Pacific Biosciences of California, Inc. Announces Third Quarter 2013 Financial Results

Pacific Biosciences of California, Inc. Announces Third Quarter 2013 Financial
Results

MENLO PARK, Calif., Oct. 22, 2013 (GLOBE NEWSWIRE) -- Pacific Biosciences of
California, Inc. (Nasdaq:PACB) today announced financial results for the third
quarter ended September 30, 2013.

Total revenue for the third quarter of 2013 totaled $7.4 million, compared to
$6.0 million for the second quarter of 2013. Third quarter revenue reflects
the installation of six PacBio RS II systems, compared to three systems in the
second quarter of 2013. The Company added five PacBio RS II instrument
bookings during the third quarter and ended the quarter with nine instruments
in backlog.

Gross profit for the third quarter of 2013 was $1.2 million, resulting in a
gross margin of 17%, compared to gross profit of $1.1 million and a gross
margin of 18% for the second quarter of 2013.

Operating expenses totaled $21.2 million for the third quarter of 2013,
compared to $21.1 million for the second quarter of 2013. Operating expenses
included $2.0 million of advisory and professional fees incurred in connection
with the Company's Development, Commercialization and License Agreement with
Roche Diagnostics announced on September 25, 2013. Operating expenses for the
third quarter of 2013 also included $2.2 million of non-cash stock-based
compensation compared to $2.4 million of non-cash stock-based compensation in
the second quarter of 2013.

The net loss for the quarter was $20.5 million, the same as the net loss for
the second quarter of 2013.

Cash and investments at September 30, 2013 totaled $126.9 million compared to
$107.0 million at June 30, 2013. The increase in cash and investments reported
for the third quarter reflects an up-front, non-refundable $35.0 million
payment received from Roche Diagnostics. Excluding the proceeds received from
Roche Diagnostics, net cash and investments used during the period reflects
cash used of $15.1 million.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its third quarter
2013 results today at 4:30pm Eastern Time / 1:30pm Pacific 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 solve genetically complex problems. Based
on its novel Single Molecule, Real-Time (SMRT®) Sequencing 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 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 backlog and future revenue implied by such backlog. 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 the Company's filings with the Securities and Exchange Commission,
including the most recently filed Quarterly Report on Form 10-Q, and include
those listed under the caption "Risk Factors." The Company 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
(amounts in thousands, except per share amounts)
                                                              
                                      Quarters Ended
                                      September30, June 30,    September30,
                                       2013          2013        2012
Revenue:                                                       
Product revenue                       $5,814      $4,601    $1,268
Service and other revenue             1,607         1,447       1,283
Grant revenue                         —            —          225
Total revenue                         7,421         6,048       2,776
Cost of revenue:                                               
Cost of product revenue               4,616         3,322       960
Cost of service and other revenue     1,564         1,667       1,626
Total cost of revenue                 6,180         4,989       2,586
Gross profit                          1,241         1,059       190
Operating expense:                                             
Research and development              10,419        11,682      12,626
Sales, general and administrative     10,757        9,374       10,143
Total operating expense               21,176        21,056      22,769
Operating loss                        (19,935)      (19,997)    (22,579)
Interest expense                      (686)         (673)       (68)
Other income (expense), net           134           199         (82)
Net loss                              $(20,487)   $(20,471) $(22,729)
Basic and diluted net loss per share   $(0.31)     $(0.33)   $(0.41)
Shares used in computing basic and     65,523        61,922      55,877
diluted net loss per share


Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
                                                               
                                                  Year to Date
                                                  September30, September30,
                                                   2013          2012
Revenue:                                                        
Product revenue                                   $14,248     $15,810
Service and other revenue                         4,528         3,620
Grant revenue                                     272           675
Total revenue                                     19,048        20,105
Cost of Revenue:                                                
Cost of product revenue                           11,138        14,949
Cost of service and other revenue                 4,680         4,843
Total cost of revenue                             15,818        19,792
Gross profit                                      3,230         313
Operating Expense:                                              
Research and development                          34,084        35,971
Sales, general and administrative                 29,685        36,986
Total operating expense                           63,769        72,957
Operating loss                                    (60,539)      (72,644)
Interest expense                                  (1,785)       (207)
Other income (expense), net                       262           55
Net loss                                          $(62,062)   $(72,796)
Basic and diluted net loss per share              $(1.01)     $(1.31)
Shares used in computing basic and diluted net     61,636        55,582
loss per share


Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
                                                               
                                        September30, June30,   December31,
                                         2013          2013       2012
Assets                                                          
Cash and investments                     $126,936    $106,968 $100,580
Accounts receivable                      3,814         4,104      2,822
Inventory                                9,819         10,283     9,592
Prepaid and other current assets        1,194         759        2,006
Property and equipment                   10,544        11,655     14,329
Other long-term Assets                   493           508        354
Total Assets                             $152,800    $134,277 $129,683
                                                               
Liabilities and Stockholders' Equity                            
Accounts payable                         $3,413      $2,605   $2,988
Accrued and other current liabilities    8,707         9,141      8,377
Deferred revenue                         4,234         4,081      4,178
Deferred development revenue             35,000        —         —
Facility financing and other non-current 3,836         4,151      4,758
liabilities
Financing Derivative                     894           894        —
Notes Payable                            13,173        13,007     —
Stockholders' equity                     83,543        100,398    109,382
Total Liabilities and Stockholders'      $152,800    $134,277 $129,683
Equity

CONTACT: Trevin Rard
         650.521.8450
         ir@pacificbiosciences.com
 
Press spacebar to pause and continue. Press esc to stop.