Insulet Corp. (PODD)
Q2 2009 Earnings Call
August 04, 2009; 5:00 pm ET
Duane DeSisto - President & Chief Executive Officer
Brian Roberts - Chief Financial Officer
Gerald Hoss - Thomas Weisel Partners
Kim Fustier - JP Morgan
Ben Andrew - William Blair
Bruce Cranna - Leerink Swann
Mimi Pham - Soleil Securities
Zager - BWS Financial
Bill Plovanic - Canaccord Adams
Suraj Kalia - SMH Capital
Derek Leckow - Barrington Research
Previous Statements by PODD
» Insulet Corporation Q3 2008 Earnings Call Transcript
» Insulet Corporation, Q2 2008 Earnings Call Transcript
» Insulet Corporation Q1 2008 Earnings Call Transcript
I would now like to turn the presentation over to Mr. Brian Roberts, Chief Financial Officer of Insulet Corporation. Sir, you may proceed.
Thank you. Good afternoon everyone and thank you for joining us for our second quarter conference call. I’m Brain Roberts, Chief Financial Officer of Insulet. Joining me on the call today is Duane DeSisto, our Chief Executive Officer.
Before we get started, I’d like to remind everyone that our discussion today may include forward-looking statements as defined under the securities laws. There are risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.
Information concerning the company’s potential risks and uncertainties is highlighted in the company’s press release issued earlier today, and in the risk factors section of the company’s SEC filings, including the company’s Form 10-K for the year ended December 31, 2008.
These risk factors apply to our oral and written comments. I’d also like to remind you that the guidance we are offering today represents a point-in-time estimate of our future performance. You’ll find a link to the webcast of this call, as well as to today’s press release at www.myomnipod.com in the investor section.
Now, I’ll turn the call over to Duane.
Thanks Brain. Good afternoon everyone and thank you for joining us. I’m very pleased to report to you the results of our strong second quarter. Despite the challenging economy, we drove impressive top-line growth, delivered continue improvement in our gross margins and launched the second generation product, our new PDM 200 into the market.
For the quarter, we reported revenue of $14.6 million, an increase of 97% year-over-year and the17% sequentially. The easy-to-use OmniPod System continues to deliver on our promise to make diabetes a smaller part of life for our customers.
I’m going to focus my comments today on three major areas of opportunity for our business; product innovation, domestic and international market expansion opportunities, and manufacturing and operational efficiencies. Let me now take few minutes to provide you with an update on these three critical areas.
First, let me speak about product innovation; as a leader in tubing-free insulin pump technology, innovation is at the heart of who we are as an organization. At the American Diabetes Association Conference in June, we launched our second generation PDM, with improved features, such as the sleek new look, colored LCD screen and enhanced data download capabilities.
To-date the launch has exceeded our expectations with over 20% of our customer base taking advantage of the special limited time introductory upgrade price. The new PDM 200, not only provides a better product to our customers, but will also help us improve our margins in 2010 as we expect to see reduced production and warranty costs.
We didn’t stop listening to our customers in innovating with the design of our product. We heard their feedback that they wanted a way to reduce the impact of their used pods on the environment, so last month we announced the first environmentally safe disposable program in the insulin pump industry.
The Eco-Pod program will reduce the impact of used Pods on the environment by preventing hazardous waste from unnecessarily entering landfills. Pods are disassembled and metals are recycled. The program launched this week and we are grateful for the tremendous response we are seeing from our customers who are willing to partner with us in taking care of the environment.
While we are proud of these recent accomplishments, we continue to invest in additional innovative products and research. We continue to make progress with our next generation pod and with the version of our PDM which will provide integrated continuous glucose monitoring capabilities. We remain on track to be into the FDA by year end, with an integrated CGM solution.
We are also pleased to be involved in the innovative scientific research within the industry. At the June meeting of the ADA, research was presented demonstrating exciting progress in the Juvenile Diabetes Research Foundation’s Artificial Pancreas project. The OmniPod System continues to be sought after by leading researchers and institutions is being used at the majority of the Artificial Pancreas Project study sites.
Studies using the OmniPod System from the Sansum Diabetes Research Institute and UC Santa Barbara, as well as the University of Virginia showed advances in automating and refining the algorithms necessary for a closed loop system. We are proud to be a part of this important research and to be recognized by these thought leaders as a cutting edge technology partner.
We are also advancing our efforts to outside the diabetes. The request for CE Mark approval has been filed ahead of schedule for our first non-diabetes application in partnership with Ferring Pharmaceuticals. We expect to receive approval this quarter.