德康醫療 (DXCM) 2014 Q1 法說會逐字稿

Welcome to DexCom's first quarter 2014 earnings release conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Please note that this conference is being recorded. I will now turn the call over to Mr. Terry Gregg. You may begin.

歡迎參加 DexCom 2014 年第一季財報發布電話會議。目前所有與會者皆處於僅收聽模式。稍後我們將進行問答環節。請注意，本次會議將被錄音。現在我將把電話交給 Terry Gregg 先生。您可以開始了。

Thank you and thanks for joining us. As is our standard practice, I'm going to have Steve Pacelli read our Safe Harbor statement. Steve?

謝謝，也感謝各位加入我們。依照我們的慣例，我將請 Steve Pacelli 宣讀我們的「安全港」聲明。Steve？

Thanks, Terry. Some of the statements that we will make in today's call may constitute forward-looking statements. These statements reflect management's expectations about future events, operating plans and performance and speak only as of the date hereof.

謝謝，Terry。我們在今天電話會議中所做的部分陳述，可能構成前瞻性陳述。這些陳述反映管理層對未來事件、營運計畫與績效的預期，且僅截至本日有效。

These forward-looking statements involve a number of risks and uncertainties. A list of the factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements is detailed under Risk Factors and elsewhere in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our other report filed with the SEC. We undertake no obligation to update publicly or revise these forward-looking statements for any reason.

這些前瞻性陳述涉及多項風險與不確定性。可能導致實際結果與任何前瞻性陳述所明示或暗示者存在重大差異的因素清單，已在我們的 Form 10-K 年報、Form 10-Q 季報以及其他向美國證券交易委員會（SEC）提交的報告之「風險因素」及其他章節中詳述。我們不承擔因任何原因公開更新或修訂這些前瞻性陳述的義務。

Additionally, we will discuss certain financial information that has not been prepared in accordance with GAAP with respect to our cash operating performance. This non-GAAP information is provided to enhance your overall understanding of our current financial performance. The presentation of this additional information should not be considered in isolation or as a substitute for results or superior to results prepared in accordance with GAAP. Terry?

此外，我們將就現金營運表現討論若干未依 GAAP 編製的財務資訊。提供此非 GAAP 資訊旨在增進您對我們目前財務表現的整體理解。此額外資訊之呈現不應被孤立看待，亦不應作為依 GAAP 編製結果的替代，或被視為優於依 GAAP 編製的結果。Terry？

Thanks, Steve. Joining me today are Kevin Sayer, our President and Chief Operating Officer; Jess Roper, our Chief Financial Officer; and Steve Pacelli, you just heard from, our Executive Vice President on Strategy and Corporate Development.

謝謝，Steve。今天與我一同出席的有：我們的總裁兼營運長 Kevin Sayer；財務長 Jess Roper；以及剛才您聽到的策略與企業發展執行副總裁 Steve Pacelli。

As we just held our Q4 2013 earnings call in late February, today's call will be largely a financial update with Kevin reviewing our first quarter 2014 financial results providing a brief business update. I will then follow with some concluding thoughts. Kevin?

由於我們在二月底才剛舉行 2013 年第四季財報電話會議，今天的會議將主要是財務更新，由 Kevin 回顧我們 2014 年第一季財務結果並提供簡要的業務更新。接著我會做一些結語。Kevin？

Thank you, Terry. We'll start with the financial update.

謝謝，Terry。我們先從財務更新開始。

DexCom generated $46.7 million in product revenue for the first quarter of 2014 compared to $27.8 million for the same quarter in 2013, an $18.9 million or 68% increase.

DexCom 2014 年第一季產品營收為 4,670 萬美元，較 2013 年同季的 2,780 萬美元增加 1,890 萬美元，增幅為 68%。

Sequentially, product revenue for Q1 of 2014 decreased 9% from the prior quarter, an improvement over the 12% decrease we experienced from Q4 2012 to Q1 2013. This seasonality is not unexpected as annual insurance deductibles reset and flexible spending accounts are largely unfunded in the first quarter, requiring patients to spend more out-of-pocket dollars to obtain our products.

以季比季來看，2014 年第一季產品營收較前一季下降 9%，優於我們從 2012 年第四季到 2013 年第一季所經歷的 12% 降幅。這種季節性並不意外，因為年度保險自付額會在第一季重置，且彈性支出帳戶在第一季多半尚未到位，導致病患為取得我們的產品需要支付更多自付費用。

Total revenue for the first quarter of 2014 was $47.1 million compared to $29.6 million during the same quarter in 2013. Our product gross profit totaled $29.8 million, generating a product gross margin of 64% for the first quarter of 2014 compared to product gross profit of $15.4 million and a product gross margin of 55% for the same quarter in the prior year.

2014 年第一季總營收為 4,710 萬美元，較 2013 年同季的 2,960 萬美元增加。我們的產品毛利合計 2,980 萬美元，使 2014 年第一季產品毛利率達 64%，相較之下，前一年同季產品毛利為 1,540 萬美元、產品毛利率為 55%。

Sequentially, product gross margin in Q1 2014 decreased slightly from the prior quarter. The decrease is attributable to lower product sales during Q1 and a slight shift in our mix of durable and consumable sales resulting from an increase in replacement transmitter sales. During Q1 2014 our mix between durable and consumable products was approximately 32% durable and 68% consumable.

以季比季來看，2014 年第一季產品毛利率較前一季略為下降。下降原因在於第一季產品銷售較低，以及因替換用發射器銷售增加而使耐用品與耗材的銷售組合略有變化。2014 年第一季我們耐用品與耗材的組合約為 32% 耐用品、68% 耗材。

Consistent with prior periods, we anticipate that margins will improve over the course of the year as volumes continue to increase, particularly consumable product sales.

與以往期間一致，我們預期隨著銷量持續增加（尤其是耗材產品銷售），毛利率將在全年逐步改善。

Some final thoughts on our product revenue and gross profits. ASP for sensors has stayed consistent at approximately $7 per sensor and the ASP for our hardware continued at approximately $850 per starter kit. Q1 2014 also represents the first quarter where we have seen a significant increase in standalone transmitter sales. And the ASP on a standalone transmitter is between $400 and $500, depending upon the payer mix during a given quarter. Finally, our international business continues to exceed our expectations and, in the first quarter, grew faster than our domestic sales.

最後談談我們的產品營收與毛利。感測器的平均銷售單價（ASP）一直維持在每個感測器約 7 美元，而硬體的 ASP 仍約為每套入門套件 850 美元。2014 年第一季也代表我們首次看到獨立發射器銷售顯著增加。獨立發射器的 ASP 介於 400 至 500 美元之間，取決於各季的付款方組合。最後，我們的國際業務持續超出預期，且在第一季的成長速度快於美國本土銷售。

Turning to our expenses, our total operating expenses for the first quarter were $42.1 million compared to total operating expenses of $27.4 million during Q1 of 2013 and $36.4 million for the preceding quarter. The major component of this increase relates to non-cash share-based compensation expense, which is largely tied to the performance of our stock price through the end of March 2014. We note that our share price more than doubled from the end of Q1 2013 and increased 17% during the first quarter of 2014 alone. As a result, our total non-cash equity-related charges for Q1 2014 were $9.9 million compared to $7.1 million in Q4 2013 and compared to just $5.3 million in Q1 2013.

接著看費用，第一季總營運費用為 4,210 萬美元，較 2013 年第一季的 2,740 萬美元以及前一季的 3,640 萬美元增加。此增幅的主要組成與非現金的股份基礎給付費用有關，而該費用在很大程度上與截至 2014 年 3 月底我們股價表現連動。我們注意到，我們股價自 2013 年第一季末以來已上漲逾一倍，且僅 2014 年第一季就上漲 17%。因此，2014 年第一季非現金股權相關費用合計為 990 萬美元，相較 2013 年第四季為 710 萬美元、2013 年第一季僅為 530 萬美元。

Research and development expense totaled $14.5 million for Q1 in 2014 compared to $9.3 million in Q1 of 2013 and $12.6 million in Q4 of 2013. The year-over-year increase in R&D expense includes a $2.1 million increase in non-cash equity-related expense.

