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MENLO PARK, Calif., Feb. 03, 2016 -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its fourth quarter ended December 31, 2015.
Revenue for the fourth quarter of 2015 increased 115% to $36.3 million, compared to $16.9 million for the fourth quarter of 2014. Fourth quarter 2015 revenue includes product and service revenue of $12.7 million and $23.6 million of contractual revenue, while fourth quarter 2014 revenue includes product and service revenue of $15.2 million and $1.7 million of contractual revenue. Fourth quarter 2015 contractual revenue includes a $20.0 million milestone from Roche and $3.6 million of quarterly amortization of the upfront Roche payment, while fourth quarter 2014 contractual revenue reflects $1.7 million of quarterly amortization of the upfront Roche payment.
Gross profit increased $22.1 million to $26.5 million for the fourth quarter of 2015, resulting in a gross margin of 72.9%, compared to gross profit of $4.4 million and a gross margin of 26.3% for the fourth quarter of 2014. The growth in gross profit and margin was primarily driven by an additional $21.9 million of contractual revenue from Roche, which has a gross margin of 100%.
Operating expenses totaled $27.5 million for the fourth quarter of 2015, compared to $22.3 million for the fourth quarter of 2014. Operating expenses for the fourth quarters of 2015 and 2014 included non-cash stock-based compensation of $3.6 million and $2.7 million, respectively.
The net loss for the fourth quarter of 2015 was $1.4 million, compared to $19.0 million for the fourth quarter of 2014.
Cash, cash equivalents and investments, excluding restricted cash at December 31, 2015 totaled $82.3 million, compared to $101.3 million at December 31, 2014.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its fourth 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 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 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. 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 for Roche, the attributes of the Sequel System 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 | Twelve-month Periods Ended | |||||||||||||||||||||||||
| | December 31, | December 31, | |||||||||||||||||||||||||
| | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||
| Product revenue | $ | 9,799 | $ | 12,923 | $ | 37,502 | $ | 35,299 | |||||||||||||||||||
| Service and other revenue | 2,886 | 2,285 | 10,896 | 8,511 | |||||||||||||||||||||||
| Contractual revenue | 23,596 | 1,696 | 44,384 | 16,784 | |||||||||||||||||||||||
| Total revenue | 36,281 | 16,904 | 92,782 | 60,594 | |||||||||||||||||||||||
| Cost of Revenue: | |||||||||||||||||||||||||||
| Cost of product revenue | 7,415 | 10,578 | 30,704 | 29,626 | |||||||||||||||||||||||
| Cost of service and other revenue | 2,400 | 1,888 | 8,628 | 7,566 | |||||||||||||||||||||||
| Total cost of revenue | 9,815 | 12,466 | 39,332 | 37,192 | |||||||||||||||||||||||
| Gross profit | 26,466 | 4,438 | 53,450 | 23,402 | |||||||||||||||||||||||
| Operating Expense: | |||||||||||||||||||||||||||
| Research and development | 14,752 | 12,331 | 60,440 | 48,230 | |||||||||||||||||||||||
| Sales, general and administrative | 12,776 | 10,001 | 45,187 | 38,026 | |||||||||||||||||||||||
| Gain on lease amendments | — | — | (23,043 | ) | — | ||||||||||||||||||||||
| Total operating expense | 27,528 | 22,332 | 82,584 | 86,256 | |||||||||||||||||||||||
| Operating loss | (1,062 | ) | (17,894 | ) | (29,134 | ) | (62,854 | ) | |||||||||||||||||||
| Interest expense | (773 | ) | (725 | ) | (2,926 | ) | (2,828 | ) | |||||||||||||||||||
| Other income (expense), net | 426 | (356 | ) | 364 | (478 | ) | |||||||||||||||||||||
| Net loss | $ | (1,409 | ) | $ | (18,975 | ) | $ | (31,696 | ) | $ | (66,160 | ) | |||||||||||||||
| Basic and diluted net loss per share | $ | (0.02 | ) | $ | (0.26 | ) | $ | (0.42 | ) | $ | (0.94 | ) | |||||||||||||||
| Shares used in computing basic and diluted net loss per share | 78,327 | 72,729 | 75,614 | 70,475 | |||||||||||||||||||||||
| Pacific Biosciences of California, Inc. | |||||
| Unaudited Condensed Consolidated Balance Sheets | |||||
| (amounts in thousands) | |||||
| December 31, | December 31, | ||||
| 2015 | 2014 | ||||
| Assets | |||||
| Cash and investments | $ | 82,270 | $ | 101,348 | |
| Accounts receivable | 5,245 | 3,406 | |||
| Inventory | 10,955 | 11,335 | |||
| Prepaid and other current assets | 12,071 | 1,671 | |||
| Property and equipment | 8,548 | 6,601 | |||
| Long-term restricted cash | 4,500 | — | |||
| Other long-term Assets | 7,518 | 29 | |||
| Total Assets | $ | 131,107 | $ | 124,390 | |
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $ | 4,749 | $ | 5,608 | |
| Accrued expenses | 15,551 | 11,441 | |||
| Deferred service revenue | 7,958 | 7,250 | |||
| Deferred contractual revenue | 12,134 | 26,520 | |||
| Other liabilities | 1,627 | 3,687 | |||
| Financing derivative | 600 | 944 | |||
| Notes payable | 14,948 | 13,991 | |||
| Stockholders' equity | 73,540 | 54,949 | |||
| Total Liabilities and Stockholders' Equity | $ | 131,107 | $ | 124,390 | |
Contact: Trevin Rard 650.521.8450 [email protected]
