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)

February 3, 2016

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 February 3, 2016, Pacific Biosciences of California, Inc. reported its financial results for its fourth fiscal quarter ended December 31, 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.

	(d)	Exhibits.





99.1		Press Release dated February 3, 2016 titled “Pacific Biosciences Reports Fourth 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: February 3, 2016

EXHIBIT INDEX


Exhibit No.		Description
99.1		Press Release dated February 3, 2016 titled “Pacific Biosciences Reports Fourth Quarter 2015 Financial Results” (furnished and not filed herewith solely pursuant to Item 2.02).

Exhibit 99.1

Pacific Biosciences Announces Fourth Quarter 2015 Financial Results

Menlo Park, Calif. – February 3, 2016 – Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for its fourth quarter ended December 31, 2015.

Revenue for the fourth quarter of 2015 increased 115% to $36.3 million, compared to $16.9 million for the fourth quarter of 2014. Fourth quarter 2015 revenue includes product and service revenue of $12.7 million and $23.6 million of contractual revenue, while fourth quarter 2014 revenue includes product and service revenue of $15.2 million and $1.7 million of contractual revenue. Fourth quarter 2015 contractual revenue includes a $20.0 million milestone from Roche and $3.6 million of quarterly amortization of the upfront Roche payment, while fourth quarter 2014 contractual revenue reflects $1.7 million of quarterly amortization of the upfront Roche payment.

Gross profit increased $22.1 million to $26.5 million for the fourth quarter of 2015, resulting in a gross margin of 72.9%, compared to gross profit of $4.4 million and a gross margin of 26.3% for the fourth quarter of 2014. The growth in gross profit and margin was primarily driven by an additional $21.9 million of contractual revenue from Roche, which has a gross margin of 100%.

Operating expenses totaled $27.5 million for the fourth quarter of 2015, compared to $22.3 million for the fourth quarter of 2014. Operating expenses for the fourth quarters of 2015 and 2014 included non-cash stock-based compensation of $3.6 million and $2.7 million, respectively.

The net loss for the fourth quarter of 2015 was $1.4 million, compared to $19.0 million for the fourth quarter of 2014.

Cash, cash equivalents and investments, excluding restricted cash at December 31, 2015 totaled $82.3 million, compared to $101.3 million at December 31, 2014.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth 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 sequencing systems 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. PacBio® sequencing systems, including consumables and software, provide 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, the attributes of the Sequel System 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						Twelve-month Periods Ended
	December 31,						December 31,
	2015			2014			2015			2014
Revenue:
Product revenue		$	9,799		$	12,923		$	37,502		$	35,299
Service and other revenue			2,886			2,285			10,896			8,511
Contractual revenue			23,596			1,696			44,384			16,784
Total revenue			36,281			16,904			92,782			60,594
Cost of Revenue:
Cost of product revenue			7,415			10,578			30,704			29,626
Cost of service and other revenue			2,400			1,888			8,628			7,566
Total cost of revenue			9,815			12,466			39,332			37,192
Gross profit			26,466			4,438			53,450			23,402
Operating Expense:
Research and development			14,752			12,331			60,440			48,230
Sales, general and administrative			12,776			10,001			45,187			38,026
Gain on lease amendments			—			—			(23,043)			—
Total operating expense			27,528			22,332			82,584			86,256
Operating loss			(1,062)			(17,894)			(29,134)			(62,854)
Interest expense			(773)			(725)			(2,926)			(2,828)
Other income (expense), net			426			(356)			364			(478)
Net loss		$	(1,409)		$	(18,975)		$	(31,696)		$	(66,160)
Basic and diluted net loss per share		$	(0.02)		$	(0.26)		$	(0.42)		$	(0.94)
Shares used in computing basic and diluted net loss per share			78,327			72,729			75,614			70,475

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands)



	December 31,		December 31,
	2015		2014
Assets
Cash and investments	$	82,270	$	101,348
Accounts receivable		5,245		3,406
Inventory		10,955		11,335
Prepaid and other current assets		12,071		1,671
Property and equipment		8,548		6,601
Long-term restricted cash		4,500		—
Other long-term Assets		7,518		29
Total Assets	$	131,107	$	124,390

Liabilities and Stockholders' Equity
Accounts payable	$	4,749	$	5,608
Accrued expenses		15,551		11,441
Deferred service revenue		7,958		7,250
Deferred contractual revenue		12,134		26,520
Other liabilities		1,627		3,687
Financing derivative		600		944
Notes payable		14,948		13,991
Stockholders' equity		73,540		54,949
Total Liabilities and Stockholders' Equity	$	131,107	$	124,390