DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended June 30, 2014.
Product revenue grew to $58.2 million for the second quarter of 2014, an increase of 64% from the $35.5 million in product revenue reported for the second quarter of 2013. Total revenue, which included development grant and other revenue, grew to $58.8 million for the second quarter of 2014, an increase of 64% from the same quarter in 2013. Product gross profit totaled $39.5 million for the three months ended June 30, 2014, compared to a product gross profit of $21.8 million for the three months ended June 30, 2013. The Company reported a net loss of $6.0 million, or $0.08 per share ($0.09 on a diluted basis excluding $1.0 million in non-cash gain related to the revaluation of contingent consideration) for the three months ended June 30, 2014, compared to a net loss of $10.1 million, or $0.14 per share for the three months ended June 30, 2013. The net loss of $6.0 million for the three months ended June 30, 2014 included $14.2 million in non-cash expenses, comprised primarily of share-based compensation, depreciation and amortization, compared to the net loss of $10.1 million for the three months ended June 30, 2013, which included $9.0 million in non-cash expenses.
Product cost of sales increased $5.0 million to $18.7 million for the second quarter of 2014 compared to $13.7 million for the same quarter in 2013, primarily due to increased volume of product sales. Total cost of sales totaled $18.9 million for the second quarter of 2014 compared to $13.9 million for the second quarter of 2013. Research and development expense increased by approximately $3.7 million to $14.8 million for the second quarter of 2014 compared to $11.1 million for the second quarter of 2013. Changes in research and development expense included additional payroll costs, consulting costs and $2.4 million in additional non-cash share-based compensation, partially offset by a $1.0 million non-cash gain related to the revaluation of contingent consideration. Selling, general and administrative expense increased by approximately $10.2 million to $30.9 million for the second quarter of 2014 compared to $20.7 million for the second quarter of 2013, with the change primarily due to additional payroll costs, commissions and $3.8 million in additional non-cash share-based compensation. As of June 30, 2014, the Company had $61.3 million in cash and marketable securities.
Conference Call
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 by navigating to "About," then "Investor Relations," and then "Events and Webcasts," and will be archived for future reference. To listen to the conference call, please dial (888) 771-4371 (US/Canada) or (847) 585-4405 (International) and use the confirmation number "37748186" 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 people 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 people with diabetes, the inability to manufacture products in commercial quantities at an acceptable cost, possible delays in the company’s development programs, the inability of people with diabetes 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 June 30, 2014, as filed with the Securities and Exchange Commission on August 6, 2014.
| DexCom, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In millions—except par value data) | ||||||||
| June 30, 2014 | December 31, 2013 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 49.5 | $ | 43.2 | ||||
| Short-term marketable securities, available-for-sale | 11.8 | 11.4 | ||||||
| Accounts receivable, net | 28.6 | 26.1 | ||||||
| Inventory | 11.6 | 9.0 | ||||||
| Prepaid and other current assets | 4.0 | 3.4 | ||||||
| Total current assets | 105.5 | 93.1 | ||||||
| Property and equipment, net | 26.0 | 20.7 | ||||||
| Restricted cash | 1.0 | 1.0 | ||||||
| Intangible assets, net | 3.3 | 3.6 | ||||||
| Goodwill | 3.2 | 3.2 | ||||||
| Other assets | 0.7 | 0.9 | ||||||
| Total assets | $ | 139.7 | $ | 122.5 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ | 20.0 | $ | 14.1 | ||||
| Accrued payroll and related expenses | 13.0 | 15.1 | ||||||
| Current portion of long-term debt | 2.3 | 2.2 | ||||||
| Current portion of deferred revenue | 0.3 | 0.7 | ||||||
| Total current liabilities | 35.6 | 32.1 | ||||||
| Other liabilities | 1.0 | 1.7 | ||||||
| Long-term debt, net of current portion | 3.5 | 4.6 | ||||||
| Total liabilities | 40.1 | 38.4 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.001 par value, 5.0 shares authorized; no shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | — | — | ||||||
| Common stock, $0.001 par value, 100.0 authorized; 75.6 and 75.4 issued and outstanding, respectively, at June 30, 2014; and 72.8 and 72.5 shares issued and outstanding, respectively, at December 31, 2013 | 0.1 | 0.1 | ||||||
| Additional paid-in capital | 593.6 | 559.5 | ||||||
| Accumulated other comprehensive loss | (0.2 | ) | (0.1 | ) | ||||
| Accumulated deficit | (493.9 | ) | (475.4 | ) | ||||
| Total stockholders’ equity | 99.6 | 84.1 | ||||||
| Total liabilities and stockholders’ equity | $ | 139.7 | $ | 122.5 | ||||
| DexCom, Inc. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (In millions—except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Product revenue | $ | 58.2 | $ | 35.5 | $ | 104.9 | $ | 63.3 | ||||||||
| Development grant and other revenue | 0.6 | 0.3 | 1.0 | 2.1 | ||||||||||||
| Total revenue | 58.8 | 35.8 | 105.9 | 65.4 | ||||||||||||
| Product cost of sales | 18.7 | 13.7 | 35.6 | 26.1 | ||||||||||||
| Development and other cost of sales | 0.2 | 0.2 | 0.6 | 0.9 | ||||||||||||
| Total cost of sales | 18.9 | 13.9 | 36.2 | 27.0 | ||||||||||||
| Gross profit | 39.9 | 21.9 | 69.7 | 38.4 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 14.8 | 11.1 | 29.3 | 20.4 | ||||||||||||
| Selling, general and administrative | 30.9 | 20.7 | 58.5 | 38.8 | ||||||||||||
| Total operating expenses | 45.7 | 31.8 | 87.8 | 59.2 | ||||||||||||
| Operating loss | (5.8 | ) | (9.9 | ) | (18.1 | ) | (20.8 | ) | ||||||||
| Interest expense | (0.2 | ) | (0.2 | ) | (0.4 | ) | (0.4 | ) | ||||||||
| Net loss | $ | (6.0 | ) | $ | (10.1 | ) | $ | (18.5 | ) | $ | (21.2 | ) | ||||
| Basic net loss per share | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | (0.30 | ) | ||||
| Shares used to compute basic net loss per share | 75.0 | 70.9 | 74.2 | 70.3 | ||||||||||||
| Diluted net loss per share | $ | (0.09 | ) | $ | (0.14 | ) | $ | (0.25 | ) | $ | (0.30 | ) | ||||
| Shares used to compute diluted net loss per share | 75.3 | 70.9 | 74.2 | 70.3 | ||||||||||||
Contacts:
Steven R. Pacelli
Executive Vice President,
Strategy and Corporate Development
(858) 200-0200
www.dexcom.com