2014 年第一季研發費用合計 1,450 萬美元，較 2013 年第一季的 930 萬美元以及 2013 年第四季的 1,260 萬美元增加。年增的研發費用包含非現金股權相關費用增加 210 萬美元。

The remaining increase relates to continued investments in the product pipeline, focusing upon increased accuracy, improved connectivity, patient convenience, and lower cost with our ultimate goal of replacing fingersticks.

其餘增幅則與我們持續投資產品研發管線有關，重點在於提升準確度、改善連線能力、提升病患便利性並降低成本，最終目標是取代指尖採血。

For example, during Q1 2013, we were not running any major clinical studies and had no open submissions with the FDA. Compare that to Q1 2014, where we conducted a number of clinical studies related to future technology; new sensors, new algorithms, enhanced labeling, cellular connectivity, and general product improvements. And we have a number of pending submissions with the FDA at this time, including DexCom SHARE, the DexCom G4 system for professional use, the SweetSpot cloud-based system, and several others. We believe all of these efforts will ultimately lead to a better experience for our patients and enhance our future growth and profitability.

例如，在 2013 年第一季，我們沒有進行任何大型臨床研究，也沒有向 FDA 提交任何尚在審查中的申請。對比 2014 年第一季，我們進行了多項與未來技術相關的臨床研究；包括新感測器、新演算法、強化標示、行動網路連線能力，以及一般產品改良。目前我們也有多項向 FDA 提交且仍在審查中的申請，包括 DexCom SHARE、供專業用途的 DexCom G4 系統、SweetSpot 雲端系統，以及其他數項。我們相信，這些努力最終將為病患帶來更佳體驗，並提升我們未來的成長與獲利能力。

Sequentially, R&D expense was up 15% with 66% of the increase, or $1.2 million, centered in incremental non-cash equity-related expense. Selling, general, and administrative expense totaled $27.6 million in Q1 of 2014 compared to $18.1 million during the same quarter in 2013, an increase of $9.5 million. SG&A expense for the preceding quarter was $23.8 million, again compared to $27.6 million this quarter.

以季比季來看，研發費用增加 15%，其中 66% 的增幅（即 120 萬美元）來自新增的非現金股權相關費用。2014 年第一季銷售、一般及行政費用（SG&A）合計 2,760 萬美元，較 2013 年同季的 1,810 萬美元增加 950 萬美元。前一季的 SG&A 費用為 2,380 萬美元，相較本季為 2,760 萬美元。

The increased SG&A expense relates primarily to additional headcount for our commercial infrastructure as we scale the business for continued revenue growth. We started 2013 with 48 sales territories. We now have close to 90 sales territories, adding 20 new territories near the end of 2013 and in early 2014.

SG&A 費用增加主要與我們為持續營收成長而擴大商業基礎建設、增聘人力有關。2013 年初我們有 48 個銷售區域；目前接近 90 個銷售區域，於 2013 年底及 2014 年初新增 20 個區域。

In addition to the increased number of feet on the street, we've also added corresponding in-house infrastructure to support this growth. We continue to make significant investments in personnel to manage our payer and distributor relationships. Our headcount in this group has more than doubled since the beginning of 2013. This team has been extremely successful over the past several months as continue to secure more and better direct contracts with payers, strengthen relationships with our current distributors, and lay the foundation for CGM to be covered as a pharmacy benefit.

除了增加外勤銷售人員之外，我們也增設相應的內部基礎建設以支援此成長。我們持續在人員方面進行重大投資，以管理我們與付款方及經銷商的關係。自 2013 年初以來，該團隊的人數已增加逾一倍。過去幾個月，該團隊表現極為成功，因為我們持續與付款方簽訂更多且更優的直接合約、強化與現有經銷商的關係，並為讓 CGM 以藥局給付（pharmacy benefit）方式納入保障奠定基礎。

Finally, the increase in SGA expense year over year includes a $2.3 million increase in non-cash share-based compensation. Sequentially, non-cash share-based compensation expense increased by $1.3 million.

最後，SG&A 費用的年增也包含非現金股份基礎給付增加 230 萬美元。以季比季來看，非現金股份基礎給付費用增加 130 萬美元。

Our net loss for the first quarter of 2014 totaled $12.5 million and included $12 million even in non-cash expenses centered in share-based compensation, depreciation, and amortization. Absent these charges, our net loss would have been approximately $500,000 for Q1 2014, down from the preceding quarter due to the seasonal sequential decline in our product revenue and our investments for future growth. But, this compares quite favorably to a cash-based net loss for Q1 2013 of $3.9 million.

我們在2014年第一季的淨損失合計為1,250萬美元，其中包含1,200萬美元的非現金費用，主要來自以股份為基礎的薪酬、折舊與攤銷。若不計入這些費用，我們2014年第一季的淨損失約為50萬美元，較前一季下降，原因在於產品營收的季節性連續下滑，以及我們為未來成長所進行的投資。不過，與2013年第一季以現金為基礎的淨損失390萬美元相比，這樣的表現相當亮眼。

Our loss per share for the quarter was $0.17. It is worth noting that, while our loss per share was higher than consensus, the street consensus OpEx number for Q1 was actually less than our Q4 2013 OpEx spend. While we do not provide detailed P&L guidance, we did state during our last call that we entered Q1 with an additional 20 sales reps and we provided guidance that we expected R&D expense for 2014 to be up between 10% to 20% versus 2013 and we anticipated an increase in SG&A expense of approximately 20% to support our growth. Additionally, we should clarify that the expense guidance we gave during our last call did not include the significant increases in equity-related expense that I just discussed.

本季每股虧損為0.17美元。值得注意的是，雖然我們的每股虧損高於市場共識，但華爾街對第一季營業費用（OpEx）的共識數字，實際上低於我們2013年第四季的OpEx支出。雖然我們不提供詳細的損益表（P&L）指引，但我們在上次電話會議中確實提到，我們在進入第一季時新增了20名業務代表，並提供指引指出，預期2014年的研發（R&D）費用將較2013年增加10%至20%，且我們預期銷售、一般及行政（SG&A）費用將增加約20%以支持成長。此外，我們也需要澄清：我們在上次電話會議中給出的費用指引，並未包含我剛才所提到的與股權相關費用的大幅增加。

In conclusion, we are very pleased with our first quarter financial performance. Our revenue growth is unparalleled. We continue to make significant investments on our commercial infrastructure and our product pipeline to position DexCom for its future long-term objectives. On top of that, our cash-based profitability continues to improve as we develop a new category and seek to disrupt an entire industry, not just build a company or a product line.

總結而言，我們對第一季的財務表現非常滿意。我們的營收成長無與倫比。我們持續在商業基礎建設與產品研發管線上進行重大投資，以使DexCom能達成其未來長期目標。除此之外，隨著我們開創一個全新類別並試圖顛覆整個產業（而不只是建立一家公司或一條產品線），我們以現金為基礎的獲利能力也持續改善。

With respect to our balance sheet, we ended the first quarter with $57.4 million in cash and marketable securities, up $2.8 million sequentially. And, with our continued debt availability, we are quite comfortable with cash position.

就資產負債表而言，我們在第一季末的現金及有價證券為5,740萬美元，較前一季增加280萬美元。此外，考量我們仍有可用的債務額度，我們對目前的現金部位相當放心。

Finally, we remain very comfortable with our current full-year revenue guidance at this time. And, consistent with our past practices, we will evaluate our range at the end of the second quarter and expect to provide an update on our next call.

