MENLO PARK, Calif., Oct. 22, 2015 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ:PACB) today announced financial results for its third quarter ended September 30, 2015.
Revenue for the third quarter of 2015 totaled $13.9 million, compared to $20.6 million for the third quarter of 2014. Third quarter 2015 revenue includes product and service revenue of $10.3 million and $3.6 million of contractual revenue, while third quarter 2014 revenue includes product and service revenue of $8.9 million and $11.7 million of contractual revenue. Third quarter 2015 contractual revenue reflects $3.6 million of quarterly amortization of the upfront Roche payment while third quarter 2014 contractual revenue includes $10.0 million of milestone revenue and $1.7 million of quarterly amortization of the upfront Roche payment.
Gross profit for the third quarter of 2015 was $6.6 million, resulting in a gross margin of 47.1%, compared to gross profit of $13.2 million and a gross margin of 63.8% for the third quarter of 2014.
Operating expenses totaled $3.9 million for the third quarter of 2015, which consisted of aggregate expenses of $26.9 million offset by a one-time gain on lease amendments of $23.0 million, compared to the operating expenses of $21.6 million for the third quarter of 2014. Operating expenses for the third quarters of 2015 and 2014 included non-cash stock-based compensation of $2.9 million and $2.2 million, respectively.
Net income for the third quarter of 2015 was $1.8 million primarily driven by the one-time gain on lease amendments of $23.0 milion, compared to a net loss of $9.2 million for the third quarter of 2014. Net income per share for both basic and diluted for the third quarter of 2015 was $0.02 per share as compared to net loss per share for the third quarter of 2014 of $0.13 per share.
Cash and investments at September 30, 2015 totaled $58.9 million, compared to $101.3 million at December 31, 2014.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its third 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. The Sequel 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 payments from our landlord in return for our agreement to amend our current leases, 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 | Nine-month Periods Ended | ||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Product revenue | $ | 7,570 | $ | 6,762 | $ | 27,703 | $ | 22,376 | |||||||||||
| Service and other revenue | 2,751 | 2,165 | 8,010 | 6,226 | |||||||||||||||
| Contractual revenue | 3,596 | 11,696 | 20,788 | 15,088 | |||||||||||||||
| Total revenue | 13,917 | 20,623 | 56,501 | 43,690 | |||||||||||||||
| Cost of Revenue: | |||||||||||||||||||
| Cost of product revenue | 5,119 | 5,608 | 23,289 | 19,048 | |||||||||||||||
| Cost of service and other revenue | 2,247 | 1,853 | 6,228 | 5,678 | |||||||||||||||
| Total cost of revenue | 7,366 | 7,461 | 29,517 | 24,726 | |||||||||||||||
| Gross profit | 6,551 | 13,162 | 26,984 | 18,964 | |||||||||||||||
| Operating Expense: | |||||||||||||||||||
| Research and development | 16,162 | 11,693 | 45,688 | 35,899 | |||||||||||||||
| Sales, general and administrative | 10,818 | 9,882 | 32,411 | 28,025 | |||||||||||||||
| Gain on lease amendments | (23,043 | ) | — | (23,043 | ) | — | |||||||||||||
| Total operating expense | 3,937 | 21,575 | 55,056 | 63,924 | |||||||||||||||
| Operating income (loss) | 2,614 | (8,413 | ) | (28,072 | ) | (44,960 | ) | ||||||||||||
| Interest expense | (741 | ) | (716 | ) | (2,153 | ) | (2,103 | ) | |||||||||||
| Other expense, net | (52 | ) | (34 | ) | (62 | ) | (122 | ) | |||||||||||
| Net income (loss) | $ | 1,821 | $ | (9,163 | ) | $ | (30,287 | ) | $ | (47,185 | ) | ||||||||
| Net income (loss) per share: | |||||||||||||||||||
| Basic | $ | 0.02 | $ | (0.13 | ) | $ | (0.41 | ) | $ | (0.68 | ) | ||||||||
| Diluted | $ | 0.02 | $ | (0.13 | ) | $ | (0.41 | ) | $ | (0.68 | ) | ||||||||
| Weighted average shares outstanding used in calculating net income (loss) per share | |||||||||||||||||||
| Basic | 75,205 | 70,740 | 74,699 | 69,716 | |||||||||||||||
| Diluted | 80,176 | 70,740 | 74,699 | 69,716 | |||||||||||||||
| Pacific Biosciences of California, Inc. | |||||
| Unaudited Condensed Consolidated Balance Sheets | |||||
| (amounts in thousands) | |||||
| September 30, | December 31, | ||||
| 2015 | 2014 | ||||
| Assets | |||||
| Cash and investments | $ | 58,909 | $ | 101,348 | |
| Accounts receivable | 4,164 | 3,406 | |||
| Inventory | 11,621 | 11,335 | |||
| Prepaid and other current assets | 11,513 | 1,671 | |||
| Property and equipment | 7,855 | 6,601 | |||
| Other long-term Assets | 5,715 | 162 | |||
| Total Assets | $ | 99,777 | $ | 124,523 | |
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $ | 6,097 | $ | 5,608 | |
| Accrued expenses | 11,342 | 11,441 | |||
| Deferred service revenue | 7,553 | 7,250 | |||
| Deferred contractual revenue | 15,732 | 26,520 | |||
| Other liabilities | 1,950 | 3,687 | |||
| Financing derivative | 925 | 944 | |||
| Notes payable | 14,808 | 14,124 | |||
| Stockholders' equity | 41,370 | 54,949 | |||
| Total Liabilities and Stockholders' Equity | $ | 99,777 | $ | 124,523 | |