Company profile

Ticker
PACB
Exchange
Website
CEO
Christian O. Henry
Employees
Incorporated
Location
Fiscal year end
Former names
NANOFLUIDICS INC, PACIFIC BIOSCIENCES OF CALIFORNIA INC
SEC CIK
IRS number
161590339

PACB stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

3 Nov 20
5 Dec 20
31 Dec 20

News

Quarter (USD) Sep 20 Jun 20 Mar 20 Sep 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
24 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 14.385 1,492 21.46K 0
23 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 15.032 251,837 3.79M 1,492
20 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 15.112 147,799 2.23M 253,329
19 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 15.55 2,201 34.23K 401,128
18 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 15.711 38,381 603K 403,329
16 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 15.895 42,488 675.35K 441,710
12 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 16.729 200,000 3.35M 484,198
11 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 16.464 250,000 4.12M 684,198
11 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 14.25 195,652 2.79M 898,215
10 Nov 20 Hunkapiller Michael Common Stock Sell Dispose S No 14.25 1,304,348 18.59M 1,093,867

Financial report summary

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Competition
Thermo Fisher ScientificIlluminaDna
Risks
  • We have incurred losses to date, and we expect to continue to incur significant losses as we develop our business and may never achieve profitability.
  • We are not cash flow positive and may not have sufficient cash to fund our current and planned operations.
  • We may need to repay the Reverse Termination Fee and Continuation Advances to Illumina.
  • If we are unable to successfully develop and timely manufacture our current and future products, including with respect to the Sequel System, the new SMRT Cell 8M and Sequel II System and related products, our business may be adversely affected.
  • Our research and development efforts may not result in the benefits that we anticipate, and our failure to successfully market, sell, and commercialize our current and future products could have a material adverse effect on our business, financial condition and results of operations.
  • Our terminated merger with Illumina has affected and may in the future, materially and adversely affect our results of operations and stock price.
  • We depend on the continuing efforts of our senior management team and other key personnel. If we lose members of our senior management team or other key personnel or are unable to successfully retain, recruit and train qualified scientists, engineers and other personnel, our ability to maintain and develop our products could be harmed and we may be unable to achieve our goals.
  • Unfavorable global economic or political conditions could adversely affect our business, financial condition or results of operations.
  • We have significant international sales and operations and face risks related to health epidemics that could adversely affect our revenue and operations.
  • Our success is highly dependent on our ability to further penetrate nucleic acid sequencing applications as well as on the growth and expansion of the demand for our products. If our products fail to achieve and sustain sufficient market acceptance, we will not generate expected revenue and our business may not succeed.
  • We rely on other companies for the manufacture of certain components and sub-assemblies and intend to outsource additional sub-assemblies in the future. We may not be able to successfully scale the manufacturing process necessary to build and test multiple products on a full commercial basis, which could materially harm our business.
  • We may be unable to consistently manufacture our instruments and consumable kits, including SMRT Cells, to the necessary specifications or in quantities necessary to meet demand at an acceptable cost or at an acceptable performance level.
  • Rapidly changing technology in life sciences and diagnostics could make our products obsolete unless we continue to develop, manufacture and commercialize new and improved products and pursue new opportunities.
  • Increased market adoption of our products by customers may depend on the availability of sample preparation and informatics tools, some of which may be developed by third parties.
  • We operate in a highly competitive industry and if we are not able to compete effectively, our business and operating results will likely be harmed.
  • We may be unable to successfully increase sales of our current products or market and sell our future products.
  • Large purchases by a limited number of customers represent a significant portion of our revenue, and any loss or delay of expected purchases has resulted, and in the future could result, in material quarter-to-quarter fluctuations of our revenue or otherwise adversely affect our results of operations.
  • Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations.
  • Our products are highly complex, have recurring support requirements and could have unknown defects or errors, which may give rise to claims against us or divert application of our resources from other purposes.
  • A significant portion of our sales depends on customers’ spending budgets that may be subject to significant and unexpected variation which could have a negative effect on the demand for our products.
  • We may not be able to convert our orders in backlog into revenue.
  • Delivery of our products could be delayed or disrupted by factors beyond our control, and we could lose customers as a result.
  • We are, and may become, subject to governmental regulations that may impose burdens on our operations, and the markets for our products may be narrowed.
  • Our products could become subject to regulation by the U.S. Food and Drug Administration or other domestic and international regulatory agencies, which could increase our costs and impede or delay our commercialization efforts, thereby materially and adversely affecting our business and results of operations.
  • Doing business internationally creates operational and financial risks for our business.