最後，就目前而言，我們仍對現行的全年營收指引感到非常有信心。並且一如以往，我們將在第二季末評估指引區間，並預期在下一次電話會議中提供更新。

Now, for the business update. As you know, in February, we received FDA approval of an expanded indication for our G4 PLATINUM to include patients as young as two years of age. We began taking orders for our pediatric product immediately upon approval and we completed our initial shipments to patients within a matter of days. We are very pleased by the initial response of parents and practitioners to the pediatric product offering and have seen the percentage of orders from pediatric patients continue to grow to approximately 20% of our current pipeline opportunities.

接下來是業務更新。如各位所知，我們在2月取得FDA核准，將G4 PLATINUM的適應症擴大至最小可涵蓋2歲的患者。我們在核准後立即開始接受兒科產品訂單，並在數天內完成對患者的首批出貨。我們對家長與醫護人員對兒科產品方案的初步反應感到非常滿意，且我們看到來自兒科患者的訂單占比持續成長，目前約占我們現有銷售管線機會的20%。

However, as we've learned, we have a lot of work ahead of us. Since the approval, we've met with a number of pediatric endocrinologists in the field and at our headquarters in San Diego to better understand this market. While many of these clinics are very excited for the pediatric opportunity, we believe it will take time to properly educate parents and caregivers about the benefits of CGM generally and about the superior performance of our system, more specifically, to grow the pediatric market to the level where it should be.

然而，正如我們所了解的，我們前方仍有大量工作要做。自核准以來，我們與多位兒科內分泌科醫師在第一線以及在我們聖地牙哥總部會面，以更深入了解此市場。雖然許多診所對兒科機會感到非常興奮，但我們認為，要將兒科市場成長到其應有的規模，仍需要時間來適當教育家長與照護者：一方面是對連續血糖監測（CGM）整體益處的認識，另一方面更具體地是對我們系統優異表現的理解。

We continue to have an active dialogue with the Food and Drug Administration regarding our current filings, the major ones being the DexCom SHARE system and the expanded indication for G4 PLATINUM for professional use. We believe both are in their final stages of review.

我們持續就目前的申報案與美國食品藥物管理局（FDA）保持積極對話，其中主要項目包括DexCom SHARE系統，以及G4 PLATINUM擴大適應症以供專業用途。我們相信這兩項都已進入審查的最後階段。

As you know, in March we received a warning letter from the FDA resulting from a November 2013 inspection of our facilities. The warning letter cites administrative deficiencies in our MDR reporting. There were no sanctions levied by the FDA and the warning letter does not impact our ability to manufacture and sell our product nor does it affect any of our pending or future submissions for product approvals. We are pleased to report that within three weeks of the receipt of this warning letter, we submitted all materials we believe are necessary to demonstrate to the FDA's satisfaction that we are in compliance with our reporting obligations and we expect to close out the warning letter in due course.

如各位所知，我們在3月收到FDA的警告信，源自FDA於2013年11月對我們設施的稽查。該警告信指出我們在醫療器材不良事件通報（MDR）申報方面存在行政性缺失。FDA並未施加任何制裁，且該警告信不影響我們製造與銷售產品的能力，也不影響任何待審或未來的產品核准申請。我們很高興報告，在收到該警告信後三週內，我們已提交所有我們認為足以令FDA滿意、用以證明我們符合申報義務的資料，並預期將在適當時程內結案該警告信。

Turning to our future CGM product offerings, we remain focused on increased connectivity and convenience as a near-term goal and replacing fingersticks as our primary long-term objective. And we continue to work on both Gen 5 and Gen 6 in an effort to achieve these goals.

談到我們未來的CGM產品方案，我們仍以提升連結性與便利性作為短期目標，並以取代指尖採血作為主要的長期目標。我們也持續推進第5代（Gen 5）與第6代（Gen 6）的開發，以達成這些目標。

As we continue to advance our technology, we were very pleased to learn just last week that the FDA is formulating a new expedited access PMA program for medical devices that address major unmet clinical needs. This program will feature earlier and more interactive engagement with FDA staff, a collaboratively-developed plan for collecting data to support approval, reduced pre-market requirements, and a priority review. While it remains to be seen whether and to what extent CGM will apply, this program certainly appears to be a significant effort by the FDA to further the availability of lifesaving and life-changing products for patients. And we view this as a big step forward.

隨著我們持續推進技術發展，我們在上週得知FDA正在為能滿足重大未被滿足臨床需求的醫療器材，制定一項新的加速取得上市前核准（PMA）計畫，對此我們感到非常振奮。該計畫將包含更早且更具互動性的FDA人員參與、共同制定的資料蒐集計畫以支持核准、降低上市前要求，以及優先審查。雖然仍有待觀察CGM是否適用以及適用程度，但此計畫顯然是FDA為提升可挽救生命並改變生活之產品對患者可近性所做的一項重大努力。我們視之為一大進展。

Shifting to our integration partnerships, both Animas and Tandem continue to press forward with final development, testing, and regulatory matters with their respective sensor-augmented pump systems and we continue to assist them in these endeavors when asked.

轉向我們的整合合作夥伴，Animas與Tandem皆持續推進其各自的感測器整合式胰島素幫浦系統之最終開發、測試與法規相關事項；在對方提出需求時，我們也持續協助其推進這些工作。

I would now like to turn the call over to Terry for some concluding remarks.

接下來我想把電話會議交給Terry，請他做一些結語。

Thanks, Kevin. I want to start my comments by reflecting on something reflecting on something Kevin said earlier. At DexCom, we are developing an entirely new category, seeking to disrupt an entire industry.

謝謝你，Kevin。我想先從回顧Kevin先前提到的一點開始。在DexCom，我們正在開發一個全新的類別，並試圖顛覆整個產業。

There are some 25.8 million people in the United States living with diabetes; 1.5 million to 1.75 million with type 1, 7 million undiagnosed, and 80 million designated with pre-diabetes. Research published earlier this year showed a 70% increase in diagnosis of type 1 diabetes in children under the age of six during the period from 1985 to 2004. Expanding that globally, over 382 million people are afflicted with diabetes and that number is expected to pass 592 million in the next 15 years.

美國約有2,580萬人罹患糖尿病；其中150萬至175萬為第一型糖尿病，另有700萬人尚未被診斷，並有8,000萬人被認定為糖尿病前期。今年稍早發表的研究顯示，在1985年至2004年期間，6歲以下兒童被診斷為第一型糖尿病的比例增加了70%。放眼全球，超過3.82億人受糖尿病所苦，而預期在未來15年內，該數字將超過5.92億。

What do all of these people have in common? They all suffer from the inability to adequately regulate their glucose levels. Why? Because episodic fingerstick measurements simply aren't good enough.

這些人有什麼共同點？他們都因無法充分調節血糖水準而受苦。為什麼？因為間歇性的指尖採血測量根本不夠好。

During the last decade the number of people in the United States with insulin-treated diabetes rose by more 50% and today it is estimated that one-third of patients with diabetes use insulin. But, as insulin use has increased, so has the frequency of sever hypoglycemia.

在過去十年，美國接受胰島素治療的糖尿病患者人數增加了超過50%，而目前估計約有三分之一的糖尿病患者使用胰島素。然而，隨著胰島素使用增加，嚴重低血糖的發生頻率也隨之上升。

In fact, it is estimated that approximately 100,000 emergency room visits and 30,000 hospitalizations occur each year in the U.S. due to hypoglycemia. During the period from 2007 to 2011, approximately 9.2% of emergency room visits were for insulin-related hypoglycemia. Severe neurologic sequelae described as shock, loss of consciousness, seizure, associated injury or fall, and hypoglycemia-altered mental states were documented in more than 60% of these cases. And almost a third required hospital admission or transfer to another facility. With the average cost of a hospital admission for hypoglycemia at $17,000 and 30,000 admissions per year, the healthcare bill for this is over half a billion dollars and growing. Adding to the potential problem, there are over 400,000 new insulin users each year. You get the picture.

