Why did PACB's Q4 earnings fall short of forecasts?

Pacific Biosciences of California (PACB) experienced a decline in Q4 earnings, which fell short of forecasts due to several key factors: 1. **Revenue Decline**: The company's total revenue for Q4 decreased to $39.22 million, which was a significant drop from the previous year's $200.5 million. This decline was primarily attributed to lower Revio system sales and average selling prices. 2. **Macroeconomic Challenges**: The company faced uncertainties in macroeconomic conditions, which adversely affected their revenue. Additionally, there were concerns about NIH funding, which constitutes a substantial portion of their sales. 3. **Operational Issues**: Challenges such as lower average selling prices of Revio systems and issues with SMRT Cell manufacturing impacted gross margins. These operational hurdles contributed to the overall decline in earnings. In summary, PACB's Q4 earnings fell short of forecasts due to a combination of revenue decline, macroeconomic challenges, and operational issues. These factors collectively contributed to the company's financial performance in the quarter.