DexCom, Inc. (Nasdaq: DXCM) today reported its unaudited financial results as of and for the quarter ended June 30, 2016.

Second Quarter 2016 results:

Revenue grew to $137.3 million for the second quarter of 2016, an increase of 47% from the $93.2 million in revenue for the same quarter in 2015. Gross profit totaled $85.5 million for the second quarter of 2016, compared to a gross profit of $66.0 million for the same quarter in 2015. GAAP net loss was $20.2 million, or $0.24 per share for the second quarter of 2016, compared to $3.7 million, or $0.05 per share for the same quarter in 2015. The net loss of $20.2 million for the second quarter of 2016 included $31.5 million in non-cash expenses, comprised primarily of share-based compensation, depreciation and amortization, compared to the net loss of $3.7 million for the same quarter of 2015, which included $23.4 million in non-cash expenses.

Cost of sales increased $24.6 million to $51.8 million for the second quarter of 2016 compared to $27.2 million for the same quarter in 2015, primarily due to an increased sales volume, and partially due to increased warranty costs and $3.5 million excess and obsolete inventory charges related to the company’s receiver recall. Research and development expense increased by $11.9 million to $36.3 million for the second quarter of 2016 compared to $24.4 million for the second quarter of 2015. Changes in research and development expense included additional payroll costs and $2.4 million in additional non-cash share-based compensation. Selling, general and administrative expense increased by $24.1 million to $69.3 million for the second quarter of 2016 compared to $45.2 million for the second quarter of 2015, with the change primarily due to additional payroll, marketing costs and consulting costs, and $3.3 million in additional non-cash share-based compensation. As of June 30, 2016, DexCom had $115.6 million in cash, cash equivalents and short-term 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 Us," then "Investor Relations," and then "Events and Presentations," 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 "41665865" 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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are not purely historical regarding DexCom’s or its management’s intentions, beliefs, expectations and strategies for the future. All forward-looking statements and reasons why results might differ included in this press release are made as of the date of this release, based on information currently available to DexCom, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward looking statements. The risks and uncertainties that may cause actual results to differ materially from DexCom’s current expectations are more fully described in DexCom’s quarterly report on Form 10-Q for the period ended June 30, 2016, as filed with the Securities and Exchange Commission on August 2, 2016. Except as required by law, DexCom assumes no obligation to update any such forward-looking statement after the date of this report or to conform these forward-looking statements to actual results.

 
DexCom, Inc.
Consolidated Balance Sheets
(In millions—except par value data)
 
      June 30, 2016       December 31, 2015
(Unaudited)  
Assets
Current assets:
Cash and cash equivalents $ 87.5 $ 86.1
Short-term marketable securities, available-for-sale 28.1 29.1
Accounts receivable, net 73.8 74.1
Inventory 42.9 35.2
Prepaid and other current assets   8.7     6.8  
Total current assets 241.0 231.3
Property and equipment, net 77.0 54.7
Intangible assets, net 1.8 2.2
Goodwill 11.8 3.7
Other assets   1.2     0.1  
Total assets $ 332.8   $ 292.0  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities $ 49.9 $ 38.9
Accrued payroll and related expenses 23.3 24.9
Current portion of long-term debt — 2.3
Current portion of deferred revenue   0.7     0.8  
Total current liabilities 73.9 66.9
Other liabilities   12.5     3.9  
Total liabilities 86.4 70.8
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5.0 shares authorized; no shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively — —
Common stock, $0.001 par value, 100.0 authorized; 84.1 and 83.8 issued and outstanding, respectively, at June 30, 2016; and 82.0 and 81.7 shares issued and outstanding, respectively, at December 31, 2015 0.1 0.1
Additional paid-in capital 841.8 776.8
Accumulated other comprehensive loss (0.7 ) (0.3 )
Accumulated deficit   (594.8 )   (555.4 )
Total stockholders’ equity   246.4     221.2  
Total liabilities and stockholders’ equity $ 332.8   $ 292.0  
 
 
DexCom, Inc.
Consolidated Statements of Operations
(In millions—except per share data)
(Unaudited)
 
      Three Months Ended       Six Months Ended
June 30, June 30,
2016       2015 2016       2015
Product revenue $ 137.3 $ 92.9 $ 253.5 $ 165.7
Development grant and other revenue   —     0.3     —     0.3  
Total revenue 137.3 93.2 253.5 166.0
Cost of sales   51.8     27.2     92.9     53.5  
Gross profit 85.5 66.0 160.6 112.5
Operating expenses
Research and development 36.3 24.4 68.5 44.2
Selling, general and administrative   69.3     45.2     131.4     84.6  
Total operating expenses   105.6     69.6     199.9     128.8  
Operating loss (20.1 ) (3.6 ) (39.3 ) (16.3 )
Interest income 0.1 — 0.2 —
Interest expense   (0.1 )   (0.1 )   (0.2 )   (0.3 )
Loss before income taxes (20.1 ) (3.7 ) (39.3 ) (16.6 )
Income tax expense   0.1     —     0.1     —  
Net loss $ (20.2 ) $ (3.7 ) $ (39.4 ) $ (16.6 )
Basic and diluted net loss per share $ (0.24 ) $ (0.05 ) $ (0.48 ) $ (0.21 )
Shares used to compute basic and diluted net loss per share   83.6     79.6     82.8     78.7