Health & Fitness
Health and Fitness
Health and Fitness 
Wed, August 4, 2010
Tue, August 3, 2010
DexCom Inc. Reports Second Quarter 2010 Financial Results
SAN DIEGO--([ BUSINESS WIRE ])--DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results for the quarter ended June 30, 2010.
Product revenue grew to approximately $9.0 million for the second quarter of 2010, an increase of approximately 120% from the $4.1 million in product revenue reported for the second quarter of 2009, and an increase of approximately 34% from the $6.8 million in product revenue reported for the first quarter of 2010. Total second quarter 2010 revenue, which includes development grant and other revenue, was $11.8 million, an increase of approximately 75% from the same quarter in 2009, and an increase of approximately 23% from the first quarter of 2010. The Company reported a net loss of $11.7 million, down from $15.3 million for the second quarter of 2009. The net loss included $3.9 million in non-cash expenses during the second quarter of 2010, attributed primarily to share-based compensation. Net loss was $0.20 per share for the second quarter of 2010, down from a net loss of $0.33 per share for the second quarter of 2009. During the quarter, we converted $2 million of convertible debt into approximately 256,000 shares of common stock, leaving a remaining outstanding balance of $4 million of convertible debt as of June 30, 2010.
Product cost of sales increased $1.7 million to $6.3 million for the second quarter of 2010 compared to $4.6 million for the same quarter in 2009, primarily due to increased volume of product sales. Total cost of sales was $7.3 million for the second quarter of 2010, compared to $7.8 million for the second quarter of 2009. The decrease was due to lower development and other costs related to our development and collaboration agreements entered into during 2008. Research and development expense increased by approximately $2.0 million to $5.4 million for the second quarter of 2010, compared to $3.5million for the second quarter of 2009. The increase in research and development expense was due primarily to increased development efforts for our ambulatory products and decreased activity under our development and collaboration agreements. Selling, general and administrative expense increased by approximately $1.4 million to $10.4million for the second quarter of 2010, compared to $9.0million for the second quarter of 2009, with the change primarily due to additional customer service, sales and IT costs. As of June30, 2010, the Company had $42.2 million in cash, marketable securities, and restricted cash.
Conference Call
Management will hold a conference call today starting at 4:30 pm (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 1 (847)413-3238 (International) and use the confirmation number a27580067a 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 and sale of the companya™s products is subject to numerous risks and uncertainties, including product performance, a lack of acceptance in the marketplace by physicians and patients, the companya™s inability to manufacture products in commercial quantities at an acceptable cost and quality level, possible delays in the companya™s development programs, the inability of patients to receive reimbursements 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 companya™s quarterly report on Form 10-Q for the period ended June 30, 2010, as filed with the Securities and Exchange Commission on August3, 2010.
DexCom, Inc. Consolidated Balance Sheets (In thousands a" except par value data) (Unaudited) | ||||||||||
| June 30, 2010 | December 31, | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 6,090 | $ | 3,577 | ||||||
| Short-term marketable securities, available-for-sale | 33,991 | 24,439 | ||||||||
| Accounts receivable, net | 4,661 | 3,490 | ||||||||
| Inventory | 4,087 | 2,641 | ||||||||
| Prepaid and other current assets | 1,614 | 2,773 | ||||||||
| Total current assets | 50,443 | 36,920 | ||||||||
| Property and equipment, net | 7,775 | 6,422 | ||||||||
| Restricted cash | 2,164 | 2,414 | ||||||||
| Other assets | 183 | 1,192 | ||||||||
| Total assets | $ | 60,565 | $ | 46,948 | ||||||
| Liabilities and stockholdersa™ equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | $ | 5,684 | $ | 5,745 | ||||||
| Accrued payroll and related expenses | 4,883 | 4,406 | ||||||||
| Current portion of long-term debt | 900 | 900 | ||||||||
| Current portion of deferred revenue | 4,047 | 7,745 | ||||||||
| Total current liabilities | 15,514 | 18,796 | ||||||||
| Other liabilities | 750 | 840 | ||||||||
| Long-term debt, net of current portion | 3,283 | 45,757 | ||||||||
| Total liabilities | 19,547 | 65,393 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholdersa™ equity (deficit): | ||||||||||
| Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively | a" | a" | ||||||||
| Common stock, $0.001 par value, 100,000 authorized; 58,207 and 57,924 shares issued and outstanding, respectively, at June 30, 2010; and 46,324 and 46,045 shares issued and outstanding, respectively, at December 31, 2009 | 58 | 46 | ||||||||
| Additional paid-in capital | 364,133 | 272,730 | ||||||||
| Accumulated other comprehensive loss | (5 | ) | (13 | ) | ||||||
| Accumulated deficit | (323,168 | ) | (291,208 | ) | ||||||
| Total stockholdersa™ equity (deficit) | 41,018 | (18,445 | ) | |||||||
| Total liabilities and stockholdersa™ equity (deficit) | $ | 60,565 | $ | 46,948 | ||||||
DexCom, Inc. Consolidated Statements of Operations (In thousands a" except per share data) (Unaudited) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
Product revenue | $ | 9,043 | $ | 4,112 | $ | 15,807 | $ | 6,784 | ||||||||||||
| Development grant and other revenue | 2,743 | 2,639 | 5,524 | 5,179 | ||||||||||||||||
| Total revenue | 11,786 | 6,751 | 21,331 | 11,963 | ||||||||||||||||
| Product cost of sales | 6,318 | 4,627 | 11,458 | 8,149 | ||||||||||||||||
| Development and other cost of sales | 949 | 3,172 | 1,895 | 5,125 | ||||||||||||||||
| Total cost of sales | 7,267 | 7,799 | 13,353 | 13,274 | ||||||||||||||||
| Gross margin (deficit) | 4,519 | (1,048 | ) | 7,978 | (1,311 | ) | ||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Research and development | 5,425 | 3,455 | 10,164 | 6,626 | ||||||||||||||||
| Selling, general and administrative | 10,362 | 8,952 | 20,156 | 16,855 | ||||||||||||||||
| Total operating expenses | 15,787 | 12,407 | 30,320 | 23,481 | ||||||||||||||||
| Operating loss | (11,268 | ) | (13,455 | ) | (22,342 | ) | (24,792 | ) | ||||||||||||
| Interest income | 23 | 107 | 53 | 230 | ||||||||||||||||
| Interest expense | (197 | ) | (1,982 | ) | (1,496 | ) | (3,910 | ) | ||||||||||||
| Loss on debt extinguishment upon conversion of convertible debt | (245 | ) | a" | (8,175 | ) | a" | ||||||||||||||
| Net loss | $ | (11,687 | ) | $ | (15,330 | ) | $ | (31,960 | ) | $ | (28,472 | ) | ||||||||
| Basic and diluted net loss per share | $ | (0.20 | ) | $ | (0.33 | ) | $ | (0.59 | ) | $ | (0.67 | ) | ||||||||
| Shares used to compute basic and diluted net loss per share | 57,554 | 45,832 | 54,440 | 42,718 | ||||||||||||||||