10-QPeriod: Q3 FY2009

DEXCOM INC Quarterly Report for Q3 Ended Sep 30, 2009

Filed November 4, 2009For Securities:DXCM

Summary

DexCom, Inc. (DXCM) reported its third quarter and nine-month results for the period ending September 30, 2009. The company, a medical device manufacturer focused on continuous glucose monitoring systems, continues to operate at a net loss but shows significant year-over-year revenue growth. Product revenue for the third quarter of 2009 increased to $4.6 million from $1.9 million in the prior year, and for the nine-month period, it grew to $11.4 million from $5.6 million. Development grant revenue also saw a substantial increase, reaching $2.6 million in the third quarter and $7.8 million for the nine months ended September 30, 2009. This growth is attributed to ongoing development agreements. Despite revenue increases, the company incurred operating losses, with a net loss of $13.5 million for the third quarter and $42.0 million for the nine months. The company's liquidity position remains a key focus, with cash, cash equivalents, and marketable securities totaling $37.7 million, alongside a significant accumulated deficit. DexCom continues to invest in research and development and commercialization efforts, including international expansion.

Key Highlights

  • 1Product revenue for Q3 2009 increased 145% year-over-year to $4.6 million.
  • 2Nine-month product revenue grew 101% year-over-year to $11.4 million.
  • 3Development grant revenue saw substantial growth, with $2.6 million in Q3 2009 and $7.8 million in the nine-month period, driven by collaborative agreements.
  • 4The company reported a net loss of $13.5 million for Q3 2009 and $42.0 million for the nine months ended September 30, 2009.
  • 5Total assets increased to $53.9 million as of September 30, 2009, from $43.9 million at the end of 2008.
  • 6Cash and cash equivalents decreased to $6.36 million from $12.7 million, while short-term marketable securities increased to $31.36 million from $14.37 million.
  • 7The company received CE Mark approval for its SEVEN PLUS continuous glucose monitoring system in Europe on September 30, 2009.

Frequently Asked Questions

DexCom, Inc. is a medical device company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems. Their primary products are the SEVEN and SEVEN PLUS systems, which include a reusable transmitter and receiver, and disposable sensors for ambulatory use by people with diabetes.

DexCom reported significant year-over-year revenue growth. For the third quarter ended September 30, 2009, product revenue increased to $4.6 million from $1.9 million in the prior year. For the nine months ended September 30, 2009, product revenue grew to $11.4 million from $5.6 million in the same period last year. Development grant revenue also saw a substantial increase due to ongoing collaboration agreements.

While DexCom is experiencing revenue growth, it continues to operate at a net loss, reporting a net loss of $13.5 million for the third quarter and $42.0 million for the first nine months of 2009. The company had $6.36 million in cash and cash equivalents and $31.36 million in short-term marketable securities as of September 30, 2009. Management believes its current liquidity is sufficient for the next twelve months but may seek additional funding for future operations, research, and development.

DexCom received CE Mark approval for its SEVEN PLUS system in the European Union on September 30, 2009. The filing also details an ongoing patent infringement lawsuit filed by Abbott Diabetes Care, Inc., which has been stayed pending reexamination of patents by the U.S. Patent and Trademark Office.