Guidance for 2018 Reflects Expectation of Continued Growth
SAN DIEGO--(BUSINESS WIRE)--
Tandem Diabetes Care®, Inc. (NASDAQ: TNDM), a medical device company and
manufacturer of the only touchscreen insulin pumps available in the
United States, today reported select, unaudited and preliminary results
for the year and quarter ended December 31, 2017.
In comparing the fourth quarter of 2017 to the same period of 2016:
-
GAAP sales increased to approximately $39 million to $40 million from
$28.9 million
-
Non-GAAP sales increased to approximately $39 million to $40 million
from $24.8 million
-
Pump shipments increased to approximately 7,000 pumps from 4,418 pumps
In comparing the year ended December 31, 2017 to the year ended December
31, 2016:
-
GAAP sales increased to approximately $106 million to $107 million
from $84.2 million
-
Non-GAAP sales increased to approximately $101 million to $102 million
from $88.5 million
-
Pump shipments increased to approximately 17,100 pumps from 16,938
pumps
"Our 2017 momentum culminated in the fourth quarter with high demand for
the t:slim X2 Insulin Pump. In addition, our infusion set sales doubled
in the fourth quarter compared to last year, resulting from a shift in
our business model that we expect will not only bolster our revenue
growth in 2018, but also accelerate our path to profitability," said Kim
Blickenstaff, President and CEO. "As a reflection of my confidence in
our strategies, I volunteered to reduce my 2018 salary to $1.00, with
any additional cash compensation contingent on our ability to
successfully achieve key financial goals this year."
As of December 31, 2017, the Company had approximately $24.2 million in
cash, cash equivalents, short-term investments and restricted cash.
2018 Preliminary Guidance
For the year ending December 31, 2018, GAAP sales are estimated to be in
the range of $132 million to $140 million, an estimated year-over-year
increase of approximately 23 percent to 32 percent to our preliminary
2017 GAAP sales. When comparing to our preliminary 2017 sales on a
non-GAAP basis, the estimated year-over-year increase is approximately
29 percent to 39 percent.
"With our robust product pipeline and increasing number of customer
renewal opportunities, growth remains a top focus, but equally so is
closely managing our expenses as we leverage our existing infrastructure
in 2018," said Leigh Vosseller, Senior Vice President and Chief
Financial Officer. "We believe our early investments have
well-positioned the Company to achieve and support the scale necessary
to reach our profitability goals, and we expect to make meaningful
progress in reducing our cash use in 2018."
Fourth Quarter and Full Year 2017 Earnings Conference Call
The Company intends to report its fourth quarter and full year 2017
financial and operating results on Thursday, March 1, 2018 after the
markets close. Management intends to host a conference call at 4:30PM
Eastern Time (1:30PM Pacific Time) on that day. More details will be
forthcoming.
Use of Non-GAAP Financial Measures
The Company presents historical non-GAAP financial measures in this
press release to provide information that may assist investors in
understanding its financial results, assessing its prospects for future
performance and allowing for a meaningful comparison of projected to
historical results. In July 2016, the Company began offering a
Technology Upgrade Program to eligible customers to provide a pathway to
ownership of the t:slim X2TM Insulin Pump, which launched in
October 2016. The Technology Upgrade Program created unpredictable GAAP
results for its duration. This was principally due to accounting
complexities associated with the program that were dependent on a number
of future events and variables that were initially difficult to estimate
or predict. The program expired on September 30, 2017. Due to these
accounting complexities, the Company has provided preliminary results
for the year ending December 31, 2017 on a GAAP and non-GAAP basis,
which excludes the impact of the Technology Upgrade Program.
These non-GAAP financial measures were used internally by the Company to
analyze its operating performance for the duration of the Technology
Upgrade Program. The non-GAAP financial information is not intended to
be considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with GAAP. To
the extent the Company utilizes such non-GAAP financial measures in the
future, it expects to calculate them using a consistent method from
period to period.
Reconciliation of GAAP versus Non-GAAP Financial Results
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
(in millions)
|
|
20171 |
|
|
2016
|
|
|
20171 |
|
|
2016
|
|
GAAP Sales
|
|
$
|
39.0 - $40.0 |
|
|
$
|
28.9
|
|
|
$
|
106.0 - $107.0 |
|
|
$
|
84.2
|
|
Impact of Technology Upgrade Program
|
|
|
-
|
|
|
|
(4.1)
|
|
|
|
(5.0
|
)
|
|
|
4.3
|
|
Non-GAAP Sales2 |
|
$
|
39.0 - $40.0 |
|
|
$
|
24.8
|
|
|
$
|
101.0 - $102.0 |
|
|
$
|
88.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pump Shipments
|
|
|
7,000
|
|
|
|
4,418
|
|
|
|
17,100
|
|
|
|
16,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
GAAP
|
|
|
Impact of Technology
Upgrade Program2
|
|
|
Non-GAAP
|
|
2018 Sales Guidance
|
$132.0 - $140.0 |
|
|
$ -
|
|
|
$132.0 - $140.0 |
|
2017 Sales1 |
$106.0 - $107.0 |
|
|
($5.0)
|
|
|
$101.0 - $102.0 |
|
Year-Over-Year Increase
|
23% - 32%
|
|
|
6% - 7%
|
|
|
29% - 39%
|
|
|
|
|
1)
|
|
Results for the year and quarter ended December 31, 2017 are
preliminary and unaudited.
