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

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

MENLO PARK, Calif., Feb. 4, 2014 (GLOBE NEWSWIRE) -- Pacific Biosciences of
California, Inc. (Nasdaq:PACB) today announced financial results for the
fourth quarter ended December 31, 2013.

Total revenue for the fourth quarter of 2013 totaled $9.1 million, compared to
$5.9 million for the fourth quarter of 2012. Fourth quarter revenue in 2013
reflects the installation of five PacBio RS II systems, compared to five
PacBio RS systems in the fourth quarter of 2012. Total revenue for the fourth
quarter of 2013 also included $1.7 million of revenue recognized pursuant to a
development agreement the Company entered into with Roche Diagnostics at the
end of the third quarter of 2013. The Company booked orders for nine PacBio RS
II instruments during the fourth quarter and ended the quarter with 13
instruments in backlog.

Gross profit for the fourth quarter of 2013 was $3.2 million, resulting in a
gross margin of 34.9%, compared to gross profit of $0.6 million and a gross
margin of 10.7% for the fourth quarter of 2012. Gross profit for the fourth
quarter in 2013 included $1.7 million of gross profit recognized pursuant to
the development agreement with Roche Diagonistics.

Operating expenses totaled $20.2 million for the fourth quarter of 2013,
compared to $22.3 million for the fourth quarter of 2012. Operating expenses
for the fourth quarter of 2013 and 2012 included $2.5 million of non-cash
stock-based compensation, respectively.

The net loss for the fourth quarter of 2013 was $17.2 million, compared to
$21.7 million for the fourth quarter of 2012.

Cash and investments at December 31, 2013 totaled $112.5 million compared to
$100.6 million at December 31, 2012.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth 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.

                                                                
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
                                                                
                                                   Quarter Ended December 31,
                                                   2013          2012
Revenue:                                                         
Product revenue                                    $5,791      $4,279
Service and other revenue                          1,647         1,599
Revenue from development agreement                 1,696         —
Total revenue                                      9,134         5,878
Cost of revenue:                                                 
Cost of product revenue                            4,568         3,847
Cost of service and other revenue                  1,377         1,404
Total cost of revenue                              5,945         5,251
Gross profit                                       3,189         627
Operating expense:                                               
Research and development                           11,133        11,652
Sales, general and administrative                  9,060         10,669
Total operating expense                            20,193        22,321
Operating loss                                     (17,004)      (21,694)
Interest expense                                   (693)         (67)
Other income, net                                  466           92
Net loss                                           $(17,231)   $(21,669)
Basic and diluted net loss per share                $(0.26)     $(0.39)
Shares used in computing basic and diluted net loss 66,190        56,166
per share
                                                                

                                                                 
Pacific Biosciences of California, Inc.
Unaudited Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
                                                                 
                                                     Year Ended December 31,
                                                     2013         2012
Revenue:                                                          
Product revenue                                      $20,039    $20,089
Service and other revenue                            6,446        5,894
Revenue from development agreement                   1,696        —
Total revenue                                        28,181       25,983
Cost of Revenue:                                                  
Cost of product revenue                              15,706       18,796
Cost of service and other revenue                    6,056        6,247
Total cost of revenue                                21,762       25,043
Gross profit                                         6,419        940
Operating Expense:                                                
Research and development                             45,217       47,623
Sales, general and administrative                    38,745       47,655
Total operating expense                              83,962       95,278
Operating loss                                       (77,543)     (94,338)
Interest expense                                     (2,478)      (274)
Other income, net                                    728          147
Net loss                                             $(79,293)  $(94,465)
Basic and diluted net loss per share                 $(1.26)    $(1.69)
Shares used in computing basic and diluted net loss   62,784       55,733
per share
                                                                 

                                                                
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
                                                                
                                                    December 31, December31,
                                                    2013         2012
Assets                                                           
Cash and investments                                 $112,528   $100,580
Accounts receivable                                  2,746        2,822
Inventory                                            10,050       9,592
Prepaid and other current assets                    1,135        2,006
Property and equipment                               9,236        14,329
Other long-term assets                               490          354
Total Assets                                         $136,185   $129,683
                                                                
Liabilities and Stockholders' Equity                             
Accounts payable                                     $1,717     $2,988
Accrued and other current liabilities                9,797        8,377
Deferred service revenue                             4,564        4,178
Deferred development revenue                         33,304       —
Facility financing and other non-current liabilities 3,727        4,758
Financing derivative                                 549          —
Notes payable                                        13,347       —
Stockholders' equity                                 69,180       109,382
Total Liabilities and Stockholders' Equity           $136,185   $129,683
                                                                

CONTACT: Trevin Rard
         650.521.8450
         ir@pacificbiosciences.com
 
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