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Share Name | Share Symbol | Market | Type |
---|---|---|---|
DexCom Inc | NASDAQ:DXCM | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.89 | -1.48% | 125.50 | 124.49 | 128.81 | 128.74 | 123.515 | 126.21 | 2,916,512 | 01:00:00 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
|
|
Delaware
|
|
33-0857544
|
||
(State or Other Jurisdiction of Incorporation or Organization)
|
|
(I.R.S. Employer Identification No.)
|
||
|
|
|
|
|
6340 Sequence Drive
|
San Diego,
|
CA
|
|
92121
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Title of Each Class
|
|
Trading Symbol(s)
|
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.001 Par Value Per Share
|
|
DXCM
|
|
Nasdaq Global Select Market
|
|
|
|
Page
Number
|
|
||
ITEM 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
|
||
ITEM 1.
|
||
ITEM 1A.
|
||
ITEM 2.
|
||
ITEM 3.
|
||
ITEM 4.
|
||
ITEM 5.
|
||
ITEM 6.
|
||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Assets
|
(Unaudited)
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
395.6
|
|
|
$
|
1,137.0
|
|
Short-term marketable securities
|
1,034.3
|
|
|
248.6
|
|
||
Accounts receivable, net
|
234.9
|
|
|
226.7
|
|
||
Inventory
|
120.4
|
|
|
70.7
|
|
||
Prepaid and other current assets
|
30.5
|
|
|
16.5
|
|
||
Total current assets
|
1,815.7
|
|
|
1,699.5
|
|
||
Property and equipment, net
|
301.0
|
|
|
183.1
|
|
||
Operating lease right-of-use assets
|
34.6
|
|
|
—
|
|
||
Goodwill
|
18.4
|
|
|
18.7
|
|
||
Other assets
|
16.0
|
|
|
14.7
|
|
||
Total assets
|
$
|
2,185.7
|
|
|
$
|
1,916.0
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable and accrued liabilities
|
$
|
232.4
|
|
|
$
|
147.1
|
|
Accrued payroll and related expenses
|
70.9
|
|
|
72.4
|
|
||
Operating lease liabilities, current portion
|
14.8
|
|
|
—
|
|
||
Deferred revenue
|
4.3
|
|
|
2.9
|
|
||
Total current liabilities
|
322.4
|
|
|
222.4
|
|
||
Long-term senior convertible notes
|
1,047.1
|
|
|
1,010.3
|
|
||
Operating lease liabilities, net of current portion
|
34.3
|
|
|
—
|
|
||
Other long-term liabilities
|
17.6
|
|
|
20.0
|
|
||
Total liabilities
|
1,421.4
|
|
|
1,252.7
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at September 30, 2019 and December 31, 2018
|
—
|
|
|
—
|
|
||
Common stock, $0.001 par value, 200.0 million shares authorized; 92.3 million and 91.5 million shares issued and outstanding, respectively, at September 30, 2019; and 91.1 million and 90.0 million shares issued and outstanding, respectively, at December 31, 2018
|
0.1
|
|
|
0.1
|
|
||
Additional paid-in capital
|
1,651.6
|
|
|
1,560.6
|
|
||
Accumulated other comprehensive income
|
1.0
|
|
|
1.5
|
|
||
Accumulated deficit
|
(788.4
|
)
|
|
(798.9
|
)
|
||
Treasury stock, at cost; 0.8 million shares at September 30, 2019 and December 31, 2018
|
(100.0
|
)
|
|
(100.0
|
)
|
||
Total stockholders’ equity
|
764.3
|
|
|
663.3
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,185.7
|
|
|
$
|
1,916.0
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
396.3
|
|
|
$
|
266.7
|
|
|
$
|
1,013.2
|
|
|
$
|
693.6
|
|
Cost of sales
|
149.4
|
|
|
98.1
|
|
|
391.0
|
|
|
252.5
|
|
||||
Gross profit
|
246.9
|
|
|
168.6
|
|
|
622.2
|
|
|
441.1
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
66.7
|
|
|
50.1
|
|
|
194.7
|
|
|
142.1
|
|
||||
Selling, general and administrative
|
124.2
|
|
|
104.6
|
|
|
386.7
|
|
|
320.7
|
|
||||
Total operating expenses
|
190.9
|
|
|
154.7
|
|
|
581.4
|
|
|
462.8
|
|
||||
Operating income (loss)
|
56.0
|
|
|
13.9
|
|
|
40.8
|
|
|
(21.7
|
)
