Pacific Biosciences of California, Inc. (NASDAQ: PACB) today
announced financial results for its fourth quarter and year ended
December 31, 2019, as attached.
Product, service and other revenue for the year ended December
31, 2019 increased by 16% to $90.9 million, compared to $78.6
million for 2018. Product, service and other revenue for the fourth
quarter of 2019 increased by 43% to $27.9 million, compared to
$19.5 million for the fourth quarter of 2018.
Gross profit for the year ended December 31, 2019 was $34.6
million, resulting in a gross margin of 38%, compared to a gross
profit of $25.1 million, resulting in a gross margin of 32% for
2018. Gross profit for the fourth quarter of 2019 was $12.9
million, resulting in a gross margin of 46%, compared to a gross
profit of $5.7 million, resulting in a gross margin of 29% for the
same period in 2018.
Operating expenses totaled $135.1 million for the year ended
December 31, 2019, compared to $126.1 million for 2018. Operating
expenses for the year ended December 31, 2019 and 2018 included
non-cash stock-based compensation of $14.5 million and $20.0
million, respectively; and legal and professional fees related to
the proposed merger with Illumina of $14.1 million and $4.7
million, respectively. Operating expenses totaled $30.8 million for
the fourth quarter of 2019, compared to $36.4 million for the
fourth quarter of 2018. Operating expenses for the fourth quarters
of 2019 and 2018 included non-cash stock-based compensation of $3.4
million and $6.3 million, respectively; and legal and professional
fees related to the proposed merger with Illumina of $1.2 million
and $4.7 million, respectively.
The net loss for the year ended December 31, 2019 was $84.1
million, compared to a net loss of $102.6 million for 2018. The net
loss for the fourth quarter of 2019 was $0.1 million, compared to a
net loss of $30.8 million for the fourth quarter of 2018. In
accordance with the terms of the Agreement and Plan of Merger (as
amended, the “Merger Agreement”) with Illumina Inc. (“Illumina”)
and FC Ops Corp. (“Merger Subsidiary”), during the fourth quarter
of 2019, Pacific Biosciences received cash payments totaling $18.0
million from Illumina (“Continuation Advances”), which are
reflected as other income for the fourth quarter as well as for the
year ended December 31, 2019.
Cash, cash equivalents and investments, excluding restricted
cash, at December 31, 2019 totaled $49.1 million, compared to
$102.4 million at December 31, 2018.
Subsequent Events
As previously announced, on January 2, 2020, we and Illumina
mutually agreed to terminate the Merger Agreement. As part of our
agreement to terminate the Merger Agreement, Illumina subsequently
paid us a $98 million reverse termination fee, from which we expect
to pay our financial advisor associated fees of approximately $10
million. In addition, as previously agreed to pursuant to the terms
of the Merger Agreement, Illumina paid us Continuation Advances of
$6 million in January 2020 and $22 million in February 2020 and is
scheduled to make one last Continuation Advance to us of $6 million
in March 2020. Our Cash and Investments balance as of December 31,
2019 do not reflect the receipt of the reverse termination fee or
the Continuation Advances, as such payments were received in the
first quarter of 2020.
In February 2020, upon the maturity of the debt agreement that
we entered into in February 2013, we repaid the remaining
outstanding principal of $16.0 million.
Quarterly Conference Call Information
Management will host a quarterly conference call to discuss its
fourth quarter and year ended December 31, 2019 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,
using Conference ID # 7968618. 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 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 StatementsAll statements in
this press release that are not historical are forward-looking
statements, including, among other things, statements relating to
cash payments to be received from Illumina and the use and the
sufficiency of such payments, 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 performance of the Sequel II 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.
The condensed consolidated financial statements that follow
should be read in conjunction with the notes set forth in the
Pacific Biosciences’ Annual Report on Form 10-K when filed with the
Securities and Exchange Commission.
