Guidance
Looking ahead for full year 2009, the company reiterates its estimate of revenues to be in the range of $55 to $65 million and its estimate of operating loss to be in the range of $50 to $60 million.
First Quarter 2009 Results
Gross profit for the first quarter of 2009 was $2.0 million, or 16%, against gross loss of $3.3 million, or 50%, for the first quarter of 2008.
Operating loss for the first quarter of 2009 decreased by 13% to $17.5 million from $20.0 million in the first quarter of 2008. Total operating expenses increased to $19.5 million in the first quarter of 2009, against $16.7 million in the first quarter of 2008. The increase in operating expenses was mostly related to the expansion of the company’s sales organization and infrastructure throughout 2008.
Our impressive top line growth and gross margin expansion in the first quarter are the direct result of investments made in 2008 to establish a national sales force and significantly increase our manufacturing capacity, said Duane DeSisto, president & chief executive officer of Insulet. Now that we have received CE Mark approval for the OmniPod System, we have commenced discussions with several potential partners and distributors to facilitate our international expansion.
Net interest expense was $2.2 million in the first quarter of 2009, against net interest income of $0.1 million in the first quarter of 2008. The increase consisted primarily of $1.2 million in cash interest expense on the company’s outstanding 5.375% convertible notes, which were issued in June 2008 and $1.0 million in non-cash interest expense related to the company’s adoption on January 1, 2009 of FASB Staff Position APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).
As of March 31, 2009, the company’s cash and cash equivalents totaled $68.2 million, compared to $56.7 million as of December 31, 2008.