  • Enhanced trade tariffs, import restrictions, export restrictions, Chinese regulations or other trade barriers may materially harm our business.
  • Our business could be negatively impacted by changes in the United States political environment.
  • Our sales cycle is unpredictable and lengthy, which makes it difficult to forecast revenue and may increase the magnitude of quarterly or annual fluctuations in our operating results.
  • Seasonality may cause fluctuations in our revenue and results of operations.
  • If we fail to comply with healthcare and other governmental laws and regulations, we could face substantial penalties and our business, results of operations and financial condition could be adversely affected.
  • If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired, which would adversely affect our business and our stock price.
  • Our ability to use net operating losses to offset future taxable income may be subject to substantial limitations, and changes to U.S. tax laws may cause us to make adjustments to our financial statements.
  • Our operations involve the use of hazardous materials, and we must comply with environmental, health and safety laws, which can be expensive and may adversely affect our business, operating results and financial condition.
  • Our facilities in California are located near earthquake faults, and the occurrence of an earthquake or other catastrophic disaster could cause damage to our facilities and equipment, which could require us to cease or curtail operations.
  • Ethical, legal, privacy and social concerns or governmental restrictions surrounding the use of genetic information could reduce demand for our technology.
  • Disruption of critical information technology systems or material breaches in the security of our systems could harm our business, customer relations and financial condition.
  • Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.
  • Regulations related to conflict minerals has caused us to incur, and will continue to cause us to incur, additional expenses and could limit the supply and increase the costs of certain materials used in the manufacture of our products.
  • Failure to secure patent or other intellectual property protection for our products and improvements to our products may reduce our ability to maintain any technological or competitive advantage over our current and potential competitors.
  • Variability in intellectual property laws may adversely affect our intellectual property position.
  • Some of the intellectual property that is important to our business is owned by other companies or institutions and licensed to us, and changes to the rights we have licensed may adversely impact our business.
  • The measures that we use to protect the security of and enforce our intellectual property and other proprietary rights may not be adequate, which could result in the loss of legal protection for, and thereby diminish the value of, such intellectual property and other rights.
  • Our intellectual property may be subject to challenges in the United States or foreign jurisdictions that could adversely affect our intellectual property position.
  • Some of our technology is subject to “march-in” rights by the U.S. government.
  • We are involved in legal proceedings to enforce our intellectual property rights.
  • We have been, are currently, and could in the future be, subject to legal proceedings with third parties who may claim that our products infringe or misappropriate their intellectual property rights.
  • We have not yet registered some of our trademarks in all of our potential markets, and failure to secure those registrations could adversely affect our business.
  • Our use of “open source” software could adversely affect our ability to sell our products and subject us to possible litigation.
  • The price of our common stock has been, is, and may continue to be, highly volatile, and you may be unable to sell your shares at or above the price you paid to acquire them.
  • Future sales of our common stock could cause our stock price to fall.
  • Concentration of ownership by our principal stockholders may result in control by such stockholders of the composition of our board of directors.
  • Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
  • Our large number of authorized but unissued shares of common stock may potentially dilute existing stockholders’ stockholdings.
  • We do not intend to pay dividends for the foreseeable future.
Management Discussion
  • Total revenue for the year ended December 31, 2019 was $90.9 million compared to $78.6 million for 2018.  An increase in revenue associated with shipments of Sequel II instruments for the year ended December 31, 2019 was partially offset by a decrease in revenue associated with fewer shipments of Sequel instruments. 
  • Product revenue for the year ended December 31, 2019 consisted of $45.1 million from sales of Sequel and Sequel II instruments and $32.6 million from sales of consumables, for total product revenues of $77.7 million, compared to $28.5 million from sales of sales of Sequel instruments and $37.9 million from sales of consumables, for total product revenue of $66.4 million for the year ended December 31, 2018.  The increase in instrument sales was primarily attributable to a higher number of instrument shipments and installations for the year ended December 31, 2019. The decrease in consumable sales was driven by lower utilization of Sequel instruments as a number of customers are transitioning from Sequel to Sequel II.
  • Service and other revenue of $13.1 million and $12.3 million for the year ended December 31, 2019 and 2018, respectively, was primarily derived from product maintenance agreements sold on our installed instruments.  The increase in service and other revenue was primarily attributable to a larger number of installed instruments under service contracts.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Good
New words: Christian, deficit, Henry, HiFi, IIe, John, Kim, lapsed, Milligan, salary, succeeding
Removed: add, Allen, amend, entitled, Enzyme, feet, house, interim, judge, leased, motion, Sequence, simplify, Singapore, square, Translation