|
||||
Interest expense
|
(15.1
|
)
|
|
(4.9
|
)
|
|
(45.0
|
)
|
|
(14.5
|
)
|
||||
Income (loss) from equity investments
|
—
|
|
|
34.9
|
|
|
(4.2
|
)
|
|
85.0
|
|
||||
Interest and other income, net
|
4.9
|
|
|
0.9
|
|
|
18.3
|
|
|
1.6
|
|
||||
Income before income taxes
|
45.8
|
|
|
44.8
|
|
|
9.9
|
|
|
50.4
|
|
||||
Income tax expense (benefit)
|
—
|
|
|
(1.8
|
)
|
|
1.5
|
|
|
(2.2
|
)
|
||||
Net income
|
$
|
45.8
|
|
|
$
|
46.6
|
|
|
$
|
8.4
|
|
|
$
|
52.6
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per share
|
$
|
0.50
|
|
|
$
|
0.53
|
|
|
$
|
0.09
|
|
|
$
|
0.60
|
|
Shares used to compute basic net income per share
|
91.3
|
|
|
88.5
|
|
|
90.9
|
|
|
88.0
|
|
||||
Diluted net income per share
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
0.09
|
|
|
$
|
0.59
|
|
Shares used to compute diluted net income per share
|
92.5
|
|
|
90.3
|
|
|
92.2
|
|
|
89.3
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
45.8
|
|
|
$
|
46.6
|
|
|
$
|
8.4
|
|
|
$
|
52.6
|
|
Other comprehensive income (loss), net of income taxes:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation gain (loss)
|
(0.9
|
)
|
|
0.9
|
|
|
(1.0
|
)
|
|
2.2
|
|
||||
Unrealized income (loss) on marketable debt securities
|
(0.1
|
)
|
|
0.1
|
|
|
0.5
|
|
|
0.1
|
|
||||
Total other comprehensive income (loss), net
|
(1.0
|
)
|
|
1.0
|
|
|
(0.5
|
)
|
|
2.3
|
|
||||
Comprehensive income
|
$
|
44.8
|
|
|
$
|
47.6
|
|
|
$
|
7.9
|
|
|
$
|
54.9
|
|
DexCom, Inc.
|
|
Consolidated Statements of Stockholders’ Equity
|
For the Three Months Ended September 30, 2019 and 2018
|
(In millions)
|
(Unaudited)
|
|
|
Three Months Ended September 30, 2019
|
|||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Treasury Stock
|
|
Total
Stockholders’
Equity
|
|||||||||||||||
Shares
|
|
Amount
|
|
||||||||||||||||||||||||
Balance at June 30, 2019
|
|
91.2
|
|
|
$
|
0.1
|
|
|
$
|
1,620.4
|
|
|
$
|
2.0
|
|
|
$
|
(834.2
|
)
|
|
$
|
(100.0
|
)
|
|
$
|
688.3
|
|
Issuance of common stock under equity incentive plans
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issuance of common stock for Employee Stock Purchase Plan
|
|
0.1
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
24.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.4
|
|
||||||
Net income
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45.8
|
|
|
—
|
|
|
45.8
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
||||||
Balance at September 30, 2019
|
|
91.5
|
|
|
$
|
0.1
|
|
|
$
|
1,651.6
|
|
|
$
|
1.0
|
|
|
$
|
(788.4
|
)
|
|
$
|
(100.0
|
)
|
|
$
|
764.3
|
|
|
|
Three Months Ended September 30, 2018
|
|||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Treasury Stock
|
|
Total
Stockholders’
Equity
|
|||||||||||||||
Shares
|
|
Amount
|
|
||||||||||||||||||||||||
Balance at June 30, 2018
|
|
88.4
|
|
|
$
|
0.1
|
|
|
$
|
1,149.1
|
|
|
$
|
(1.3
|
)
|
|
$
|
(665.8
|
)
|
|
$
|
—
|
|
|
$
|
482.1
|
|
Issuance of common stock under equity incentive plans
|
|
0.3
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||||
Issuance of common stock for Employee Stock Purchase Plan
|
|
0.1
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.8
|
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
27.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.1
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46.6
|
|
|
—
|
|
|
46.6
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Balance at September 30, 2018
|
|
88.8
|
|
|
$
|
0.1
|
|
|
$
|
1,181.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
(619.2
|
)
|
|
$
|
—
|
|
|
$
|
562.2
|
|
DexCom, Inc.
