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)
October 23, 2014
Pacific Biosciences of California, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-34899 |
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16-1590339 |
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(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02.Results of Operations and Financial Condition.
On October 23, 2014, Pacific Biosciences of California, Inc. reported its financial results for its third fiscal quarter ended September 30, 2014. A copy of the press release containing the announcement is included as Exhibit 99.1 and is incorporated herein by reference.
This information, as well as Exhibit 99.1, is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
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ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS. |
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(d) |
Exhibits. |
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99.1 |
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Press Release dated October 23, 2014 titled “Pacific Biosciences Reports Third Quarter 2014 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Pacific Biosciences of California, Inc. |
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By: |
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/s/ Brian B. Dow |
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Brian B. Dow Vice President and Principal Accounting Officer |
Date: October 23, 2014
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Press Release dated October 23, 2014 titled “Pacific Biosciences Reports Third Quarter 2014 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). |
Pacific Biosciences Reports Third Quarter 2014 Financial Results
Menlo Park, Calif. – October 23, 2014 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today reported a 178% increase in revenue to $20.6 million for the third quarter ended September 30, 2014, compared to $7.4 million for the third quarter of 2013. Third quarter 2014 revenue included the achievement of the $10.0 million milestone related to Roche along with the $1.7 million quarterly amortization from the upfront Roche payment in addition to the delivery of six PacBio® RS II systems. Third quarter 2013 revenue reflected the delivery of six systems and did not include any Roche related revenue. The Company also reported booking orders for 16 PacBio RS II instruments during the period, ending the quarter with 20 instruments in backlog.
Gross profit increased $12.0 million to $13.2 million for the quarter, resulting in a gross margin of 63.8%, compared to gross profit of $1.2 million and a gross margin of 16.7% for the third quarter of 2013. Gross margin increased due to an increase in Roche contractual revenue.
Operating expenses totaled $21.6 million for the quarter, compared to $21.2 million for the third quarter of 2013. Operating expenses for the third quarters of 2014 and 2013 included non-cash stock-based compensation of $2.2 million and $2.1 million, respectively.
The net loss for the quarter was $9.2 million, compared to $20.5 million for the third quarter of 2013.
Cash and investments at September 30, 2014 totaled $99.3 million, compared to $112.5 million at December 31, 2013.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its third quarter 2014 results today at 4:30 p.m. Eastern Time. Investors may listen to the call by dialing 1.888.366.7247, or if outside the U.S., by dialing +1.707.287.9330. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at http://investor.pacificbiosciences.com/.
About Pacific Biosciences
Pacific Biosciences of California, Inc. (NASDAQ: PACB) offers the PacBio® RS II Sequencing System to help scientists solve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) Sequencing technology, the company's products enable: targeted sequencing to more comprehensively characterize genetic variations; de novo genome assembly to more fully identify, annotate and decipher genomic structures; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. By providing access to information that was previously inaccessible, Pacific Biosciences enables scientists to increase their understanding of biological systems.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to them. The Company’s actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the risks faced by us and described in the Company’s most recently filed Quarterly Report on Form 10-Q, Annual Report on Form 10-K, or the Company’s other filings with the SEC, as the case may be. You should not place undue reliance on forward-looking statements, which apply only as of the date of this press release. The Company assumes no obligation to update these forward-looking statements.
Contact:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
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Three-Month Periods Ended |
Nine-Month Periods Ended |
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September 30, |
September 30, |
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2014 |
2013 |
2014 |
2013 |
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Revenue: |
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Product revenue |
$ |
6,762 |
$ |
5,814 |
$ |
22,376 |
$ |
14,248 | ||||
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Service and other revenue |
2,165 | 1,607 | 6,226 | 4,800 | ||||||||
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Contractual revenue |
11,696 |
— |
15,088 |
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Total revenue |
20,623 | 7,421 | 43,690 | 19,048 | ||||||||
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Cost of Revenue: |
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Cost of product revenue |
5,608 | 4,616 | 19,048 | 11,138 | ||||||||
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Cost of service and other revenue |
1,853 | 1,564 | 5,678 | 4,680 | ||||||||
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Total cost of revenue |
7,461 | 6,180 | 24,726 | 15,818 | ||||||||
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Gross profit |
13,162 | 1,241 | 18,964 | 3,230 | ||||||||
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Operating Expense: |
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Research and development |
11,693 | 10,419 | 35,899 | 34,084 | ||||||||
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Sales, general and administrative |
9,882 | 10,757 | 28,025 | 29,685 | ||||||||
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Total operating expense |
21,575 | 21,176 | 63,924 | 63,769 | ||||||||
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Operating loss |
(8,413) | (19,935) | (44,960) | (60,539) | ||||||||
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Interest expense |
(716) | (686) | (2,103) | (1,785) | ||||||||
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Other income (expense), net |
(34) | 134 | (122) | 262 | ||||||||
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Net loss |
$ |
(9,163) |
$ |
(20,487) |
$ |
(47,185) |
$ |
(62,062) | ||||
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Basic and diluted net loss per share |
$ |
(0.13) |
$ |
(0.31) |
$ |
(0.68) |
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(1.01) | ||||
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Shares used in computing basic and diluted net loss per share |
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70,740 |
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65,523 |
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69,716 |
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61,636 |
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
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September 30, |
December 31, |
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2014 |
2013 |
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Assets |
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Cash and investments |
$ |
99,312 |
$ |
112,528 | |
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Accounts receivable |
2,370 | 2,746 | |||
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Inventory |
11,398 | 10,050 | |||
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Prepaid and other current assets |
1,057 | 1,135 | |||
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Property and equipment |
7,034 | 9,236 | |||
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Other long-term Assets |
471 | 490 | |||
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Total Assets |
$ |
121,642 |
$ |
136,185 | |
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Liabilities and Stockholders' Equity |
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Accounts payable |
$ |
5,845 |
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1,717 | |
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Accrued expenses |
8,726 | 7,905 | |||
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Deferred service revenue |
6,225 | 4,564 | |||
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Deferred contractual revenue |
28,216 | 33,304 | |||
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Other liabilities |
4,982 | 5,619 | |||
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Financing derivative |
699 | 549 | |||
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Notes payable |
13,914 | 13,347 | |||
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Stockholders' equity |
53,035 | 69,180 | |||
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Total Liabilities and Stockholders' Equity |
$ |
121,642 |
$ |
136,185 | |