Exhibit 99.01
PRESS RELEASE
FOR MORE INFORMATION:
Steve Kemper
Chief Financial Officer
(858) 200-0200
www.dexcom.com
FOR IMMEDIATE RELEASE
DexCom Inc. Reports First Quarter 2006 Financial Results
SAN DIEGO, Calif—(BUSINESS WIRE)— May 15, 2006—DexCom, Inc. (Nasdaq:DXCM) today reported a net loss of $10.9 million or $0.43 cents per share for the first quarter of 2006 compared to a loss of $6.1 million or $2.36 per share for the first quarter of 2005.
The company reported initial revenues of $15,000 for the first quarter of 2006 after launching its first product on March 28, 2006. No revenues were recorded in previous periods. Cost of sales increased to $2.1 million for the first quarter of 2006 compared to zero for the first quarter in 2005. Cost of sales includes both the direct costs of each product sold and the fixed costs associated with maintaining its manufacturing operations.
Research and development expense, including share-based compensation, increased $59,000 to $5.5 million for the first quarter of 2006, compared to $5.4 million for the first quarter of 2005. The increase was related to $1.1 million in increased development expenses offset by a $1.1 million decrease in manufacturing expenses that are classified in cost of sales for the first quarter of 2006.
Selling, general and administrative expense, including share-based compensation, increased $3.2 million to $3.8 million for the first quarter of 2006, compared to $0.7 million for the first quarter of 2005. The increase was primarily due to $1.5 million in sales and marketing costs, $0.8 million in higher legal expenses and $0.7 million related to expenses associated with operating as a public company.
The information above is only a summary of the company’s operating results for the first quarter of 2006. Please refer to the company’s quarterly report on Form 10-Q for the period ending March 31, 2006, as filed with the Securities and
Exchange Commission on May 15, 2006, for a complete discussion of the company’s first quarter financial results.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, California, is developing continuous glucose monitoring systems for people with diabetes.
Cautionary Statement Regarding Forward Looking Statements
DexCom is a development stage medical device company with a limited operating history. The company received approval from the FDA for its STS continuous glucose monitor on March 24, 2006, and has only recently launched the sale of this product throughout the United States. 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 patients, the inability to manufacture products in commercial quantities at an acceptable cost, possible delays in the company’s development programs, the inability of patients to receive reimbursements 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 ending March 31, 2006, as filed with the Securities and Exchange Commission on May 15, 2006.
DexCom, Inc.
(a development stage company)
BALANCE SHEETS
| | March 31,
2006 | | December 31,
2005 | |
| | (unaudited) | | | |
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 20,180,509 | | $ | 37,247,064 | |
Short-term marketable securities, available-for-sale | | 18,493,781 | | 13,277,688 | |
Inventory | | 1,919,521 | | — | |
Prepaid and other current assets | | 567,414 | | 488,015 | |
Total current assets | | 41,161,225 | | 51,012,767 | |
| | | | | |
Property and equipment, net | | 6,026,458 | | 5,463,491 | |
Restricted cash | | 250,000 | | 250,000 | |
Other assets | | 50,000 | | — | |
Total assets | | $ | 47,487,683 | | $ | 56,726,258 | |
| | | | | |
Liabilities and stockholders’ equity | | | | | |
Current liabilities: | | | | | |
Accounts payable and accrued liabilities | | $ | 4,821,490 | | $ | 6,008,194 | |
Accrued payroll and related expenses | | 1,842,817 | | 889,362 | |
Accrued clinical trials | | 303,350 | | 176,540 | |
Total current liabilities | | 6,967,657 | | 7,074,096 | |
| | | | | |
Deferred rent | | 238,192 | | 240,099 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity: | | | | | |
Preferred stock, $0.001 par value, 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2006 and December 31, 2005, respectively. | | — | | — | |
Common stock, $0.001 par value, 100,000,000 authorized; 25,654,197 and 25,416,559 shares issued and outstanding at March 31, 2006 and December 31, 2005, respectively. | | 25,654 | | 25,417 | |
Additional paid-in capital | | 134,965,710 | | 134,257,379 | |
Deferred stock-based compensation | | — | | (1,084,214 | ) |
Accumulated other comprehensive loss | | (15,882 | ) | (11,928 | ) |
Deficit accumulated during the development stage | | (94,693,648 | ) | (83,774,591 | ) |
Total stockholders’ equity | | 40,281,834 | | 49,412,063 | |
Total liabilities and stockholders’ equity | | $ | 47,487,683 | | $ | 56,726,258 | |
DexCom, Inc.
(a development stage company)
STATEMENTS OF OPERATIONS
(unaudited)
| | Three Months Ended
March 31, | | Period from
May 13, 1999
(inception)
through
March 31, | |
| | 2006 | | 2005 | | 2006 | |
Revenues | | $ | 14,775 | | $ | — | | $ | 14,775 | |
Cost of sales | | 2,081,220 | | — | | 2,081,220 | |
Gross margin | | (2,066,445 | ) | — | | (2,066,445 | ) |
| | | | | | | |
Operating expenses: | | | | | | | |
Research and development | | 5,494,086 | | 5,435,077 | | 68,667,448 | |
Selling, general and administrative | | 3,841,440 | | 686,595 | | 17,249,294 | |
Total operating expenses | | 9,335,526 | | 6,121,672 | | 85,916,742 | |
Interest and other income | | 482,914 | | 135,737 | | 3,550,308 | |
Net loss | | (10,919,057 | ) | (5,985,935 | ) | (84,432,879 | ) |
Accretion to redemption value of Series B, Series C, and Series D redeemable convertible preferred stock | | — | | (106,990 | ) | (10,260,769 | ) |
Net loss attributable to common stockholders | | $ | (10,919,057 | ) | $ | (6,092,925 | ) | $ | (94,693,648 | ) |
| | | | | | | |
Basic and diluted net loss per share attributable to common stockholders | | $ | (0.43 | ) | $ | (2.36 | ) | | |
Shares used to compute basic and diluted net loss per share attributable to common stockholders | | 25,556,603 | | 2,577,644 | | | |
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