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)
May 5, 2015
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 May 5, 2015, Pacific Biosciences of California, Inc. announced its financial results for its first fiscal quarter ended March 31, 2015. 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) |
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Exhibits. |
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99.1 |
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Press Release dated May 5, 2015 titled “Pacific Biosciences of California, Inc. Announces First Quarter 2015 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/ Susan K. Barnes |
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Susan K. Barnes Executive Vice President, Chief Financial Officer & Principal Accounting Officer |
Date: May 5, 2015
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 May 5, 2015 titled “Pacific Biosciences of California, Inc. Announces First Quarter 2015 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02). |
Pacific Biosciences of California, Inc. Announces First Quarter 2015 Financial Results
Menlo Park, Calif. – May 5, 2015 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today reported a 52% increase in revenue with $17.6 million for the first quarter ended March 31, 2015, compared to $11.6 million for the first quarter of 2014.
First quarter 2015 revenue includes product and service revenue of $14.0 million and $3.6 million quarterly amortization from the upfront Roche payment, while first quarter 2014 revenue includes product and service revenue of $9.9 million and $1.7 million quarterly amortization from the upfront Roche payment. The revised revenue recognized for the first quarter ended March 31, 2015 reflects the new amortization schedule resulting from increasing certainty of the development time period.
During April 2015 we achieved the second development milestone under the Roche Agreement, as outlined in a separate press release. The achievement of the milestone entitles us to a development milestone payment of $10.0 million and will be recognized as contractual revenue for the quarter ending June 30, 2015. We may receive up to an additional $20.0 million based on additional milestone achievement in the future.
Gross profit increased $3.2 million to $5.9 million for the quarter, resulting in a gross margin of 33.6%, compared to gross profit of $2.7 million and a gross margin of 23.0% for the first quarter of 2014. Higher product and service revenue in the first quarter of 2015, combined with additional $1.9 million Roche revenue at 100% margin, led to the increase in gross profit and gross margin.
Operating expenses totaled $25.3 million for the quarter, compared to $20.9 million for the first quarter of 2014. Operating expenses for the first quarters of 2015 and 2014 included non-cash stock-based compensation of $3.0 million and $2.1 million, respectively.
The net loss for the quarter was $20.2 million, compared to $18.9 million for the first quarter of 2014.
Cash and investments at March 31, 2015 totaled $79.1 million, compared to $101.3 million at December 31, 2014.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its first quarter 2015 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 resolve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) technology, Pacific Biosciences’ products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms in important gene families, and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. Pacific Biosciences’ technology provides the industry’s highest consensus accuracy over the longest read lengths in combination with the ability to detect real-time kinetic information. The PacBio RS II System, including consumables and software, provides a simple, fast, end-to-end workflow for SMRT Sequencing. More information is available at www.pacb.com.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to the timeline for Pacific Biosciences’ potential development of products for Roche, future milestone achievement and other future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in circumstances and other factors that are, in some cases, beyond Pacific Biosciences’ control and could cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Factors that could materially affect actual results can be found in Pacific Biosciences’ most recent filings with the Securities and Exchange Commission, including Pacific Biosciences’ most recent reports on Forms 8-K, 10-K and 10-Q, and include those listed under the caption “Risk Factors.”
Pacific Biosciences undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future, even if new information becomes available.
Contact:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
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Quarter Ended March 31, |
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2015 |
2014 |
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Revenue: |
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Product revenue |
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11,308 |
$ |
7,865 | |
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Service and other revenue |
2,741 | 2,081 | |||
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Contractual revenue |
3,596 | 1,696 | |||
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Total revenue |
17,645 | 11,642 | |||
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Cost of Revenue: |
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Cost of product revenue |
9,732 | 7,169 | |||
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Cost of service and other revenue |
1,986 | 1,797 | |||
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Total cost of revenue |
11,718 | 8,966 | |||
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Gross profit |
5,927 | 2,676 | |||
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Operating Expense: |
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Research and development |
14,483 | 11,771 | |||
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Sales, general and administrative |
10,772 | 9,150 | |||
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Total operating expense |
25,255 | 20,921 | |||
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Operating loss |
(19,328) | (18,245) | |||
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Interest expense |
(697) | (686) | |||
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Other income (expense), net |
(148) | 45 | |||
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Net loss |
$ |
(20,173) |
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(18,886) | |
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Basic and diluted net loss per share |
$ |
(0.27) |
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(0.28) | |
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Shares used in computing basic and diluted net loss per share |
74,149 | 67,861 | |||
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
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March 31, |
December 31, |
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2015 |
2014 |
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Assets |
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Cash and investments |
$ |
79,149 |
$ |
101,348 | |
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Accounts receivable |
5,287 | 3,406 | |||
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Inventory |
13,457 | 11,335 | |||
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Prepaid and other current assets |
1,629 | 1,671 | |||
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Property and equipment |
6,743 | 6,601 | |||
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Other long-term Assets |
156 | 162 | |||
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Total Assets |
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106,421 |
$ |
124,523 | |
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Liabilities and Stockholders' Equity |
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Accounts payable |
$ |
6,924 |
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5,608 | |
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Accrued expenses |
9,438 | 11,441 | |||
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Deferred service revenue |
7,859 | 7,250 | |||
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Deferred contractual revenue |
22,924 | 26,520 | |||
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Other liabilities |
3,602 | 3,687 | |||
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Financing derivative |
863 | 944 | |||
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Notes payable |
14,339 | 14,124 | |||
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Stockholders' equity |
40,472 | 54,949 | |||
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Total Liabilities and Stockholders' Equity |
$ |
106,421 |
$ |
124,523 | |