事實上，據估計，美國每年約有100,000次急診就醫與30,000次住院是由低血糖所致。在2007年至2011年期間，約有9.2%的急診就醫與胰島素相關的低血糖有關。在這些案例中，超過60%記錄到嚴重的神經學後遺症，包括被描述為休克、失去意識、癲癇發作、相關傷害或跌倒，以及低血糖導致的精神狀態改變。且將近三分之一需要住院或轉送至其他醫療機構。以低血糖住院的平均成本為17,000美元、每年30,000次住院計算，相關醫療支出超過5億美元且仍在成長。更值得注意的是，每年新增超過400,000名胰島素使用者。你可以想像其嚴重性。

So, why am I telling you this? Because DexCom is the leading company in the world addressing the challenges of maintaining adequate glucose control. Fingersticks can't do it alone, neither can an insulin pump.

那麼，我為什麼要告訴你這些？因為DexCom是全球領先、致力於解決維持適當血糖控制挑戰的公司。單靠指尖採血做不到，單靠胰島素幫浦也做不到。

So, when you look at DexCom and you look at our current product offerings of our robust pipeline, what you see is the evolution of an entirely new category in a market with enormous unmet needs. We continue to believe that simplicity, patient convenience, and expanded connectivity, paired with our superior sensor technology will enable us to maintain our leadership position in the CGM market. We are here now, investing in tools to make diabetes management less complicated, less burdensome.

因此，當你檢視 DexCom 並看看我們目前產品組合與強勁的產品研發管線時，你會看到的是：在一個存在龐大未被滿足需求的市場中，一個全新類別的演進。我們仍然相信，簡易性、病患便利性與更廣泛的連結性，搭配我們更優異的感測器技術，將使我們得以維持在 CGM 市場的領導地位。我們此刻就在這裡，投資各種工具，讓糖尿病管理更不複雜、更不具負擔。

We are not here solely as an accessory to an insulin pump or as a component to an artificial pancreas. And while we certainly are supportive of the efforts to develop an artificial pancreas, in fact we are the key enabling component of virtually all artificial pancreas research being conducted around the globe, we believe we also have a duty to support the vast majority of patients who will either not opt to use this technology due to the complexity or will never have access to it due to cost. These patients deserve better tools to manage their glucose levels as well. And we intend to develop products to meet the needs of all patients.

我們並非僅僅作為胰島素幫浦的配件，或作為人工胰臟的一個組成元件而存在。雖然我們當然支持開發人工胰臟的努力——事實上，我們是全球幾乎所有正在進行的人工胰臟研究的關鍵促成元件——但我們也相信，我們有責任支持絕大多數的病患：他們可能因為技術過於複雜而不會選擇使用，或因成本因素而永遠無法取得。這些病患同樣值得擁有更好的工具來管理其葡萄糖水平。我們也打算開發產品，以滿足所有病患的需求。

There is growing consensus that transitioning to outcomes-based payment is fundamental to driving cost-reducing innovation among providers and achieving a financially-sustainable healthcare system. Most everyone agrees that we must migrate from a largely fee-for-service system to one focused on delivering the best patient outcomes at the lowest possible cost.

目前越來越多共識認為，轉向以結果為基礎的支付模式，是推動醫療服務提供者進行降低成本創新的根本要素，並達成財務可持續的醫療體系。幾乎所有人都同意，我們必須從以按服務收費（fee-for-service）為主的制度，轉向以在最低可能成本下提供最佳病患結果為核心的制度。

Medical device companies such as ours need to be cognizant of this as we approach R&D. We will be successful only to the extent that we generate true cost-reducing innovations. We believe our strategic initiatives such as superior accuracy and performance to obtain fingerstick replacement, open connectivity, miniaturization and, ultimately, cost reduction will set DexCom apart.

像我們這樣的醫療器材公司在進行研發時必須意識到這一點。只有在我們能夠產生真正降低成本的創新時，我們才會成功。我們相信，我們的策略性舉措——例如更優異的準確度與效能以取得指尖採血替代（fingerstick replacement）、開放式連結性、微型化，以及最終的成本降低——將使 DexCom 脫穎而出。

Our CGM First message has continued to change the behavior of healthcare practitioners to help them better understand glycemic variability and how to manage it more effectively. I have stated on many occasions that diabetes is a mystery to the patients who deal with it every single day and have to act dozens of times each day to address the challenges of glucose control.

我們的「CGM First」訊息持續改變醫療從業人員的行為，幫助他們更好地理解血糖變異性，以及如何更有效地加以管理。我在許多場合都曾表示，對於每天都要面對糖尿病、並且每天必須採取數十次行動來應對血糖控制挑戰的病患而言，糖尿病是一個謎。

This evolution has never been fast enough for me. Although, when I became CEO in 2007, the CGM market was negligible and today it is approaching 10% penetration of the U.S. type 1 patient population. I'm, of course, proud to say that DexCom has a majority market share.

對我而言，這樣的演進從來都不夠快。不過，當我在 2007 年成為 CEO 時，CGM 市場幾乎可以忽略不計；而今天，它在美國第一型糖尿病患者族群中的滲透率已接近 10%。當然，我也很自豪地說，DexCom 擁有多數的市場占有率。

Thank you and, with that, I'll turn it over for our question and answer session.

謝謝各位，接下來我們進入問答環節。

Thank you. We will now begin the question and answer session. (Operator Instructions). Tom Gunderson, Piper Jaffray.

謝謝。我們現在開始問答環節。（接線員指示）。Tom Gunderson，Piper Jaffray。

Hi. Good afternoon, everybody. On the comment on transmitters being meaningful for the first time; is that a slow rise or did that have something to do with last year? Especially in first quarter, a lot of people upgraded to Gen 4, got a whole transmitter, and now it's a year later. In other words, should we look for higher transmitter sales for the rest of the year or was this one-off event?

嗨。各位下午好。關於你提到發射器（transmitters）首次變得顯著的評論；這是緩慢上升，還是與去年有關？尤其在第一季，很多人升級到 Gen 4，拿到一整套發射器，現在一年過去了。換句話說，我們是否應該預期今年剩餘時間發射器銷售會更高，還是這只是一次性的事件？

We believe there will be higher transmitter sales over the course of the year, Tom. Remember, when we launched this, the labeled indication for it is six months. Our transmitters have been quite honestly lasting longer than that. So, this rise in transmitter sales is actually a bit delayed over what we thought would happen. So, yes, we look for that to continue over the course of the year.

Tom，我們認為今年整體而言發射器銷售會更高。請記得，我們推出時其標示適應症（labeled indication）是六個月。我們的發射器坦白說一直都能使用得比那更久。因此，這次發射器銷售的上升其實比我們原先預期發生的時間點稍微延後。所以，是的，我們預期這種趨勢會在今年持續。

Got it. Thanks, Kevin. And my last question is; can you comment a little on competition to the extent that we're getting a little bit more media attention, both on Medtronic and Flash?

了解。謝謝，Kevin。我的最後一個問題是；在競爭方面你能否稍微評論一下？因為我們看到媒體關注度提高了一些，包括 Medtronic 和 Flash。

Yes. I mean the only thing I can say, Tom, is that if we look at what we did in the first quarter, we obviously did not feel much pressure, in my opinion from a competitive landscape, either domestically or internationally. I mean record quarters on both the U.S. as well as OUS. So, that would be about the summation of my comment.

可以。我的意思是，Tom，我唯一能說的是，如果我們看第一季的表現，我認為我們顯然沒有感受到太多競爭壓力，不論是在國內或國際市場。美國以及美國以外（OUS）都創下了創紀錄的季度表現。所以，我的評論大概就是這樣的總結。

Okay. Thank you. That's it for me, guys.

好的。謝謝。我的問題就到這裡，各位。

William Plovanic, Canaccord Genuity.

William Plovanic，Canaccord Genuity。

William Plovanic. Great, thanks. Good evening. Can you hear me okay?

我是 William Plovanic。很好，謝謝。晚安。你們聽得到我嗎？

Yes.

