Pacific Biosciences of California (PACB) 10-Q 5 Nov 14 2014 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'PACB	'
Entity Registrant Name	'PACIFIC BIOSCIENCES OF CALIFORNIA, INC.	'
Entity Central Index Key	'0001299130	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	71,356,003

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$35,411	$26,362
Investments	63,901	86,166
Accounts receivable	2,370	2,746
Inventory, net	11,398	10,050
Prepaid expenses and other current assets	1,057	1,135
Total current assets	114,137	126,459
Property and equipment, net	7,034	9,236
Other long-term assets	471	490
Total assets	121,642	136,185
Current liabilities	'	'
Accounts payable	5,845	1,717
Accrued expenses	8,726	7,905
Deferred service revenue, current	5,307	4,046
Deferred contractual revenue, current	6,785	6,785
Other liabilities, current	2,477	2,102
Total current liabilities	29,140	22,555
Deferred service revenue, non-current	918	518
Deferred contractual revenue, non-current	21,431	26,519
Other liabilities, non-current	2,505	3,517
Notes payable	13,914	13,347
Financing derivative	699	549
Total liabilities	68,607	67,005
Commitments and contingencies	'	'
Stockholders' equity	'	'
Preferred Stock, $0.001 par value: Authorized 50,000 shares; No shares issued or outstanding	'	'
Common Stock, $0.001 par value: Authorized 1,000,000 shares; Issued and outstanding 70,976 shares at September 30, 2014 and 66,275 shares at December 31, 2013, respectively	71	66
Additional paid-in-capital	715,439	684,413
Accumulated other comprehensive income	23	14
Accumulated deficit	-662,498	-615,313
Total stockholders' equity	53,035	69,180
Total liabilities and stockholders' equity	$121,642	$136,185

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets [Abstract]	'	'
Preferred Stock, par value	$0.00	$0.00
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, shares issued	70,976,000	66,275,000
Common Stock, shares outstanding	70,976,000	66,275,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Operations And Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue:	'	'	'	'
Product revenue	$6,762	$5,814	$22,376	$14,248
Service and other revenue	2,165	1,607	6,226	4,800
Contractual revenue	11,696	'	15,088	'
Total revenue	20,623	7,421	43,690	19,048
Cost of Revenue:	'	'	'	'
Cost of product revenue	5,608	4,616	19,048	11,138
Cost of service and other revenue	1,853	1,564	5,678	4,680
Total cost of revenue	7,461	6,180	24,726	15,818
Gross profit	13,162	1,241	18,964	3,230
Operating Expense:	'	'	'	'
Research and development	11,693	10,419	35,899	34,084
Sales, general and administrative	9,882	10,757	28,025	29,685
Total operating expense	21,575	21,176	63,924	63,769
Operating loss	-8,413	-19,935	-44,960	-60,539
Interest expense	-716	-686	-2,103	-1,785
Other income (expense), net	-34	134	-122	262
Net loss	-9,163	-20,487	-47,185	-62,062
Other comprehensive income (loss):	'	'	'	'
Unrealized gain (loss) on investments	-19	13	9	-19
Comprehensive loss	($9,182)	($20,474)	($47,176)	($62,081)
Net loss per share:	'	'	'	'
Basic and diluted net loss per share	($0.13)	($0.31)	($0.68)	($1.01)
Shares used in computing basic and diluted net loss per share	70,740	65,523	69,716	61,636

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities	'	'
Net loss	($47,185)	($62,062)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Depreciation	3,311	4,238
Amortization of debt discount and financing costs	579	418
Stock-based compensation	6,944	7,361
Other	242	-73
Changes in assets and liabilities	'	'
Accounts receivable	376	-992
Inventory	-1,348	171
Prepaid expenses and other assets	85	791
Accounts payable	4,128	425
Accrued expenses	821	544
Deferred service revenue	1,661	56
Deferred contractual revenue	-5,088	35,000
Other liabilities	-637	-1,136
Net cash used in operating activities	-36,111	-15,259
Cash flows from investing activities	'	'
Purchase of property and equipment	-1,132	-807
Purchase of investments	-97,468	-141,549
Maturities of investments	119,673	133,391
Net cash provided by (used in) investing activities	21,073	-8,965
Cash flows from financing activities	'	'
Proceeds from issuance of common stock from equity plans	3,319	2,731
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs	20,768	19,954
Proceeds from issuance of Facility Agreement, net of issuance costs	'	19,766
Net cash provided by financing activities	24,087	42,451
Net increase in cash and cash equivalents	9,049	18,227
Cash and cash equivalents at beginning of period	26,362	46,540
Cash and cash equivalents at end of period	$35,411	$64,767

Overview

Overview	9 Months Ended
	Sep. 30, 2014
Overview [Abstract]	'
Overview	'
	NOTE 1. OVERVIEW
	Pacific Biosciences of California, Inc. (referred to in this report as “Pacific Biosciences”, the “Company”, “we”, “us” or “our”) has commercialized high resolution genetic sequencing products that provide access to genetic information that was previously inaccessible. The PacBio RS II DNA Sequencing System helps scientists solve genetically complex problems. Based on our novel Single Molecule, Real-Time (SMRT) technology, our 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 information that was previously inaccessible, we allow scientists to increase their understanding of biological systems.
	The names “Pacific Biosciences,” “PacBio,” “SMRT,” “SMRTbell” and our logo are our trademarks.