|
|
Consolidated Statements of Stockholders’ Equity
|
For the Nine Months Ended September 30, 2019 and 2018
|
(In millions)
|
(Unaudited)
|
|
|
Nine Months Ended September 30, 2019
|
|||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Treasury Stock
|
|
Total
Stockholders’
Equity
|
|||||||||||||||
Shares
|
|
Amount
|
|
||||||||||||||||||||||||
Balance at December 31, 2018
|
|
90.0
|
|
|
$
|
0.1
|
|
|
$
|
1,560.6
|
|
|
$
|
1.5
|
|
|
$
|
(798.9
|
)
|
|
$
|
(100.0
|
)
|
|
$
|
663.3
|
|
Cumulative-effect adjustment from adoption of new lease accounting standard (Note 2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
||||||
Issuance of common stock under equity incentive plans
|
|
1.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||||
Issuance of common stock for Employee Stock Purchase Plan
|
|
0.2
|
|
|
—
|
|
|
11.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.6
|
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
79.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79.1
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.4
|
|
|
—
|
|
|
8.4
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||||
Balance at September 30, 2019
|
|
91.5
|
|
|
$
|
0.1
|
|
|
$
|
1,651.6
|
|
|
$
|
1.0
|
|
|
$
|
(788.4
|
)
|
|
$
|
(100.0
|
)
|
|
$
|
764.3
|
|
|
|
Nine Months Ended September 30, 2018
|
|||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Treasury Stock
|
|
Total
Stockholders’
Equity
|
|||||||||||||||
Shares
|
|
Amount
|
|
||||||||||||||||||||||||
Balance at December 31, 2017
|
|
87.0
|
|
|
$
|
0.1
|
|
|
$
|
1,093.7
|
|
|
$
|
(2.6
|
)
|
|
$
|
(671.8
|
)
|
|
$
|
—
|
|
|
$
|
419.4
|
|
Issuance of common stock under equity incentive plans
|
|
1.6
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
||||||
Issuance of common stock for Employee Stock Purchase Plan
|
|
0.2
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
||||||
Share-based compensation expense
|
|
—
|
|
|
—
|
|
|
77.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.3
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.6
|
|
|
—
|
|
|
52.6
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
||||||
Balance at September 30, 2018
|
|
88.8
|
|
|
$
|
0.1
|
|
|
$
|
1,181.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
(619.2
|
)
|
|
$
|
—
|
|
|
$
|
562.2
|
|
|
Nine Months Ended
|
||||||
|
September 30,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
8.4
|
|
|
$
|
52.6
|
|
Adjustments to reconcile net income to cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
34.4
|
|
|
20.5
|
|
||
Share-based compensation
|
79.1
|
|
|
77.3
|
|
||
Non-cash interest expense
|
37.0
|
|
|
11.3
|
|
||
Unrealized (gain) loss on equity investment
|
—
|
|
|
(40.8
|
)
|
||
Realized (gain) loss on equity investment
|
4.2
|
|
|
(44.2
|
)
|
||
Other non-cash income and expenses
|
0.6
|
|
|
5.1
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(9.2
|
)
|
|
(36.2
|
)
|
||
Inventory
|
(49.7
|
)
|
|
(10.0
|
)
|
||
Prepaid and other assets
|
(2.6
|
)
|
|
(3.4
|
)
|
||
Accounts payable and accrued liabilities
|
78.2
|
|
|
50.2
|
|
||
Accrued payroll and related expenses
|
(1.2
|
)
|
|
6.2
|
|
||
Deferred revenue and other liabilities
|
(8.4
|
)
|
|
0.9
|
|
||
Net cash provided by operating activities
|
170.8
|
|
|
89.5
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of marketable securities
|
(1,556.8
|
)
|
|
(340.0
|
)
|
||
Proceeds from sale and maturity of marketable securities
|
773.0
|
|
|
231.0
|
|
||
Purchases of other equity investments
|
(1.2
|
)
|
|
(1.0
|
)
|
||
Purchases of property and equipment
|
(135.9
|
)
|
|
(49.4
|
)
|
||
Acquisitions, net of cash acquired
|
—
|
|
|
(11.3
|
)
|
||
Net cash used in investing activities
|
(920.9
|
)
|
|
(170.7
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net proceeds from issuance of common stock
|
11.9
|
|
|
10.6
|
|
||
Payments on acquisition related contingent consideration liability
|
(0.7
|
)
|
|
(1.8
|
)
|
||
Other financing activities
|
(0.4
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
10.8
|
|
|
8.8
|
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(1.7
|
)
|
|
(1.4
|
)
|
||
Decrease in cash, cash equivalents and restricted cash
|
(741.0
|
)
|
|
(73.8
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
1,137.1
|
|
|
441.5
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
$
|
396.1
|
|
|
$
|
367.7
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash, end of period:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
395.6
|
|
|
$
|
367.4
|
|
Restricted cash
|
0.5
|
|
|
0.3
|
|
||
Total cash, cash equivalents and restricted cash
|
$
|
396.1
|
|
|
$
|
367.7
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing and financing transactions:
|
|
|
|
||||
Acquisition of property and equipment included in accounts payable and accrued liabilities
|
$
|
22.3
|
|
|
