Pacific Biosciences of California (PACB) 8-K Fourth Quarter 2012 Financial Results

Exhibit 99.1

Pacific Biosciences of California, Inc. Announces

Fourth Quarter 2012 Financial Results

Menlo Park, Calif.– February 5, 2013 – Pacific Biosciences of California, Inc. (Nasdaq: PACB) today announced financial results for the fourth quarter ended December 31, 2012.

During the fourth quarter of 2012, the Company recognized revenue from installations of its PacBioRS systems, SMRT^® Cell and reagent consumables, instrument service contracts and grants. Revenue for the fourth quarter of 2012 totaled $5.9 million compared to revenue of $2.8 million for the third quarter of 2012. Net loss for the quarter was $21.7 million compared to the $22.7 million net loss during the third quarter of 2012.

Gross profit for the fourth quarter of 2012 totaled $0.6 million, resulting in a gross margin of 11%, compared to a $0.2 million gross profit for the third quarter of 2012 and a gross margin of 7%.

Operating expense totaled $22.3 million for the fourth quarter of 2012 and $22.8 for the third quarter of 2012. Operating expense in the fourth quarter of 2012 include $2.4 million of non-cash stock-based compensation with $1.2 million and $1.2 million recorded in research and development, and selling, general and administrative expenses, respectively.

Cash and investments at December 31, 2012 totaled $100.6 million compared to $119.4 million at September 30, 2012.

The Company’s system backlog as of December 31, 2012 includes orders for 5 PacBioRS instruments.

Quarterly Conference Call Information

Management will host a quarterly conference call to discuss its fourth quarter 2012 results today at 4:30pm Eastern / 1:30pm Pacific. Investors may listen to the call by dialing 888.366.7247, or if outside the U.S., by dialing +1.707.287.9330. The call will be webcast live and will be available for replay at Pacific Biosciences’ website at http://investor.pacificbiosciences.com/.

About Pacific Biosciences

Pacific Biosciences of California, Inc. (NASDAQ: PACB) offers the PacBio^®RS High Resolution Genetic Analyzer to help scientists solve genetically complex problems. Based on its novel Single Molecule, Real-Time (SMRT^®) technology, the company’s products enable: targeted sequencing to more comprehensively characterize genetic variations;de novo genome assembly to more fully identify, annotate and decipher genomic structures; and DNA base modification identification to help characterize epigenetic regulation and DNA damage. By providing access to genetic information that was previously inaccessible, Pacific Biosciences enables scientists to increase their understanding of biological systems.

Forward-Looking Statements

This press release contains forward-looking statements relating to the Company’s operations and operating results, including statements relating to the Company’s backlog and future revenue implied by such backlog. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control and that could materially affect actual results. Factors that could materially affect actual results can be found in Pacific Biosciences of California’s filings with the Securities and Exchange Commission, including the most recently filed Quarterly Report on Form 10-Q, including those listed under the caption “Risk Factors.” Pacific Biosciences of California expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Contact:

Trevin Rard

650.521.8450

ir@pacificbiosciences.com

Pacific Biosciences of California, Inc.

Unaudited Consolidated Statement of Operations

(amounts in thousands, except per share amounts)

	Quarters Ended
	December 31, 2012			September 30, 2012			December 31, 2011
Revenue:
Product revenue	$	4,279		$	1,268		$	11,519
Service and other revenue		1,339			1,283			760
Grant revenue		260			225			165
Total revenue		5,878			2,776			12,444
Cost of revenue:
Cost of product revenue		3,847			960			9,642
Cost of service and other revenue		1,404			1,626			1,265
Total cost of revenue		5,251			2,586			10,907
Gross profit		627			190			1,537
Operating expense:
Research and development		11,652			12,626			12,415
Sales, general and administrative		10,669			10,143			11,811
Total operating expense		22,321			22,769			24,226
Operating loss		(21,694	)		(22,579	)		(22,689	)
Other income (expense), net		25			(150	)		(134	)
Net loss	$	(21,669	)	$	(22,729	)	$	(22,823	)
Basic and diluted net loss per share	$	(0.39	)	$	(0.41	)	$	(0.42	)
Shares used in computing basic and diluted net loss per share		56,166			55,877			54,861

Pacific Biosciences of California, Inc.

Unaudited Consolidated Statement of Operations

(amounts in thousands, except per share amounts)

	Year to Date
	December 31, 2012			December 31, 2011
Revenue:
Product revenue	$	20,089		$	31,486
Service and other revenue		4,959			1,487
Grant revenue		935			890
Total revenue		25,983			33,863
Cost of revenue:
Cost of product revenue		18,796			18,725
Cost of service and other revenue		6,247			2,104
Total cost of revenue		25,043			20,829
Gross profit		940			13,034
Operating expense:
Research and development		47,623			76,080
Sales, general and administrative		47,655			46,710
Total operating expense		95,278			122,790
Operating loss		(94,338	)		(109,756	)
Other income (expense), net		(127	)		368
Net loss	$	(94,465	)	$	(109,388	)
Basic and diluted net loss per share	$	(1.69	)	$	(2.03	)
Shares used in computing basic and diluted net loss per share		55,733			53,874

Pacific Biosciences of California, Inc.

Unaudited Condensed Consolidated Balance Sheets

(amounts in thousands, except per share amounts)

	December 31, 2012		September 30, 2012		December 31, 2011
Assets
Cash and investments	$	100,580	$	119,402	$	177,434
Accounts receivable		2,822		532		4,557
Inventory		9,592		10,202		15,517
Prepaid and other current assets		2,006		2,202		2,093
Total current assets		115,000		132,338		199,601
Property and equipment		14,329		15,514		18,398
Other assets		354		356		317
Total Assets	$	129,683	$	148,208	$	218,316
Liabilities and Stockholders’ Equity
Accounts payable	$	2,988	$	2,897	$	4,742
Deferred revenue		3,378		3,555		4,236
Accrued and other current liabilities		8,377		7,174		10,398
Total current liabilities		14,743		13,626		19,376
Facility financing and other non-current liabilities		5,558		6,045		7,477
Stockholders’ equity		109,382		128,537		191,463
Total Liabilities and Stockholders’ Equity	$	129,683	$	148,208	$	218,316