Summary_Of_Significant_Account

Summary Of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Summary Of Significant Accounting Policies [Abstract]	'
Summary Of Significant Accounting Policies	'
	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of Pacific Biosciences of California, Inc. have been prepared on a consistent basis with the December 31, 2013 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the Financial Statements and notes thereto have been reclassified to conform to the current year presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the statements in accordance with U.S. generally accepted accounting principles (“GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the nine-month period ended September 30, 2014 are not necessarily indicative of the results to be expected for the entire 2014 fiscal year or any future periods.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, the valuation of our financing derivative and the valuation of our long-term notes, the assumptions used to determine stock-based compensation, and estimates used to allocate proceeds received in revenue. We base our estimates on historical experience and various other assumptions that we believe are reasonable. Actual results could differ materially from these estimates.
	Fair Value of Financial Instruments
	Assets and liabilities measured at fair value on a recurring basis
	The following table sets forth the fair value of our financial assets and liabilities measured on a recurring basis as of September 30, 2014 and December 31, 2013:
	(in thousands)	30-Sep-14												31-Dec-13
		Level 1			Level 2			Level 3			Total			Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	16,513		$	—		$	—		$	16,513		$	12,963	$	—	$	—	$	12,963
	Commercial paper		—			18,898			—			18,898			—		13,399		—		13,399
	Total cash and cash equivalents		16,513			18,898			—			35,411			12,963		13,399		—		26,362
	Investments:
	Commercial paper		—			37,812			—			37,812			—		61,264		—		61,264
	Corporate debt securities		—			8,215			—			8,215			—		8,629		—		8,629
	Asset backed securities		—			17,874			—			17,874			—		16,273		—		16,273
	Total investments		—			63,901			—			63,901			—		86,166		—		86,166
	Total assets measured at fair value	$	16,513		$	82,799		$	—		$	99,312		$	12,963	$	99,565	$	—	$	112,528
	Liabilities
	Financing derivative	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
	Total liabilities measured at fair value	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
	Our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy.
	During the nine-month periods ended September 30, 2014 and 2013, there were no impairments of our investments.
	The estimated fair value of the Financing Derivative liability (as defined in Note 6. Debt) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financial Derivative during the nine-month period ended September 30, 2014 (in thousands):
	Financial Derivative	Amount
	Balance as of December 31, 2013	$	549
	Loss on change in estimated fair value		150
	Balance as of September 30, 2014	$	699
	During the nine-month period ended September 30, 2014 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and valuation techniques did not change compared to established practice.
	Financial assets and liabilities not measured at fair value on a recurring basis
	The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current,  approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current approximates fair value due to the time to maturity and prevailing market rates.
	We determined the estimated fair value of the Notes (as defined in Note 6. Debt) from the debt facility using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using an 18.8% and 20.4% weighted average market yield at September 30, 2014 and December 31, 2013, respectively. The estimated fair value and carrying value of the Notes are as follows (in thousands):
		30-Sep-14						31-Dec-13
		Fair Value			Carrying Value			Fair Value			Carrying Value
	Long-term notes payable	$	15,129		$	13,914		$	14,551		$	13,347
	Net Loss per Share
	The following table presents the computation of our basic and diluted net loss per share (in thousands, except per share amounts):
			Three-Month Periods Ended						Nine-Month Periods Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Net loss per share
	Numerator:
	Net loss		$	-9,163		$	-20,487		$	-47,185		$	-62,062
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share			70,740			65,523			69,716			61,636
	Basic and diluted net loss per share		$	-0.13		$	-0.31		$	-0.68		$	-1.01
	The following were excluded from the computation of our diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:
		As of September 30,
	(in thousands)	2014		2013
	Options outstanding	16,651		13,351
	Warrants to purchase common stock	5,500		5,504
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, requiring entities to recognize revenue to which it expects to be entitled for the transfer of promised goods or services to customers.  The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. The updated standard is effective for the Company in the first quarter of fiscal year 2017 and early adoption is not permitted. We are evaluating the impact of adopting this ASU on our financial statements and related disclosures.
	In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.  This ASU introduces an explicit requirement for management to assess if there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. Disclosures are required if conditions give rise to substantial doubt. This ASU is effective for the Company in the first quarter of fiscal 2017. We are currently assessing the potential effects of this ASU on our consolidated financial statements.

Contractual_Revenue

Contractual Revenue	9 Months Ended
	Sep. 30, 2014
Contractual Revenue [Abstract]	'
Contractual Revenue	'
	NOTE 3. CONTRACTUAL REVENUE
	During September 2013 we entered into a Development, Commercialization and License Agreement (the “Roche Agreement”) with F. Hoffman-La Roche Ltd (“Roche”), pursuant to which we account for, and recognize as revenue, the up-front payment using the proportional performance method over the periods in which the delivery of elements of the agreement occurs. We recognize revenue using a straight line convention over the service periods of the deliverables as this method approximates our performance of services pursuant to the contract. Out of the $35.0 million upfront cash payment received, $1.7 million and $5.1 million have been recognized as contractual revenue for the three- and nine-month periods ended September 30, 2014, respectively, and $28.2 million remain deferred as of September 30, 2014 and will be recognized as contractual revenue over the estimated obligation periods.
	In addition to the deliverables above, the Roche Agreement provides for additional payments totaling up to $40.0 million upon the achievement of certain development milestones. During August 2014, we achieved the first development milestone and we recorded the related $10.0 million as contractual revenue. Under the terms of the Roche Agreement, we may receive up to an additional $30.0 million based on the achievement of additional development milestones in future periods.

