Pacific Biosciences of California, Inc. (NASDAQ:PACB) Files An 8-K Results of Operations and Financial Condition

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Files An 8-K Results of Operations and Financial Condition

Item 2.02.Results of Operations and Financial Condition.

ITEM2.02.

Results of Operations and Financial Condition

This current report on Form 8-K contains forward-looking
statements that involve risks and uncertainties. Forward-looking
statements are based on managements beliefs and assumptions and
on information currently available to them. The Companys actual
results could differ materially from those anticipated in these
forward-looking statements for many reasons, including the risks
faced by us and described in the Companys most recently filed
Annual Report on Form 10-K, or the Companys other filings with
the SEC, as the case may be. You should not place undue reliance
on forward-looking statements, which apply only as of the date of
this Current Report on Form 8-K. The Company assumes no
obligation to update these forward-looking statements.

On April 26, 2017, Pacific Biosciences of California, Inc. (the
Company) reported its financial results for the quarter ended
March 31, 2017. The Companys unaudited Condensed Consolidated
Balance Sheets, Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss) and Condensed Consolidated
Statements of Cash Flows are filed together as Exhibit 99.1
hereto and are incorporated herein by reference.

Product and service revenue for the first quarter of 2017
increased by 60% to $24.9 million, compared to $15.5 million for
the first quarter of 2016. Revenue for the first quarter of 2017
was comprised of product, service and other revenue of $24.9
million, up 30% compared to $19.1 million for the first quarter
of 2016. Revenue for the first quarter of 2016 included $3.6
million of contractual revenue, whereas the first quarter of 2017
included no contractual revenue.

Gross profit for the first quarter of 2017 was $8.9 million,
resulting in a gross margin of 35.9%. During the first quarter of
2017, the Company recorded a $1.3 million charge to cost of
revenue relating to RS II instruments primarily due to a change
in the estimated useful life of such instruments. Excluding this
charge, adjusted gross margin for the first quarter of 2017 would
have been 41.0%. Gross profit for the first quarter of 2016 was
$9.5 million, resulting in a gross margin of 49.7%. This included
$3.6 million of contractual revenue at 50% gross margin.
Excluding this contractual revenue, adjusted gross margin for the
first quarter of 2016 would have been 38.0%. Adjusted gross
margin is not meant to be considered in isolation or as a
substitute for gross margin. Adjusted gross margin is subject to
limitations, and should be read only in conjunction with the
Companys consolidated financial statements prepared in accordance
with GAAP.

Operating expenses for the first quarter of 2017 totaled $32.2
million, compared to $28.1 million for the first quarter of 2016.
Operating expenses for the first quarter of 2017 and 2016
included non-cash stock-based compensation of $4.5 million and
$4.1 million, respectively.

Net loss for the first quarter of 2017 was $23.9 million,
compared to $19.4 million for the first quarter of 2016.

Cash, cash equivalents and investments, excluding restricted
cash, at March 31, 2017 totaled $56.1 million, compared to $72.0
million at December 31, 2016.

The Company has provided disclosure regarding its Results of
Operations for the Quarter Ended March 31, 2017 and updated its
Legal Proceedings and Risk Factors. The revised disclosure is
filed as Exhibit 99.2 hereto and incorporated herein by
reference.

The information set forth in this Item 2.02, as well as Exhibit
99.1 and 99.2 referenced therein, shall be deemed filed for
purposes of the Securities Exchange Act of 1934, as amended, and
shall be incorporated by reference into the Companys filings
under the Securities Act of 1933, as amended.

Pacific Biosciences of California, Inc. (NASDAQ:PACB) Recent Trading Information
Pacific Biosciences of California, Inc. (NASDAQ:PACB) closed its last trading session at with 655,190 shares trading hands.