$
|
3.0
|
|
Right-of-use assets obtained in exchange for lease liabilities
|
$
|
57.2
|
|
|
$
|
—
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Distributor A
|
17
|
%
|
|
15
|
%
|
|
16
|
%
|
|
15
|
%
|
Distributor B
|
11
|
%
|
|
*
|
|
|
12
|
%
|
|
13
|
%
|
Distributor C
|
12
|
%
|
|
*
|
|
|
10
|
%
|
|
*
|
|
* less than 10%
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||
Distributor A
|
20
|
%
|
|
19
|
%
|
Distributor B
|
11
|
%
|
|
15
|
%
|
Distributor C
|
13
|
%
|
|
*
|
|
* less than 10%
|
|
|
|
•
|
We report revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities;
|
•
|
We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations;
|
•
|
We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and
|
•
|
If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenue recognized in the period from:
|
|
|
|
|
|
|
|
||||||||
Amounts included in contract liabilities at the beginning of the period
|
$
|
2.9
|
|
|
$
|
5.0
|
|
|
$
|
2.6
|
|
|
$
|
1.9
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
45.8
|
|
|
$
|
46.6
|
|
|
$
|
8.4
|
|
|
$
|
52.6
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.50
|
|
|
$
|
0.53
|
|
|
$
|
0.09
|
|
|
$
|
0.60
|
|
Diluted
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
0.09
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average shares outstanding
|
91.3
|
|
|
88.5
|
|
|
90.9
|
|
|
88.0
|
|
||||
Effect of potentially dilutive stock options
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
||||
Effect of potentially dilutive restricted stock units
|
1.2
|
|
|
1.6
|
|
|
1.3
|
|
|
1.1
|
|
||||
Diluted weighted average shares outstanding
|
92.5
|
|
|
90.3
|
|
|
92.2
|
|
|
89.3
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Unvested restricted stock units
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Senior convertible notes due 2022
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
Senior convertible notes due 2023
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
2023 Warrants
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
Total
|
14.4
|
|
|
4.0
|
|
|
14.7
|
|
|
4.3
|
|
(In millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
|
2019
|
|
2019
|
||||
Finance lease cost:
|
|
|
|
||||
Amortization of right-of-use assets
|
$
|
0.3
|
|
|
$
|
0.8
|
|
Interest on lease liabilities
|
0.2
|
|
|
0.6
|
|
||
Operating lease cost
|
2.8
|
|
|
8.4
|
|
||
Short-term lease cost
|
1.3
|
|
|
3.3
|
|
||
Variable lease cost(1)
|
1.0
|
|
|
3.0
|
|
||
Total lease cost
|
$
|
5.6
|
|
|
$
|
16.1
|
|
(Dollars in millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||
|
2019
|
|
2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
4.0
|
|
|
$
|
10.0
|
|
Operating cash flows from finance leases
|
$
|
0.2
|
|
|
$
|
0.6
|
|
Financing cash flows from finance leases
|
$
|
0.1
|
|
|
$
|
0.4
|
|
Right-of-use assets obtained in exchange for lease liabilities:
|
|
|
|
||||
Operating leases
|
$
|
1.4
|
|
|
$
|
41.7
|
|
Finance leases
|
$
|
—
|
|
|
$
|
15.5
|
|
Weighted average remaining lease term in years:
|
|
|
|
||||
Operating leases
|
3.8
|
|
|
3.8
|
|
||
Finance leases
|
13.5
|
|
|
13.5
|
|
||
Weighted average discount rate:
|
|
|
|
||||
Operating leases
|
5.0
|
%
|
|
5.0
|
%
|
||
Finance leases
|
5.0
|
%
|
|
5.0
|
%
|
(In millions)
|
Operating Leases
|
|
Finance Leases
|
||||
Remaining 2019
|
$
|
4.1
|
|
|
$
|
0.3
|
|
2020
|
16.9
|
|
|
1.3
|
|
||
2021
|
17.1
|
|
|
1.3
|
|
||
2022
|
6.3
|
|
|
1.4
|
|
||
2023
|
4.4
|
|
|
1.4
|
|
||
Thereafter
|
5.4
|
|
|
15.3
|
|
||
Total future lease cost
|
54.2
|
|
|
21.0
|
|
||
Less: Amount representing interest
|
(4.9
|
)
|
|
(5.9
|
)
|
||
Present value of future payments
|
49.3
|
|
|
15.1
|
|
||
Less: Short-term leases not recorded as a liability
|
(0.2
|
)
|
|
—
|
|
||
Revised present value of future lease payments
|
49.1
|
|
|
15.1
|
|
||
Less: Current portion
|
(14.8
|
)
|
|
(0.6
|
)
|
||
Long-term portion
|
$
|
34.3
|
|
|
$
|
14.5
|
|
|
Fair Value Measurements Using
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash equivalents
|
$
|
256.9
|
|
|
$
|
45.0
|
|
|
$
|
—
|
|
|
$
|
301.9
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities, available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
—
|
|
|
699.0
|
|
|
—
|
|
|
699.0
|
|
||||
Commercial paper
|
—
|
|
|
277.9
|
|
|
—
|
|
|
277.9
|
|
||||
Corporate debt
|
—
|
|
|
57.4
|
|
|
—
|
|
|
57.4
|
|
||||
Total debt securities, available for sale
|
—
|
|
|
1,034.3
|
|
|
—
|
|
|
1,034.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value on a recurring basis
|
$
|
256.9
|
|
|
$
|
1,079.3
|
|
|
$
|
—
|
|
|
$
|
1,336.2
|
|
|
Fair Value Measurements Using
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Cash equivalents
|
$
|
199.3
|
|
|
$
|
66.7
|
|
|
$
|
—
|
|
|
$
|
266.0
|
|
|
|
|
|
|
|
|
|
||||||||
Equity investment in Tandem Diabetes Care, Inc.
