UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
August 4, 2011
Pacific Biosciences of California, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 001-34899 | 16-1590339 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1380 Willow Road
Menlo Park, California 94025
(Address of principal executive offices, including zip code)
(650) 521-8000
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On August 4, 2011, Pacific Biosciences of California, Inc. announced its financial results for the second quarter ended June 30, 2011. A copy of the press release containing the announcement is included as Exhibit 99.1 and is incorporated herein by reference.
This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
| Exhibit Number |
Description | |
| 99.1 | Press Release dated August 4, 2011 titled “Pacific Biosciences of California Announces Second Quarter Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Pacific Biosciences of California, Inc. | ||||||
| By: | /S/ SUSAN K. BARNES | |||||
| Susan K. Barnes Executive Vice President and Chief Financial Officer | ||||||
Date: August 4, 2011
EXHIBIT INDEX
| Exhibit Number |
Description | |
| 99.1 | Press Release dated August 4, 2011 titled “Pacific Biosciences of California Announces Second Quarter Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). | |
Exhibit 99.1
Pacific Biosciences of California, Inc. Announces
Second Quarter Financial Results
Menlo Park, Calif. – August 4, 2011 – Pacific Biosciences of California, Inc. (Nasdaq: PACB) today announced financial results for the second quarter ended June 30, 2011.
Second Quarter 2011 Financial Results:
During the second quarter of 2011, the Company began recognizing revenue from the initial commercial deliveries of its third generation sequencing platform, the PacBio RS. Revenue for the second quarter of 2011 totaled $10.6 million, reflecting the delivery of 16 commercial PacBio RS instruments to customers, initial revenue from commercial shipments of the Company’s SMRT cell and reagent consumables, as well as revenue derived from instrument service contracts. Net loss decreased to $22.5 million as compared to the $34.8 million loss recognized for the first quarter of 2011.
“The second quarter of 2011 marks a significant milestone as PacBio has now delivered the first third generation sequencing platform to the market,” noted Hugh Martin, the Company’s Chief Executive Officer. “Researchers in North America and Europe are now armed with a technology that will enable insights into genomic research not previously possible.”
Gross profit for the second quarter totaled $7.9 million, resulting in a gross margin of 74%. Gross margin for the quarter was substantially higher than we expect to achieve in the future due to the fact that significant costs associated with the instruments sold during the second quarter were expensed during prior periods. During development, costs relating to instrument components and manufacturing costs were expensed until commercial production started.
Research and development expense during the second quarter of 2011 totaled $19.5 million representing a 19% decrease compared to $24.1 million for the first quarter. The reported expense includes non-cash stock-based compensation totaling $1.5 million and $1.4 million for the second and first quarters of 2011, respectively.
Selling, general, and administrative expense during the second quarter of 2011 of $11.0 million remained consistent with the $11.1 million for the first quarter. The reported expense includes non-cash stock-based compensation totaling $1.3 million and $1.7 million for the second and first quarters of 2011, respectively.
Cash and investments at June 30, 2011 totaled $216.6 million compared to $248.5 million at March 31, 2011.
Second Quarter 2011 Highlights
| • | Commercial shipments of the PacBio RS commenced in April resulting in successful customer installation and upgrades of beta instruments at customer sites. |
| • | We completed a de novo sequencing of the E.coli strain responsible for the recent outbreak in Germany and sequenced 11 related bacterial strains using an early version of chemistry and software in development for the next major product upgrade, planned for the fourth quarter. |
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its Second Quarter 2011 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to the call by dialing 877-415-3182, or if outside the U.S., by dialing +1-857-244-7325, and entering passcode 63187118. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at http://investor.pacificbiosciences.com/.
Forward-Looking Statements
This press release contains forward-looking statements relating to the Company’s operations and operating results, including statements relating to the Company’s plans for product upgrades. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control and that could materially affect actual results. Factors that could materially affect actual results can be found in Pacific Biosciences of California’s recently filed Quarterly Report on Form 10-Q, including those listed under the caption “Risk Factors.” Pacific Biosciences of California expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.