Cash_Cash_Equivalents_And_Inve

Cash, Cash Equivalents And Investments	9 Months Ended
	Sep. 30, 2014
Cash, Cash Equivalents And Investments [Abstract]	'
Cash, Cash Equivalents And Investments	'
	NOTE 4. CASH, CASH EQUIVALENTS AND INVESTMENTS
	The following table summarizes our investments as of September 30, 2014 and December 31, 2013 (in thousands):
		30-Sep-14
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	16,513	$	—	$	—	$	16,513
	Commercial paper		18,897		1		—		18,898
	Total cash and cash equivalents		35,410		1		—		35,411
	Investments:
	Commercial paper		37,806		6		—		37,812
	Corporate debt securities		8,201		14		—		8,215
	Asset backed securities		17,872		5		-3		17,874
	Total investments		63,879		25		-3		63,901
	Total cash, cash equivalents and investments	$	99,289	$	26	$	-3	$	99,312
		31-Dec-13
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	12,963	$	—	$	—	$	12,963
	Commercial paper		13,398		1		—		13,399
	Total cash and cash equivalents		26,361		1		—		26,362
	Investments:
	Commercial paper		61,252		13		-1		61,264
	Corporate debt securities		8,620		12		-3		8,629
	Asset backed securities		16,281		2		-10		16,273
	Total investments		86,153		27		-14		86,166
	Total cash, cash equivalents and investments	$	112,514	$	28	$	-14	$	112,528
	The following table summarizes the contractual maturities of our cash equivalents and available-for-sale investments, excluding money market funds, as of September 30, 2014:
	(in thousands)	Fair Value
	Due in one year or less	$	69,387
	Due after one year through five years		13,412
	Total	$	82,799
	Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

Balance_Sheet_Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2014
Balance Sheet Components [Abstract]	'
Balance Sheet Components	'
	NOTE 5. BALANCE SHEET COMPONENTS
	Inventory, net
	As of September 30, 2014 and December 31, 2013, our inventory, net, consisted of the following components:
		September 30,		December 31,
	(in thousands)	2014		2013
	Purchased materials, net	$	2,553	$	3,019
	Work in process, net		5,420		4,012
	Finished goods, net		3,425		3,019
	Inventory, net	$	11,398	$	10,050

Debt

Debt	9 Months Ended
	Sep. 30, 2014
Debt [Abstract]	'
Debt	'
	NOTE 6. DEBT
	Pursuant to a Facility Agreement (the “Facility Agreement”) we entered into with entities affiliated with Deerfield Management Company, L.P. (collectively, “Deerfield”) during February 2013, we issued promissory notes in the aggregate principal amount of $20.5 million (the “Notes”). The Notes bear simple interest at a rate of 8.75% per annum, payable quarterly in arrears commencing on April 1, 2013. In connection with the execution of the Facility Agreement, we issued warrants to purchase an aggregate of 5,500,000 shares of common stock immediately exercisable at an exercise price per share initially equal to $2.63 (the “Warrants”). In addition, we are required to maintain consolidated cash and cash equivalents on the last day of each calendar quarter of not less than $2.0 million. As security for our repayment of our obligations under the Facility Agreement, we granted to Deerfield a security interest in substantially all of our property.
	Notes
	The Notes and Warrants were initially recorded at a value of $14.1 million and $6.4 million, respectively, based upon the relative fair value allocation of the $20.5 million of proceeds.  The carrying value of the Notes at the inception of the debt was $12.8 million, resulting in an original issue discount of $7.7 million. As of September 30, 2014, $6.6 million remains to be amortized through February 2020, the maturity of the Notes.
	Financing Derivative
	A number of features embedded in the Notes issued pursuant to the Facility Agreement required accounting for as a derivative, including the indemnification of certain withholding taxes and the acceleration of debt upon (a) a qualified financing, (b) an Event of Default, (c) a Major Transaction, and (d) the exercise of the Warrant via offset to debt principal. These features represent a single derivative (the “Financing Derivative”) that was bifurcated from the debt instrument and accounted for as a liability at fair value, with changes in fair value between reporting periods recorded in other income (expense), net. The estimated fair value of the Financing Derivative was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using an 18.8% and 20.4% weighted average market yield at September 30, 2014 and December 31, 2013, respectively. The estimated fair value of the Financing Derivative as of September 30, 2014 and December 31,  2013 was $0.7 million and $0.5 million, respectively.

