Tandem Diabetes Care(US:TNDM)2020-11-05 21:15Financial Performance - Total assets increased to $672,988 thousand as of September 30, 2020, up from $326,110 thousand at December 31, 2019, representing a 106.4% increase[10] - Sales for the three months ended September 30, 2020, were $123,603 thousand, a 30.6% increase compared to $94,657 thousand for the same period in 2019[12] - Gross profit for the nine months ended September 30, 2020, was $169,964 thousand, up 27.0% from $133,940 thousand in the same period of 2019[12] - Operating loss for the three months ended September 30, 2020, was $(1,009) thousand, an improvement from $(6,004) thousand in the same period of 2019[12] - Net loss for the nine months ended September 30, 2020, was $(51,382) thousand, compared to $(27,405) thousand for the same period in 2019, reflecting an increase in losses[12] - The company reported a net loss per share of $(0.15) for the three months ended September 30, 2020, compared to $(0.05) for the same period in 2019[12] - For the nine months ended September 30, 2020, the company reported a net loss of $51.4 million, compared to a net loss of $27.4 million for the same period in 2019, representing an increase in losses of approximately 87.5%[20] - The company reported net cash provided by operating activities of $9.4 million for the nine months ended September 30, 2020, a decrease from $22.5 million in the same period of 2019[20] - Total sales for the three months ended September 30, 2020, were $123.6 million, a 30.6% increase from $94.7 million in the same period in 2019[153] - Total sales for the nine months ended September 30, 2020, were $330.8 million, a 30.3% increase from $253.9 million in the same period in 2019[164] Cash and Liquidity - Cash and cash equivalents increased to $129,481 thousand as of September 30, 2020, compared to $51,175 thousand at December 31, 2019, a 152.5% increase[10] - The company had cash and cash equivalents and short-term investments totaling $464.5 million as of September 30, 2020, which is expected to meet liquidity requirements for at least the next 12 months[25] - As of September 30, 2020, the company had $464.5 million in cash and cash equivalents, sufficient for liquidity requirements for at least the next 12 months[176] Research and Development - Research and development expenses for the nine months ended September 30, 2020, were $46,198 thousand, up 41.5% from $32,632 thousand in the same period of 2019[12] - Research and development expenses increased by 34% to $16.1 million in Q3 2020, reflecting increased personnel to support product development[162] - The company anticipates an increase in R&D expenses as it advances product development and new technologies, partially offset by declines in non-cash stock-based compensation[148] Stockholder Equity and Compensation - Total stockholders' equity increased to $326,544 thousand as of September 30, 2020, from $194,979 thousand at December 31, 2019, a 67.5% increase[10] - The company incurred $45.1 million in stock-based compensation expense for the nine months ended September 30, 2020, compared to $39.4 million for the same period in 2019, reflecting a 14.3% increase[20] - The total stock-based compensation expense for the three months ended September 30, 2020, was $12.8 million, compared to $17.2 million for the same period in 2019[97] Inventory and Accounts Receivable - Accounts receivable increased to $55,568,000 as of September 30, 2020, compared to $49,889,000 as of December 31, 2019, with a net accounts receivable of $52,104,000 after accounting for an allowance for credit losses of $3,464,000[59] - Total inventories rose to $70,644,000 as of September 30, 2020, up from $49,073,000 as of December 31, 2019, with raw materials accounting for $36,111,000[61] - The allowance for credit losses increased to $3,464,000 as of September 30, 2020, from $2,692,000 at the end of 2019, reflecting a provision for expected credit losses of $2,181,000 for the nine months ended September 30, 2020[60] Legal and Regulatory Matters - The company faced multiple class action lawsuits related to a data breach, with one case consolidated in California, alleging violations of various privacy laws[201] - The company intends to vigorously defend against legal claims but cannot guarantee a favorable outcome, which may impact financial results[203] Market and Product Development - The company is focused on expanding its market presence and developing new products to enhance its competitive position in the insulin-dependent diabetes market[26] - The company launched its first-generation t:connect mobile application in July 2020, aimed at improving data management for diabetes therapy[115] - The company has initiated a partnership with Abbott to develop integrated diabetes solutions, focusing on the U.S. and Canada for initial commercial activities[126] - The company plans to launch the t:sport Insulin Delivery System, designed for greater discretion and flexibility, featuring a 200-unit cartridge and mobile app control[125] Impact of COVID-19 - The company anticipates continued adverse impacts on sales and operating results due to the COVID-19 pandemic, with delays in product development and regulatory timelines[118] - The COVID-19 pandemic had a pronounced negative impact on sales during the second and third quarters of 2020, with expectations of continued adverse effects[141] - In the first six months of 2020, the company faced inventory management challenges due to COVID-19, leading to higher-than-expected customer purchases of cartridges and infusion sets[121] Other Financial Metrics - Total other expense, net, was $26.7 million for the nine months ended September 30, 2020, compared to $8.5 million in the same period in 2019[174] - The company recognized an income tax benefit of $1.9 million on a pre-tax loss of $53.3 million for the nine months ended September 30, 2020[175] - The company recorded total interest expense related to the Convertible Senior Notes of $8.030 million for the nine months ended September 30, 2020[86]