Business
PacBio Announces Preliminary First Quarter 2024 Revenue and Updates 2024 Revenue Guidance
Announces Plan to Reduce Annualized Operating Expense Run Rate by $50 - $75 Million Q1 2024 Earnings Conference Call Scheduled for May 9, 2024 MENLO PARK,
About this update from Pacific Biosciences Of California, Inc.
[{"type":"text","content":"Announces Plan to Reduce Annualized Operating Expense Run Rate by $50 - $75 Million \n\n \n \n \n \n \n \n\n \nQ1 2024 Earnings Conference Call Scheduled for May 9, 2024\nMENLO PARK, Calif., April 16, 2024 /PRNewswire/ – PacBio (NASDAQ: PACB) today announced preliminary, unaudited revenue for the quarter ended March 31, 2024.\nPreliminary First Quarter Results\nPreliminary revenue of $38.8 million, roughly flat compared with $38.9 million in the prior-year period.Instrument revenue of $19.0 million compared with $20.7 million in the prior-year period.Consumables revenue of $16.0 million compared with $14.0 million in the prior-year period. Expect Revio consumables in the first quarter of 2024 to be approximately $11.0 million.Service and other revenue of $3.8 million compared with $4.2 million in the prior-year period.Instrument revenue included 28 RevioTM sequencing systems in the first quarter of 2024, bringing the ending installed base to 201 systems as of March 31, 2024. Of the 28 Revio systems shipped, 16 were shipped to new customers. Onso shipments increased sequentially as PacBio continued to ramp up its manufacturing capacity, achieving steady-state production levels at the end of the quarter.Total preliminary cash, cash equivalents, and investments balance as of March 31, 2024 of approximately $562 million.Preliminary revenue for the first quarter was below the company's expectations due to an increasing number of customers delaying instrument purchases and softness in consumable shipments.\nAll regions underperformed, with 13 Revio systems falling out of the forecast in the last couple of weeks in the first quarter, which the company believes primarily resulted from elongated customer purchasing cycles. The median sales cycle for Revio instrument purchases increased more than expected in the first quarter of 2024. PacBio believes that these instruments continue to be strong sales opportunities that are likely to close in 2024. PacBio believes additional reasons for the shortfall include:\nThe uncertainty surrounding the funding for new capital equipment, particularly in the U.S. and China;Procurement delays;Small-to-mid-size existing customers yet to increase their sample volumes to drive an upgrade to Revio; and,An increasing proportion of the sales pipeline was comprised of new customers in the first quarter of 2024...