Stockholders_Equity_And_ShareB

Stockholders' Equity And Share-Based Compensation	9 Months Ended
	Sep. 30, 2014
Stockholders' Equity And Share-Based Compensation [Abstract]	'
Stockholders' Equity And Share-Based Compensation	'
	NOTE 7. STOCKHOLDERS’ EQUITY AND SHARE-BASED COMPENSATION
	Equity Offering
	During the nine-month period ended September 30, 2014,  we issued 3.0 million shares of our common stock at an average price of $7.11 per share through our “at-the-market” offering, resulting in net proceeds of $20.8 million. As of September 30, 2014, under our “at-the-market” offering program,  $17.8 million of common stock remain available for future sales; however, we are not obligated to make sales under this program.
	From October 1, 2014 through November 3, 2014, we issued 1.8 million shares of our common stock at an average price of $6.41 per share through our “at-the-market” offering, resulting in net proceeds of $11.1 million.
	Warrants
	As of September 30, 2014, we had outstanding warrants to purchase an aggregate of 5,500,000 shares of common stock.
	Equity Plans
	As of September 30, 2014, we had three active equity compensation plans, the 2010 Equity Incentive Plan, or 2010 Plan, the 2010 Outside Director Equity Incentive Plan, or 2010 Director Plan, and the 2010 Employee Stock Purchase Plan, or ESPP.
	The following table summarizes stock option activity for all stock option plans for the nine-month period ended September 30, 2014 (in thousands, except per share amounts):
				Stock Options Outstanding
									Weighted
		Shares available		Number					average
		for grant		of shares		Exercise price			exercise price
	Balances, December 31, 2013	3,912		14,070		$	0.20 – 16.00		$	4.81
	Additional shares reserved	3,977
	Options granted	-3,291		3,291			4.21 – 7.05			5.96
	Options exercised	—		-370			0.20 – 6.96			2.65
	Options canceled	340		-340			1.16 – 15.98			5.22
	Balances, September 30, 2014	4,938		16,651		$	0.70 – 16.00		$	5.08
	As of September 30, 2014, no shares of our common stock remain available for issuance under our ESPP. The ESPP provides for an annual increase to the shares available for issuance at the beginning of each calendar year equal to two percent of the common shares then outstanding. Shares issued under the ESPP totaled 1,325,507 and 1,519,366 shares during the nine-month periods ended September 30, 2014 and 2013, respectively.
	Stock-based Compensation
	Total stock-based compensation expense consists of the following (in thousands):
		Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
		2014			2013			2014			2013
	Cost of revenue	$	218		$	107		$	480		$	343
	Research and development		893			835			2,601			3,077
	Sales, general and administrative		1,341			1,229			3,863			3,941
	Total stock-based compensation expense	$	2,452		$	2,171		$	6,944		$	7,361
	We estimated the fair value of employee stock options on the grant date using the Black-Scholes option pricing model. The estimated fair value of employee stock options is amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the following weighted average assumptions:
		Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	Stock Option	2014		2013		2014		2013
	Expected term in years	6.1		6.1		6.1		6.1
	Expected volatility	70%		65%		70%		65%
	Risk-free interest rate	1.90%		1.80%		1.90%		1.10%
	Dividend yield	—		—		—		—
	We estimate the value of the employee stock purchase rights on the grant date using the Black-Scholes option pricing model. The fair value of ESPP was estimated using the following assumptions:
		Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	ESPP	2014		2013		2014		2013
	Expected term in years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
	Expected volatility	70%		70%		70%		70%
	Risk-free interest rate	0.1%-0.5%		0.1%-0.4%		0.1%-0.5%		0.1%-0.4%
	Dividend yield	—		—		—		—

