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PacBio Q2 Revenues More Than Double; Misses Estimates

This story has been updated to include details from a company conference call. 

NEW YORK (GenomeWeb) – Pacific Biosciences reported after the close of the market today that its second quarter 2015 revenues were up 118 percent over the second quarter of 2014.

The Menlo Park, California-based single-molecule sequencing firm reported total Q2 revenues of $24.9 million compared to $11.4 million in Q2 2014. It missed the average analyst estimate of $26.4 million.

During a conference call discussing PacBio's second quarter performance, CEO Mike Hunkapiller said that the company plans to move its headquarters into a larger building, also in Menlo Park. PacBio's current space was recently acquired, and under a new lease agreement, the owner offered a rent abatement that Hunkapiller said should cover the cost of the move and of retrofitting the new building. Hunkapiller did not specify exactly when the company would move, but said it would not be this year.

He added that the new facility will have 20 percent more space, much of which will be dedicated to expanding the firm's manufacturing operations.

"The new building positions us well to accommodate anticipated growth as we drive deeper into the research market as well as expand into the clinical market with our partner, [Roche]," Hunkapiller said.

PacBio's total revenue included $11.3 million in product and service revenue and $13.6 million in contractual revenue, up from $9.7 million and $1.7 million in the year-ago quarter, respectively. The Q2 revenues included a $10 million milestone payment from Roche.

Instrument revenue for the quarter was $4.3 million compared to $4.7 million in Q2 2014, while consumable revenue was $4.5 million, up from $3 million in Q2 2014. PacBio no longer provides details on the number of systems installed or its instrument backlog.

The company also expects to achieve another milestone related to its Roche agreement before the end of the year, and as a result, increased its full-year revenue guidance. The firm now expects full-year revenue growth of at least 40 percent, VP of Finance and Treasurer Ben Gong said during the conference call. Previously, PacBio anticipated 2015 revenue would grow around 25 percent over 2014.

The company's net loss for the quarter was $11.9 million, or $.16 per share, compared to $19.1 million, or $.27 per share, in Q2 2014, falling short of Wall Street's estimate for a loss of $.14 per share.

PacBio's R&D expenses in the quarter were $15.0 million, up 21 percent from $12.4 million in Q2 2014, while its SG&A expenses increased 20 percent to $10.8 million from $9.0 million.

As of June 30, PacBio had $72.7 million in cash and investments. 

In Thursday morning trade on the Nasdaq, shares of PacBio were down 12 percent at $5.02.