Pacific Biosciences of California, Inc. Announces Second Quarter 2019 Financial Results
August 06 2019 - 4:01PM
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 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 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
650.521.8450ir@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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