Tandem Diabetes Care Reports Second Quarter 2018 Financial Results
Second Quarter 2018 Results
In comparing the second quarter of 2018 to the same period of 2017:
- Pump shipments increased 59 percent to 5,447 pumps from 3,427 pumps
-
Sales increased 60 percent to
$34.1 million from$21.3 million - Operating margin improved to negative 41 percent from negative 89 percent
“We are increasing our sales guidance for the year following our
continued record growth in the second quarter,” said
Gross profit for the second quarter of 2018 increased 89 percent to
For the second quarter of 2018, operating expenses totaled
Net loss for the second quarter of 2018 was
Cash Balance and Liquidity
As of
2018 Annual Guidance
For the year ending
-
Sales are estimated to be in the range of
$140 million to $148 million , which represents an annual sales growth of 30 percent to 38 percent compared to 2017.-
Annual sales for 2017 benefited from
$5.0 million in previously deferred sales that were recognized during the period1.
-
Annual sales for 2017 benefited from
-
Operating margin is estimated to be in the range of negative 45
percent to negative 40 percent, which includes:
-
Approximately
$20.0 million in non-cash, stock-based compensation expense -
Approximately
$7.0 million to $8.0 million of depreciation and amortization
-
Approximately
1 Beginning in the third quarter of 2016 through the third quarter of 2017, the Company offered a Technology Upgrade Program under a variable pricing structure, as a pathway for certain existing customers to obtain the t:slim X2TM Insulin Pump. This program resulted in a number of accounting complexities that makes comparisons of our current and historical financial results more difficult. In particular, during the term of the program, accounting guidelines required us to defer up to 100 percent of sales at the time of pump shipment and recognize them in a subsequent period, either when the upgrade was fulfilled or at the expiration of the program.
Conference Call
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Forward Looking Statement
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
projected financial results and the Company’s ability to achieve its
near and longer-term goals. 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 ability
to achieve projected financial results will be impacted by the Company’s
ability to obtain regulatory approval for new products and products
under development and the timing of any such approvals; market
acceptance of the Company’s existing products and products under
development by physicians and people with diabetes; 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 the Company’s products obsolete or less
desirable; and the potential that the process of purchasing the
Company’s products, including insurance verification approval for
individual customers, may delay or prevent the sale of the products.
Other risks and uncertainties include the Company’s inability to
manufacture products in commercial quantities at an acceptable cost and
in accordance with quality requirements; the Company’s inability 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; possible future actions of the
| TANDEM DIABETES CARE, INC. | ||||||||
| GAAP CONDENSED BALANCE SHEETS | ||||||||
| (in thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents and short-term investments | $ | 86,505 | $ | 14,179 | ||||
| Accounts receivable, net | 13,914 | 20,793 | ||||||
| Inventory, net | 24,912 | 26,993 | ||||||
| Other current assets | 3,012 | 2,191 | ||||||
| Total current assets | 128,343 | 64,156 | ||||||
| Restricted cash - long-term | 10,000 | 10,000 | ||||||
| Property and equipment, net | 18,212 | 19,631 | ||||||
| Other long term assets | 1,439 | 1,559 | ||||||
| Total assets | $ | 157,994 | $ | 95,346 | ||||
| Liabilities and stockholders’ equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable, accrued expense and employee-related liabilities | $ | 21,565 | $ | 22,470 | ||||
| Deferred revenue | 2,964 | 2,526 | ||||||
| Common stock warrants | 12,291 | 5,432 | ||||||
| Other current liabilities | 5,687 | 5,657 | ||||||
| Total current liabilities | 42,507 | 36,085 | ||||||
| Notes payable-long-term | 77,100 | 76,541 | ||||||
| Other long-term liabilities | 12,382 | 11,868 | ||||||
| Total liabilities | 131,989 | 124,494 | ||||||
| Total stockholders’ equity (deficit) | 26,005 | (29,148 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 157,994 | $ | 95,346 | ||||
| TANDEM DIABETES CARE, INC. | ||||||||||||||||
| GAAP CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Sales | $ | 34,126 | $ | 21,327 | $ | 61,402 | $ | 40,303 | ||||||||
| Cost of sales | 19,039 | 13,325 | 34,912 | 25,549 | ||||||||||||
| Gross profit | 15,087 | 8,002 | 26,490 | 14,754 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 22,628 | 22,104 | 43,541 | 44,952 | ||||||||||||
| Research and development | 6,456 | 4,866 | 12,431 | 9,996 | ||||||||||||
| Total operating expenses | 29,084 | 26,970 | 55,972 | 54,948 | ||||||||||||
| Operating loss | (13,997 | ) | (18,968 | ) | (29,482 | ) | (40,194 | ) | ||||||||
| Total other expense, net | (45,362 | ) | (2,832 | ) | (62,571 | ) | (5,399 | ) | ||||||||
| Net loss | $ | (59,359 | ) | $ | (21,800 | ) | $ | (92,053 | ) | $ | (45,593 | ) | ||||
| Net loss per share, basic and diluted | $ | (1.17 | ) | $ | (4.36 | ) | $ | (2.32 | ) | $ | (11.12 | ) | ||||
| Weighted average shares used to compute basic and diluted net loss per share | 50,948 | 5,004 | 39,594 | 4,101 | ||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20180730005711/en/
Source:
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