|
|
|
|
|
2)
|
|
GAAP sales are determined in accordance with U.S. Generally
Accepted Accounting Principles. In July 2016, the Company began
offering a Technology Upgrade Program to eligible customers to
provide a pathway to ownership of the t:slim X2TM
Insulin Pump, which launched in October 2016. Due to accounting
complexities associated with this Program and the lack of
comparability to historical and expected future GAAP results,
non-GAAP sales are adjusted for the impact of the Program. See the
information under the heading "Use of Non-GAAP Financial Measures"
in this press release.
|
About Tandem Diabetes Care, Inc.
Tandem Diabetes Care, Inc. (www.tandemdiabetes.com)
is a medical device company dedicated to improving the lives of people
with diabetes through relentless innovation and revolutionary customer
experience. The Company takes an innovative, user-centric approach to
the design, development and commercialization of products for people
with diabetes who use insulin. Tandem manufactures and sells the t:slim
X2™ Insulin Pump, the only pump capable of remote feature updates using
a personal computer, now available with Dexcom G5® Mobile continuous
glucose monitoring (CGM) integration, and the t:flex® Insulin Pump, the
first pump designed for people with greater insulin requirements. Tandem
is based in San Diego, California.
Follow Tandem Diabetes Care on Twitter @tandemdiabetes; use #tslimX2,
#tflex, #tconnect, and $TNDM.
Follow Tandem Diabetes Care on
Facebook at www.facebook.com/TandemDiabetes.
Follow
Tandem Diabetes Care on LinkedIn at https://www.linkedin.com/company/tandemdiabetes.
t:flex and Tandem Diabetes Care are registered trademarks, and t:slim X2
is a trademark of Tandem Diabetes Care, Inc. Dexcom G5 is a registered
trademark of Dexcom, Inc.
Forward Looking Statements
This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, that
concern matters that involve risks and uncertainties that could cause
actual results to differ materially from those anticipated or projected
in the forward-looking statements. These forward-looking statements
include statements regarding, among other things, the Company's
preliminary financial results and pump shipments for the year and
quarter ended December 31, 2017, the impact of the Technology Upgrade
Program on the Company's preliminary financial results, and the
Company's projected financial results for future periods, including its
projected financial results for 2018. The Company's actual results may
differ materially from those indicated in these forward looking
statements due to numerous risks and uncertainties. For instance, the
Company's actual financial results for the year and quarter ended
December 31, 2017 remain subject to final internal review and audit. In
addition, the Company's ability to achieve its projected financial
results for 2018 will be impacted by the Company's ability to achieve
profitability goals and reduce its use of cash in 2018; market
acceptance of the Company's new products and products under development
by healthcare providers, third-party payors and people with diabetes;
the potential that negative perceptions regarding our financial
stability relative to that of our competitors, and our ability to
sustain our business operations on a long-term basis, may cause
consumers to delay the purchase of our products or to purchase
competitive products; the potential that newer products that compete
with the Company's products, or other technological breakthroughs for
the monitoring, treatment or prevention of diabetes, may render our
products obsolete or less desirable. Other risks and uncertainties
include the Company's ability to manufacture products in commercial
quantities at an acceptable cost and in accordance with quality
requirements; the Company's ability to raise additional capital to
support the Company's current operations; the Company's ability to
contract with additional third-party payors for reimbursement of the
Company's products; uncertainty associated with the development and
approval of new products generally; and other risks identified in the
Company's most recent Annual Report on Form 10-K, Quarterly Report on
Form 10-Q, and other documents that the Company files with the
Securities and Exchange Commission. Investors are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date of this release. Tandem undertakes no obligation to update
or review any forward-looking statement in this press release because of
new information, future events or other factors.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180109006722/en/
Tandem Diabetes Care, Inc.
Media Contact:
Steve
Sabicer, 714-907-6264
ssabicer@thesabicergroup.com
or
Investor
Contact:
Susan Morrison, 858-366-6900 x7005
smorrison@tandemdiabetes.com
Source: Tandem Diabetes Care®, Inc.
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