聽得到。

Perfect. So, just a couple questions. First, just pediatric; how is the strategy different for pediatric? I think you told us it will roll out a little slower. But, how do you approach that market differently than your current adult population?

太好了。那我有幾個問題。第一個是兒科（pediatric）；兒科的策略有何不同？我想你們告訴過我們會推行得稍微慢一些。但你們如何以不同於目前成人族群的方式來切入那個市場？

You know, Bill, Terry and I have both been out and visited pediatric clinics and we're approaching them with the same sales team that we approach the adult ones with. What we both noted is we haven't been there before. We've not been an active presence in those clinics. We've complied with our labeling by not actively pursuing a lot of those.

你知道的，Bill，Terry 和我都外出拜訪過兒科診所，我們是用同一個銷售團隊去接觸兒科診所，就像我們接觸成人診所一樣。我們兩個都注意到的是，我們以前沒有去過那裡。我們在那些診所並沒有積極的存在。基於遵循我們的標示（labeling），我們沒有積極去追求其中很多。

So, while they're familiar with CGM, there's an educational component as we get parents, physicians, other caregivers up to speed and get them used to the experience of DexCom CGM. Even if they've prescribed a few, they're not ready to move to many yet until they get a little more experience with us. So, it's kind of like going into new turf, for lack of a better example. We're kind of starting from scratch.

所以，雖然他們熟悉 CGM，但在我們讓家長、醫師以及其他照護者跟上進度、並讓他們習慣 DexCom CGM 的使用體驗時，仍有一個教育的成分。即使他們曾開立過幾張處方，他們也還沒準備好立刻大量使用，直到他們對我們有更多使用經驗為止。所以，若用一個不太精確的比喻，就像進入一塊新領域。我們某種程度上是從零開始。

But you did say -- I just want to make sure I'm clear -- that 20% of your patients in the quarter were pediatric?

但你確實說過——我只是想確認我理解正確——你們本季有 20% 的病患是兒科？

No, I said 20% of the pipeline, of our open pipeline.

不，我說的是我們開放管線（open pipeline）中的 20%。

So, as I think of the quarter, I think historically you're running around 10% for ped's. Did you move off of that? Has that increased a lot?

所以，回到本季，我記得歷史上你們兒科大約在 10% 左右。你們有偏離那個水準嗎？是否大幅增加了？

Somewhere between 10% and 20% would be a good number at this point in time.

以目前這個時間點來看，介於 10% 到 20% 之間會是一個不錯的數字。

That's a nice tight range. Thank you. And then, if we look at the quarter, that was a very impressive durable number. And I think what we're all going to try to find out or at least try to figure out is; how much of that is new patients? How much of that is transmitter upgrade?

這個區間很精準。謝謝。然後，如果我們看本季，那是一個非常令人印象深刻且具持續性的數字。我想我們大家都會試著找出、或至少試著推估的是；其中有多少來自新病患？有多少來自發射器升級？

And I know you won't answer the question so I'll ask it this way. One, what type of year-over-year growth did you see in your new patient adds? And, two, is there any type of mix that you might share with us from a revenue component? You know, of that, roughly $15 million in durables, 70% of it was new patient versus upgrades, transmitters, receiver upgrades, all those types of things.

我知道你們不會回答這個問題，所以我換個方式問。一，你們新增加病患數的年增率大概是多少？二，在營收構成上，你們是否能分享任何比例？例如，在大約 1,500 萬美元的耐用品（durables）中，約 70% 來自新病患，對比升級、發射器、接收器升級等各類項目？

You were correct the first time. We will not share the new patient changes. About the guidance between upgrades and new patients, certainly on the kids' side, we've said in previous calls that we typically run at a 70%-30% ratio over time. It may fluctuate more one quarter to another based on deductibles. I think this quarter is relatively typical of what we've seen in the past. The increase in the durable sales really relates to more transmitters than a shift in new patients and upgrades or anything like that.

你第一次的判斷是對的。我們不會分享新病患變化。至於升級與新病患之間的指引，當然在兒科這邊，我們在先前的電話會議中說過，長期來看我們通常維持在 70%–30% 的比例。它可能會因自付額（deductibles）而在不同季度間波動。我認為本季相對而言與我們過去看到的情況相當典型。耐用品銷售的增加，主要與發射器增加有關，而不是新病患與升級之間的轉移或其他因素。

So, but I mean inside that durable number, kind of what's the mix of new patients to the therapy, just to the therapy versus your existing customers, they're upgrading? So, is $5 million of this transmitters and upgrades and what have you of the $15 million?

所以，但我的意思是，在那個耐用品數字裡面，新開始使用治療（therapy）的病患，與既有客戶升級之間的組合大概是什麼？也就是說，在 1,500 萬美元中，有 500 萬美元是發射器與升級等項目嗎？

What Kevin was saying was that, again, there's a 70-30 split consumable to durable. But what he's also saying is that we've historically run close to the same split within new patients to upgrade patients, somewhere between 20% to 30% of any quarter is going to be upgrade patients. The durable revenue is going to be upgraded patients.

Kevin 的意思是，再次強調，耗材（consumable）對耐用品（durable）的拆分是 70-30。但他也在說的是，我們在新病患與升級病患之間，歷史上也維持接近相同的拆分；任何一個季度大約有 20% 到 30% 會是升級病患。耐用品營收會來自升級病患。

So the change in the mix this quarter would be because of the increase in the replacement transmitters.

所以，本季產品組合的變化會是因為替換用發射器的增加。

Right. The bump up to closer to 32% of durable revenue this quarter was attributable to increased transmitter sales. That's right.

對。本季耐用品營收占比上升、接近 32%，是因為發射器銷售增加所致。沒錯。

That's very helpful. Thank you very much. Then, last question, if I may, is just; have you seen any change in your attrition rate and anything you'd like to quantify with us? And that's all I had. Thank you.

這非常有幫助。非常感謝。那麼，若可以的話，最後一個問題是：你們是否看到流失率有任何變化？有沒有什麼想跟我們量化說明的？我就這些了。謝謝。

No, things look the same as what we said at year end. The attrition rate, certainly, on G4 PLATINUM system is much better than it ever was on SEVEN PLUS and we continue to see good reorder patterns.

沒有，情況看起來和我們在年終時所說的一樣。流失率方面，G4 PLATINUM 系統確實比 SEVEN PLUS 時期好很多，而且我們持續看到良好的再訂購模式。

Great. Thank you very much.

很好。非常感謝。

Ben Andrew, William Blair.

Ben Andrew，William Blair。

Good afternoon. Just following up on that same topic. If I was correct in our modeling, there was probably about $4 million of hardware replacement revenue in the fourth quarter. So, that change in percentage of the total this quarter would suggest something more like $6 million or $7 million of hardware replacement for existing patients. Is that in ballpark?

午安。延續同一個主題追問一下。如果我模型算得沒錯，第四季硬體替換營收大概是 400 萬美元。所以，本季占總額百分比的變化，似乎暗示現有病患的硬體替換大概是 600 萬到 700 萬美元左右。這個量級合理嗎？

We've given you as much as we're going to give you.

我們能給你的就到這裡了。

Okay. That's fine. We'll try something else. So, let's talk about the SEVEN PLUS patients who chose not to upgrade for whatever reason. Do you feel at some point do you get another shot on goal with them with the improved accuracy of the G4 or for whatever other reason?

好，沒問題。我們換個方式問。談談那些因為各種原因選擇不升級的 SEVEN PLUS 病患。你們覺得未來某個時間點，因為 G4 準確度提升或其他原因，你們是否還有機會再爭取到他們？

You know, I think with some of them we will. One of the reasons some of the patients don't upgrade, and again we've seen this as we look at the various age segments of our population, there are some age segments that tend to drop off more than others. And some of those who chose not to upgrade may have chosen not to upgrade for other reasons and may come back.

