There are two types of companies when it comes to sequencing human genomes: Illumina and everyone else. While Pacific Biosciences of California failed on its promise and hype in 2010 to revolutionize human genome sequencing, it has carved out a spectacular niche and built an envious reputation when it comes to sequencing microbial genomes with ultrahigh accuracy. Good news: high-quality microbial genomes are becoming increasingly more important in commercial applications and Pacific Biosciences is gradually developing additional business opportunities as it expands its capabilities. <\/p>\n
The genomic diagnostics partnership signed with Roche in September 2013 is a prime example of management's vision to diversify the business -- and it has certainly catalyzed share gains for investors. <\/p>\n<\/p>\n
PACB data by YCharts <\/p>\n
Yet, while encouraged by the progress and commitment from a blue chip biotech company, investors are also curious about the path to profitability. Do the recent Pacific Biosciences earnings provide any clues? Here's what you need to know. <\/p>\n
By the numbers Pacific Biosciences had a great quarter for two reasons. First, it realized $11.7 million in revenue from the Roche partnership: $10 million from hitting a milestone and $1.7 million in quarterly amortization of the upfront payment. Second, it grew product revenue 15.6% and service revenue 34.7%. The company booked 16 orders of its third-generation DNA sequencing system, the PacBio RS II, and has now booked 30 systems year to date. That compares favorably to the 16 bookings made through the first three quarters last year and should keep the momentum going. <\/p>\n
3Q14 <\/p>\n
3Q13 <\/p>\n
% Change <\/p>\n
Product Revenue <\/p>\n
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Originally posted here: There are two types of companies when it comes to sequencing human genomes: Illumina and everyone else. While Pacific Biosciences of California failed on its promise and hype in 2010 to revolutionize human genome sequencing, it has carved out a spectacular niche and built an envious reputation when it comes to sequencing microbial genomes with ultrahigh accuracy Continue reading
\nPacific Biosciences of California Earnings Rocket Higher on Roche Deal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"