Pacific Biosciences of California, Inc. Announces Third Quarter 2012 Financial Results

Pacific Biosciences of California, Inc. Announces Third Quarter 2012 Financial
Results

MENLO PARK, Calif., Oct. 25, 2012 (GLOBE NEWSWIRE) -- Pacific Biosciences of
California, Inc. (Nasdaq:PACB) today announced financial results for the third
quarter ended September 30, 2012.

During the third quarter of 2012, the Company recognized revenue from SMRT^®
Cell and reagent consumables, instrument service contracts and grants. Revenue
for the third quarter of 2012 totaled $2.8 million compared to revenue of $7.3
million for the second quarter of 2012. Net loss for the quarter was $22.7
million compared to the $22.5 million net loss during the second quarter of
2012.

Gross profit for the third quarter of 2012 totaled $0.2 million, resulting in
a gross margin of 7%, compared to a $0.3 million gross profit for the second
quarter of 2012 and a gross margin of 4%. Gross profit for the third quarter
of 2011 was $3.3 million representing a gross margin of 32%. The gross margin
for the third quarter 2011 reflects the positive margin impact of instrument
components expensed prior to the Company's commercial launch during the second
quarter of 2011.

Operating expenses totaled $22.8 million for both the second and third
quarters of 2012. Operating expenses in the third quarter of 2012 include $2.3
million of non-cash stock-based compensation with $1.2 million and $1.1
million recorded in research and development, and selling, general and
administrative expenses, respectively. Operating expenses in the third quarter
of 2011 were $32.8 million.

Cash and investments at September 30, 2012 totaled $119.4 million compared to
$137.1 million at June 30, 2012.

The Company's system revenue backlog of 5 units as of September 30, 2012
represents an order for one PacBio RS instrument received during the second
quarter of 2012 and four PacBio RS instruments orders received during the
third quarter of 2012.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its third quarter
2012 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to
the call by dialing 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
High Resolution Genetic Analyzer to help scientists solve genetically complex
problems. Based on its novel Single Molecule, Real-Time (SMRT^®) 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 genetic 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 relating to the
Company's operations and operating results, including statements relating to
the Company's revenue. You should not place undue reliance on these
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond the Company's
control and that could materially affect actual results. Factors that could
materially affect actual results can be found in Pacific Biosciences of
California's filings with the Securities and Exchange Commission, including
the most recently filed Quarterly Report on Form 10-Q, including those listed
under the caption "Risk Factors." Pacific Biosciences of California expressly
disclaims any intent or obligation to update these forward-looking statements,
except as required by law.

Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations and Comprehensive Income
(amounts in thousands, except per share amounts)
                                                              
                                      Quarters Ended
                                      September 30, June 30,    September 30,
                                       2012          2012        2011
Revenue:                                                       
Product revenue                        $1,268      $5,827    $9,819
Service and other revenue              1,283         1,284       535
Grant revenue                          225           180         165
Total revenue                          2,776         7,291       10,519
Cost of revenue:                                               
Cost of product revenue                960           5,382       6,546
Cost of service and other revenue      1,626         1,634       645
Total cost of revenue                  2,586         7,016       7,191
Gross profit                          190           275         3,328
Operating expense:                                             
Research and development               12,626        11,272      20,001
Sales, general and administrative      10,143        11,558      12,764
Total operating expense                22,769        22,830      32,765
Operating loss                         (22,579)      (22,555)    (29,437)
Other income (expense), net            (150)         68          156
Net loss                               $(22,729)   $(22,487) $(29,281)
                                                              
Basic and diluted net loss per share   $(0.41)     $(0.40)   $(0.54)
                                                              
Shares used in computing basic and     55,877       55,658      54,283
diluted net loss per share
                                                              
Comprehensive loss                     $(22,738)   $(22,547) $(29,466)


Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations and Comprehensive Income
(amounts in thousands, except per share amounts)
                                                               
                                                  Year to Date
                                                  September 30, September 30,
                                                   2012          2011
Revenue:                                                        
Product revenue                                    $15,810     $19,966
Service and other revenue                          3,620         728
Grant revenue                                      675           725
Total revenue                                      20,105        21,419
Cost of revenue:                                                
Cost of product revenue                            14,949        9,083
Cost of service and other revenue                  4,843         839
Total cost of revenue                              19,792        9,922
Gross profit                                       313           11,497
Operating expense:                                              
Research and development                           35,971        63,665
Sales, general and administrative                  36,986        34,899
Total operating expense                            72,957        98,564
Operating loss                                     (72,644)      (87,067)
Other income (expense), net                        (152)         502
Net loss                                           $(72,796)   $(86,565)
                                                               
Basic and diluted net loss per share               $(1.31)     $(1.62)
                                                               
Shares used in computing basic and diluted net     55,582        53,466
loss per share
                                                               
Comprehensive loss                                 $(72,787) $(86,548)


Pacific Biosciences of California, Inc.
Unaudited Consolidated Balance Sheets
(amounts in thousands, except per share amounts)
                                                               
                                        September 30, June 30,   December31,
                                         2012          2012       2011
Assets                                                          
Cash and investments                     $ 119,402    $ 137,108 $ 177,434
Accounts receivable                      532           3,371      4,557
Inventory                                10,202        10,271     15,517
Prepaid and other current assets         2,202         1,893      2,093
                                                               
Total current assets                     132,338       152,643    199,601
Property and equipment                   15,514        16,937     18,398
Other assets                             356           350        317
                                                               
Total Assets                             $ 148,208    $ 169,930 $ 218,316
                                                               
Liabilities and Stockholders' Equity                            
Accounts payable                         $2,897      $4,061   $4,742
Deferred revenue                         3,555         4,170      4,236
Accrued and other current liabilities    7,174         6,695      10,398
                                                               
Total current liabilities                13,626        14,926     19,376
Facility financing and other non-current 6,045         6,800      7,477
liabilities
Stockholders' equity                     128,537       148,204    191,463
                                                               
Total Liabilities and Stockholders'      $ 148,208    $ 169,930 $ 218,316
Equity

CONTACT: Trevin Rard
         650.521.8450
         ir@pacificbiosciences.com
 
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