Pacific Biosciences of California(US:PACB)2024-02-27 16:00Financial Performance - The company reported total revenue of $200.5 million for the year ended December 31, 2023, with product revenue accounting for $183.9 million, primarily from instrument sales and related consumables [368]. - Total revenue for 2023 reached $200,521,000, a significant increase of 56.3% compared to $128,304,000 in 2022 [383]. - Product revenue increased to $183,872,000 in 2023, up 69.2% from $108,699,000 in 2022 [383]. - Gross profit for 2023 was $52,780,000, compared to $49,035,000 in 2022, reflecting a gross margin improvement [383]. - Operating loss widened to $334,467,000 in 2023 from $307,196,000 in 2022, indicating increased operational challenges [383]. - Net loss for 2023 was $306,735,000, slightly improved from a net loss of $314,248,000 in 2022 [383]. - Cash and cash equivalents decreased to $179,911,000 in 2023 from $325,089,000 in 2022, indicating liquidity pressures [380]. - Total assets decreased to $1,746,013,000 in 2023 from $1,767,086,000 in 2022, reflecting a decline in overall asset base [380]. - Total liabilities decreased to $1,044,709,000 in 2023 from $1,204,182,000 in 2022, showing improved liability management [380]. - Stockholders' equity increased to $701,304,000 in 2023 from $562,904,000 in 2022, indicating a stronger equity position [380]. Research and Development - The company expects to continue its research and development efforts to enhance product offerings and maintain competitive advantages in the market [12]. - The company plans to continue investing in research and development, with R&D expenses totaling $187,170,000 in 2023, slightly down from $193,000,000 in 2022 [383]. - Research and development expenses consist mainly of personnel costs for core technology development and product enhancements, expensed as incurred [427]. Acquisitions - The company completed the acquisition of Apton Biosystems, Inc. in 2023, recording an indefinite-lived intangible asset valued at $55.0 million [374]. - The company acquired Apton Biosystems, Inc. on August 2, 2023, a genomics company focused on developing a high throughput short-read sequencer [439]. - The total consideration transferred for the Apton acquisition was $94.0 million, which included $76.6 million in common stock and $0.2 million in cash [440]. - Goodwill recognized from the Apton acquisition was $52.3 million, primarily due to expected synergies from integration [446]. - The total consideration for the Omniome acquisition was $714.8 million, including $315.7 million in cash and $249.4 million in common stock [453]. - The total consideration for the Circulomics acquisition was $29.5 million, with goodwill recognized at $19.3 million [459]. Revenue Recognition - The company identified performance obligations in revenue contracts, which may include non-standard terms, requiring management judgment in revenue recognition [368]. - Revenue is primarily generated from product sales, including instruments and related consumables, with service revenue from product maintenance agreements [419]. - The company recognizes revenues when control of the promised goods is transferred to customers, generally upon delivery or shipment [421]. Cash Flow and Liquidity - Net cash used in operating activities decreased to $259,173,000 in 2023 from $263,211,000 in 2022 [1]. - Cash provided by investing activities was $4,604,000 in 2023, compared to $116,083,000 in 2022 [1]. - Cash provided by financing activities increased to $108,891,000 in 2023 from $9,622,000 in 2022 [1]. - Total cash, cash equivalents, and restricted cash at the end of the period was $182,633,000, down from $328,311,000 in 2022 [1]. - Total cash, cash equivalents, and investments as of December 31, 2023, amounted to $631.2 million, a decrease from $777.1 million in 2022 [487]. Debt and Interest - The company issued $900 million of 1.50% Convertible Senior Notes due February 15, 2028, which facilitated the repayment of the Continuation Advances [470]. - The company issued $441.0 million in 1.375% Convertible Senior Notes due 2030 in exchange for the same amount of 1.50% Convertible Senior Notes due 2028 in June 2023 [504]. - The total interest expense for the 2030 Notes in 2023 was $3.495 million, including $3.032 million in contractual interest and $463,000 in amortization of debt issuance costs [518]. - The total interest expense for the 2028 Notes in 2023 was $10.605 million, comprising $10.133 million in contractual interest and $472,000 in amortization of debt issuance costs [531]. Inventory and Assets - Inventory provision for 2023 was $10,584,000, up from $6,027,000 in 2022 [1]. - Inventory, net, increased to $56.7 million in 2023 from $50.4 million in 2022, with work in process rising significantly from $14.1 million to $23.4 million [489]. - Property and equipment, net, decreased to $36.4 million in 2023 from $41.6 million in 2022, with accumulated depreciation increasing from $65.0 million to $74.8 million [490]. - Goodwill increased to $462.3 million in 2023, up from $410.0 million in 2022, primarily due to the Apton acquisition [492]. Legal and Commitments - The company accrues liabilities for legal proceedings when future expenditures are probable and can be reasonably estimated [537]. - The company has approximately $109.9 million in purchase orders and contractual obligations as of December 31, 2023, with most due within a year [543]. - A long-term supply agreement with a semiconductor manufacturer includes minimum purchase commitments through 2026 [545].