Pacific Biosciences of California, Inc. Announces First Quarter 2019 Financial Results
May 03 2019 - 4:01PM
Pacific Biosciences of California, Inc. (NASDAQ: PACB) today
announced financial results for its first quarter ended March 31,
2019, as attached.
During the first quarter of 2019, the Company announced that it
commenced its Early Access Program of the Sequel II System and the
SMRT Cell 8M chip with five early access sites. All five early
access sites successfully tested the new Sequel II System across a
wide variety of customer samples with positive results, and all
five sites have since purchased their initial Sequel II Systems. On
April 24, 2019, the Company announced the commercial launch of the
Sequel II System, and has begun installing Sequel II Systems at
additional customer sites.
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”). The Company and
Illumina continue to expect the merger to be completed in mid-2019.
During the three months ended March 31, 2019, the Company
recognized approximately $5.7 million 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
first quarter ended March 31, 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 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 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
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 Early
Access Program, the expected timing of commercial shipments of
Sequel II Systems and SMRT Cell 8M products, the Merger Agreement
and proposed merger with Illumina including the expected timing of
the completion of the Merger, 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
650.521.8450ir@pacificbiosciences.com
Pacific Biosciences of California,
Inc.Unaudited Condensed Consolidated Statement of
Operations (amounts in thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended March 31, |
|
2019 |
|
|
2018 |
|
Revenue: |
|
|
|
|
|
Product revenue |
$ |
13,457 |
|
|
$ |
16,282 |
|
Service and other revenue |
|
2,968 |
|
|
|
3,080 |
|
Total revenue |
|
16,425 |
|
|
|
19,362 |
|
Cost of Revenue: |
|
|
|
|
|
Cost of product revenue |
|
8,618 |
|
|
|
9,019 |
|
Cost of service and other
revenue |
|
2,690 |
|
|
|
3,047 |
|
Total cost of revenue |
|
11,308 |
|
|
|
12,066 |
|
Gross profit |
|
5,117 |
|
|
|
7,296 |
|
Operating Expense: |
|
|
|
|
|
Research and development |
|
15,485 |
|
|
|
16,311 |
|
Sales, general and
administrative |
|
19,766 |
|
|
|
14,934 |
|
Total operating expense |
|
35,251 |
|
|
|
31,245 |
|
Operating loss |
|
(30,134 |
) |
|
|
(23,949 |
) |
Interest expense |
|
(625 |
) |
|
|
(581 |
) |
Other income, net |
|
435 |
|
|
|
351 |
|
Net loss |
$ |
(30,324 |
) |
|
$ |
(24,179 |
) |
Basic and diluted net loss per
share |
$ |
(0.20 |
) |
|
$ |
(0.20 |
) |
Shares used in computing basic and
diluted net loss per share |
|
151,274 |
|
|
|
123,768 |
|
Pacific Biosciences of California,
Inc.Unaudited Condensed Consolidated Balance
Sheets (amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
December 31, |
|
2019 |
|
2018 |
Assets |
|
|
|
Cash and
investments |
$ |
82,872 |
|
$ |
102,354 |
Accounts
receivable |
|
7,279 |
|
|
8,595 |
Inventory |
|
19,650 |
|
|
17,878 |
Prepaid
and other current assets |
|
2,787 |
|
|
2,832 |
Property
and equipment, net |
|
33,613 |
|
|
34,073 |
Operating
lease right-of-use assets, net |
|
34,811 |
|
|
— |
Long-term
restricted cash |
|
4,500 |
|
|
4,500 |
Other
long-term assets |
|
65 |
|
|
43 |
Total Assets |
$ |
185,577 |
|
$ |
170,275 |
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
Accounts
payable |
$ |
8,740 |
|
$ |
6,736 |
Accrued
expenses |
|
11,158 |
|
|
12,823 |
Deferred
service revenue |
|
7,197 |
|
|
7,427 |
Operating
lease liabilities |
|
48,382 |
|
|
— |
Notes
payable |
|
14,938 |
|
|
14,659 |
Deferred
rent |
|
— |
|
|
13,765 |
Other
liabilities |
|
312 |
|
|
788 |
Financing
derivative |
|
— |
|
|
16 |
Stockholders' equity |
|
94,850 |
|
|
114,061 |
Total Liabilities and Stockholders' Equity |
$ |
185,577 |
|
$ |
170,275 |
|
|
|
|
|
|
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