Trevin Rard
650.521.8450
ir@pacificbiosciences.com
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except share and per share amounts)
| Quarters Ended | ||||||||||||
| June 30, 2011 |
March 31, 2011 |
June 30, 2010 |
||||||||||
| Revenue: |
||||||||||||
| Product revenue |
$ | 10,148 | $ | — | $ | — | ||||||
| Service and other revenue |
192 | — | — | |||||||||
| Grant revenue |
290 | 270 | 629 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total revenue |
10,630 | 270 | 629 | |||||||||
|
|
|
|
|
|
|
|||||||
| Cost of revenue: |
||||||||||||
| Cost of product revenue |
2,537 | — | — | |||||||||
| Cost of service and other revenue |
194 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total cost of revenue |
2,731 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Gross profit |
7,899 | 270 | 629 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating expense: |
||||||||||||
| Research and development |
19,546 | 24,118 | 27,082 | |||||||||
| Sales, general and administrative |
11,016 | 11,119 | 6,222 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total operating expense |
30,562 | 35,237 | 33,304 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating loss |
(22,663 | ) | (34,967 | ) | (32,675 | ) | ||||||
| Other income (expense), net |
188 | 158 | (39 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net loss |
$ | (22,475 | ) | $ | (34,809 | ) | $ | (32,714 | ) | |||
|
|
|
|
|
|
|
|||||||
| Basic and diluted net loss per share |
$ | (0.42 | ) | $ | (0.66 | ) | $ | (51.20 | ) | |||
|
|
|
|
|
|
|
|||||||
| Shares used in computing basic and diluted net loss per share |
53,413,565 | 52,756,116 | 639,007 | |||||||||
|
|
|
|
|
|
|
|||||||
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
| Year to Date | ||||||||
| June 30, 2011 |
June 30, 2010 |
|||||||
| Revenue: |
||||||||
| Product revenue |
$ | 10,148 | $ | — | ||||
| Service and other revenue |
192 | — | ||||||
| Grant revenue |
560 | 1,174 | ||||||
|
|
|
|
|
|||||
| Total revenue |
10,900 | 1,174 | ||||||
|
|
|
|
|
|||||
| Cost of revenue: |
||||||||
| Cost of product revenue |
2,537 | — | ||||||
| Cost of service and other revenue |
194 | — | ||||||
|
|
|
|
|
|||||
| Total cost of revenue |
2,731 | — | ||||||
|
|
|
|
|
|||||
| Gross profit |
8,169 | 1,174 | ||||||
|
|
|
|
|
|||||
| Operating expense: |
||||||||
| Research and development |
43,664 | 52,406 | ||||||
| Sales, general and administrative |
22,135 | 11,717 | ||||||
|
|
|
|
|
|||||
| Total operating expense |
65,799 | 64,123 | ||||||
|
|
|
|
|
|||||
| Operating loss |
(57,630 | ) | (62,949 | ) | ||||
| Other income (expense), net |
346 | (90 | ) | |||||
|
|
|
|
|
|||||
| Net loss |
$ | (57,284 | ) | $ | (63,039 | ) | ||
|
|
|
|
|
|||||
| Basic and diluted net loss per share |
$ | (1.08 | ) | $ | (99.58 | ) | ||
|
|
|
|
|
|||||
| Shares used in computing basic and diluted net loss per share |
53,056,745 | 633,019 | ||||||
|
|
|
|
|
|||||
Pacific Biosciences of California, Inc.
Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
| June 30, 2011 |
March 31, 2011 |
December 31, 2010 (1) |
||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Assets |
||||||||||||
| Cash and investments |
$ | 216,588 | $ | 248,548 | $ | 283,674 | ||||||
| Accounts receivable |
5,437 | 59 | 341 | |||||||||
| Inventory |
19,552 | 13,539 | 6,864 | |||||||||
| Prepaid and other current assets |
3,151 | 2,124 | 2,235 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current assets |
244,728 | 264,270 | 293,114 | |||||||||
| Property and equipment |
16,180 | 13,932 | 12,311 | |||||||||
| Other assets |
312 | 356 | 322 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Assets |
$ | 261,220 | $ | 278,558 | $ | 305,747 | ||||||
|
|
|
|
|
|
|
|||||||
| Liabilities and Stockholders’ Equity |
||||||||||||
| Accounts payable |
$ | 9,032 | $ | 9,432 | $ | 9,515 | ||||||
| Deferred revenue |
2,381 | 4,350 | 3,221 | |||||||||
| Accrued and other current liabilities |
10,050 | 10,350 | 8,104 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current liabilities |
21,463 | 24,132 | 20,840 | |||||||||
| Facility financing and deferred rent |
6,431 | 5,755 | 5,041 | |||||||||
| Stockholders’ equity |
233,326 | 248,671 | 279,866 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Liabilities and Stockholders’ Equity |
$ | 261,220 | $ | 278,558 | $ | 305,747 | ||||||
|
|
|
|
|
|
|
|||||||
| Note 1: | The condensed consolidated balance sheet at December 31, 2010 has been derived from the audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010. |