你知道，我想其中一些人我們會的。有些病患不升級的原因之一——而且我們在觀察不同年齡層時也看到——某些年齡層的流失傾向比其他年齡層更高。而有些當初選擇不升級的人，可能是因為其他原因，之後也可能會回來。

We see a lot of our patients who had dropped off SEVEN PLUS for years, when we launched Gen 4, come back to us and become patients again. And we actually count those as new patients because we lost them for a couple years. And, Bill, I think as we come out with our new technologies, again with more accuracy, with more connectivity, with stuff that's smaller, I think a lot of the patients we've lost will come back.

我們看到很多病患在 SEVEN PLUS 上中斷使用多年後，當我們推出第 4 代時又回來並再次成為病患。由於我們曾經失去他們好幾年，所以我們其實把這些人算作新病患。而且，Bill，我認為隨著我們推出新技術——更高準確度、更強連線性、體積更小等等——很多我們曾經流失的病患會回來。

Yes. And I would just add to that in terms of the age demographics, obviously we continue to push at a level to get reimbursement from the Medicare system. And some of these patients, unfortunately, have moved from having traditional third-party payer coverage to Medicare coverage and, if they're on fixed income, there's been some challenges there. But we always look forward to the opportunity to better serve them in the future as well as we push that agenda at the highest levels in CMS as well as in Congress.

是的。我再補充一點，關於年齡結構：很明顯我們持續推動在 Medicare 體系取得給付。有些病患不幸地從傳統第三方保險轉到 Medicare 給付；如果他們是固定收入，確實會有一些挑戰。但我們也期待未來能有機會更好地服務他們，同時我們也在 CMS 的最高層級以及國會持續推動這個議題。

Okay. And then, Kevin, maybe you could talk a little bit about the gross margin sequentially. Obviously, you had made huge progress last year. Volumes in the first quarter we know would be lower. Where do you see that trajectory over the course of the year? Do we actually get closer to that 70% range? Or can you give us some thoughts?

好。接著，Kevin，也許你可以談談毛利率的季對季變化。很明顯你們去年進步很大。我們知道第一季量會比較低。你們怎麼看今年整體走勢？我們會更接近 70% 的區間嗎？或能否分享一些想法？

Yes. We think we'll move up from here, Ben. We were 66% in Q4 with the large revenue number that we hung up there. And we're quite confident they'll continue to go up over the course of the year. A lot of that is volume-related as we can apply more costs to more stuff that goes out the door and as we get our other improvement programs in place.

可以。我們認為會從這裡往上走，Ben。第四季在營收數字很大的情況下，我們毛利率是 66%。我們相當有信心，毛利率會在今年逐季上升。其中很大一部分與出貨量有關：當更多產品出貨時，我們可以把更多成本攤到更多出貨上；同時我們也會把其他改善計畫逐步到位。

Our target margins for our sensors has always been in the 70% to 75% range. And, while we're running at 64% to 66% the last two quarters, it's pretty obvious our sensors are there within that range and we just need to look at ways to keep pushing them up. So, we think we'll get improvements. We're not going to sequential 10-point improvements like we did last year but we can see sequential improvements as we go over the course of the year.

我們對感測器的目標毛利率一直是 70% 到 75%。雖然過去兩季我們在 64% 到 66% 之間運行，但很明顯感測器本身其實已在那個區間內，我們只需要找方法持續把它往上推。所以我們認為會有改善。我們不會像去年那樣每季連續提升 10 個百分點，但我們可以看到今年逐季改善。

Okay. And then last question for me. Can you give us some rough sense of what the margin is on hardware? I suppose we can back into it if we use that range for sensors but is it a 10-point or 15-point difference?

好。那我最後一個問題：你們能否大概說一下硬體的毛利率？我想如果用感測器的區間，我們也許可以倒推，但硬體是差 10 個點還是 15 個點？

It's closer to 50%, Bill, when all is said and done.

全部算下來大概接近 50%，Bill。

Okay. Thanks a lot, guys.

好。非常感謝，各位。

Ben. I'm getting all my guys messed up. I'm sorry.

Ben。我把大家名字都搞混了。抱歉。

No worries. Thanks, Kevin.

沒事。謝謝你，Kevin。

Mike Weinstein, JPMorgan.

Mike Weinstein，JPMorgan。

Hi, this is Robbie Markussen (ph) for Mike. Congrats on the quarter. Can you talk about, I know you touched on it briefly, but maybe just what you're seeing in terms of Medtronic competition with the 530G system? And how have G4 sales trended in Medtronic pump users?

嗨，我是 Robbie Markussen（音）代替 Mike。恭喜本季表現。能否談談——我知道你們剛才稍微提到——你們看到 Medtronic 的 530G 系統競爭情況如何？以及在 Medtronic 幫浦使用者中，G4 的銷售趨勢如何？

We grew 67% this quarter. And that would speak to the strength of our business and how well we did. We certainly hear a lot of Medtronic 530G noise but I think our 67% number supports itself.

我們本季成長 67%。這足以說明我們業務的強勁以及我們做得多好。我們確實聽到很多關於 Medtronic 530G 的聲量，但我認為我們 67% 的數字本身就能說明一切。

With respect to Medtronic pump users who use G4 systems, there are a lot of them. It represents a significant piece of our pump patient base, Medtronic pump patients who use G4 sensors, and they're very happy. So, numbers speak for themselves.

至於使用 G4 系統的 Medtronic 幫浦使用者，數量很多。這在我們的幫浦病患基礎中占了相當重要的一部分——也就是使用 G4 感測器的 Medtronic 幫浦病患——而且他們非常滿意。所以，數字會說話。

Okay, great. And maybe just a follow up. You've gotten some pretty good reimbursement on type 2 patients recently. Can you talk about trends and what you're seeing there? And are they increasing as a percentage of your base and where are they right now?

好，很好。再追問一下：你們最近在第 2 型病患的給付方面取得不錯的進展。能否談談那邊的趨勢與你們看到的情況？他們占你們基礎的比例是否在上升？目前大概在哪裡？

We attempt to get any insulin-using patient covered in all the contracts that we enter into and we have had some good success in getting that. Type 2's haven't become a real large part of our business but it does continue to grow.

我們在簽訂的所有合約中，都會嘗試讓任何使用胰島素的病患都能獲得給付，而我們在這方面確實取得一些不錯的成果。第 2 型病患目前還沒有成為我們業務中非常大的一部分，但確實持續成長。

I think the most encouraging thing about the type 2 business that I've seen in my travels and the anecdotal stories we've heard; we have a huge impact on these patients because, once they can see, even if they're insulin using, once they can see the effect of the diet and the activities and the other things they do on their glucose levels, they can make some pretty radical changes that have very immediate outcomes. I've talked with people in the field who've seen type 2's go from an A1C of 10 down to 6.5 very rapidly just with changes in diet and activity. And then they get off some of the other compounds.

我在出差過程中看到、以及我們聽到的一些軼事中，最令人鼓舞的是：我們對這些第 2 型病患有很大的影響，因為一旦他們能看到——即使是使用胰島素——飲食、活動量以及其他行為對血糖的影響，他們就能做出相當劇烈的改變，而且效果非常立即。我和第一線的人聊過，他們看過第 2 型病患的 A1C 從 10 很快降到 6.5，只是透過飲食與活動的改變。然後他們也會停用一些其他藥物。

So, we're very excited at the opportunity and the results it provides. It's just going to take us awhile to grow it. But, no, it is good. It will be a great market for us over time.

所以，我們對這個機會以及它帶來的成果非常興奮。只是要把它做大需要一些時間。但，是的，這很不錯。長期來看，這會是我們很棒的市場。

And I would just add, again, when we look at the number of new insulin starts, some 400,000 a year now, obviously the majority of those patients are type 2 patients that have, for whatever reason, migrated either insulin in addition to oral agents or gone directly to insulin because the oral agents were not sustaining. That gives us yet another bolus of opportunity as we look at our product configuration and really build some products in the future directly for patients with type 2, particularly those on insulin. But we certainly wouldn't exclude and the data suggests that, even if you're on oral agents with type 2, you can benefit from CGM.

