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Tandem Diabetes Care Reports First Quarter 2016 Financial Results and Updates 2016 Guidance

SAN DIEGO, Apr 28, 2016 (BUSINESS WIRE) -- Tandem Diabetes Care®, Inc. TNDM, +1.04% a medical device company and manufacturer of the t:slim®, t:slim G4™ and t:flex® Insulin Pumps, today reported its financial results for the quarter ended March 31, 2016 and updated its financial guidance for the year ending December 31, 2016.

First Quarter 2016 Summary

In comparing the first quarter of 2016 to the same period of 2015:

  • Sales grew 63 percent to $20.1 million from $12.3 million
  • Pump shipments grew 63 percent to 4,042 pumps from 2,487 pumps
  • Operating margin improved to negative 96 percent from negative 166 percent

“Our strong top line growth was a meaningful accomplishment in the first quarter, which is historically the lowest revenue quarter of the year, and we have significantly improved our year-over-year operating margin by 70 percentage points,” said Kim Blickenstaff, President and Chief Executive Officer of Tandem Diabetes Care. “With our family of insulin pumps, we are well-positioned to meet our goals in 2016 and further our mission to improve the lives of people with diabetes.”

Gross margin was 35 percent for the quarter ended March 31, 2016 compared to 23 percent in the same period of 2015.

For the first quarter of 2016, operating expenses totaled $26.2 million compared to $23.2 million for the same period of 2015.

Operating loss for the first quarter of 2016 was $19.2 million, compared to $20.4 million for the same period of 2015. Operating margin for the first quarter was negative 96 percent compared to negative 166 percent in the same period of last year. Both operating loss and operating margin included non-cash charges for stock-based compensation of $2.8 million and depreciation and amortization of $1.3 million for the first quarter of 2016, compared to stock-based compensation of $3.8 million and depreciation and amortization of $1.2 million, for the comparable period of 2015.

As of March 31, 2016, the Company had $70.4 million in cash, cash equivalents and short-term investments.

2016 Guidance

“Our early momentum in 2016 is very encouraging and gives us confidence to update our guidance as we continue managing the business toward profitability,” said John Cajigas, EVP and Chief Financial Officer of Tandem Diabetes Care.

For the year ending December 31, 2016, the Company is changing its prior guidance as follows:

  • Sales are now estimated to be in the range of $108 million to $115 million, which represents annual sales growth of 48 percent to 58 percent compared to 2015. The Company’s prior sales guidance range was $105 million to $112 million.
  • Operating margin is now estimated to be in the range of negative 52 percent to negative 62 percent, compared to the Company’s prior guidance of operating margin in the range of negative 55 percent to negative 65 percent, both of which include:
    • Approximately $13.0 million to $14.0 million in...

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