-- In December 2010, the Company sold 3.45 million shares of its common
stock at a price of $13.27 per share resulting in net proceeds to the
Company of approximately $45.5 million. Approximately $33.3 million of
the proceeds were used to repay all amounts outstanding under the
Company's facility agreement with Deerfield Partners approximately 21
months prior to its maturity. The early retirement of the facility
agreement will result in a savings of about $5 million in cash interest
expense.
-- The Company's international distribution partner, Ypsomed Distribution
AG, has or will soon introduce the OmniPod System to people living with
Type I diabetes in seven countries including Germany, United Kingdom,
France, the Netherlands, Sweden, Norway and Switzerland.
-- In February 2011, the Company submitted for CE Mark approval of its
next generation OmniPod.
Guidance
For the full year 2011, the Company is estimating revenue to be in the
range of $123 to $133 million and its operating loss to be in the range of
$20 to $28 million. The Company is estimating revenue of $27.5 to $29.5
million in the first quarter of 2011.
Conference Call
Insulet will host a conference call on Tuesday, February 15, 2011 at 5:00PM
Eastern time to discuss the Company's fourth quarter and full year 2010
results and present information concerning its business, strategies and
outlook. To listen to the conference call, please dial 800-510-9691 for
domestic callers and 617-614-3453 for international callers. The passcode
is 86943006. A replay of the conference call will be available two hours
after the start of the call through February 22, 2011 by dialing
888-286-8010 (domestic) and 617-801-6888 (international), passcode
57382597. An online archive of the conference call will also be available
by accessing the Investor Information section of the company's website at
http://investors.insulet.com.
Forward-Looking Statement
The 2010 financial results contained in this news release are subject to
finalization in connection with the preparation of the Company's Annual
Report on Form 10-K for the year ended December 31, 2010. This press
release contains forward-looking statements concerning Insulet's
expectations, anticipations, intentions, beliefs or strategies regarding
the future, including those related to its expected revenue and operating
losses, planned expansion in the U.S. and abroad, particularly with respect
to its agreement with Ypsomed, product demand, the impact of the OmniPod
System on the insulin pump market, regulatory matters and financial
performance. These forward-looking statements are based on its current
expectations and beliefs concerning future developments and their potential
effects on it. There can be no assurance that future developments affecting
it will be those that it has anticipated. These forward-looking statements
involve a number of risks, uncertainties (some of which are beyond its
control) or other assumptions that may cause actual results or performance
to be materially different from those expressed or implied by these
forward-looking statements. These risks and uncertainties include, but are
not limited to: risks associated with the Company's dependence on the
OmniPod System; Insulet's ability to increase customer orders and
manufacturing volumes; adverse changes in general economic conditions;
impact of healthcare reform legislation; Insulet's inability to raise
additional funds in the future on acceptable terms or at all; potential
supply problems or price fluctuations with sole source or other third-party
suppliers on which Insulet is dependent; international business risks;
Insulet's inability to obtain adequate coverage or reimbursement from
third-party payors for the OmniPod System and potential adverse changes in
reimbursement rates or policies relating to the OmniPod; potential adverse
effects resulting from competition with competitors; technological
innovations adversely affecting the Company's business; potential
termination of Insulet's license to incorporate a blood glucose meter into
the OmniPod System; Insulet's ability to protect its intellectual property
and other proprietary rights; conflicts with the intellectual property of
third parties, including claims that Insulet's current or future products
infringe the proprietary rights of others; adverse regulatory or legal
actions relating to the OmniPod System; failure of Insulet's contract
manufacturers or component suppliers to comply with FDA's quality system
regulations, the potential violation of federal or state laws prohibiting
"kickbacks" or protecting patient health information, or any challenges to
or investigations into Insulet's practices under these laws; product
liability lawsuits that may be brought against Insulet; reduced retention
rates; unfavorable results of clinical studies relating to the OmniPod
System or the products of Insulet's competitors; potential future
publication of articles or announcement of positions by physician
associations or other organizations that are unfavorable to Insulet's
products; the expansion, or attempted expansion, into foreign markets; the
concentration of substantially all of Insulet's manufacturing capacity at a
single location in China and substantially all of Insulet's inventory at a
single location in Massachusetts; Insulet's ability to attract and retain
key personnel; Insulet's ability to manage its growth; fluctuations in
quarterly results of operations; risks associated with potential future
acquisitions; Insulet's ability to generate sufficient cash to service all
of its indebtedness; the expansion of Insulet's distribution network;
Insulet's ability to successfully maintain effective internal controls; and
other risks and uncertainties described in its Annual Report on Form 10-K,
as amended, which was originally filed with the Securities and Exchange
Commission on March 9, 2010 in the section entitled "Risk Factors," and in
its other filings from time to time with the Securities and Exchange
Commission. Should one or more of these risks or uncertainties materialize,
or should any of its assumptions prove incorrect, actual results may vary
in material respects from those projected in these forward-looking
statements. Insulet undertakes no obligation to publicly update or revise
any forward-looking statements.
