Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 5, 2015

Pacific Biosciences of California, Inc.

(Exact name of registrant as specified in its charter)



Delaware	001-34899	16-1590339
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1380 Willow Road

Menlo Park, California 94025

(Address of principal executive offices, including zip code)

(650) 521-8000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.Results of Operations and Financial Condition.

On August 5, 2015, Pacific Biosciences of California, Inc. announced its financial results for its second fiscal quarter ended June 30, 2015. A copy of the press release containing the announcement is included as Exhibit 99.1 and is incorporated herein by reference.

This information, as well as Exhibit 99.1, is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


ITEM 9.01.		FINANCIAL STATEMENTS AND EXHIBITS.

5


(d)	Exhibits.

99.1	Press Release dated August 5, 2015 titled “Pacific Biosciences of California, Inc. Announces Second Quarter 2015 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Susan

Pacific Biosciences of California, Inc.

By:		/s/ Susan K. Barnes
		Susan K. Barnes Executive Vice President, Chief Financial Officer & Principal Accounting Officer

Date: August 5, 2015

EXHIBIT INDEX


Exhibit No.		Description
99.1		Press Release dated August 5, 2015 titled “Pacific Biosciences of California, Inc. Announces Second Quarter 2015 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).

Exhibit 99.1

Pacific Biosciences of California, Inc. Announces Second Quarter 2015 Financial Results

Menlo Park, Calif. – August 5, 2015 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today reported a 118% increase in revenue with $24.9 million for the second quarter ended June 30, 2015, compared to $11.4 million for the second quarter of 2014.

Second quarter 2015 revenue includes product and service revenue of $11.3 million and $13.6 million of contractual revenue, while second quarter 2014 revenue includes product and service revenue of $9.7 million and $1.7 million of contractual revenue. Second quarter 2015 contractual revenue includes $10 million of milestone revenue and also reflects a higher quarterly amortization of the upfront Roche payment.

Gross profit increased $11.4 million to $14.5 million for the quarter, resulting in a gross margin of 58.2%, compared to gross profit of $3.1 million and a gross margin of 27.4% for the second quarter of 2014. The growth in gross profit and margin was driven by the additional $11.9 million Roche revenue at 100% margin.

Operating expenses totaled $25.9 million for the quarter, compared to $21.4 million for the second quarter of 2014. Operating expenses for the second quarters of 2015 and 2014 included non-cash stock-based compensation of $3.0 million and $2.1 million, respectively.

The net loss for the quarter was $11.9 million, compared to $19.1 million for the second quarter of 2014.

Cash and investments at June 30, 2015 totaled $72.7 million, compared to $101.3 million at December 31, 2014.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its second 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 the PacBio® RS II Sequencing System 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 PacBio RS II 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 milestone achievement 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.

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-month Periods Ended June 30,				Six-month Periods Ended June 30,
	2015		2014		2015		2014
Revenue:
Product revenue	$	8,825	$	7,749	$	20,133	$	15,614
Service and other revenue		2,518		1,980		5,259		4,061
Contractual revenue		13,596		1,696		17,192		3,392
Total revenue		24,939		11,425		42,584		23,067
Cost of Revenue:
Cost of product revenue		8,438		6,271		18,170		13,440
Cost of service and other revenue		1,995		2,028		3,981		3,825
Total cost of revenue		10,433		8,299		22,151		17,265
Gross profit		14,506		3,126		20,433		5,802
Operating Expense:
Research and development		15,043		12,435		29,526		24,206
Sales, general and administrative		10,821		8,993		21,593		18,143
Total operating expense		25,864		21,428		51,119		42,349
Operating loss		(11,358)		(18,302)		(30,686)		(36,547)
Interest expense		(715)		(701)		(1,412)		(1,387)
Other income (expense), net		138		(133)		(10)		(88)
Net loss	$	(11,935)	$	(19,136)	$	(32,108)	$	(38,022)
Basic and diluted net loss per share	$	(0.16)	$	(0.27)	$	(0.43)	$	(0.55)
Shares used in computing basic and diluted net loss per share		74,733		70,515		74,442		69,195

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)



	June 30,		December 31,
	2015		2014
Assets
Cash and investments	$	72,674	$	101,348
Accounts receivable		3,950		3,406
Inventory		11,978		11,335
Prepaid and other current assets		1,587		1,671
Property and equipment		6,428		6,601
Other long-term Assets		153		162
Total Assets	$	96,770	$	124,523

Liabilities and Stockholders' Equity
Accounts payable	$	5,818	$	5,608
Accrued expenses		11,316		11,441
Deferred service revenue		7,823		7,250
Deferred contractual revenue		19,328		26,520
Other liabilities		3,183		3,687
Financing derivative		899		944
Notes payable		14,567		14,124
Stockholders' equity		33,836		54,949
Total Liabilities and Stockholders' Equity	$	96,770	$	124,523