructuring

12 Months Ended

Dec. 31, 2011

Restructuring [Abstract]

Restructuring

13. Restructuring

During September 2011, we implemented a workforce reduction of approximately 130 employees, or 28% of our workforce. The actions taken were in consideration of uncertainties associated with the economic environment and to position us for long-term success. The costs associated with this restructuring consist of termination benefits of approximately $4.9 million, of which $3.5 million is included in research and development expense and $1.4 million is included in sales, general and administrative expense for the year ended December 31, 2011.

A summary of the Company's accrued restructuring expense and accrued restructuring liability as of December 31, 2011 is as follows (in thousands):


	Expense for Year Ended December 31, 2011		Balance January 1, 2011		Accrued		Paid			Balance December 31, 2011
Salaries and benefits	$	4,592	$	—	$	4,592	$	(4,426	)	$	166
Administrative		347		—		347		(347	)		—

Total Restructuring	$	4,939	$	—	$	4,939	$	(4,773	)	$	166

With respect to our workforce reduction, we do not expect to incur further restructuring charges. We expect the termination benefits to be paid during the first quarter of 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Segment Information	12 Months Ended
Segment Information	Dec. 31, 2011
Segment Information [Abstract]
Segment Information	14. Segment Information The Company is organized as, and operates in, one reportable segment: the development, manufacturing and marketing of an integrated platform for genetic analysis. The Company's chief operating decision-maker is its Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of evaluating financial performance and allocating resources, accompanied by information about revenue by geographic regions. The Company's assets are primarily located in the United States of America and not allocated to any specific region and it does not measure the performance of its geographic regions based upon asset-based metrics. Therefore, geographic information is presented only for revenue. Revenue by geographic region is based on the ship to address on the customer order. Revenue in 2011 from the United States of America, Europe and Asia was $27.6 million, $5.1 million and $1.2 million, respectively, for a total of $33.9 million. Revenue for 2010 and 2009 of $1.7 million and $0.1 million, respectively, was based in the United States of America.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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+ Details

Subsequent Event	12 Months Ended
Subsequent Event	Dec. 31, 2011
Subsequent Event [Abstract]
Subsequent Event	15. Subsequent Event On January 5, 2012, Hugh Martin resigned from his positions as the President and Chief Executive Officer of the Company effective immediately. Mr. Martin will remain as a director on the Board of Directors of the Company (the "Board") until the Company's 2012 annual meeting of stockholders and has agreed to resign from the Board effective as of the date of such meeting. On January 5, 2012, the Board appointed Dr. Michael Hunkapiller as the Company's President and Chief Executive Officer effective immediately. Dr. Hunkapiller will also continue in his position as the Executive Chairman of the Board, to which he was appointed during October 2011.

Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data [Abstract]

Quarterly Financial Data

16. Quarterly Financial Data (unaudited)

The following table summarizes the unaudited quarterly financial data for the last two fiscal years.


	Fiscal 2011 Quarter Ended
(In thousands, except per share data)	March 31,			June 30,			September 30,			December 31,
Total revenue	$	270		$	10,630		$	10,519		$	12,444
Total gross profit		270			7,899			3,328			1,537
Total operating expenses		35,237			30,562			32,765			24,226
Loss from operations		(34,967	)		(22,663	)		(29,437	)		(22,689	)
Net loss		(34,809	)		(22,475	)		(29,281	)		(22,823	)
Basic and diluted net loss per share of Common Stock	$	(0.66	)	$	(0.42	)	$	(0.54	)	$	(0.42	)

	Fiscal 2010 Quarter Ended
	March 31,			June 30,			September 30,			December 31,
Total operating expenses	$	30,819		$	33,304		$	40,916		$	36,869
Loss from operations		(30,274	)		(32,675	)		(40,696	)		(36,589	)
Net loss		(30,325	)		(32,714	)		(40,708	)		(36,419	)
Basic and diluted net loss per share of Common Stock	$	(48.97	)	$	(49.76	)	$	(39.70	)	$	(0.97	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details