Biosciences of California, Inc. (PACB) a company that specializes in designing, developing, and production of sequencing systems to help scientists resolve genetically complex problems, announced financial results for the quarter completed on March 31, 2021. PACB stock plummeted immensely adjacent to the news.
At last check in current trading, shares of Pacific Biosciences of California Inc. (PACB) were down -11.65% at $29.58. Pacific Biosciences of California Inc.’s stock finished last trading session at $33.48.In the past 12 months, the company’s stock has advanced 845.76%, and in the last week, the stock has moved up 9.84%.
First Quarter Financial result
PACB generated a revenue of $29M in the first quarter of 2021, depicting an increase of 86% in comparison to 15.6M in the same quarter for the previous year. Instrument revenue for the first quarter of 2021 was a total of $14.9 million, vs $4.0 million for the first quarter last year.
Gross profit produced in the first quarter of 2021 was $13.0 million, depicting a 73% rise vs $7.5 million for the first quarter of 2020. The gross margin in the first quarter of 2021 was 45%, in comparison to 48% for the first quarter of 2020.
In February 2021, SB Northstar LP invested $900 million in convertible senior notes to provide the company enough capital to pursue its future objectives. Cash, cash equivalents and investments, were accumulated to $1,160.3 million, vs $318.8 million on December 31, 2020.
Covid-19 had a negative impact for the first three months of 2020 financial results as several customers delayed system deliveries and shut down or limited operations for a specific amount of time to inhibit the spread of Covid-19.
Instrument utilization generally normalized its sales by the fourth quarter of 2020, with deliveries and operations working at capacity. As a result, higher product revenue was generated with $25.3 million for the first quarter of 2021 compared to $12.3 million for the first quarter last year.
“PacBio is off to a great start in 2021 as we achieved record revenue in the first quarter that exceeded our expectations,” said Christian Henry, President, and Chief Executive Officer, emphasizing the diminished effect of Covid-19 and improvement in sales.
PACB has seen a surge in revenue with operations and deliveries reaching normal speed. However recent announcement of financial results for the first quarter of 2021 reduced investor expectations, with PACB stock declining immensely.