Summary_Of_Significant_Account1

Summary Of Significant Accounting Policies (Policy)	9 Months Ended
	Sep. 30, 2014
Summary Of Significant Accounting Policies [Abstract]	'
Basis Of Presentation	'
	Basis of Presentation
	In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) of Pacific Biosciences of California, Inc. have been prepared on a consistent basis with the December 31, 2013 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. Certain prior year amounts in the Financial Statements and notes thereto have been reclassified to conform to the current year presentation. The Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, as permitted by such rules and regulations, omit certain information and footnote disclosures necessary to present the statements in accordance with U.S. generally accepted accounting principles (“GAAP”). These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the nine-month period ended September 30, 2014 are not necessarily indicative of the results to be expected for the entire 2014 fiscal year or any future periods.
Use Of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes to the financial statements. Our estimates include, but are not limited to, the valuation of inventory, the valuation of our financing derivative and the valuation of our long-term notes, the assumptions used to determine stock-based compensation, and estimates used to allocate proceeds received in revenue. We base our estimates on historical experience and various other assumptions that we believe are reasonable. Actual results could differ materially from these estimates.
Fair Value Of Financial Instruments	'
	Fair Value of Financial Instruments
	Assets and liabilities measured at fair value on a recurring basis
	The following table sets forth the fair value of our financial assets and liabilities measured on a recurring basis as of September 30, 2014 and December 31, 2013:
	(in thousands)	30-Sep-14												31-Dec-13
		Level 1			Level 2			Level 3			Total			Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	16,513		$	—		$	—		$	16,513		$	12,963	$	—	$	—	$	12,963
	Commercial paper		—			18,898			—			18,898			—		13,399		—		13,399
	Total cash and cash equivalents		16,513			18,898			—			35,411			12,963		13,399		—		26,362
	Investments:
	Commercial paper		—			37,812			—			37,812			—		61,264		—		61,264
	Corporate debt securities		—			8,215			—			8,215			—		8,629		—		8,629
	Asset backed securities		—			17,874			—			17,874			—		16,273		—		16,273
	Total investments		—			63,901			—			63,901			—		86,166		—		86,166
	Total assets measured at fair value	$	16,513		$	82,799		$	—		$	99,312		$	12,963	$	99,565	$	—	$	112,528
	Liabilities
	Financing derivative	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
	Total liabilities measured at fair value	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
	Our cash deposits and money market funds are classified within Level 1 of the fair value hierarchy because they are valued using bank balances or quoted market prices. Our investments are classified as Level 2 instruments based on market pricing and other observable inputs. None of our investments are classified within Level 3 of the fair value hierarchy.
	During the nine-month periods ended September 30, 2014 and 2013, there were no impairments of our investments.
	The estimated fair value of the Financing Derivative liability (as defined in Note 6. Debt) was determined using Level 3 inputs, or significant unobservable inputs. Changes to the estimated fair value of the Financing Derivative are recorded in “Other income (expense), net” in the condensed consolidated statements of operations and comprehensive loss. The following table provides the changes in the estimated fair value of the Financial Derivative during the nine-month period ended September 30, 2014 (in thousands):
	Financial Derivative	Amount
	Balance as of December 31, 2013	$	549
	Loss on change in estimated fair value		150
	Balance as of September 30, 2014	$	699
	During the nine-month period ended September 30, 2014 there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and valuation techniques did not change compared to established practice.
	Financial assets and liabilities not measured at fair value on a recurring basis
	The carrying amount of our accounts receivable, prepaid expenses, other current assets, accounts payable, accrued expenses and other liabilities, current,  approximate fair value due to their short maturities. The carrying value of our other liabilities, non-current approximates fair value due to the time to maturity and prevailing market rates.
	We determined the estimated fair value of the Notes (as defined in Note 6. Debt) from the debt facility using Level 3 inputs, or significant unobservable inputs. The estimated fair value of the Notes was determined by comparing the difference between the estimated fair value of the Notes with and without the Financing Derivative by calculating the respective present values from future cash flows using an 18.8% and 20.4% weighted average market yield at September 30, 2014 and December 31, 2013, respectively. The estimated fair value and carrying value of the Notes are as follows (in thousands):
		30-Sep-14						31-Dec-13
		Fair Value			Carrying Value			Fair Value			Carrying Value
	Long-term notes payable	$	15,129		$	13,914		$	14,551		$	13,347
Net Loss Per Share	'
	Net Loss per Share
	The following table presents the computation of our basic and diluted net loss per share (in thousands, except per share amounts):
			Three-Month Periods Ended						Nine-Month Periods Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Net loss per share
	Numerator:
	Net loss		$	-9,163		$	-20,487		$	-47,185		$	-62,062
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share			70,740			65,523			69,716			61,636
	Basic and diluted net loss per share		$	-0.13		$	-0.31		$	-0.68		$	-1.01
	The following were excluded from the computation of our diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect:
		As of September 30,
	(in thousands)	2014		2013
	Options outstanding	16,651		13,351
	Warrants to purchase common stock	5,500		5,504
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, requiring entities to recognize revenue to which it expects to be entitled for the transfer of promised goods or services to customers.  The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a retrospective or cumulative effect transition method. The updated standard is effective for the Company in the first quarter of fiscal year 2017 and early adoption is not permitted. We are evaluating the impact of adopting this ASU on our financial statements and related disclosures.
	In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.  This ASU introduces an explicit requirement for management to assess if there is substantial doubt about an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. Disclosures are required if conditions give rise to substantial doubt. This ASU is effective for the Company in the first quarter of fiscal 2017. We are currently assessing the potential effects of this ASU on our consolidated financial statements.

Summary_Of_Significant_Account2

Summary Of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2014
Summary Of Significant Accounting Policies [Abstract]	'
Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input	'
	(in thousands)	30-Sep-14												31-Dec-13
		Level 1			Level 2			Level 3			Total			Level 1		Level 2		Level 3		Total
	Assets
	Cash and cash equivalents:
	Cash and money market funds	$	16,513		$	—		$	—		$	16,513		$	12,963	$	—	$	—	$	12,963
	Commercial paper		—			18,898			—			18,898			—		13,399		—		13,399
	Total cash and cash equivalents		16,513			18,898			—			35,411			12,963		13,399		—		26,362
	Investments:
	Commercial paper		—			37,812			—			37,812			—		61,264		—		61,264
	Corporate debt securities		—			8,215			—			8,215			—		8,629		—		8,629
	Asset backed securities		—			17,874			—			17,874			—		16,273		—		16,273
	Total investments		—			63,901			—			63,901			—		86,166		—		86,166
	Total assets measured at fair value	$	16,513		$	82,799		$	—		$	99,312		$	12,963	$	99,565	$	—	$	112,528
	Liabilities
	Financing derivative	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
	Total liabilities measured at fair value	$	—		$	—		$	699		$	699		$	—	$	—	$	549	$	549
Changes In Fair Value Of Financial Derivative	'
	Financial Derivative	Amount
	Balance as of December 31, 2013	$	549
	Loss on change in estimated fair value		150
	Balance as of September 30, 2014	$	699
Estimated Fair Value And Carrying Value of Notes	'
		30-Sep-14						31-Dec-13
		Fair Value			Carrying Value			Fair Value			Carrying Value
	Long-term notes payable	$	15,129		$	13,914		$	14,551		$	13,347
Computation Of Basic And Diluted Net Loss Per Share	'
			Three-Month Periods Ended						Nine-Month Periods Ended
			September 30,						September 30,
			2014			2013			2014			2013
	Net loss per share
	Numerator:
	Net loss		$	-9,163		$	-20,487		$	-47,185		$	-62,062
	Denominator:
	Weighted average shares used in computation of basic and diluted net loss per share			70,740			65,523			69,716			61,636
	Basic and diluted net loss per share		$	-0.13		$	-0.31		$	-0.68		$	-1.01
Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share	'
		As of September 30,
	(in thousands)	2014		2013
	Options outstanding	16,651		13,351
	Warrants to purchase common stock	5,500		5,504

