Pacific Biosciences of California(US:PACB)2024-11-09 00:28Revenue Performance - Revenue decreased to $114.8 million for the nine months ended September 30, 2024, down from $142.2 million for the same period in 2023, primarily due to lower Revio unit sales[104] - Total revenue for the three months ended September 30, 2024, was $39.967 million, a decrease of 28% from $55.691 million for the same period in 2023[111] - Revenue decreased by $27.4 million, or 19%, to $114.8 million for the nine months ended September 30, 2024, compared to $142.2 million for the same period in 2023[126] Instrument Revenue - Instrument revenue for the nine months ended September 30, 2024, was $50.5 million, compared to $85.3 million for the same period in 2023, reflecting a significant decline[104] - Instrument revenue for the three months ended September 30, 2024, decreased by 52% to $16.8 million, down from $34.7 million for the same period in 2023, with only 22 Revio systems sold compared to 52 in the prior year[112] - Product revenue decreased by $34.8 million, or 41%, to $50.5 million for the nine months ended September 30, 2024, primarily due to the sale of 74 Revio systems compared to 129 systems in the prior year[126] Gross Profit and Expenses - Gross profit decreased for the nine months ended September 30, 2024, primarily due to a decrease in revenue and $4.4 million of restructuring charges[104] - Gross profit decreased by $16.0 million, or 37%, to $27.2 million for the nine months ended September 30, 2024, with a gross margin of 24% compared to 30% in the same period of 2023[128] - Total operating expense increased by $58.4 million, or 20%, to $348.5 million for the nine months ended September 30, 2024[130] Loss and Impairment - Loss from operations increased to $321.3 million for the nine months ended September 30, 2024, compared to $246.9 million for the same period in 2023, driven by a $93.2 million goodwill impairment charge[104] - Goodwill impairment charge of $93.2 million was recorded for the nine months ended September 30, 2024, due to a decline in stock price and changes in expected future cash flows[132] Cash and Investments - Cash, cash equivalents, and short-term investments were $471.1 million at September 30, 2024, representing a 25% decrease compared to the balance at December 31, 2023[104] - As of September 30, 2024, cash, cash equivalents, and investments totaled $471.1 million, down from $631.4 million as of December 31, 2023[141] - Cash used in operating activities for the nine months ended September 30, 2024, was $175.4 million, an improvement from $201.6 million in 2023[144] Research and Development - Research and development expense decreased by $35.2 million, or 25%, to $107.5 million for the nine months ended September 30, 2024, driven by restructuring activities[129] Other Income and Expenses - Other income, net decreased to $19.7 million for the nine months ended September 30, 2024, compared to $24.3 million in the same period of 2023[126] - Interest expense for the nine months ended September 30, 2024, was $10.7 million, slightly down from $10.8 million for the same period in 2023[137] - Interest expense for the three months ended September 30, 2024, was $3.5 million, compared to $3.6 million for the same period in 2023[121] Future Plans and Developments - The company plans to reduce annualized run-rate operating expenses by the end of 2024, with restructuring charges of approximately $24.7 million incurred for the nine months ended September 30, 2024[103] - The Vega system, a new benchtop long-read sequencing platform, was announced on November 6, 2024, with shipments expected to commence in the first quarter of 2025[108] Financing Activities - Cash provided by financing activities for the nine months ended September 30, 2024, was $7.2 million, a significant decrease from $190.5 million in 2023[144] - A deferred income tax benefit of $10.7 million for the nine months ended September 30, 2023, was related to the release of the valuation allowance for deferred tax assets due to the Apton acquisition[139] - The company has a contingent consideration obligation of $25.0 million related to the Apton acquisition, contingent upon achieving $50.0 million in revenue[142] Interest Rate Sensitivity - A hypothetical 100 basis-point change in interest rates would have affected the fair value of the investment portfolio by approximately $2.4 million as of September 30, 2024[157]