|
38.0
|
|
|
—
|
|
|
—
|
|
|
38.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Debt securities, available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
—
|
|
|
173.1
|
|
|
—
|
|
|
173.1
|
|
||||
Commercial paper
|
—
|
|
|
36.2
|
|
|
—
|
|
|
36.2
|
|
||||
Corporate debt
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
||||
Total debt securities, available for sale
|
—
|
|
|
210.6
|
|
|
—
|
|
|
210.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value on a recurring basis
|
$
|
237.3
|
|
|
$
|
277.3
|
|
|
$
|
—
|
|
|
$
|
514.6
|
|
|
Fair Value Measurements Using Level 1
|
||||||
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
0.75% Senior Convertible Notes due 2022
|
$
|
635.6
|
|
|
$
|
540.2
|
|
0.75% Senior Convertible Notes due 2023
|
996.5
|
|
|
859.6
|
|
||
Total fair value of outstanding senior convertible notes
|
$
|
1,632.1
|
|
|
$
|
1,399.8
|
|
|
September 30, 2019
|
||||||||||||||
(In millions)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Market
Value
|
||||||||
Debt securities, available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
$
|
698.6
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
699.0
|
|
Commercial paper
|
277.9
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
277.9
|
|
||||
Corporate debt
|
57.4
|
|
|
—
|
|
|
—
|
|
|
57.4
|
|
||||
Total debt securities, available for sale
|
1,033.9
|
|
|
0.5
|
|
|
(0.1
|
)
|
|
1,034.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total marketable securities
|
$
|
1,033.9
|
|
|
$
|
0.5
|
|
|
$
|
(0.1
|
)
|
|
$
|
1,034.3
|
|
|
December 31, 2018
|
||||||||||||||
(In millions)
|
Cost or Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Market
Value
|
||||||||
Equity investment in Tandem Diabetes Care, Inc.
|
$
|
2.0
|
|
|
$
|
36.0
|
|
|
$
|
—
|
|
|
$
|
38.0
|
|
|
|
|
|
|
|
|
|
||||||||
Debt securities, available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. government agencies
|
173.2
|
|
|
—
|
|
|
(0.1
|
)
|
|
173.1
|
|
||||
Commercial paper
|
36.2
|
|
|
—
|
|
|
—
|
|
|
36.2
|
|
||||
Corporate debt
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
||||
Total debt securities, available for sale
|
210.7
|
|
|
—
|
|
|
(0.1
|
)
|
|
210.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total marketable securities
|
$
|
212.7
|
|
|
$
|
36.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
248.6
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net gains and losses recognized during the period on equity securities
|
$
|
—
|
|
|
$
|
34.9
|
|
|
$
|
(4.2
|
)
|
|
$
|
85.0
|
|
Less: Net gains and losses recognized during the period on equity securities sold during the period
|
—
|
|
|
(14.1
|
)
|
|
4.2
|
|
|
(44.2
|
)
|
||||
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date
|
$
|
—
|
|
|
$
|
20.8
|
|
|
$
|
—
|
|
|
$
|
40.8
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Raw materials
|
$
|
57.9
|
|
|
$
|
30.8
|
|
Work-in-process
|
8.2
|
|
|
11.2
|
|
||
Finished goods
|
54.3
|
|
|
28.7
|
|
||
Total inventory
|
$
|
120.4
|
|
|
$
|
70.7
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Building and land
|
$
|
15.5
|
|
|
$
|
6.0
|
|
Furniture and fixtures
|
12.2
|
|
|
9.0
|
|
||
Computer software and hardware
|
32.8
|
|
|
29.2
|
|
||
Machinery and equipment
|
97.5
|
|
|
80.7
|
|
||
Leasehold improvements
|
96.6
|
|
|
80.7
|
|
||
Construction in progress
|
148.0
|
|
|
57.3
|
|
||
Total cost
|
402.6
|
|
|
262.9
|
|
||
Less accumulated depreciation and amortization
|
(101.6
|
)
|
|
(79.8
|
)
|
||
Total property and equipment, net
|
$
|
301.0
|
|
|
$
|
183.1
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Accounts payable trade
|
$
|
101.4
|
|
|
$
|
75.5
|
|
Accrued tax, audit, and legal fees
|
20.3
|
|
|
11.7
|
|
||
Accrued rebates
|
74.6