Contact: Trevin Rard
650.521.8450ir@pacificbiosciences.com
Pacific Biosciences of California,
Inc.Unaudited Condensed Consolidated Statements of
Operations (amounts in thousands, except per share
amounts)
|
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Product revenue |
$ |
24,551 |
|
|
$ |
16,438 |
|
|
$ |
77,742 |
|
|
$ |
66,355 |
|
Service and other revenue |
|
3,379 |
|
|
|
3,088 |
|
|
|
13,149 |
|
|
|
12,271 |
|
Total revenue |
|
27,930 |
|
|
|
19,526 |
|
|
|
90,891 |
|
|
|
78,626 |
|
Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue |
|
11,985 |
|
|
|
10,926 |
|
|
|
44,771 |
|
|
|
42,053 |
|
Cost of service and other revenue |
|
3,013 |
|
|
|
2,854 |
|
|
|
11,544 |
|
|
|
11,477 |
|
Total cost of revenue |
|
14,998 |
|
|
|
13,780 |
|
|
|
56,315 |
|
|
|
53,530 |
|
Gross profit |
|
12,932 |
|
|
|
5,746 |
|
|
|
34,576 |
|
|
|
25,096 |
|
Operating Expense: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
14,273 |
|
|
|
16,263 |
|
|
|
59,630 |
|
|
|
62,594 |
|
Sales, general and administrative |
|
16,576 |
|
|
|
20,106 |
|
|
|
75,491 |
|
|
|
63,489 |
|
Total operating expense |
|
30,849 |
|
|
|
36,369 |
|
|
|
135,121 |
|
|
|
126,083 |
|
Operating loss |
|
(17,917 |
) |
|
|
(30,623 |
) |
|
|
(100,545 |
) |
|
|
(100,987 |
) |
Continuation Advances |
|
18,000 |
|
|
|
— |
|
|
|
18,000 |
|
|
|
— |
|
Interest expense |
|
(678 |
) |
|
|
(628 |
) |
|
|
(2,611 |
) |
|
|
(2,423 |
) |
Other income, net |
|
504 |
|
|
|
452 |
|
|
|
1,022 |
|
|
|
848 |
|
Net loss |
$ |
(91 |
) |
|
$ |
(30,799 |
) |
|
$ |
(84,134 |
) |
|
$ |
(102,562 |
) |
Basic and diluted net loss per share |
$ |
(0.00 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.76 |
) |
Shares used in computing basic and diluted net loss per
share |
|
153,051 |
|
|
|
149,314 |
|
|
|
152,527 |
|
|
|
135,094 |
|
Pacific Biosciences of California,
Inc.Unaudited Condensed Consolidated Balance
Sheets (amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
December 31, |
|
2019 |
|
2018 |
Assets |
|
|
|
Cash and investments |
$ |
49,099 |
|
$ |
102,354 |
Accounts receivable |
|
15,266 |
|
|
8,595 |
Inventory |
|
13,312 |
|
|
17,878 |
Prepaid and other current assets |
|
3,369 |
|
|
2,832 |
Property and equipment, net |
|
30,070 |
|
|
34,073 |
Operating lease right-of-use assets, net |
|
32,827 |
|
|
— |
Long-term restricted cash |
|
4,000 |
|
|
4,500 |
Other long-term assets |
|
42 |
|
|
43 |
Total
Assets |
$ |
147,985 |
|
$ |
170,275 |
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
Accounts payable |
$ |
8,368 |
|
$ |
6,736 |
Accrued expenses |
|
13,242 |
|
|
12,823 |
Deferred revenue |
|
9,561 |
|
|
7,427 |
Operating lease liabilities |
|
45,801 |
|
|
— |
Notes payable |
|
15,871 |
|
|
14,659 |
Deferred rent |
|
— |
|
|
13,765 |
Other liabilities |
|
225 |
|
|
788 |
Financing derivative |
|
— |
|
|
16 |
Stockholders' equity |
|
54,917 |
|
|
114,061 |
Total Liabilities and
Stockholders' Equity |
$ |
147,985 |
|
$ |
170,275 |
|
|
|
|
|
|
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