DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended September 30, 2011.

Product revenue grew to $16.7 million for the third quarter of 2011, an increase of approximately 55% from the $10.8 million in product revenue reported for the third quarter of 2010. Total third quarter 2011 revenue, which included development grant and other revenue, grew to $18.3 million, an increase of 56% from the same quarter in 2010. Product gross profit totaled $7.4 million for the three months ended September 30, 2011, compared to $3.8 million for the three months ended September 30, 2010. The Company reported a net loss of $13.3 million, or $0.20 per share for the three months ended September 30, 2011, compared to a net loss of $13.4 million, or $0.23 per share for the three months ended September 30, 2010. The net loss included $5.0 million in non-cash expenses, comprised primarily of share-based compensation, depreciation, and amortization.

Product cost of sales increased $2.2 million to $9.2 million for the third quarter of 2011 compared to $7.0 million for the same quarter in 2010, primarily due to increased volume of product sales. Total cost of sales totaled $10.1 million for the third quarter of 2011 compared to $8.2 million for third quarter of 2010, primarily due to increased product sales. Research and development expense increased by approximately $2.1 million to $8.2 million for the third quarter of 2011 compared to $6.2 million for the third quarter of 2010. Changes in research and development expense included additional salaries and payroll related costs, share-based compensation, and consulting costs. Selling, general and administrative expense increased by approximately $2.9 million to $13.2 million for the third quarter of 2011 compared to $10.4 million for the third quarter of 2010, with the change primarily due to additional selling, marketing, and information technology costs. As of September 30, 2011, the Company had $98.3 million in cash, marketable securities, and restricted cash.

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 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 "28602165" 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 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 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, 2011, as filed with the Securities and Exchange Commission on November 2, 2011.
   
DexCom, Inc.
Consolidated Balance Sheets
(In thousands—except par value data)
 

September 30, 2011 (Unaudited)

 
December 31, 2010
Assets
Current assets:
Cash and cash equivalents $ 17,523 $ 4,889
Short-term marketable securities, available-for-sale 79,794 42,224
Accounts receivable, net 9,003 6,671
Inventory 6,455 8,112
Restricted cash 0 775
Prepaid and other current assets   2,457     2,690  
 
Total current assets 115,232 65,361
Property and equipment, net 12,524 10,763
Restricted cash 939 939
Other assets   98     101  
 
Total assets $ 128,793   $ 77,164  
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities $ 6,045 $ 5,350
Accrued payroll and related expenses 6,961 5,730
Current portion of long-term debt 0 525
Current portion of deferred revenue   1,737     3,524  
 
Total current liabilities 14,743 15,129
Other liabilities   985     1,042  
 
Total liabilities 15,728 16,171
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively 0 0
Common stock, $0.001 par value, 100,000 authorized; 67,783 and 67,500 issued and outstanding, respectively, at September 30, 2011; and 62,360 and 62,078 shares issued and outstanding, respectively, at December 31, 2010 68 62
Additional paid-in capital 491,964 407,375
Accumulated other comprehensive loss (94 ) (66 )
Accumulated deficit   (378,873 )   (346,378 )
 
Total stockholders’ equity   113,065     60,993  
 
Total liabilities and stockholders’ equity $ 128,793   $ 77,164  
 
       
DexCom Inc.
Consolidated Statements of Operations
(In thousands—except per share data)
(Unaudited)
 
Three Months Ended September 30, Nine Months Ended September 30,
  2011     2010     2011     2010  
Product revenue $ 16,656 $ 10,776 $ 44,974 $ 26,583
Development grant and other revenue   1,598     888     8,871     6,412  
 
Total revenue 18,254 11,664 53,845 32,995
Product cost of sales 9,230 6,982 25,933 18,440
Development and other cost of sales   860     1,206     2,761     3,101  
 
Total cost of sales   10,090     8,188     28,694     21,541  
 
Gross profit 8,164 3,476 25,151 11,454
Operating expenses
Research and development 8,231 6,161 21,515 16,325
Selling, general and administrative   13,241     10,377     36,203     30,533  
 
Total operating expenses 21,472 16,538 57,718 46,858
Operating loss (13,308 ) (13,062 ) (32,567 ) (35,404 )
Interest income 31 20 82 73
Interest expense (1 ) (44 ) (10 ) (1,540 )
Loss on debt extinguishment upon conversion of convertible debt   0     (312 )   0     (8,487 )
 
Net loss $ (13,278 ) $ (13,398 ) $ (32,495 ) $ (45,358 )
 
Basic and diluted net loss per share $ (0.20 ) $ (0.23 ) $ (0.50 ) $ (0.81 )
 
Shares used to compute basic and diluted net loss per share   67,397     58,200     64,910     55,707  
 

Copyright Business Wire 2010

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