|
|
|
36.1
|
|
||
Accrued warranty
|
7.5
|
|
|
6.8
|
|
||
Restructuring reserve
|
0.7
|
|
|
—
|
|
||
Other accrued liabilities
|
27.9
|
|
|
17.0
|
|
||
Total accounts payable and accrued liabilities
|
$
|
232.4
|
|
|
$
|
147.1
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
Finance lease liabilities
|
$
|
14.5
|
|
|
$
|
7.3
|
|
Deferred rent
|
—
|
|
|
9.4
|
|
||
Other liabilities
|
3.1
|
|
|
3.3
|
|
||
Total other long-term liabilities
|
$
|
17.6
|
|
|
$
|
20.0
|
|
(In millions)
|
September 30, 2019
|
|
December 31, 2018
|
||||
0.75% Senior Convertible Notes due 2022:
|
|
|
|
||||
Principal amount
|
$
|
400.0
|
|
|
$
|
400.0
|
|
Unamortized debt discount
|
(40.7
|
)
|
|
(51.1
|
)
|
||
Unamortized debt issuance costs
|
(5.0
|
)
|
|
(6.3
|
)
|
||
Net carrying amount of Senior Convertible Notes due 2022
|
354.3
|
|
|
342.6
|
|
||
|
|
|
|
||||
0.75% Senior Convertible Notes due 2023:
|
|
|
|
||||
Principal amount
|
850.0
|
|
|
850.0
|
|
||
Unamortized debt discount
|
(148.1
|
)
|
|
(171.8
|
)
|
||
Unamortized debt issuance costs
|
(9.1
|
)
|
|
(10.5
|
)
|
||
Net carrying amount of Senior Convertible Notes due 2023
|
692.8
|
|
|
667.7
|
|
||
|
|
|
|
||||
Total net carrying amount of senior convertible notes
|
$
|
1,047.1
|
|
|
$
|
1,010.3
|
|
|
|
|
|
||||
Fair value of outstanding senior convertible notes:
|
|
|
|
||||
Senior Convertible Notes due 2022
|
$
|
635.6
|
|
|
$
|
540.2
|
|
Senior Convertible Notes due 2023
|
996.5
|
|
|
859.6
|
|
||
Total fair value of outstanding senior convertible notes
|
$
|
1,632.1
|
|
|
$
|
1,399.8
|
|
|
|
|
|
||||
Amount by which the notes' if-converted value exceeds their principal amount:
|
|
|
|
||||
Senior Convertible Notes due 2022
|
$
|
221.6
|
|
|
$
|
125.4
|
|
Senior Convertible Notes due 2023
|
93.9
|
|
|
—
|
|
||
Total by which the notes' if-converted value exceeds their principal amount
|
$
|
315.5
|
|
|
$
|
125.4
|
|
(In millions)
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Interest expense recognized:
|
|
|
|
|
|
|
|
||||||||
0.75% Senior Convertible Notes due 2022:
|
|
|
|
|
|
|
|
||||||||
Contractual coupon interest
|
$
|
0.8
|
|
|
$
|
0.8
|
|
|
$
|
2.3
|
|
|
$
|
2.3
|
|
Accretion of debt discount
|
3.5
|
|
|
3.4
|
|
|
10.4
|
|
|
10.0
|
|
||||
Amortization of debt issuance costs
|
0.4
|
|
|
0.4
|
|
|
1.2
|
|
|
1.2
|
|
||||
Interest expense recognized on 2022 Notes
|
4.7
|
|
|
4.6
|
|
|
13.9
|
|
|
13.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
0.75% Senior Convertible Notes due 2023:
|
|
|
|
|
|
|
|
||||||||
Contractual coupon interest
|
1.6
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
||||
Accretion of debt discount
|
8.0
|
|
|
—
|
|
|
23.7
|
|
|
—
|
|
||||
Amortization of debt issuance costs
|
0.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Interest expense recognized on 2023 Notes
|
10.1
|
|
|
—
|
|
|
30.0
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total interest expense recognized on senior notes
|
$
|
14.8
|
|
|
$
|
4.6
|
|
|
$
|
43.9
|
|
|
$
|
13.5
|
|
|
|
|
|
|
|
|
|
||||||||
Effective interest rates:
|
|
|
|
|
|
|
|
||||||||
0.75% Senior Convertible Notes due 2022
|
5.1
|
%
|
|
5.1
|
%
|
|
5.1
|
%
|
|
5.1
|
%
|
||||
0.75% Senior Convertible Notes due 2023
|
5.6
|
%
|
|
—
|
|
|
5.6
|
%
|
|
—
|
|
(1)
|
during any calendar quarter commencing after September 30, 2017 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during the period of 30
|
(2)
|
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate of the Notes on such trading day;
|
(3)
|
if we call any or all of the Notes for redemption, at any time prior to the close on business on the scheduled trading day immediately preceding the redemption date; or
|
(4)
|
upon the occurrence of specified corporate transactions.