Cash_Cash_Equivalents_And_Inve1

Cash, Cash Equivalents And Investments (Tables)	9 Months Ended
	Sep. 30, 2014
Cash, Cash Equivalents And Investments [Abstract]	'
Summary Of Cash, Cash Equivalents And Investments	'
		30-Sep-14
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	16,513	$	—	$	—	$	16,513
	Commercial paper		18,897		1		—		18,898
	Total cash and cash equivalents		35,410		1		—		35,411
	Investments:
	Commercial paper		37,806		6		—		37,812
	Corporate debt securities		8,201		14		—		8,215
	Asset backed securities		17,872		5		-3		17,874
	Total investments		63,879		25		-3		63,901
	Total cash, cash equivalents and investments	$	99,289	$	26	$	-3	$	99,312
		31-Dec-13
				Gross		Gross
		Amortized		unrealized		unrealized		Fair
		Cost		gains		losses		Value
	Cash and cash equivalents:
	Cash and money market funds	$	12,963	$	—	$	—	$	12,963
	Commercial paper		13,398		1		—		13,399
	Total cash and cash equivalents		26,361		1		—		26,362
	Investments:
	Commercial paper		61,252		13		-1		61,264
	Corporate debt securities		8,620		12		-3		8,629
	Asset backed securities		16,281		2		-10		16,273
	Total investments		86,153		27		-14		86,166
	Total cash, cash equivalents and investments	$	112,514	$	28	$	-14	$	112,528
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments	'
	(in thousands)	Fair Value
	Due in one year or less	$	69,387
	Due after one year through five years		13,412
	Total	$	82,799

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2014
Balance Sheet Components [Abstract]	'
Components Of Inventory	'
		September 30,		December 31,
	(in thousands)	2014		2013
	Purchased materials, net	$	2,553	$	3,019
	Work in process, net		5,420		4,012
	Finished goods, net		3,425		3,019
	Inventory, net	$	11,398	$	10,050

Stockholders_Equity_And_ShareB1

Stockholders' Equity And Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2014
Stockholders' Equity And Share-Based Compensation [Abstract]	'
Summary Of Stock Option Activity	'
				Stock Options Outstanding
									Weighted
		Shares available		Number					average
		for grant		of shares		Exercise price			exercise price
	Balances, December 31, 2013	3,912		14,070		$	0.20 – 16.00		$	4.81
	Additional shares reserved	3,977
	Options granted	-3,291		3,291			4.21 – 7.05			5.96
	Options exercised	—		-370			0.20 – 6.96			2.65
	Options canceled	340		-340			1.16 – 15.98			5.22
	Balances, September 30, 2014	4,938		16,651		$	0.70 – 16.00		$	5.08
Schedule Of Stock-Based Compensation Expense	'
		Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
		2014			2013			2014			2013
	Cost of revenue	$	218		$	107		$	480		$	343
	Research and development		893			835			2,601			3,077
	Sales, general and administrative		1,341			1,229			3,863			3,941
	Total stock-based compensation expense	$	2,452		$	2,171		$	6,944		$	7,361
Schedule Of Fair Value Of Employee Stock Options	'
		Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	Stock Option	2014		2013		2014		2013
	Expected term in years	6.1		6.1		6.1		6.1
	Expected volatility	70%		65%		70%		65%
	Risk-free interest rate	1.90%		1.80%		1.90%		1.10%
	Dividend yield	—		—		—		—
Schedule Of Fair Value Of Employee Stock Purchase Plan	'
		Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	ESPP	2014		2013		2014		2013
	Expected term in years	0.5-2.0		0.5-2.0		0.5-2.0		0.5-2.0
	Expected volatility	70%		70%		70%		70%
	Risk-free interest rate	0.1%-0.5%		0.1%-0.4%		0.1%-0.5%		0.1%-0.4%
	Dividend yield	—		—		—		—

Summary_Of_Significant_Account3

Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Summary Of Significant Accounting Policies [Abstract]	'	'	'
Impairment charges on investments	$0	$0	'
Fair value assets liabilities transfer between levels	$0	'	'
Future cash flows weighted average market yield	18.80%	'	20.40%

