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CST: 19/08/2019 04:22:28   

Pacific Biosciences of California, Inc. Announces Second Quarter 2019 Financial Results

12 Days ago

MENLO PARK, Calif., Aug. 06, 2019 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for its second quarter ended June 30, 2019.

On April 24, 2019, the Company announced the commercial launch of the Sequel II System and the Single Molecule, Real-Time (SMRT®) Cell 8M chip, and began shipping Sequel II Systems to customers beyond the five early access sites.  As of June 30, 2019, the Company had installed a total of 41 Sequel II Systems, which includes a number of sites with multiple systems installed.

On November 1, 2018, the Company entered into an Agreement and Plan of Merger with Illumina, Inc. (“Illumina”) and FC Ops Corp., a wholly-owned subsidiary of Illumina (the “Merger Agreement”) pursuant to which Illumina will acquire the Company for $8.00 per share of the Company’s common stock in an all-cash transaction and FC Ops Corp. will be merged with and into the Company (the “Merger”), with the Company surviving the Merger and becoming a wholly-owned subsidiary of Illumina. Completion of the transaction is subject to terms and conditions set forth in the Merger Agreement, including expiration or termination of any waiting periods applicable to the consummation of the Merger under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and clearance under the antitrust laws of certain non-U.S. jurisdictions. The Merger has been notified to the United States Federal Trade Commission (“FTC”) and to the Competition and Markets Authority of the United Kingdom (“CMA”) and is under review by both the FTC and the CMA. The Company and Illumina will continue to work cooperatively with the FTC and the CMA. The Company and Illumina expect the Merger to be completed in the fourth quarter of 2019, at which time the Company will become a wholly owned subsidiary of Illumina and will cease to be a publicly traded company. For the three and six months ended June 30, 2019, the Company recognized approximately $3.8 million and $9.3 million, respectively, in operating expenses in connection with the Merger.

No Conference Call

Given the pending Merger with Illumina, management will not be hosting a conference call to discuss its financial results for the second quarter ended June 30, 2019 and does not expect to do so for future quarters.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (NASDAQ: PACB) offers sequencing systems to help scientists resolve genetically complex problems. Based on its novel 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 real-time kinetic information for epigenome characterization. Pacific Biosciences’ technology provides high accuracy, ultra-long reads, uniform coverage, and the ability to simultaneously detect epigenetic changes. PacBio® sequencing systems, including consumables and software, provide a simple, fast, end-to-end workflow for SMRT Sequencing.

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 and commercialization of products, future uses, quality or performance of, or benefits of using, products or technologies, the commercial launch of the Sequel II System, the expected availability of SMRT® Cell 8M chips, the performance of the Sequel II System, the Merger Agreement and Merger including the expected timing of the completion of the Merger and whether the Merger will be consummated, 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.

The condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in the Company’s Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.

Contact:
Trevin Rard
650.521.8450
ir@pacificbiosciences.com

 
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statement of Operations
(amounts in thousands, except per share amounts)
                       
  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Revenue:                      
Product revenue $ 21,250     $ 18,485     $ 34,707     $ 34,767  
Service and other revenue   3,371       3,093       6,339       6,173  
Total revenue   24,621       21,578       41,046       40,940  
Cost of Revenue:                      
Cost of product revenue   11,980       9,858       20,598       18,877  
Cost of service and other revenue   3,028       2,858       5,718       5,905  
Total cost of revenue   15,008       12,716       26,316       24,782  
Gross profit   9,613       8,862       14,730       16,158  
Operating Expense:                      
Research and development   14,910       15,664       30,395       31,975  
Sales, general and administrative   19,083       14,943       38,849       29,877  
Total operating expense   33,993       30,607       69,244       61,852  
Operating loss   (24,380 )     (21,745 )     (54,514 )     (45,694 )
Interest expense   (644 )     (598 )     (1,269 )     (1,179 )
Other income (expense), net   428       (197 )     863       154  
Net loss $ (24,596 )   $ (22,540 )   $ (54,920 )   $ (46,719 )
Basic and diluted net loss per share $ (0.16 )   $ (0.17 )   $ (0.36 )   $ (0.37 )
Shares used in computing basic and diluted net loss per share   152,776       131,882       152,029       127,847  
                               


 
Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
(amounts in thousands)
               
  June 30,   December 31,
  2019   2018
Assets      
Cash and investments $ 66,844     $ 102,354  
Accounts receivable   12,123       8,595  
Inventory   17,404       17,878  
Prepaid and other current assets   2,538       2,832  
Property and equipment, net   33,457       34,073  
Operating lease right-of-use assets, net   34,175        
Long-term restricted cash   4,000       4,500  
Other long-term assets   41       43  
Total Assets $ 170,582     $ 170,275  
               
Liabilities and Stockholders' Equity              
Accounts payable $ 8,011     $ 6,736  
Accrued expenses   14,107       12,823  
Deferred service revenue   8,161       7,427  
Operating lease liabilities   47,552        
Notes payable   15,233       14,659  
Deferred rent         13,765  
Other liabilities   1,764       788  
Financing derivative         16  
Stockholders' equity   75,754       114,061  
Total Liabilities and Stockholders' Equity $ 170,582     $ 170,275  
               

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