DexCom, Inc. (Nasdaq:DXCM) today reported its unaudited financial results for the quarter ended September 30, 2007.
Revenues grew to $1.2 million for the third quarter of 2007, an increase of over 45% from the $841,000 in revenues reported for the third quarter of 2006, and an increase of more than 41% from the $863,000 in revenues reported for the second quarter of 2007. The company reported a net loss of $11.4 million or $0.40 per share for the third quarter of 2007, down from $13.4 million or $0.48 per share for the third quarter of 2006.
Cost of sales decreased to $3.1 million for the third quarter of 2007 compared to $3.4 million for the third quarter in 2006. The decline in cost of sales was primarily related to the decrease in direct product costs and better labor utilization. Research and development expense decreased by approximately $1.0 million to $3.7 million for the third quarter of 2007, compared to $4.6 million for the third quarter of 2006. Changes in research and development expense included lower clinical, regulatory, and development costs. Selling, general and administrative expense declined by approximately $1.1 million to $5.9 million for the third quarter of 2007, compared to $7.1 million for the third quarter of 2006, with the decrease primarily due to lower marketing costs.
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 (888) 801-6502 (US/Canada) or (913) 981-5522 (International) and use the participant code "5674054" approximately five minutes prior to the start time.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring systems for people with diabetes.
Cautionary Statement Regarding Forward Looking Statements
DexCom is a medical device company with a limited operating history. Successful commercialization and sale of the company’s products is subject to numerous risks and uncertainties, including product performance, a lack of acceptance in the marketplace by physicians and patients, the company’s inability to manufacture products in commercial quantities at an acceptable cost and quality level, possible delays in the company’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 company's quarterly report on Form 10-Q for the period ending September 30, 2007, as filed with the Securities and Exchange Commission on October 30, 2007.
DexCom, Inc. Balance Sheets (In thousands – except share and per share data) (Unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2007 | 2006 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 15,176 | $ | 18,167 | |||
| Short-term marketable securities, available-for-sale | 59,103 | 36,341 | |||||
| Accounts receivable, net | 171 | 120 | |||||
| Inventory | 1,035 | 1,413 | |||||
| Prepaid and other current assets | 1,598 | 1,315 | |||||
| Total current assets | 77,083 | 57,356 | |||||
| Property and equipment, net | 5,058 | 6,118 | |||||
| Other assets | 3,348 | 1,079 | |||||
| Total assets | $ | 85,489 | $ | 64,553 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued liabilities | $ | 2,088 | $ | 2,764 | |||
| Accrued payroll and related expenses | 2,644 | 1,558 | |||||
| Current portion of long-term debt | 1,375 | 908 | |||||
| Total current liabilities | 6,107 | 5,230 | |||||
| Other long-term liabilities | 683 | 377 | |||||
| Long-term debt, net of current portion | 61,375 | 2,118 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2007 and December 31, 2006, respectively | — | — | |||||
| Common stock, $0.001 par value, 100,000,000 authorized; 28,446,004 issued and 28,291,800 outstanding at September 30, 2007, and 28,163,690 shares issued and outstanding and December 31, 2006 | 28 | 28 | |||||
| Additional paid-in capital | 181,285 | 187,162 | |||||
| Accumulated other comprehensive income | 34 | 12 | |||||
| Accumulated deficit | (164,023 | ) | (130,374 | ) | |||
| Total stockholders' equity | 17,324 | 56,828 | |||||
| Total liabilities and stockholders' equity | $ | 85,489 | $ | 64,553 | |||
DexCom, Inc. Statements of Operations (In thousands – except share and per share data) (Unaudited) | |||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||||
| Revenues | $ | 1,224 | $ | 841 | $ | 3,099 | $ | 1,335 | |||||||
| Cost of sales | 3,113 | 3,389 | 9,081 | 7,561 | |||||||||||
| Gross margin | (1,889 | ) | (2,548 | ) | (5,982 | ) | (6,226 | ) | |||||||
| Operating expenses | |||||||||||||||
| Research and development | 3,671 | 4,634 | 11,734 | 15,489 | |||||||||||
| Selling, general and administrative | 5,943 | 7,074 | 16,783 | 15,847 | |||||||||||
| Total operating expenses | 9,614 | 11,708 | 28,517 | 31,336 | |||||||||||
| Operating loss | (11,503 | ) | (14,256 | ) | (34,499 | ) | (37,562 | ) | |||||||
| Interest income, net | 119 | 818 | 850 | 2,037 | |||||||||||
| Net loss | $ | (11,384 | ) | $ | (13,438 | ) | $ | (33,649 | ) | $ | (35,525 | ) | |||
| Basic and diluted net loss per share | $ | (0.40 | ) | $ | (0.48 | ) | $ | (1.19 | ) | $ | (1.32 | ) | |||
| Shares used to compute basic and diluted net loss per share | 28,324,661 | 28,068,427 | 28,282,653 | 26,938,509 | |||||||||||
Contacts:
Steven R. Pacelli
Senior Vice President of
Corporate Affairs
(858) 200-0200
www.dexcom.com
