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Pacific Biosciences' Q2 Product Revenue Jumps More Than 50 Percent

This article has been updated to include comments from a conference call.

NEW YORK (GenomeWeb) – Pacific Biosciences reported after the close of the market Thursday that its total second quarter 2016 revenues fell 17 percent compared to the second quarter of 2015.

The single-molecule sequencing technology firm reported total Q2 revenues of $20.7 million, down from $24.9 million in Q2 2015. It beat analysts' average estimate of $20.2 million.

The firm's product revenue increased 55 percent to $13.6 million, up from $8.8 million in the year ago quarter. Product revenue included $8.6 million in instrument revenue and $5 million in consumable revenues. Service and other revenue increased 44 percent to $3.6 million from $2.5 million. PacBio's contractual revenue dropped to $3.6 million from $13.6 million in the year ago quarter due to the $10 million milestone payment it received from Roche in Q2 2015.

During a conference call discussing the firm's Q2 performance, CEO Mike Hunkapiller said that PacBio received orders for 25 instruments. It shipped 26 instruments in the quarter and has more than 50 in its backlog. The firm did not break out how many instrument orders were for the Sequel system versus the RSII, but said that the majority or orders were for the Sequel.

Hunkapiller also said that Roche, which has been planning to launch a clinical version of the Sequel instrument later this year, may delay the launch by a few months as it works to "incorporate and validate some of the software features and assays they require for a clinical system."

PacBio did not anticipate that a delayed launch by Roche would impact its full-year 2016 revenues, which it still estimates will be at least $93 million.

PacBio reported a net loss of $18.5 million, or $0.21 per share, compared to a net loss of $11.9 million in Q2 2015, or $0.16 per share. It just beat analysts' average estimate of a loss of $0.22 per share.

The firm's R&D expenses were $17.5 million, up from $15.0 million, while SG&A expenses totaled $11.2 million, up from $10.9 million in the prior year period.

The company ended the quarter with $102.5 million in cash and investments.