我再補充一點：當我們看每年新開始使用胰島素的人數——現在大約每年 40 萬人——很明顯其中大多數是第 2 型病患，他們因為各種原因，從口服藥轉為在口服藥之外加用胰島素，或因口服藥無法維持而直接改用胰島素。這也為我們帶來另一波機會：我們在檢視產品配置時，未來可以真正打造一些直接面向第 2 型病患、特別是使用胰島素者的產品。但我們當然不會排除其他族群，而且資料也顯示，即使第 2 型病患只使用口服藥，也能從 CGM 中受益。

Thanks.

謝謝。

Raj Denhoy, Jefferies.

Raj Denhoy，Jefferies。

Hi, guys. Good afternoon. I wonder if I could ask a couple questions. First, on the operating expense lines, I think you did a fair job of explaining about the heavier stock-based comp in the quarter. And I'm curious about how we should think about the progression of expenses as we move through the year, particularly as I think consensus numbers have you guys getting, at least on an operational basis, or really I should say an earnings basis, positive by the end of the year. Is that in keeping with what you guys are seeing?

嗨，各位。午安。我想問兩個問題。第一個，關於營業費用各項目，我認為你們已相當清楚地解釋本季股權基礎薪酬較高的原因。我想了解的是，當我們往今年後續季度走時，費用的走勢應該怎麼看？特別是我認為市場共識預估你們到年底至少在營運基礎上——或者更準確地說在獲利基礎上——會轉為正值。這是否符合你們目前看到的情況？

Last year, by the end of the year, we were cash flow positive from operations when we dropped all the non-cash charges from our P&L. And our goal this year was to grow that cash-based net income at a significantly higher rate than we grew our top line. We achieved that in the first quarter, going from almost a $4 million loss in the first quarter of last year, net cash loss, to a $500,000 net cash loss in the first quarter of this year. And we hope to see that improve over the course of the year.

去年到年底，當我們把損益表中的所有非現金費用都剔除後，我們的營運現金流為正。今年我們的目標，是讓以現金為基礎的淨利以顯著高於營收成長的速度成長。我們在第一季達成了這點：從去年第一季接近 400 萬美元的虧損（淨現金虧損），改善到今年第一季 50 萬美元的淨現金虧損。我們希望在今年接下來的時間裡看到這個數字持續改善。

With a GAAP perspective, when you've got a high end of a range of $225 million in revenue and 65% gross profits with non-cash expenses in excess of $12 million a quarter, GAAP profitability is not happening this year. And that's not been our goal for a while. We would look towards that in 2015. Again, if the equity comp number continues to be so high, GAAP profitability may be pushed down a bit. But we focus very heavily on that cash profitability number and make sure we're adding more the bank account than we're spending. And we saw that this quarter. So, it was good.

從 GAAP 的角度來看，當你的營收區間上緣是 2.25 億美元、毛利率 65%，而且每季非現金費用超過 1,200 萬美元時，今年不可能達到 GAAP 獲利。而這也不是我們一段時間以來的目標。我們會把 GAAP 獲利放在 2015 年再看。再說一次，如果股權薪酬的數字持續這麼高，GAAP 獲利可能還會再往後延。但我們非常專注在現金獲利這個指標，確保我們存進銀行帳戶的錢比花出去的多。我們這一季就看到了這點，所以表現不錯。

No, no. Yes, I totally get that. Just in terms of just making sure that we model it correctly and I guess we do -- I think everybody does have you, or most people have you, getting EPS profitable by fourth quarter on a GAAP basis. But, if I'm hearing you correctly, we shouldn't be assuming that, given the non-cash expenses.

不，不。是的，我完全理解。只是就確保我們能正確建模而言，我想我們確實——我想大家都一樣——你們或大多數人都把你們在第四季以 GAAP 基礎達到 EPS 獲利納入預期。但如果我理解正確的話，考量到非現金費用，我們不應該做這樣的假設，對嗎？

Well, yes. If everything were the same non-cash-wise, I think we could be close to getting there. But, with the significant increase in non-cash expenses that we're experiencing, again due to the stock price and stuff, it's going to pretty hard.

嗯，是的。如果所有非現金項目都維持不變，我認為我們可能接近能做到。但由於我們正在經歷非現金費用的大幅增加——同樣是因為股價等等因素——要達成會相當困難。

No, okay. I get you. Maybe just a couple on the product side. I think you've been increasingly talking about this product called SHARE, which I guess is one of the features that's going to be on the G5. And I'm curious if there's any updates on the timing of that. It sounds like it's at the FDA.

好，了解。再問幾個產品面的問題。我覺得你們最近越來越常提到一個叫 SHARE 的產品，我猜它是 G5 上的一個功能。我想知道它的時程是否有任何更新？聽起來它已經送到 FDA 了。

And then, subsequent to that, when it does get approved, really any expectations run with it that it could be as positive as a catalyst as we've seen with G4 and some other advances?

然後，等它獲准之後，你們對它的預期是什麼？它是否可能像我們在 G4 以及其他一些進展上看到的那樣，成為很正面的催化劑？

It is at the FDA and, as we said in our comments, we think we're on the homestretch here. Knock on wood. We certainly won't give a date or speak to it.

它確實在 FDA，那正如我們在評論中所說，我們認為已經進入最後階段了——希望一切順利。我們當然不會給出日期或對此多做評論。

Again, the SHARE system is our first venture into mobile connectivity, paring the receiver inside a cradle with an Apple device and then sending data to secure servers that can be shared with people who can follow your glucose levels all the time.

再說一次，SHARE 系統是我們首次進軍行動連線：把接收器放在一個底座（cradle）裡，與 Apple 裝置配對，然後把資料傳送到可安全存取的伺服器，讓其他人可以隨時追蹤你的血糖數值。

We think it will have a very good impact on our business, particularly in the ped's patients where parents are going to want to follow their children. We've talked to a number of people over the past few months whose child has never been on a sleepover before because they don't dare let them leave the house without being able to watch them. Big uptake in that segment. We think it will help us. It will also help us really with anybody who travels or is away from somebody who's a caregiver. We see a very good use for that product.

我們認為它會對我們的業務帶來很好的影響，特別是在兒科病患族群，因為家長會想要隨時追蹤孩子。我們過去幾個月和不少人聊過，他們的孩子從來沒有去過外宿（sleepover），因為他們不敢在無法監看孩子的情況下讓孩子離開家。這個族群的採用率會很高。我們認為它會幫助我們。它也會對任何需要旅行、或與照護者分開的人很有幫助。我們看到這個產品有非常好的使用情境。

We're not looking for huge changes in our revenue model for this. That cradle itself is going to be about a $400 charge starting out of the gate. Our goal with this is to make a system that will greatly enhance our patients' ability to manage their glucose, to take better care of themselves, and, from a business side, sell more sensors.

我們不預期它會讓我們的營收模式出現巨大改變。這個底座本身一開始的收費大約是 400 美元。我們的目標是打造一個系統，大幅提升病患管理血糖、照顧自己的能力；而從商業面來看，就是賣出更多感測器。

So that's how the model works for us and that's what we're hoping happens. It won't have the impact as a G4 launch did. I can quantify that. But we think it will help us. We have pretty high expectations here. We need to hit it pretty well. So, we think it will be helpful.

所以這就是我們的模式，也是我們希望發生的事。它不會像 G4 上市那樣帶來那麼大的影響——我可以量化那點——但我們認為它會幫助我們。我們對此有相當高的期待，也需要把它做得很好。我們認為它會有幫助。

And just so I'm clear. That's a feature -- it will work with the current G4. So there's no upgrade needed on that transmitter. You just need to buy the cradle and it all works.

我確認一下：這是一個功能——它可以搭配目前的 G4 使用。所以不需要升級那個發射器。你只要買底座就能用，對嗎？

Absolutely. You just buy the cradle and go.

