MENLO PARK, Calif., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its third quarter ended September 30, 2016.
Revenue for the third quarter of 2016 totaled $25.1 million, up 80% compared to $13.9 million for the third quarter of 2015. Product and service revenue for the third quarter of 2016 increased by 109% to $21.5 million, compared to $10.3 million for the third quarter of 2015. Revenue for the third quarter of each of 2016 and 2015 reflected $3.6 million of amortization of the upfront payment pursuant to the Company’s development, commercialization and license agreement with F. Hoffman-La Roche Ltd.
Gross profit for the third quarter of 2016 was $12.6 million, resulting in a gross margin of 50.3%, an increase of $6.1 million compared to gross profit of $6.6 million and a gross margin of 47.1% for the third quarter of 2015. The growth in gross profit and margin was primarily driven by higher margin sales of the Company’s SequelTM System, which was launched in the fourth quarter of 2015.
Operating expenses for the third quarter of 2016 totaled $29.4 million, compared to $3.9 million for the third quarter of 2015. Operating expenses of $3.9 million for the third quarter of 2015 included aggregate expenses of $26.9 million offset by a one-time gain on lease amendments of $23.0 million. Operating expenses for the third quarters of 2016 and 2015 included non-cash stock-based compensation of $4.5 million and $2.9 million, respectively.
Net loss for the third quarter of 2016 was $17.5 million and net loss per share for the third quarter of 2016 was $0.19 per share. Net income for the third quarter of 2015 was $1.8 million and net income per share for the third quarter of 2015 was $0.02 per share, primarily driven by a one-time gain on lease amendments of $23.0 million.
Cash and investments at September 30, 2016 totaled $87.3 million, compared to $82.3 million at December 31, 2015.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its third quarter 2016 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 sequencing systems to help scientists resolve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT®) Technology, Pacific Biosciences’ products enable: de novo genome assembly to finish genomes in order to more fully identify, annotate and decipher genomic structures; full-length transcript analysis to improve annotations in reference genomes, characterize alternatively spliced isoforms in important gene families, and find novel genes; targeted sequencing to more comprehensively characterize genetic variations; and real-time kinetic information for epigenome characterization. Pacific Biosciences’ technology provides high accuracy, ultra-long reads, uniform coverage, and is the only DNA sequencing technology that provides the ability to simultaneously detect epigenetic changes. PacBio® sequencing systems, including consumables and software, provide a simple, fast, end-to-end workflow for SMRT Sequencing. More information is available at www.pacb.com
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to the timeline for Pacific Biosciences’ potential development of products, including for Roche, future uses, quality or performance of, or benefits of using, products or technologies and other future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, changes in circumstances and other factors that are, in some cases, beyond Pacific Biosciences’ control and could cause actual results to differ materially from the information expressed or implied by forward-looking statements made in this press release. Factors that could materially affect actual results can be found in Pacific Biosciences’ most recent filings with the Securities and Exchange Commission, including Pacific Biosciences’ most recent reports on Forms 8-K, 10-K and 10-Q, and include those listed under the caption “Risk Factors.” Pacific Biosciences undertakes no obligation to revise or update information in this press release to reflect events or circumstances in the future, even if new information becomes available.
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
| Three-month Periods Ended September 30, | Nine -month Periods Ended September 30, | |||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Product revenue | $ | 18,050 | $ | 7,570 | $ | 44,016 | $ | 27,703 | ||||||||||||
| Service and other revenue | 3,472 | 2,751 | 10,188 | 8,010 | ||||||||||||||||
| Contractual revenue | 3,596 | 3,596 | 10,788 | 20,788 | ||||||||||||||||
| Total revenue | 25,118 | 13,917 | 64,992 | 56,501 | ||||||||||||||||
| Cost of Revenue: | ||||||||||||||||||||
| Cost of product revenue | 9,273 | 5,119 | 23,268 | 23,289 | ||||||||||||||||
| Cost of service and other revenue | 3,207 | 2,247 | 8,938 | 6,228 | ||||||||||||||||
| Total cost of revenue | 12,480 | 7,366 | 32,206 | 29,517 | ||||||||||||||||
| Gross profit | 12,638 | 6,551 | 32,786 | 26,984 | ||||||||||||||||
| Operating Expense: | ||||||||||||||||||||
| Research and development | 17,479 | 16,162 | 51,362 | 45,688 | ||||||||||||||||
| Sales, general and administrative | 11,894 | 10,818 | 34,794 | 32,411 | ||||||||||||||||
| Gain on lease amendments | — | (23,043 | ) | — | (23,043 | ) | ||||||||||||||
| Total operating expense | 29,373 | 3,937 | 86,156 | 55,056 | ||||||||||||||||
| Operating income (loss) | (16,735 | ) | 2,614 | (53,370 | ) | (28,072 | ) | |||||||||||||
| Interest expense | (821 | ) | (741 | ) | (2,395 | ) | (2,153 | ) | ||||||||||||
| Other income (expense), net | 62 | (52 | ) | 420 | (62 | ) | ||||||||||||||
| Net income (loss) | $ | (17,494 | ) | $ | 1,821 | $ | (55,345 | ) | $ | (30,287 | ) | |||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | $ | (0.19 | ) | $ | 0.02 | $ | (0.63 | ) | $ | (0.41 | ) | |||||||||
| Diluted | $ | (0.19 | ) | $ | 0.02 | $ | (0.63 | ) | $ | (0.41 | ) | |||||||||
| Weighted average shares outstanding used in calculating net income (loss) per share | ||||||||||||||||||||
| Basic | 92,110 | 75,205 | 87,969 | 74,699 | ||||||||||||||||
| Diluted | 92,110 | 80,479 | 87,969 | 74,699 | ||||||||||||||||
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
| September 30, | December 31, | ||||
| 2016 | 2015 | ||||
| Assets | |||||
| Cash and investments | $ | 87,333 | $ | 82,270 | |
| Accounts receivable | 11,761 | 5,245 | |||
| Inventory | 16,473 | 10,955 | |||
| Prepaid and other current assets | 6,900 | 12,071 | |||
| Property and equipment | 14,003 | 8,548 | |||
| Long-term restricted cash | 4,500 | 4,500 | |||
| Other long-term Assets | 9,665 | 7,518 | |||
| Total Assets | $ | 150,635 | $ | 131,107 | |
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $ | 8,311 | $ | 4,749 | |
| Accrued expenses | 16,482 | 15,551 | |||
| Deferred service revenue | 7,456 | 7,958 | |||
| Deferred contractual revenue | 1,347 | 12,134 | |||
| Other liabilities | 2,347 | 1,627 | |||
| Financing derivative | 218 | 600 | |||
| Notes payable | 15,794 | 14,948 | |||
| Stockholders' equity | 98,680 | 73,540 | |||
| Total Liabilities and Stockholders' Equity | $ | 150,635 | $ | 131,107 | |