Company: PACB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001299130-25-000156
Chunk: 184

Company: PACIFIC BIOSCIENCES OF CALIFORNIA, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 184
---
 driven by lower cost of revenue and higher consumables sales. See Note 5. Restructuring in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information about restructuring activities. Gross margins may be affected by product mix, manufacturing efficiencies, warranty cost improvements, average selling price fluctuations, future product launches, changes to inventory reserves, costs of raw materials and tariffs.

Research and Development Expense

Research and development expense decreased by $16.0 million, or 41%, for the second quarter of 2025, compared to the same quarter of 2024. The decrease was primarily driven by a decrease in personnel and related expenses due to restructuring activities, as well as the transition of launched products from development to commercialization. Research and development expense included share-based compensation expense of $3.3 million and $4.6 million during the second quarter of 2025 and 2024, respectively.

Sales, General, and Administrative Expense

Sales, general and administrative expense decreased by $9.7 million, or 21%, for the second quarter of 2025, compared to the same quarter of 2024. The decrease was primarily due to a net decrease in personnel and related expenses due to restructuring activities. Sales, general, and administrative expense included share-based compensation expense of $7.7 million and $11.5 million during the second quarter of 2025 and 2024, respectively.

Impairment Charges

We recognized no impairment charge during the second quarter of 2025 and a goodwill impairment charge of $93.2 million during the second quarter of 2024. This charge was primarily attributable to a sustained decline in our stock price and revisions to the timing of expected future cash flows relative to our initial long-term plan, reflecting the continued impact of longer-than-anticipated median sales cycles and other contributing factors. These developments indicated that the fair value of the reporting unit may have been less than its carrying amount, prompting the performance of an interim goodwill impairment test. The results of the test confirmed that the carrying amount of the reporting unit exceeded its estimated fair value.

Amortization of Acquired Intangible Assets

Amortization of acquired intangible assets included in operating expenses for the second quarter of 2025 and 2024 consists of amortization expense attributable to acquired intangible assets that are not directly related to sales generating activities.

Q2 Fiscal 2025 Form 10-Q32

Interest Expense

Interest expense for the second quarter of 2025 and 2024 was