Summary_Of_Significant_Account4

Summary Of Significant Accounting Policies (Summary Of Assets And Liabilities Measured At Fair Value Classified Based On Level Of Input) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets	'	'
Total assets measured at fair value	$99,312	$112,528
Liabilities	'	'
Total liabilities measured at fair value	699	549
Financing Derivative [Member]	'	'
Liabilities	'	'
Total liabilities measured at fair value	699	549
Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	35,411	26,362
Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	16,513	12,963
Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	18,898	13,399
Investments [Member]	'	'
Assets	'	'
Total investments	63,901	86,166
Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	37,812	61,264
Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	8,215	8,629
Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	17,874	16,273
Level 1 [Member]	'	'
Assets	'	'
Total assets measured at fair value	16,513	12,963
Level 1 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	16,513	12,963
Level 1 [Member] | Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	16,513	12,963
Level 2 [Member]	'	'
Assets	'	'
Total assets measured at fair value	82,799	99,565
Level 2 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	18,898	13,399
Level 2 [Member] | Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	18,898	13,399
Level 2 [Member] | Investments [Member]	'	'
Assets	'	'
Total investments	63,901	86,166
Level 2 [Member] | Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	37,812	61,264
Level 2 [Member] | Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	8,215	8,629
Level 2 [Member] | Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	17,874	16,273
Level 3 [Member]	'	'
Assets	'	'
Total assets measured at fair value	'	'
Liabilities	'	'
Total liabilities measured at fair value	699	549
Level 3 [Member] | Financing Derivative [Member]	'	'
Liabilities	'	'
Total liabilities measured at fair value	699	549
Level 3 [Member] | Cash And Cash Equivalents [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Cash And Cash Equivalents [Member] | Cash And Money Market Funds [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Cash And Cash Equivalents [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total cash and cash equivalents	'	'
Level 3 [Member] | Investments [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Commercial Paper [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Corporate Debt Securities [Member]	'	'
Assets	'	'
Total investments	'	'
Level 3 [Member] | Investments [Member] | Asset Backed Securities [Member]	'	'
Assets	'	'
Total investments	'	'

Summary_Of_Significant_Account5

Summary Of Significant Accounting Policies (Changes In Fair Value Of Financial Derivative) (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014
Summary Of Significant Accounting Policies [Abstract]	'
Balance as of December 31, 2013	$549
Loss on change in estimated fair value	150
Balance as of September 30, 2014	$699

Summary_Of_Significant_Account6

Summary Of Significant Accounting Policies (Estimated Fair Value And Carrying Value Of Notes) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Feb. 05, 2013
In Thousands, unless otherwise specified
Summary Of Significant Accounting Policies [Abstract]	'	'	'
Long-term notes payable, Fair Value	$15,129	$14,551	'
Long-term notes payable, Carrying Value	$13,914	$13,347	$12,800

Summary_Of_Significant_Account7

Summary Of Significant Accounting Policies (Computation Of Basic And Diluted Net Loss Per Share) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Numerator:	'	'	'	'
Net loss	($9,163)	($20,487)	($47,185)	($62,062)
Denominator:	'	'	'	'
Weighted average shares used in computation of basic and diluted net loss per share	70,740	65,523	69,716	61,636
Basic and diluted net loss per share	($0.13)	($0.31)	($0.68)	($1.01)

Summary_Of_Significant_Account8

Summary Of Significant Accounting Policies (Anti-dilutive Excluded From Computation Of Diluted Net Loss Per Share) (Details)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Stock Option [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Stock excluded from the computation of diluted net loss per share	16,651	13,351
Warrants To Purchase Common Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Stock excluded from the computation of diluted net loss per share	5,500	5,504

Contractual_Revenue_Details

Contractual Revenue (Details) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'	'	'
Deferred revenue, revenue recognized	'	$1.70	$5.10
Deferred revenue	'	28.2	28.2
Maximum potential for additional payments to be recognized upon the achievement of certain development milestones	40	'	'
Roche Agreement [Member]	'	'	'
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]	'	'	'
Non-refundable upfront payment	35	'	'
Additional payment based upon achievements of milestones	'	10	10
Remaining potential for additional payments to be recognized upon the achievement of certain development milestones	'	$30	$30

Cash_Cash_Equivalents_And_Inve2

Cash, Cash Equivalents And Investments (Summary Of Cash And Cash Equivalents And Investments) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$99,289	$112,514
Gross unrealized gains	26	28
Gross unrealized losses	-3	-14
Fair Value	99,312	112,528
Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	35,410	26,361
Gross unrealized gains	1	1
Fair Value	35,411	26,362
Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	63,879	86,153
Gross unrealized gains	25	27
Gross unrealized losses	-3	-14
Fair Value	63,901	86,166
Cash And Money Market Funds [Member] | Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	16,513	12,963
Fair Value	16,513	12,963
Commercial Paper [Member] | Cash And Cash Equivalents [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	18,897	13,398
Gross unrealized gains	1	1
Fair Value	18,898	13,399
Commercial Paper Not Included With Cash And Cash Equivalents [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	37,806	61,252
Gross unrealized gains	6	13
Gross unrealized losses	'	-1
Fair Value	37,812	61,264
Corporate Debt Securities [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	8,201	8,620
Gross unrealized gains	14	12
Gross unrealized losses	'	-3
Fair Value	8,215	8,629
Asset Backed Securities [Member] | Investments [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	17,872	16,281
Gross unrealized gains	5	2
Gross unrealized losses	-3	-10
Fair Value	$17,874	$16,273

Cash_Cash_Equivalents_And_Inve3

Cash, Cash Equivalents And Investments (Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments) (Details) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified
Cash, Cash Equivalents And Investments [Abstract]	'
Due in one year or less	$69,387
Due after one year through five years	13,412
Total	$82,799

