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1、201 Annual Repor t6March 31,201h 31,0Mar?Fellow Stockholders,tFowrskhoSincerely,2016 was a transitional year for Pacific Biosciencesonaoscienn016r Pwas aeaific Be as we managed the complexities of introducing anaguctie of intompd tweand ramping up the production of our new DNA sequencing platform,th
2、e Sequel?System.Throughout the?we introduced enhancements to the Sequel software,twthceintrSeqentsensequencing chemistry,and sample preparation eagpsamarse ue?and refined the manufacturing process for the Sequel SMRT TSer tgreanrocfactl SMed t?Cell.By the fourth quarter,we were CtlBqufourer?on the p
3、romise of providing a robust sequencing system that provides up to seven times the ou?throughput as our previous platform,the PacBio RS II.o RrotI.platpas Pacr prerouWe installed over 100 new Sequel Systems in 2016,which drove our revenue growth for products and services by over 60%compared with 201
4、5.Meanwhile,our lower manufacturing cost for the Sequel System nufacmsheequeost furarewhilemo15er mr 60%ithMeauvicesenabled us to increase our gross profit on products and services by over 250%compared with 2015.Our grossmargins have come up to a level now where continued revegied womhavre cel noupn
5、ue growth can get us to profitability.We believe nohy.ofitaWe nugwe are well positioned to make thisarsitwellthisedhappen within the next few years.nxt fep n wyeaEvery year,we drive toward expanding the applications where SMRT Sequencing can add significant iSeddgn cant cane SMtiodr whre dappve toer
6、y value to our customers,and in 2016 we saw numerous successful examples.In the area of HLA typing,one of a.hety ngne off HLpluccw6omfuluemssin 2cusour largest individual customers,Histogenetics,won a large,multiyear contract to perform HLA typing on hundreds of thousands of samples using PacBio seq