Summary
DexCom, Inc. (DXCM) filed its Form 10-Q for the quarterly period ended March 31, 2012. The company reported total revenue of $20.1 million, an increase from $14.2 million in the prior year's comparable quarter, primarily driven by a rise in product revenue to $18.6 million. Despite revenue growth, the company continued to incur significant operating losses, with an operating loss of $15.4 million for the quarter, widening from $11.9 million in the first quarter of 2011. This was mainly due to increased investments in research and development and selling, general, and administrative expenses. Financially, DexCom ended the quarter with $5.1 million in cash and cash equivalents and $65.1 million in short-term marketable securities, providing a total of $70.2 million in liquid assets. The company also completed the acquisition of SweetSpot Diabetes Care, Inc. on March 6, 2012, which is expected to enhance its data management capabilities for diabetes devices. Management believes its current working capital is sufficient to fund operations through at least March 31, 2013, but acknowledges the need for future financing.
Financial Highlights
45 data points| Revenue | $20.10M |
| Cost of Revenue | $10.70M |
| Gross Profit | $9.40M |
| R&D Expenses | $9.40M |
| SG&A Expenses | $15.40M |
| Operating Expenses | $24.80M |
| Operating Income | -$15.40M |
| Interest Expense | $0 |
| Net Income | -$14.10M |
| EPS (Basic) | $-52500.00 |
| Shares Outstanding (Basic) | 271.20M |
Key Highlights
- 1Total revenue increased by 41.7% year-over-year to $20.1 million, driven by a 41.7% increase in product revenue to $18.6 million.
- 2Operating expenses grew significantly, with R&D increasing by 55% to $9.7 million and SG&A rising by 41.8% to $15.1 million.
- 3The company reported a net loss of $14.1 million ($0.21 per share) for the quarter, compared to a net loss of $11.9 million ($0.19 per share) in the prior year period.
- 4Cash and cash equivalents increased to $5.1 million from $2.6 million at the end of 2011, bolstered by net cash provided by investing activities.
- 5DexCom completed the acquisition of SweetSpot Diabetes Care, Inc. on March 6, 2012, for approximately $6.1 million in stock and contingent consideration.
- 6The company continues to invest heavily in future product development, anticipating ongoing losses in the near term.
- 7Marketable securities totaled $65.1 million, with a slight decrease from $79.4 million at the end of 2011.