NEW YORK (GenomeWeb) – Pacific Biosciences reported after the close of the market Monday that its fourth quarter 2018 revenues fell 22 percent.
The single-molecule sequencing firm reported Q4 revenues of $19.5 million, down from $24.9 million in Q4 of 2017 and missing analysts' average estimate of $21.1 million.
Last November, Illumina said it would acquire PacBio for $1.2 billion, a deal that is expected to close in mid-2019. Given the pending transaction, PacBio said it would not hold a conference call discussing its Q4 and full year 2018 performance and it does not plan on doing so for upcoming quarters.
The company noted that last month, its stockholders approved the merger agreement with Illumina. Earlier this month, PacBio also settled five lawsuits that investors had brought against it in connection with the Illumina deal.
PacBio's net loss in Q4 grew to $30.8 million, or $.21 per share, from $20.8 million, or $.18 per share, in Q4 of 2017. The Wall Street average estimate was a loss-per-share of $.13.
The firm's R&D costs grew 4 percent to $16.3 million, from $15.6 million in the prior year period, while year-over-year SG&A expenses rose nearly 40 percent to $20.1 million from $14.4 million. Operating expenses included around $8.2 million in connection with the merger agreement with Illumina.
The company also said that it began its early-access program for the next iteration of its Sequel chip and platform, Sequel II, which will increase the number of wells on its chips to 8 million from 1 million. The new system has been installed in five early-access sites and PacBio said it expects to begin commercial shipments in early Q2.
PacBio's full year 2018 revenues fell 16 percent to $78.6 million, from $93.5 million in 2017, and missed analysts' average estimate of $82.2 million. The company's net loss grew to $102.6 million, or $.76 per share, up from $92.2 million, or $.87 per share, in 2017. Wall Street estimated a net loss of $.68 per share.
Full year 2018 R&D expenses were down 4 percent to $62.6 million from $65.3 million in 2017. SG&A expenses, meantime, were up 7 percent to $63.5 million, from $59.1 million.
As of Dec. 31, 2018, PacBio had $102.4 million in cash and investments.