Announces Plan to Reduce Annualized Operating Expense Run Rate by $50 - $75 Million Q1 2024 Earnings Conference Call Scheduled for May 9, 2024 MENLO PARK, Calif., April 16, 2024  /PRNewswire/ – PacBio (NASDAQ:PACB) today announced preliminary, unaudited revenue for the quarter ended March 31, 2024. Preliminary First Quarter Results Preliminary revenue of $38.8 million, roughly flat compared with $38.9 million in the prior-year period. Instrument revenue of $19.0 million compared with $20.7 million in the prior-year period. Consumables revenue of $16.0 million compared with $14.0 million in the prior-year period. Expect Revio consumables in the first quarter of 2024 to be approximately $11.0 million. Service and other revenue of $3.8 million compared with $4.2 million in the prior-year period. Instrument revenue included 28 RevioTM sequencing systems in the first quarter of 2024, bringing the ending installed base to 201 systems as of March 31, 2024. Of the 28 Revio systems shipped, 16 were shipped to new customers. Onso shipments increased sequentially as PacBio continued to ramp up its manufacturing capacity, achieving steady-state production levels at the end of the quarter. Total preliminary cash, cash equivalents, and investments balance as of March 31, 2024 of approximately $562 million. Preliminary revenue for the first quarter was below the company's expectations due to an increasing number of customers delaying instrument purchases and softness in consumable shipments. All regions underperformed, with 13 Revio systems falling out of the forecast in the last couple of weeks in the first quarter, which the company believes primarily resulted from elongated customer purchasing cycles. The median sales cycle for Revio instrument purchases increased more than expected in the first quarter of 2024. PacBio believes that these instruments continue to be strong sales opportunities that are likely to close in 2024. PacBio believes additional reasons for the shortfall include: The uncertainty surrounding the funding for new capital equipment, particularly in the U.S. and China; Procurement delays; Small-to-mid-size existing customers yet to increase their sample volumes to drive an upgrade to Revio; and, An increasing proportion of the sales pipeline was comprised of new customers in the first quarter of 2024, which have shown they have longer sales cycles compared to existing PacBio customers. Consumable revenue was also below expectations, which the company believes was primarily attributed to: ` Slower-than-expected ramp-up in sequencing by our small- to mid-sized customers, many of whom are new to PacBio. The time for new Revio customers and new projects to reach full capacity has been slower than previously anticipated; Sample delays impacting sequencing volume in the quarter at certain large customers; and, Some service providers in China operating at lower utilization as a result of the difficult funding environment. Commentary by Christian Henry, President and CEO of PacBio: "Following the successful launch of the Revio system and a record 2023, we entered the year with optimism regarding our growth prospects. As we reached the last couple of weeks of the first quarter, however, we saw an increasing number of customers delay instrument purchases and we experienced some unexpected softness in consumable shipments. As a result, the first quarter came in below our original expectations. We expect these factors to have an impact on our 2024 performance, and we expect to provide further details on our full year outlook on our earnings call scheduled for ...