Pacific Biosciences of California, Inc. Announces First Quarter 2020 Financial Results

About this update from Pacific Biosciences Of California, Inc.

[{"type":"text","content":"MENLO PARK, Calif., May 06, 2020 (GLOBE NEWSWIRE) -- Pacific Biosciences of California, Inc. (NASDAQ: PACB) today announced financial results for its first quarter ended March 31, 2020.\n As previously announced, in January 2020, we and Illumina mutually agreed to terminate the Agreement and Plan of Merger (as amended, the “Merger Agreement”). As part of our agreement to terminate the Merger Agreement, Illumina paid us a $98.0 million reverse termination fee in January 2020, from which we paid our financial advisor associated fees of $6.0 million in April 2020, which is less than the amount we initially expected. The $98.0 million in cash we received from Illumina was recorded as a short-term liability for the quarter ended March 31, 2020 and is expected to be subsequently recorded as other income after September 30, 2020 when all contingency clauses are expected to lapse. In addition, during the first quarter ended March 31, 2020, as previously agreed to pursuant to the terms of the Merger Agreement, Illumina paid us cash payments (“Continuation Advances”) of $34.0 million, which resulted in a gain of $34.0 million for the quarter ended March 31, 2020. Total revenue for the first quarter of 2020 was $15.6 million, compared with $16.4 million for the first quarter of 2019. Instrument revenue for the first quarter of 2020 was $4.0 million, compared with $5.6M for the first quarter of 2019. Consumables revenue for the first quarter of 2020 was $8.3 million compared with $7.8 million for the first quarter of 2019. Service and other revenue for the first quarter of 2020 was $3.3 million compared with $3.0 million for the first quarter of 2019. Gross profit for the first quarter of 2020 was $7.5 million, resulting in a gross margin of 48.0%. Gross profit for the first quarter of 2019 was $5.1 million, resulting in a gross margin of 31.2%. Operating expenses for the first quarter of 2020 totaled $40.2 million, compared to $35.3 million for the first quarter of 2019. Operating expenses for the first quarter of 2020 included the $6.0 million financial advisor associated fees mentioned above. Operating expenses for the first quarter of 2020 and 2019 included non-cash stock-based compensation of $3.5 million and $3.9 million, respectively. Net income for the first quarter of 2020 was $1.3 million, driven by the Continuation Advances of $3...

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