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TMCNet:  DexCom, Inc. Reports Fourth Quarter and Full Year 2013 Financial Results

[February 20, 2014]

DexCom, Inc. Reports Fourth Quarter and Full Year 2013 Financial Results

SAN DIEGO --(Business Wire)--

DexCom, Inc. (Nasdaq: DXCM) today reported its audited financial results as of and for the quarter and fiscal year ended December 31, 2013.

For the full-year ended December 31, 2013, product revenue grew to $157.1 million, an increase of 69% from the $93.0 million in product revenue reported for 2012, and total revenue grew to $160.0 million, an increase of 60% from 2012. Product revenue totaled $51.3 million for the fourth quarter of 2013, an increase of approximately 62% from the $31.7 million in product revenue reported for the comparable period in 2012. Total fourth quarter 2013 revenue, which included development grant and other revenue, grew to $51.7 million, an increase of 55% from the comparable period in 2012. Product gross profit totaled $34.1 million and $99.0 million for the three and twelve months ended December 31, 2013, compared to a product gross profit of $17.2 million and $44.7 million for the three and twelve months ended December 31, 2012. The Company reported a net loss of $2.6 million, or $0.04 per share, and $29.8 million, or $0.42 per share, for the three and twelve months ended December 31, 2013, compared to 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. The net loss for 2013 included $35.0 million in non-cash expenses, comprised primarily of share-based compensation, depreciation, and amortization.

Total cost of sales for the twelve months ended December 31, 2013 totaled $59.9 million compared to $53.3 million for 2012. The increase was primarily due to additional product sales. Research and development expense totaled $44.8 million in 2013 compared to $38.3 million in 2012. Changes in research and development expense included additional payroll costs and share-based compensation. Selling, general and administrative expense totaled $84.2 million in 2013 compared to $64.0 million in 2012, with change primarily due to additional selling and information technology costs, which includes share-based compensation. As of December 31, 2013, the Company had $54.6 million in cash, cash equivalents 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 participant code "36623521" 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 annual report on Form 10-K for the period ended December 31, 2013, as filed with the Securities and Exchange Commission on February 20, 2014.




DexCom, Inc.
Consolidated Balance Sheets (In millions-except par value data)
 
  As of December 31,
  2013       2012  
Assets
Current assets:
Cash and cash equivalents $ 43.2 $ 8.1
Short-term marketable securities, available-for-sale 11.4 40.6
Accounts receivable, net 26.1 19.5
Inventory 9.0 7.4
Prepaid and other current assets   3.4     2.0  
Total current assets 93.1 77.6
Property and equipment, net 20.7 18.9
Restricted cash 1.0 1.0
Intangible assets, net 3.6 4.2
Goodwill 3.2 3.2
Other assets   0.9     1.1  
Total assets $ 122.5   $ 106.0  
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 14.1 $ 8.7
Accrued payroll and related expenses 15.1 9.2
Current portion of long-term debt 2.2 0.2
Current portion of deferred revenue   0.7     1.4  
Total current liabilities 32.1 19.5
Other liabilities 1.7 2.1
Long-term debt, net of current portion 4.6 6.8
Long-term portion of deferred revenue   -     0.6  
Total liabilities 38.4 29.0
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively - -
Common stock, $0.001 par value, 100.0 authorized; 72.8 and 72.5 issued and outstanding, respectively, at December 31, 2013; and 69.7 and 69.5 shares issued and outstanding, respectively, at December 31, 2012 0.1 0.1
Additional paid-in capital 559.5 522.6
Accumulated other comprehensive loss (0.1 ) (0.1 )
Accumulated deficit   (475.4 )   (445.6 )
Total stockholders' equity   84.1     77.0  
Total liabilities and stockholders' equity $ 122.5   $ 106.0  
 
DexCom, Inc.
Consolidated Statements of Operations
(In millions-except per share data)
(Unaudited)
 
  Three Months Ended   Twelve Months Ended
December 31, December 31,
  2013       2012     2013       2012  
Product revenue $ 51.3 $ 31.7 $ 157.1 $ 93.0
Development grant and other revenue   0.4     1.6     2.9     6.9  
Total revenue 51.7 33.3 160.0 99.9
Product cost of sales 17.2 14.5 58.1 48.3
Development and other cost of sales   0.4     1.3     1.8     5.0  
Total cost of sales   17.6     15.8     59.9     53.3  
Gross profit 34.1 17.5 100.1 46.6
Operating expenses
Research and development 12.6 8.6 44.8 38.3
Selling, general and administrative   23.8     17.3     84.2     64.0  
Total operating expenses   36.4     25.9     129.0     102.3  
Operating loss (2.3 ) (8.4 ) (28.9 ) (55.7 )
Interest and other income - 0.1 - 0.1
Interest expense   (0.3 )   (0.2 )   (0.9 )   (0.2 )
Loss before income taxes (2.6 ) (8.5 ) (29.8 ) (55.8 )
Income tax expense (benefit)   -     -     -     (1.3 )
Net loss $ (2.6 ) $ (8.5 ) $ (29.8 ) $ (54.5 )
Basic and diluted net loss per share $ (0.04 ) $ (0.12 ) $ (0.42 ) $ (0.79 )
Shares used to compute basic and diluted net loss per share   72.0     69.3     71.1     68.7  


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