Pacific Biosciences of California(US:PACB)2024-05-09 20:21Revenue Performance - Revenue for the three months ended March 31, 2024, decreased slightly to $38.8 million, compared to $38.9 million for the same period in 2023[119]. - Instrument revenue decreased by $1.7 million, or 8%, to $19.0 million, primarily due to the sale of 28 Revio systems compared to 32 in the prior year[126]. - Consumables revenue increased by $2.0 million, or 15%, to $16.0 million, driven by higher Revio consumables sales[127]. Profitability and Loss - Gross profit increased by $1.5 million, or 16%, to $11.3 million, with a gross margin of 29% for the three months ended March 31, 2024, compared to 25% in the prior year[130]. - Operating loss decreased by $9.9 million, or 11%, to $81.4 million for the three months ended March 31, 2024[124]. - The company reported a net loss of $78.2 million for the three months ended March 31, 2024, compared to a net loss of $88.0 million for the same period in 2023[146][147]. Expenses - Research and development expenses decreased by $5.5 million, or 11%, to $43.5 million, primarily due to restructuring activities[131]. - Sales, general, and administrative expenses increased by $3.9 million, or 10%, to $43.8 million, driven by an increase in personnel expenses[132]. Cash Flow and Investments - Cash used in operating activities was $75.7 million for Q1 2024, a decrease from $94.7 million in Q1 2023, indicating improved cash flow management[144][146][147]. - Cash used in investing activities for Q1 2024 was $34.1 million, significantly lower than $72.6 million in Q1 2023, reflecting a strategic shift in investment[144][149]. - The company provided $6.6 million in cash from financing activities in Q1 2024, compared to $195.9 million in Q1 2023, indicating a decrease in capital raised[144][150][151]. Cash Position - Cash, cash equivalents, and short-term investments were $561.9 million at March 31, 2024, representing an 11% decrease compared to December 31, 2023[119]. - As of March 31, 2024, the company had cash, cash equivalents, and investments totaling $561.9 million, down from $631.4 million as of December 31, 2023[139]. Future Outlook and Initiatives - The company plans to reduce certain annualized run-rate operating expenses by the end of 2024, including workforce reductions and facilities downsizing[117]. - The company implemented efficiency and expense reduction initiatives expected to lower annualized operating expenses by the end of 2024[141]. - The median sales cycle for Revio instrument purchases increased more than expected, attributed to funding uncertainties and procurement delays[121]. - The company expects to achieve a milestone payment of $25.0 million upon reaching $50 million in revenue from Apton's technology within five years of the acquisition[135][143]. Investment Portfolio and Interest Expenses - The fair value of the company's investment portfolio could be affected by a hypothetical 100 basis-point change in interest rates, impacting it by approximately $3.1 million[161]. - The company incurred interest expenses of $3.6 million for both Q1 2024 and Q1 2023, primarily related to convertible senior notes[137]. - The company achieved a milestone payment of approximately $100.9 million in cash and 9.0 million shares to former Omniome securityholders following a milestone achievement in September 2023[134].