Pacific Biosciences of California (PACB) 8-K Results of Operations and Financial Condition

Exhibit 99.3

PACIFIC BIOSCIENCES OF CALIFORNIA, INC.

Consolidated Statements of Cash Flow

(Unaudited)

	Years Ended December 31,
(in thousands)	2013			2012			2011
Cash flows from operating activities
Net loss	$	(79,293	)	$	(94,465	)	$	(109,388	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		5,648			6,649			5,803
Amortization of debt discount and financing costs		595			—			—
Stock-based compensation		9,905			9,705			12,384
Other items		(418	)		287			226
Changes in assets and liabilities
Accounts receivable		76			1,735			(4,216	)
Inventory		(60	)		4,761			(11,409	)
Prepaid expenses and other assets		906			1,058			1,874
Accounts payable		(1,271	)		(1,754	)		(4,773	)
Accrued expenses and other current liabilities		1,593			(2,054	)		3,044
Deferred service revenue		386			(1,674	)		2,631
Deferred development revenue		33,304			—			—
Lease incentives and other long-term liabilities		(1,204	)		(1,070	)		850
Net cash used in operating activities		(29,833	)		(76,822	)		(102,974	)
Cash flows from investing activities
Purchase of property and equipment		(909	)		(1,703	)		(9,284	)
Purchase of investments		(201,547	)		(87,889	)		(264,071	)
Sales of investments		100			7,896			36,520
Maturities of investments		169,239			143,488			243,281
Net cash provided by (used in) investing activities		(33,117	)		61,792			6,446
Cash flows from financing activities
Proceeds from issuance of common stock from equity plans		3,079			2,705			7,743
Proceeds from issuance of common stock from equity offering, net of issuance costs		19,927			—			—
Proceeds from issuance of debt facility, net of issuance costs		19,766			—			—
Net cash provided by financing activities		42,772			2,705			7,743
Net decrease in cash and cash equivalents		(20,178	)		(12,325	)		(88,785	)
Cash and cash equivalents at beginning of period		46,540			58,865			147,650
Cash and cash equivalents at end of period	$	26,362		$	46,540		$	58,865
Supplemental disclosure of cash flow information
Interest paid		1,165			—			—
Supplemental disclosure of non-cash investing and financing activities
Inventory transferred to property and equipment for internal use		558			1,164			2,756