Pacific Biosciences Of California (NASDAQ:PACB) Makes Important Announcements; Revenue Jumps 80%

0
1406

Pacific Biosciences of California (NASDAQ:PACB) recently announced its financial results for third quarter of this year. The company said that its revenue jumped by 80% on YoY basis. The Pacific Biosciences of California said that its revenue stood at $25.1 million in contrast with $13.9 million in Q3 2015.

In the meanwhile, the company said that it has terminated its agreement with Roche Diagnostics. The two companies had decided to form an alliance in the year 2013. As a result, Roche will have no rights to Pacific Biosciences’ Single Molecule, Real-Time (SMRT®) technology.

Climbing revenues for Q3 2016

The company said that during the third quarter of the recent fiscal, the revenue pertaining to services and products climbed 109% and reached $21.5 million. In the previous year, this revenue was $10.3 million.

It is vital to note that the revenue for Q3 2016 & 2015 stood at $3.6 million for pay off to license agreement, commercialization and development with Roche Diagnostics. In the Q3 2016, the gross profit soared to climb $12.6 million. This led to company’s gross margin to increase $6.1 million at 50.3%.

The reason for rising revenue and increase n margin and profit can be attributed to company’s sale of SequelTM System. This system was launched back in 2015. This system was developed while the company was still in alliance with Roche Diagnostics.

Pacific upset with Roche’s decision to terminate agreement

It is important to note that the decision to terminate the agreement was that of Roche Diagnostics. Meanwhile, Pacific Biosciences said that it was looking forward to explore further opportunities in the sequencing and clinical research market.

The company also said that it is in the better driving position to grow its business. It said that the company was expecting its revenue growth from 55% and 65% in comparison to the previous year. By the end of next year, it said, that the targeted revenue growth is 40% to 60%. What lies ahead is yet to be seen, but for now, Pacific seems to be in a stronger position.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.