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PacBio's Q1 Revenues Jump 52 Percent

This article has been updated to include comments from PacBio management made during a conference call.

NEW YORK (GenomeWeb) – Pacific Biosciences reported after the close of the market Tuesday that its first quarter 2015 revenues climbed 52 percent.

The Menlo Park, California-based single-molecule sequencing technologies firm reported Q1 revenues of $17.6 million compared to $11.6 million in Q1 2014. It beat the consensus Wall Street estimate of $13.7 million.

Its product revenue climbed to $11.3 million from $7.9 million in the year-ago quarter and included $7.0 million in instrument revenue and $4.3 million in consumable revenue. Average consumable revenue per PacBio RS II system has "steadily increased" and now "exceeds $130,000 per year," CEO Mike Hunkapiller said during a conference call discussing the firm's first quarter results.

Hunkapiller added that the company would no longer report the number of orders placed for its RS II system, nor the number of units delivered or in its backlog, citing competitive reasons. "We've reached the point where instrument numbers, placing, and pricing are better kept confidential," he said.

Service and other revenue was $2.7 million, up from $2.1 million. PacBio also recognized $3.6 million in contractual revenue, up from $1.7 million in Q1 2014.

In addition, the company announced today that it achieved its second milestone in its development agreement with Roche, earning an additional $10 million, which will be represented in its second quarter earnings. PacBio has now earned $20 million of the potential $40 million in milestone payments.

"We are on track to deliver a system to Roche by the second half of next year, consistent with our original target," Mike Hunkapiller, president and CEO of Pacific Biosciences, said in a statement.

Due to its strong first quarter and meeting its $10 million milestone with Roche earlier than anticipated, the firm adjusted its 2015 revenue forecast, predicting its total year revenues will climb "at least 25 percent" over 2014, Ben Gong, VP of finance and treasurer of PacBio, said during the conference call. Previously, PacBio anticipated revenues would grow 20 percent.

The firm's net loss for the quarter was $20.2 million, or $.27 per share, up from $18.9 million, or $.28 per share, in Q1 2014. The loss was in line with analysts' average estimate of $.27 per share.

Pacific Biosciences' R&D expenses were $14.5 million in the quarter, up 23 percent from $11.8 million in Q1 2014. Its SG&A expenses were $10.8 million, up 17 percent from $9.2 million in the year-ago quarter. CFO Susan Barnes said during the call that a 10 percent increase in headcount as well as regulatory costs associated with developing a clinical diagnostic product contributed to the increase in expenses.

It ended the quarter with cash and investments totaling $79.1 million.