|
(1)
|
during any calendar quarter commencing after March 31, 2019 (and only during such calendar quarter), if the last reported sale price of common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the 2023 Notes on each such trading day;
|
(2)
|
during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that five-day consecutive trading day period was less than 98% of the product of the last reported sale price of common stock and the applicable conversion rate of the 2023 Notes on such trading day;
|
(3)
|
if we call any or all of the 2023 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or
|
(4)
|
upon the occurrence of specified corporate transactions.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cost of sales
|
$
|
2.2
|
|
|
$
|
2.5
|
|
|
$
|
6.9
|
|
|
$
|
7.1
|
|
Research and development
|
8.1
|
|
|
8.1
|
|
|
25.8
|
|
|
24.8
|
|
||||
Selling, general and administrative
|
14.1
|
|
|
16.5
|
|
|
46.4
|
|
|
45.4
|
|
||||
Total share-based compensation expense included in net income
|
$
|
24.4
|
|
|
$
|
27.1
|
|
|
$
|
79.1
|
|
|
$
|
77.3
|
|
|
|
|
Weighted
|
|
|
|||||
|
|
|
Average
|
|
Aggregate
|
|||||
|
|
|
Grant Date
|
|
Intrinsic
|
|||||
(In millions, except weighted average grant date fair values)
|
Shares
|
|
Fair Value
|
|
Value
|
|||||
Nonvested at December 31, 2018
|
2.7
|
|
|
$
|
69.19
|
|
|
$
|
319.0
|
|
Granted
|
0.7
|
|
|
142.87
|
|
|
|
|||
Vested
|
(1.4
|
)
|
|
68.89
|
|
|
|
|||
Forfeited
|
(0.2
|
)
|
|
83.09
|
|
|
|
|||
Nonvested at September 30, 2019
|
1.8
|
|
|
$
|
95.06
|
|
|
$
|
276.0
|
|
|
Three Months Ended
September 30, 2019 |
|
Three Months Ended
September 30, 2018 |
||||||||||
(In millions)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Revenues:
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
308.8
|
|
|
78
|
%
|
|
$
|
202.4
|
|
|
76
|
%
|
Outside of the United States
|
87.5
|
|
|
22
|
%
|
|
64.3
|
|
|
24
|
%
|
||
Total revenues
|
$
|
396.3
|
|
|
100
|
%
|
|
$
|
266.7
|
|
|
100
|
%
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
||||||||||
(In millions)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Revenues:
|
|
|
|
|
|
|
|
||||||
United States
|
$
|
785.6
|
|
|
78
|
%
|
|
$
|
537.4
|
|
|
77
|
%
|
Outside of the United States
|
227.6
|
|
|
22
|
%
|
|
156.2
|
|
|
23
|
%
|
||
Total revenues
|
$
|
1,013.2
|
|
|
100
|
%
|
|
$
|
693.6
|
|
|
100
|
%
|
|
Three Months Ended
September 30, 2019 |
|
Three Months Ended
September 30, 2018 |
||||||||||
(In millions)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Revenues:
|
|
|
|
|
|
|
|
||||||
Distributor
|
$
|
270.4
|
|
|
68
|
%
|
|
$
|
154.6
|
|
|
58
|
%
|
Direct
|
125.9
|
|
|
32
|
%
|
|
112.1
|
|
|
42
|
%
|
||
Total revenues
|
$
|
396.3
|
|
|
100
|
%
|
|
$
|
266.7
|
|
|
100
|
%
|
|
Nine Months Ended
September 30, 2019 |
|
Nine Months Ended
September 30, 2018 |
||||||||||
(In millions)
|
Amount
|
|
% of Total
|
|
Amount
|
|
% of Total
|
||||||
Revenues:
|
|
|
|
|
|
|
|
||||||
Distributor
|
$
|
680.0
|
|
|
67
|
%
|
|
$
|
431.3
|
|
|
62
|
%
|
Direct
|
333.2
|
|
|
33
|
%
|
|
262.3
|
|
|
38
|
%
|
||
Total revenues
|
$
|
1,013.2
|
|
|
100
|
%
|
|
$
|
693.6
|
|
|
100
|
%
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended September 30,
|
|
Q3 2019 - Q3 2018
|
|||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
396.3
|
|
|
$
|
266.7
|
|
|
$
|
129.6
|
|
|
49
|
%
|
Gross profit
|
246.9
|
|
|
168.6
|
|
|
78.3
|
|
|
46
|
%
|
|||
Gross profit as a percent of total revenues
|
62
|
%
|
|
63
|
%
|
|
|
|
|
|||||
Operating income
|
56.0
|
|
|
13.9
|
|
|
42.1
|
|
|
303
|
%
|
|||
Net income
|
45.8
|
|
|
46.6
|
|
|
(0.8
|
)
|
|
(2
|
)%
|
|||
Diluted net income per share
|
$
|
0.50
|
|
|
$
|
0.52
|
|
|
$
|
(0.02
|
)
|
|
(4
|
)%
|
|
Nine Months Ended September 30,
|
|
YTD 2019 - YTD 2018
|
|||||||||||
(Dollars in millions, except per share amounts)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
1,013.2
|
|
|
$
|
693.6
|
|
|
$
|
319.6
|
|
|
46
|
%
|
Gross profit
|
622.2
|
|
|
441.1
|
|
|
181.1
|
|
|
41
|
%
|
|||
Gross profit as a percent of total revenues
|
61
|
%
|
|
64
|
%
|
|
|
|
|
|||||
Operating income (loss)
|
40.8
|
|
|
(21.7
|
)
|
|
62.5
|
|
|
(288
|
)%
|
|||
Net income
|
8.4
|
|
|
52.6
|
|
|
(44.2
|
)
|
|
(84
|
)%
|
|||
Diluted net income per share
|
$
|
0.09
|
|
|
$
|
0.59
|
|
|
$
|
(0.50
|
)
|
|
(85
|
)%
|
|
Three Months Ended September 30,
|
|
Q3 2019 - Q3 2018
|
|||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
396.3
|
|
|
$
|
266.7
|
|
|
$
|
129.6
|
|
|
49
|
%
|
Cost of sales
|
149.4
|
|
|
98.1
|
|
|
51.3
|
|
|
52
|
%
|
|||
Gross profit
|
$
|
246.9
|
|
|
$
|
168.6
|
|
|
$
|
78.3
|
|
|
46
|
%
|
Gross profit as a percent of total revenue
|
62
|
%
|
|
63
|
%
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
YTD 2019 - YTD 2018
|
