Pacific Biosciences of California (NASDAQ:PACB) reported second-quarter revenue of $39 million for 2023, including $20 million from consumables, $13 million from instruments, and $6 million from services, as stated by CFO Jim Gibson during the Canaccord Genuity Growth Conference. The revenue showed a sequential increase but highlighted a slight year-over-year decline in services, mainly due to the completion of a large population genetics study in Asia. The company experienced a 67% growth in its clinical business, with clinical consumables making up a mid-teens percentage of total consumables revenue.
Following the transition to CEO Mark Van Oene, PacBio announced a targeted workforce reduction aimed at decreasing costs by $15 million to $20 million, as it navigates higher compute and memory expenses and a slower transition to its new SPRQ-Nx chemistry. The company also anticipates further savings of $30 million to $40 million by 2027 as it concludes major spending on a high-throughput sequencing platform. In addition, PacBio’s SPRQ-Nx was launched in May 2023, offering a lower average selling price about 35% below the previous pricing model.
Despite lower revenue projections due to the gradual transition to SPRQ-Nx and reduced expectations for academic and government demand, Gibson noted strong ongoing demand for its Revio systems. He highlighted a significant population genomics initiative involving five Revio systems, expected to provide additional revenue by 2027. The company recorded over 50% year-over-year growth in the EMEA region, bolstered by favorable conditions for whole-genome sequencing and demand from smaller healthcare facilities.
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