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Pacific Biosciences Posts Q4 Revenues of $12.4M; Backlog at 16 Instruments

NEW YORK (GenomeWeb News) – Pacific Biosciences today reported fourth-quarter revenues of $12.4 million, beating analysts' consensus estimate of $10.4 million.

The Menlo Park, Calif.-based sequencing technology firm said that it delivered and installed 17 instruments and had six bookings during the quarter ended Dec. 31. As of the end of the year, the company had a backlog of 16 PacBio RS instruments, which represent around $11 million in revenue.

For the fourth quarter a year ago all of PacBio's revenues, $280,000, came from grants. But compared to third-quarter revenues of $10.5 million its revenues were up 18 percent sequentially. PacBio launched the RS sequencing system in April 2011.

The firm's net loss for the quarter was $22.8 million, or $.42 per share, compared to a net loss of $36.4 million, or $.97 per share for the fourth quarter of 2010. The loss was also lower than its third-quarter loss of $29.3 million, or $.54 per share. Analysts had expected a loss of $.50 per share.

The loss for the most recent quarter includes $4.9 million in charges related to workforce reduction. The firm announced in September 2011 that it was laying off 130 employees, or 28 percent of its total workforce.

PacBio's R&D spending declined 53 percent year over year to $12.4 million from $26.5 million, while its SG&A expenses increased around 15 percent to $11.8 million from $10.3 million.

For full-year 2011, PacBio brought in revenues of $33.9 million compared to $1.7 million for 2010 and above Wall Street estimates of $31.7 million. Revenues were primarily derived from the delivery of 48 PacBio RS instruments and related consumables during the year. Service and other revenues accounted for $1.5 million of the total.

Its net loss for the year was $109.4 million, or $2.03 per share, down from $140.2 million, or $14.10 per share, for 2010.

The firm's R&D spending for the year was $76.1 million, down from $111.8 million, while its SG&A expenses jumped to $46.7 million from $30.1 million.

PacBio finished the year with $177.4 million in cash and investments.

The firm intends to install the 16 systems on backlog during the first six months of the year, while also upgrading all 48 systems that have already been delivered with the new C2 chemistry, which will provide longer read lengths, better accuracy, and higher throughput.

"Comparatively speaking, this will represent a significantly smaller amount of system revenue in each of the next two quarters than we saw in this past fourth quarter," Ben Gong, VP of finance and treasurer of PacBio, said on a conference call this afternoon. "Our consumable revenue will likely be impacted in the short term by the transition from our C1 consumables to our C2 consumables, and therefore we may not see growth in consumables revenue in Q1."

After that, PacBio expects consumables revenue to grow with an expanding base of instruments.

PacBio anticipates its revenue to be between $7 million and $8 million for each of the next two quarters, said Gong.