Balance_Sheet_Components_Compo

Balance Sheet Components (Components Of Inventory) (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Purchased materials, net	$2,553	$3,019
Work in process, net	5,420	4,012
Finished goods, net	3,425	3,019
Inventory, net	$11,398	$10,050

Debt_Details

Debt (Details) (USD $)	0 Months Ended
	Feb. 05, 2013	Sep. 30, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]	'	'	'
Principal amount of notes	$14,100,000	'	'
Purchase shares of common stock	5,500,000	5,500,000	'
Common stock aggregate exercise price	$2.63	'	'
Cash and cash equivalent minimum amount quarterly required	'	2,000,000	'
Future cash flows weighted average market yield	'	18.80%	20.40%
Fair value of the financing derivative	'	699,000	549,000
Fair value of the warrants	6,400,000	'	'
Allocation of notes calculated on a relative fair value basis	20,500,000	'	'
Long-term notes payable, Carrying Value	12,800,000	13,914,000	13,347,000
Additional discount allocated to the warrants	7,700,000	'	'
Remaining discount yet to be amortized	'	$6,600,000	'
Deerfield Promissory Notes [Member]	'	'	'
Line of Credit Facility [Line Items]	'	'	'
Deerfield promissory notes simple interest	8.75%	'	'

Stockholders_Equity_And_ShareB2

Stockholders' Equity And Share-Based Compensation (Narrative) (Details) (USD $)	9 Months Ended			9 Months Ended		1 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Feb. 05, 2013	Sep. 30, 2014	Sep. 30, 2013	Nov. 03, 2014	Sep. 30, 2014
	item			ESPP [Member]	ESPP [Member]	At The Market Offering [Member]	At The Market Offering [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'	'	'	'
Shares issued	'	'	'	1,325,507	1,519,366	1,800,000	3,000,000
Average common stock price per share	'	'	'	'	'	$6.41	$7.11
Proceeds from issuance of common stock from at-the-market equity offering, net of issuance costs	$20,768,000	$19,954,000	'	'	'	$11,100,000	'
Common stock available for future sales	'	'	'	'	'	'	$17,800,000
Purchase shares of common stock	5,500,000	'	5,500,000	'	'	'	'
Number of equity compensation plans	3	'	'	'	'	'	'
Percentage of outstanding common stock used to determine annual plan increase	'	'	'	2.00%	'	'	'

Stockholders_Equity_And_ShareB3

Stockholders' Equity And Share-Based Compensation (Summary Of Stock Option Activity) (Details) (Stock Option [Member], USD $)	9 Months Ended	12 Months Ended	9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
		$0.20 - 16.00 [Member]	$4.21 - 7.05 [Member]	$0.20 - 6.96 [Member]	$1.16 b 15.98 [Member]	$0.70 -16.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'	'	'	'	'
Additional shares reserved, Shares available for grant	3,977	'	'	'	'	'
Options granted, Shares available for grant	'	'	-3,291	'	'	'
Options exercised, Shares available for grant	'	'	'	'	'	'
Options canceled, Shares available for grant	'	'	'	'	340	'
Balances, September 30, 2014, Shares available for grant	'	3,912	'	'	'	4,938
Options granted, Number of shares	'	'	3,291	'	'	'
Options exercised, Number of shares	'	'	'	-370	'	'
Options canceled, Number of shares	'	'	'	'	-340	'
Balances, September 30, 2014, Number of shares	'	14,070	'	'	'	16,651
Exercise price, lower range	'	$0.20	$4.21	$0.20	$1.16	$0.70
Exercise price, upper range	'	$16	$7.05	$6.96	$15.98	$16
Options granted, Weighted average exercise price per share	'	'	$5.96	'	'	'
Options exercised, Weighted average exercise price per share	'	'	'	$2.65	'	'
Options canceled, Weighted average exercise price per share	'	'	'	'	$5.22	'
Balances, June 30, 2014, Weighted average exercise price per share	'	$4.81	'	'	'	$5.08

Stockholders_Equity_And_ShareB4

Stockholders' Equity And Share-Based Compensation (Schedule Of Stock-Based Compensation Expense) (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	$2,452	$2,171	$6,944	$7,361
Cost Of Revenue [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	218	107	480	343
Research And Development [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	893	835	2,601	3,077
Sales, General And Administrative [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation	$1,341	$1,229	$3,863	$3,941

Stockholders_Equity_And_ShareB5

Stockholders' Equity And Share-Based Compensation (Schedule Of Fair Value Of Employee Stock Options And Employee Stock Purchase Plan) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'6 years 1 month 6 days	'6 years 1 month 6 days	'6 years 1 month 6 days	'6 years 1 month 6 days
Expected volatility	70.00%	65.00%	70.00%	65.00%
Risk-free interest rate	1.90%	1.80%	1.90%	1.10%
Dividend yield	'	'	'	'
ESPP [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected volatility	70.00%	70.00%	70.00%	70.00%
Risk-free interest rate, minimum	0.10%	0.10%	0.10%	0.10%
Risk-free interest rate, maximum	0.50%	0.40%	0.50%	0.40%
Dividend yield	'	'	'	'
ESPP [Member] | Minimum [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'6 months	'6 months	'6 months	'6 months
ESPP [Member] | Maximum [Member]	'	'	'	'
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]	'	'	'	'
Expected term in years	'2 years	'2 years	'2 years	'2 years