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Pacific Biosciences Announces Revio Preorders as Q3 Revenues Dip 7 Percent

NEW YORK – Orders for Pacific Biosciences' new Revio long-read sequencing instrument are already rolling in, just a few weeks after its reveal, the company said this week as it announced a year-over-year decrease in third quarter revenues.

"We've already booked multiunit orders from several customers and are actively discussing system orders with dozens more," PacBio CEO Christian Henry said on a conference call to discuss the firm's Q3 financial results.

Due to the product announcements, "we've suspended our financial guidance so that we can understand the impact that Revio will have on the demand for Sequel IIe," Henry said. However, he noted that the firm plans to share some long-term financial targets at an investor day later this month.

PacBio reported after the close of the market on Monday that its third quarter revenues fell 7 percent, year over year, driven by lower Sequel IIe sales. "We believe some customers deferred their instrument purchases in anticipation of a new product launch and that this impact was greater than we anticipated in the quarter, particularly in the Americas region," Henry said. "Other drivers of the instrument shortfall included customers deferring purchases due to lab space issues and funding delays."

For the three months ended Sept. 30, PacBio reported revenues of $32.3 million, down from $34.9 million in Q3 2021 and missing the average Wall Street estimate of $35.4 million.

Of those sales, product revenues were $27.5 million, down 10 percent from $30.5 million a year ago, and service and other revenues were $4.8 million, up 9 percent from $4.4 million a year ago.

Product revenue consisted of $11.4 million in instrument revenue, down 28 percent from $15.9 million a year ago, and $16.1 million in consumables revenue, up 10 percent from $14.6 million in Q3 2021.

PacBio placed 34 Sequel II or IIe systems during Q3, growing the installed base of those instruments to 494 as of Sept. 30, compared to 326 at the same time last year.

Revenues from the Americas were $16.7 million, down 14 percent from $19.4 million in the prior-year period. Revenues in Asia-Pacific were $9.6 million, up 4 percent year over year from $9.2 million. In Europe, the Middle East, and Africa, revenues were $6.0 million, down 6 percent from $6.3 million last year, driven by 10 percent foreign exchange headwinds, partially offset by record consumables sales.

PacBio's net loss in Q3 was $77.0 million, or $.34 per share, compared to net income of $16.5 million, or $.08 per share, during the year-ago quarter. On an adjusted basis, loss per share was $.32, slightly better than the consensus Wall Street estimate of a $.33 loss per share.

PacBio's R&D expenses for the quarter totaled $47.1 million, up 71 percent from $27.5 million a year ago. SG&A costs were $36.8 million, up 16 percent from $31.6 million in the prior-year period. The firm ended the quarter with 771 employees, compared to 728 at the end of 2021.

PacBio CFO Susan Kim noted that the company had withdrawn all financial guidance last month. It had lowered its full-year 2022 revenue guidance in August following the release of its Q2 financial results.

PacBio finished the quarter with $834.3 million in cash and investments.

In Wednesday morning trading on the Nasdaq, shares of PacBio were up 1 percent at $8.53.