|||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Total revenues
|
$
|
1,013.2
|
|
|
$
|
693.6
|
|
|
$
|
319.6
|
|
|
46
|
%
|
Cost of sales
|
391.0
|
|
|
252.5
|
|
|
138.5
|
|
|
55
|
%
|
|||
Gross profit
|
$
|
622.2
|
|
|
$
|
441.1
|
|
|
$
|
181.1
|
|
|
41
|
%
|
Gross profit as a percent of total revenue
|
61
|
%
|
|
64
|
%
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Q3 2019 - Q3 2018
|
|||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Research and development
|
$
|
66.7
|
|
|
$
|
50.1
|
|
|
$
|
16.6
|
|
|
33
|
%
|
as a % of total revenue
|
17
|
%
|
|
19
|
%
|
|
|
|
|
|||||
Selling, general and administrative
|
124.2
|
|
|
104.6
|
|
|
19.6
|
|
|
19
|
%
|
|||
as a % of total revenue
|
31
|
%
|
|
39
|
%
|
|
|
|
|
|||||
Total operating expenses
|
$
|
190.9
|
|
|
$
|
154.7
|
|
|
$
|
36.2
|
|
|
23
|
%
|
as a % of total revenue
|
48
|
%
|
|
58
|
%
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
YTD 2019 - YTD 2018
|
|||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|||||||
Research and development
|
$
|
194.7
|
|
|
$
|
142.1
|
|
|
$
|
52.6
|
|
|
37
|
%
|
as a % of total revenue
|
19
|
%
|
|
20
|
%
|
|
|
|
|
|||||
Selling, general and administrative
|
386.7
|
|
|
320.7
|
|
|
66.0
|
|
|
21
|
%
|
|||
as a % of total revenue
|
38
|
%
|
|
46
|
%
|
|
|
|
|
|||||
Total operating expenses
|
$
|
581.4
|
|
|
$
|
462.8
|
|
|
$
|
118.6
|
|
|
26
|
%
|
as a % of total revenue
|
57
|
%
|
|
67
|
%
|
|
|
|
|
•
|
the revenue generated by sales of our approved products and other future products;
|
•
|
the expenses we incur in manufacturing, developing, selling and marketing our products;
|
•
|
the quality levels of our products and services;
|
•
|
the third-party reimbursement of our products for our customers;
|
•
|
our ability to efficiently scale our operations to meet demand for our current and any future products;
|
•
|
the costs, timing and risks of delays of additional regulatory approvals;
|
•
|
the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;
|
•
|
the rate of progress and cost of our clinical trials and other development activities;
|
•
|
the success of our research and development efforts;
|
•
|
the emergence of competing or complementary technological developments;
|
•
|
the terms and timing of any collaborative, licensing and other arrangements that we may establish;
|
•
|
the acquisition of businesses, products and technologies and our ability to integrate and manage any acquired businesses, products and technologies; and
|
•
|
the evolution of the international expansion of our business.
|
|
Nine Months Ended
September 30, |
|
|
||||||||
(In millions)
|
2019
|
|
2018
|
|
Change
|
||||||
Net cash provided by operating activities
|
$
|
170.8
|
|
|
$
|
89.5
|
|
|
$
|
81.3
|
|
Net cash used in investing activities
|
(920.9
|
)
|
|
(170.7
|
)
|
|
(750.2
|
)
|
|||
Net cash provided by financing activities
|
10.8
|
|
|
8.8
|
|
|
2.0
|
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(1.7
|
)
|
|
(1.4
|
)
|
|
(0.3
|
)
|
|||
Decrease in cash, cash equivalents and restricted cash
|
$
|
(741.0
|
)
|
|
$
|
(73.8
|
)
|
|
$
|
(667.2
|
)
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
|
|
|
Incorporated by Reference
|
||||||||||||||
Exhibit
Number
|
|
Exhibit Description
|
|
Form
|
|
|
|
File
No.
|
|
|
Date of
First
Filing
|
|
|
Exhibit
Number
|
|
|
Provided
Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
X
|
||
|
|
|
|
|
|
|
|||||||||||
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
X
|
||
|
|
|
|
|
|
|
|||||||||||
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
X
|
||
|
|
|
|
|
|
|
|||||||||||
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
X
|
||
|
|
|
|
|
|
|
|||||||||||
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|||||||||||
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|||||||||||
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|||||||||||
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|||||||||||
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|||||||||||
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
*
|
This certification is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that DexCom specifically incorporates it by reference.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEXCOM, INC.
(Registrant)
|
||
|
|
|
|
||
Dated:
|
November 6, 2019
|
|
By:
|
|
/s/ KEVIN R. SAYER
|
|
|
|
|
|
Kevin R. Sayer,
Chairman of the Board of Directors,
President and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
||
Dated:
|
November 6, 2019
|
|
By:
|
|
/s/ QUENTIN S. BLACKFORD
|
|
|
|
|
|
Quentin S. Blackford,
Chief Operating Officer and Chief Financial Officer (Principal Financial and Accounting Officer)
|
1 Year DexCom Chart |
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