Exhibit 99.3
Item 6. Selected Financial Data
| Years Ended December 31, | |||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011(3) | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||
| Consolidated Statements of Operations Data: | |||||||||||||||||||
| Revenue | $ | 263,893 | $ | 231,321 | $ | 185,139 | $ | 148,898 | $ | 117,064 | |||||||||
| Cost of revenue | 130,622 | 104,195 | 95,364 | 80,430 | 63,569 | ||||||||||||||
| Gross profit | 133,271 | 127,126 | 89,775 | 68,468 | 53,495 | ||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 43,208 | 27,900 | 21,765 | 24,359 | 21,863 | ||||||||||||||
| Sales and marketing | 78,407 | 50,552 | 45,176 | 40,436 | 37,338 | ||||||||||||||
| General and administrative | 60,392 | 57,548 | 49,509 | 34,642 | 34,636 | ||||||||||||||
| Total operating expenses | 182,007 | 136,000 | 116,450 | 99,437 | 93,837 | ||||||||||||||
| Operating loss | (48,736 | ) | (8,874 | ) | (26,675 | ) | (30,969 | ) | (40,342 | ) | |||||||||
| Interest and other expense, net | (12,654 | ) | (39,006 | ) | (15,783 | ) | (15,702 | ) | (14,604 | ) | |||||||||
| Loss from continuing operations before income taxes | (61,390 | ) | (47,880 | ) | (42,458 | ) | (46,671 | ) | (54,946 | ) | |||||||||
| Income tax (expense) benefit | (212 | ) | (60 | ) | (22 | ) | 9 | 11,322 | |||||||||||
| Net loss from continuing operations | $ | (61,602 | ) | $ | (47,940 | ) | $ | (42,480 | ) | $ | (46,662 | ) | $ | (43,624 | ) | ||||
Loss from discontinued operations, net of tax(4) | (11,918 | ) | (3,560 | ) | (2,494 | ) | (5,205 | ) | (2,207 | ) | |||||||||
| Net loss | $ | (73,520 | ) | $ | (51,500 | ) | $ | (44,974 | ) | $ | (51,867 | ) | $ | (45,831 | ) | ||||
| Net loss per share basic and diluted | |||||||||||||||||||
| Net loss from continuing operations per share | $ | (1.08 | ) | $ | (0.86 | ) | $ | (0.78 | ) | $ | (0.97 | ) | $ | (0.93 | ) | ||||
| Net loss from discontinued operations per share | $ | (0.21 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.05 | ) | ||||
Weighted-average number of shares used in calculating net loss per share(1) | 56,785,646 | 55,628,542 | 54,010,887 | 47,924,324 | 46,689,880 | ||||||||||||||
| As of December 31, | |||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011(3) | |||||||||||||||
| (In thousands) | |||||||||||||||||||
| Consolidated Balance Sheet Data: | |||||||||||||||||||
| Cash and cash equivalents | $ | 122,672 | $ | 151,193 | $ | 149,727 | $ | 57,293 | $ | 93,955 | |||||||||
| Working capital | $ | 125,605 | $ | 163,900 | $ | 155,824 | $ | 61,650 | $ | 104,640 | |||||||||
| Total assets | $ | 275,126 | $ | 297,182 | $ | 286,541 | $ | 196,055 | $ | 218,725 | |||||||||
| Current portion of long-term debt and capital lease obligations | $ | 5,519 | $ | 3,380 | $ | 2,637 | $ | 14,429 | $ | — | |||||||||
Long-term debt and capital lease obligations(2) | $ | 171,967 | $ | 166,283 | $ | 117,627 | $ | 101,726 | $ | 105,943 | |||||||||
| Other long-term liabilities | $ | 3,952 | $ | 2,774 | $ | 1,943 | $ | 1,867 | $ | 2,052 | |||||||||
| Total stockholders’ equity | $ | 34,051 | $ | 83,829 | $ | 124,597 | $ | 44,176 | $ | 82,735 | |||||||||
(1) | In June 2011, we issued 1.2 million shares in connection with the acquisition of Neighborhood Diabetes. In January 2013, we sold 4.7 million shares of common stock to the public. In July 2014, we issued 0.3 million shares of common stock in connection with the repurchase of the 3.75% Senior Convertible Notes. See Footnote 14 to our consolidated financial statements. |
(2) | In June 2008, we sold $85.0 million principal amount of 5.375% Convertible Senior Notes due June 2013 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In June 2011, we issued $143.8 million of 3.75% Convertible Notes due June 2016 and repurchased $70 million in principal of the 5.375% Notes. In June 2014, we issued $201.3 million of 2% Convertible Notes due June 2019 and repurchased $114.9 million in 3.75% Notes. In July 2014, the remaining principal balance of the 3.75% Notes were converted and the principal was settled in cash. In 2013 and 2014 we acquired $9.0 million and $1.5 million, respectively, of manufacturing equipment under capital leases. See Footnotes 5 and 6 to our consolidated financial statements. |
Exhibit 99.3
(3) | On June 1, 2011, we completed the acquisition of Neighborhood Diabetes, a durable medical equipment distributor, specializing in direct to consumer sales of diabetes supplies for an aggregate purchase price of approximately $37.9 million in cash and $24.4 million in common stock. Neighborhood Diabetes supplied its customers with blood glucose testing supplies, insulin pumps, pump supplies, pharmaceuticals, and other products for the management and treatment of diabetes. Included in loss from continuing operations for the year ended December 31, 2011 is a tax benefit of approximately $11.3 million resulting from the release of an existing valuation allowance after the acquisition of Neighborhood Diabetes and the related deferred tax liabilities. |
(4) | Included an impairment charge of $9.1 million related to the impairment of the Neighborhood Diabetes asset group. See Footnote 18 to our consolidated financial statements. |