What happened
Shares of Pacific Biosciences of California (PACB 6.16%), a genetic-sequencing system manufacturer, rose 11% on Thursday and continued their climb into Friday's session. Investors appear pleased with new productivity-boosting tools to be featured at this week's meeting of the American Society for Microbiology.
So what
Pacific Biosciences' single-molecule DNA-reading system is widely considered more accurate than more popular methods that splice together data from thousands of copies. Accuracy has made PacBio's Sequel System a leading choice for academic researchers. And a new addition that makes it easier to sequence multiple microbes at the same time will help cement its position among microbiologists.
Image source: Getty Images.
Now what
Helping scientists lower per-sample costs by increasing throughput is a great way to please customers while boosting the recurring revenue that consumable chips and reagents generate. PacBio needs to execute on this front soon, or it could find itself in a tough spot. Total revenue fell 22% in the first quarter compared to the previous year, although shipping delays were partly to blame.
After losing $24 million during the first three months of 2018, the company finished March with just $79 million in cash, cash equivalents, and short-term investments. If product revenue doesn't start moving in the right direction again soon, raising more capital could get tricky.
