Pacific Biosciences of California(PACB)2023-11-02 16:00Revenue Performance - Revenue increased by $41.2 million, or 41%, to $142.2 million for the nine months ended September 30, 2023, compared to $101.0 million for the same period in 2022[126]. - Instrument revenue for the three months ended September 30, 2023, increased by $23.3 million, or 203%, to $34.7 million, driven by the sale of 52 Revio systems[135]. - Product revenue increased by $43.9 million, or 51%, to $129.9 million for the nine months ended September 30, 2023, compared to $85.9 million for the same period in 2022[148]. - Instrument revenue increased by $42.7 million, or 100%, to $85.3 million for the nine months ended September 30, 2023, driven by the sale of 129 Revio systems[150]. - Consumables revenue increased by $0.8 million, or 5%, to $16.9 million for the three months ended September 30, 2023, compared to $16.1 million for the same period in 2022[136]. - Consumables revenue increased by $1.3 million, or 3%, to $44.6 million for the nine months ended September 30, 2023, attributed to higher Revio consumables sales[151]. Profitability and Expenses - Gross profit margin decreased to 30% for the nine months ended September 30, 2023, down from 43% for the same period in 2022, primarily due to lower margins on Revio instruments[126]. - Gross profit decreased by $0.7 million, or 2%, to $43.2 million for the nine months ended September 30, 2023, with a gross margin of 30%, down from 43% in the prior year[154]. - Loss from operations increased by $26.8 million, or 12%, to $246.9 million for the nine months ended September 30, 2023, compared to $220.1 million for the same period in 2022[132]. - Research and development expense decreased by $7.8 million, or 5%, to $142.6 million for the nine months ended September 30, 2023, compared to $150.4 million for the same period in 2022[155]. - Sales, general and administrative expense increased by $8.0 million, or 7%, to $123.8 million for the nine months ended September 30, 2023, driven by increased marketing expenses[156]. - Merger-related expenses totaled $9.0 million for the nine months ended September 30, 2023, primarily due to the acquisition of Apton[157]. Cash and Investments - Cash, cash equivalents, and short-term investments were $767.8 million at September 30, 2023, representing a 1% decrease compared to the balance at December 31, 2022[132]. - As of September 30, 2023, cash, cash equivalents, and investments totaled $767.8 million, slightly down from $772.3 million as of December 31, 2022[164]. - Cash used in operating activities for the nine months ended September 30, 2023, was $201.6 million, compared to $202.6 million for the same period in 2022[171][172]. - Cash provided by investing activities for the nine months ended September 30, 2023, was $71.2 million, up from $35.7 million in 2022[169][174]. - Cash provided by financing activities during the nine months ended September 30, 2023, was $190.5 million, significantly higher than $8.8 million in 2022[169][175]. Acquisitions and Mergers - The company entered into a merger agreement with Apton Biosystems on August 2, 2023, issuing approximately 6.3 million shares of common stock upon closing[131]. - A deferred income tax benefit of $10.7 million was recognized for the nine months ended September 30, 2023, related to the Apton acquisition[163]. - The company paid approximately $100.9 million in cash and 9.0 million shares of common stock as milestone consideration related to the Omniome acquisition in October 2023[167]. - The company is obligated to pay $25.0 million to former Apton equity holders upon achieving $50 million in revenue from a high throughput sequencer using Apton's technology[168]. - The change in fair value of contingent consideration was $14.0 million during the nine months ended September 30, 2023, related to the Omniome acquisition milestone[159]. Other Income - Other income, net increased by $23.0 million, or 1784%, to $24.3 million for the nine months ended September 30, 2023, compared to $1.3 million for the same period in 2022[146]. - Other income for the nine months ended September 30, 2023, was $24.3 million, a significant increase from $1.3 million in the same period of 2022, primarily due to investment income[162]. Product Launches - The company commenced commercial shipments of the Onso short-read sequencing instrument in August 2023, following the launch of Revio in the first quarter of 2023[123]. - The installed base of Revio systems reached 129 by the end of the quarter, reflecting strong customer demand for the new product[126]. Financial Sensitivity - A hypothetical 100 basis-point change in interest rates would affect the fair value of the investment portfolio by approximately $2.4 million[185]. - The company has maintained a full valuation allowance on net deferred tax assets of its U.S. entities, indicating uncertainty in realizing these assets[163].