DexCom Inc. Reports Third Quarter 2012 Financial Results
DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended September 30, 2012.
Product revenue grew to $21.1 million for the third quarter of 2012, an increase of approximately 27% from the $16.7 million in product revenue reported for the third quarter of 2011. The Company recorded $1.2 million of additional sales returns as a reduction of revenue related to the approval and commercial launch plans of our DexCom G4 PLATINUM® system (the “G4 PLATINUM system”). Total third quarter 2012 revenue, which included development grant and other revenue, grew to $23.1 million, an increase of 26% from the same quarter in 2011. Product gross profit totaled $7.7 million for the three months ended September 30, 2012, compared to a product gross profit of $7.4 million for the three months ended September 30, 2011. The Company reported a net loss of $17.3 million, or $0.25 per share for the three months ended September 30, 2012, compared to a net loss of $13.3 million, or $0.20 per share for the three months ended September 30, 2011. The net loss for the three months ended September 30, 2012 included $6.9 million in non-cash expenses, comprised primarily of share-based compensation, depreciation, and amortization. Also included in net loss were revenue reductions and additional cost of goods sold totaling $4.2 million due to the approval and commercial launch plans of our G4 PLATINUM system.
Product cost of sales increased $4.2 million to $13.4 million for the third quarter of 2012 compared to $9.2 million for the same quarter in 2011, primarily due to the increased volume of product sales and $3.0 million of additional charges related to excess and obsolete inventory and accelerated depreciation on manufacturing equipment due to the approval and commercial launch plans of our G4 PLATINUM system. Total cost of sales increased to $14.7 million for the third quarter of 2012 compared to $10.1 million for third quarter of 2011, primarily due to increased product sales and charges noted above. Research and development expense increased by approximately $2.4 million to $10.6 million for the third quarter of 2012 compared to $8.2 million for the third quarter of 2011. Changes in research and development expense included additional salaries and payroll related costs, share-based compensation and clinical trial costs. Selling, general and administrative expense increased by approximately $1.9 million to $15.1 million for the third quarter of 2012 compared to $13.2 million for the third quarter of 2011, with the change primarily due to additional selling, marketing and information technology costs. As of September 30, 2012, the Company had $54.4 million in cash, marketable securities, and restricted cash.
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the DexCom, Inc. website at www.dexcom.com under the investor webcast section and will be archived for future reference. To listen to the conference call, please dial (800) 447-0521 (US/Canada) or (847) 413-3238 (International) and use the participant code "31897101" approximately five minutes prior to the start time.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for ambulatory use by patients with diabetes and by healthcare providers in the hospital.
Cautionary Statement Regarding Forward Looking Statements
DexCom is a medical device company with a limited operating history. Successful commercialization of the company's products is subject to numerous risks and uncertainties, including a lack of acceptance in the marketplace by physicians and patients, the inability to manufacture products in commercial quantities at an acceptable cost, possible delays in the company's development programs, the inability of patients to receive reimbursement from third-party payors and inadequate financial and other resources. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's quarterly report on Form 10-Q for the period ended September 30, 2012, as filed with the Securities and Exchange Commission on November 1, 2012.
Consolidated Balance Sheets
(In thousands—except par value data)
|Cash and cash equivalents||$||4,744||$||2,553|
|Short-term marketable securities, available-for-sale||48,641||79,358|
|Accounts receivable, net||12,357||12,547|
|Prepaid and other current assets||2,688||1,781|
|Total current assets||75,571||104,410|
|Property and equipment, net||18,613||15,019|
|Intangible assets, net||4,313||0|
|Liabilities and stockholders' equity|
|Accounts payable and accrued liabilities||$||10,520||$||6,346|
|Accrued payroll and related expenses||8,662||6,804|
|Current portion of deferred revenue||1,222||1,591|
|Total current liabilities||20,404||14,741|
|Long-term portion of deferred revenue||569||281|
|Commitments and contingencies|
|Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively||0||0|
|Common stock, $0.001 par value, 100,000 authorized; 69,534 and 69,250 issued and outstanding, respectively, at September 30, 2012; and 67,833 and 67,549 shares issued and outstanding, respectively, at December 31, 2011||70||68|
|Additional paid-in capital||517,418||495,626|
|Accumulated other comprehensive loss||(93||)||(80||)|
|Total stockholders' equity||80,253||104,490|
|Total liabilities and stockholders' equity||$||102,796||$||120,475|
Consolidated Statements of Operations
(In thousands—except per share data)
Three Months Ended
Nine Months Ended
|Development grant and other revenue||2,008||1,598||5,411||8,871|
|Product cost of sales||13,391||9,230||33,867||25,933|
|Development and other cost of sales||1,296||860||3,735||2,761|
|Total cost of sales||14,687||10,090||37,602||28,694|
|Research and development||10,582||8,231||30,795||21,515|
|Selling, general and administrative||15,142||13,241||45,605||36,203|
|Total operating expenses||25,724||21,472||76,400||57,718|
|Interest and other income||17||31||65||82|
|Loss before income taxes||(17,306||)||(13,278||)||(47,305||)||(32,495||)|
|Income tax expense (benefit)||(43||)||0||(1,287||)||0|
|Basic and diluted net loss per share||$||(0.25||)||$||(0.20||)||$||(0.67||)||$||(0.50||)|
|Shares used to compute basic and diluted net loss per share||69,052||67,397||68,494||64,910|
Steven R. Pacelli
Executive Vice President, Strategy and Corporate Development