About Insulet Corporation
Insulet Corporation is an innovative medical device company dedicated to
improving the lives of people with diabetes. The Company's OmniPod Insulin
Management System is a revolutionary, discreet and easy-to-use insulin
infusion system that features two easy-to-use parts with no tubing and
fully-automated cannula insertion. Through the OmniPod System, Insulet
seeks to expand the use of continuous subcutaneous insulin infusion (CSII)
therapy among people with insulin-dependent diabetes. Founded in 2000,
Insulet is based in Bedford, MA.
Insulet Corporation
Selected Financial Data
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA:
Three months ended Year ended
December 31, December 31,
---------------------- ----------------------
2010 2009 2010 2009
(Unaudited) (Unaudited)
---------- ---------- ---------- ----------
(In thousands, except share and per share data)
Revenue $ 27,767 $ 20,211 $ 96,966 $ 66,032
Cost of revenue 13,941 12,877 53,240 47,735
---------- ---------- ---------- ----------
Gross profit 13,826 7,334 43,726 18,297
Operating expenses:
Research and development 5,459 3,350 16,566 13,231
General and
administrative 6,288 7,267 26,667 26,842
Sales and marketing 8,394 8,677 34,695 37,583
Impairment of assets 3,410 - 4,431 -
---------- ---------- ---------- ----------
Total operating
expenses 23,551 19,294 82,359 77,656
---------- ---------- ---------- ----------
Operating loss (9,725) (11,960) (38,633) (59,359)
Net interest expense (11,133) (3,578) (22,526) (12,985)
---------- ---------- ---------- ----------
Net loss $ (20,858) $ (15,538) $ (61,159) $ (72,344)
========== ========== ========== ==========
Net loss per share basic
and diluted $ (0.50) $ (0.44) $ (1.54) $ (2.43)
========== ========== ========== ==========
Weighted-average number of
shares used in calculating
net loss per share 42,050,678 35,164,348 39,607,899 29,727,106
========== ========== ========== ==========
As a result of the early extinguishment of our Facility Agreement entered
into in March 2009 and amended in September 2009 and June 2010, net
interest expense in the three months and year ended December 31, 2010
includes approximately $7.0 million related to the write-off of the debt
discount and deferred financing costs and $0.7 million related to an early
payment penalty.
CONDENSED CONSOLIDATED BALANCE SHEET DATA:
As of
December 31,
2010 2009
(Unaudited)
----------- -----------
(In thousands, except
share and per share
data)
ASSETS
Current Assets
Cash $ 113,274 $ 127,996
Accounts receivable, net 16,841 14,962
Inventories 11,430 10,086
Prepaid expenses and other current assets 912 1,260
----------- -----------
Total current assets 142,457 154,304
Property and equipment, net 12,522 15,482
Other assets 1,254 3,072
----------- -----------
Total assets $ 156,233 $ 172,858
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 4,895 $ 5,870
Accrued expenses 9,808 9,973
Deferred revenue 4,247 3,970
----------- -----------
Total current liabilities 18,950 19,813
Long-term debt, net of current portion 69,433 89,136
Other long-term liabilities 1,619 1,999
----------- -----------
Total liabilities 90,002 110,948
Stockholders' equity
Preferred stock, $.001 par value:
Authorized: 5,000,000 shares at December 31, 2010
and 2009. Issued: zero shares at December 31,
2010 and 2009. - -
Common stock, $.001 par value:
Authorized: 100,000,000 shares at December 31,
2010 and 2009.
Issued: 45,440,839 and 37,755,254 shares at
December 31, 2010 and 2009, respectively. 45 39
Additional paid-in capital 450,039 384,565
Accumulated deficit (383,853) (322,694)
----------- -----------
Total stockholders' equity 66,231 61,910
----------- -----------
Total liabilities and stockholders' equity $ 156,233 $ 172,858
----------- -----------
Contact Information: Contact: Stephanie Marks for Insulet Corporation 877-PODD-IR1 (877-763-3471)