DexCom, Inc. (Nasdaq:DXCM) today reported its audited financial results as of and for the quarter and fiscal year ended December 31, 2012.
For the full-year ended December 31, 2012, product revenue grew to $93.0 million, an increase of 41% from the $65.9 million in product revenue reported for 2011, and total revenue grew to $99.9 million, an increase of 31% from 2011. Product revenue totaled $31.7 million for the fourth quarter of 2012, an increase of 52% from the $20.9 million in product revenue reported for the comparable period in 2011. Total fourth quarter 2012 revenue, which included development grant and other revenue, was $33.3 million, an increase of 49% from the comparable period in 2011. Product gross profit totaled $17.2 million and $44.7 million for the three and twelve months ended December 31, 2012, compared to gross profit of $10.2 million and $29.3 million for the three and twelve months ended December 31, 2011. The Company reported a net loss of $8.5 million, or $0.12 per share, and $54.5 million, or $0.79 per share, for the three and twelve months ended December 31, 2012, compared to $12.2 million, or $0.18 per share, and $44.7 million, or $0.68 per share, for the three and twelve months ended December 31, 2011. The net loss for 2012 included $26.6 million in non-cash expenses, comprised primarily of share-based compensation, depreciation, and amortization, offset by a one-time non-cash tax benefit of $1.3 million related to the acquisition of SweetSpot. Also included in net loss were additional cost of goods sold totaling $3.0 million for 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 for the twelve months ended December 31, 2012 totaled $53.3 million compared to $40.4 million for 2011. The increase was primarily due to additional product sales. Research and development expense totaled $39.5 million in 2012 compared to $30.8 million in 2011. Changes in research and development expense included additional salaries and payroll related costs, share-based compensation, and consulting costs. Selling, general and administrative expense totaled $62.8 million in 2012 compared to $49.9 million in 2011, with the change primarily due to additional selling, information technology, and marketing costs, including increased share-based compensation. As of December 31, 2012, the Company had $48.7 million in cash and marketable securities, and $1.0 million in restricted cash.
Management will hold a conference call today starting at 4:30 p.m. (Eastern Time). The conference call will be concurrently webcast. The link to the webcast will be available on the DexCom, Inc. website at www.dexcom.com under the investor webcast section and will be archived for future reference. To listen to the conference call, please dial (888) 771-4371 (US/Canada) or (847) 585-4405 (International) and use the participant code "34129862" approximately five minutes prior to the start time.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for ambulatory use by people with diabetes and by healthcare providers in the hospital.
Cautionary Statement Regarding Forward Looking Statements
DexCom is a medical device company with a limited operating history. Successful commercialization and sale of the company’s products is subject to numerous risks and uncertainties, including product performance, a lack of acceptance in the marketplace by physicians and people with diabetes, the company’s inability to manufacture products in commercial quantities at an acceptable cost and quality level, possible delays in the company’s development programs, the inability of customers to receive reimbursement from third-party payors and inadequate financial and other resources. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's annual report on Form 10-K for the period ended December 31, 2012, as filed with the Securities and Exchange Commission on February 21, 2013.
Consolidated Balance Sheets
(In millions—except par value data)
|As of December 31,|
|Cash and cash equivalents||$||8.1||$||2.6|
|Short-term marketable securities, available-for-sale||40.6||79.4|
|Accounts receivable, net||19.5||12.5|
|Prepaid and other current assets||2.0||1.8|
|Total current assets||77.6||104.5|
|Property and equipment, net||18.9||15.0|
|Intangible assets, net||4.2||0.0|
|Liabilities and stockholders’ equity|
|Accounts payable and accrued liabilities||$||8.7||$||6.3|
|Accrued payroll and related expenses||9.2||6.8|
|Current portion of long-term debt||0.2||0.0|
|Current portion of deferred revenue||1.4||1.6|
|Total current liabilities||19.5||14.7|
|Long-term portion of deferred revenue||0.6||0.3|
|Long-term debt, net of current portion||6.8||0.0|
|Commitments and contingencies|
|Preferred stock, $0.001 par value per share, 5.0 shares authorized; no shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively.||0.0||0.0|
|Common stock, $0.001 par value per share, 100.0 authorized; 69.7 and 69.5 shares issued and outstanding, respectively, at December 31, 2012, and 67.8 and 67.5 shares issued and outstanding, respectively, at December 31, 2011||0.1||0.1|
|Additional paid-in capital||522.6||495.6|
|Accumulated other comprehensive loss||(0.1||)||(0.1||)|
|Total stockholders’ equity||77.0||104.5|
|Total liabilities and stockholders’ equity||$||106.0||$||120.5|
Consolidated Statements of Operations
(In millions—except per share data)
|Three Months Ended|
|Twelve Months Ended|
|Development grant and other revenue|
|Product cost of sales||14.5||10.7||48.3||36.6|
|Development and other cost of sales||1.3||1.0||5.0||3.8|
|Total cost of sales||15.8||11.7||53.3||40.4|
|Research and development||8.7||9.2||39.5||30.8|
|Selling, general and administrative||17.2||13.7||62.8||49.9|
|Total operating expenses||25.9||22.9||102.3||80.7|
|Interest and other income||0.1||0.0||0.1||0.1|
|Loss before income taxes||(8.5||)||(12.2||)||(55.8||)||(44.7||)|
|Income tax expense (benefit)||0.0||0.0||(1.3||)||0.0|
|Basic and diluted net loss per share||($0.12||)||($0.18||)||($0.79||)||($0.68||)|
|Shares used to compute basic and diluted net loss per share||69.3||67.5||68.7||65.6|