完全正確。你只要買底座就可以了。

Okay. And just, lastly, and I know it's in your partner's hands but any updates on timing on the combined products, either the Vibe or the Tandem device?

好。最後一個問題，我知道這在你們合作夥伴手上，但整合式產品的時程有沒有更新？不論是 Vibe 或 Tandem 的裝置？

No. As we talked about, Raj, a quarter or two ago, we're going start deferring to the partners on timing. These filings are in their hands and so I think we'll let Tandem and Animas speak for themselves.

沒有。正如我們在一兩季前跟你談過的，Raj，我們會開始把時程問題交由合作夥伴來回應。這些送件都在他們手上，所以我想就讓 Tandem 和 Animas 自己對外說明。

Fair enough. Thank you.

合理。謝謝。

Mimi Pham, ABR Health.

Mimi Pham，ABR Health。

Hi. Good afternoon. About what percent of the 800 U.S. pediatric endocrinologists you've talked about have prescribed the G4 since launch in February or since approval in February?

嗨，午安。你們提到的美國 800 位兒科內分泌科醫師中，大約有多少百分比在 2 月上市以來或 2 月核准以來已經開立過 G4 的處方？

I couldn't quantify that. We don't have that.

我無法量化。我們沒有那個數據。

Would it be fair to say that your goal by year end is to get half of them to have written their first prescriptions or closer to a majority of them? Just based on your comments about the more measured rollout.

那麼可以這樣說嗎：你們的目標是在年底前讓其中一半的人開出第一張處方，或至少接近多數？這是根據你們對較為循序漸進的推廣所做的評論。

Mimi, I think we look at this more as a percentage of the patient base as we build our models up rather than just focusing on individual decisions. And we want to see the patient base over time move up to 30% of the overall patient base. We would expect the patient base to move from 10% this year up closer to 20% and then move up, over the next two years, higher than that. We haven't gone so far this year as to break it down by physician and by clinic.

Mimi，我們在建立模型時，更多是看病患基礎的占比，而不是只聚焦在個別醫師的決策。我們希望隨時間推進，病患基礎能提升到整體病患基礎的 30%。我們預期病患基礎今年會從 10% 提升到接近 20%，然後在接下來兩年再往上提升到更高。我們今年還沒有進一步按醫師與診所去拆解。

Okay. And then in terms of the pediatric ramp, I know it's still early but do you get a sense if these are stickier patients just more likely to use CGM 24/7 than periodically?

了解。那在兒科拉升（ramp）方面，我知道還很早，但你們是否感覺這些病患黏著度更高——也就是更可能 24/7 使用 CGM，而不是偶爾使用？

We think particularly the very young patients, care provider, parents are extremely sticky. That's always been a very good patient group for us even when the product was prescribed off label. We know with teenagers it doesn't matter what the device or the therapy or whatever you tell teenagers to do, sticky is kind of a difficult word. But we do well with them and they certainly do well on the system. So, we'll just see how it works over time.

我們認為，特別是非常年幼的病患，其照護者、父母的黏著度非常高。即使在產品仍屬於適應症外使用（off label）時，這一直都是我們非常好的病患族群。至於青少年，不管是裝置、療法或你告訴青少年要做什麼，「黏著」這個詞都算是比較難用。但我們在他們身上表現不錯，他們在系統上的效果也確實很好。所以我們就看時間推移下來的表現。

Thanks. And then, the last question, to follow up, I think, Tom's question on the flash. Can you just give us your thoughts on the additional data presented on Abbott's Flash at the ATTDD meeting back in February? Does it seem like it might keep more folks long-term internationally on just using blood glucose meters?

謝謝。最後一題，延續我想是 Tom 關於 Flash 的問題：你能否談談你們對 Abbott 的 Flash 在 2 月 ATTDD 會議上所呈現的新增資料的看法？它看起來是否可能在國際市場讓更多人長期只使用血糖機，而不是轉向其他方案？

Understand the Flash is definitely not CGM. The Flash doesn't provide the patient with real-time information, doesn't provide them a hypoglycemia alerts, etc. So, it's not really a direct comparison to our product offering. I do think there could be an interesting application for Flash. We're watching it.

要理解的是，Flash 絕對不是 CGM。Flash 不會提供病患即時資訊，也不會提供低血糖警示等等。所以它並不是與我們產品供應的直接對比。我確實認為 Flash 可能有一些有趣的應用，我們正在觀察。

With respect to the data, I think that the latest data presented by Abbott frankly wasn't quite as good as the first round of data we saw. But we're keeping an eye on it. I think, as we've said in the past, that, if Abbott finds a niche for this product particularly in more of diagnostic marketplace perhaps for non-insulin using type 2's or something like that, it's something that could be great to have Abbott help build the category for once. We've done all the heavy lifting in this category for years and years and years. It would be great to have someone else come in and help build a category that we could come in as a fast follower.

就數據而言，我認為 Abbott 最近公布的數據，坦白說，沒有我們看到的第一輪數據那麼好。但我們會持續關注。正如我們過去所說，如果 Abbott 能為這個產品找到一個利基，特別是在更偏診斷的市場，例如非胰島素治療的第二型糖尿病患者之類，那麼讓 Abbott 來協助建立這個品類一次，可能會是件很棒的事。多年來在這個品類裡一直是我們在做最吃重的工作；如果能有其他人進來幫忙把品類做大，讓我們可以作為快速跟進者（fast follower）切入，那會很好。

So, we're keeping an eye on it. We haven't, frankly, I don't think anybody has seen much of the product itself yet. So, it's a little bit early to tell. They've stated publicly that they expect to launch in Europe in the second half of this year. They've given no U.S. timeline for a launch or commercialization. So, I think we'll know more maybe by EASD this year in the latter half of the year.

所以，我們會持續關注。坦白說，我認為目前還沒有人真正看到太多產品本身的內容，所以現在判斷還有點早。他們已公開表示，預期會在今年下半年於歐洲上市。至於美國的上市或商業化時程，他們沒有給出任何時間表。因此，我想我們可能會在今年下半年、也許到今年的 EASD 時，知道更多資訊。

Great. Thank you very much.

很好。非常感謝。

Danielle Antalffy, Leerink Partners.

Danielle Antalffy，Leerink Partners。

Thanks so much. Good afternoon, guys, and thanks for taking the question. I was hoping you could comment on utilization trends. So, the last few quarters, we've seen strong utilization trends. I wanted to see if they were persisting and how we think about utilization trends evolving over the next few quarters as, Mimi brought it up, we have pediatrics who you would think, at least in the younger age group, would use the sensor more frequently. SHARE should contribute to utilization. So where can we get to with utilization ultimately as all these products and expanded indications hit?

非常感謝。各位下午好，也謝謝讓我提問。我想請你們評論一下使用率（utilization）的趨勢。過去幾個季度，我們看到使用率趨勢很強勁。我想了解這個趨勢是否仍在延續，以及我們該如何看待未來幾個季度使用率的演變。正如 Mimi 提到的，我們有兒科族群，你會認為至少在較年幼的年齡層，會更頻繁使用感測器。SHARE 也應該會對使用率有所貢獻。那麼，當這些產品與擴大適應症陸續推出後，使用率最終可能提升到什麼程度？

You've got to be careful, Danielle, when you talk about utilization trends because, remember, patients are probably wearing it longer than seven days. So, there's a point at which patients, even if all patients are wearing it all the time, you're still not going to have patients wearing four sensors per month.

Danielle，談使用率趨勢時你得小心，因為要記得，病人可能配戴的時間超過七天。所以會有一個點是，即使所有病人都一直配戴，你也不會看到病人每個月用到四個感測器。

So, what we've said with G4 PLATINUM, over the course of the last 18 months, has been what we've seen is a combination of more patients wearing it all of the time and a reduction in attrition. But that doesn't necessarily mean that all patients are wearing, for example, three sensors in a month or three-and-a-half sensors per month. So, you've got to really be careful at trying to expect utilization meaning sensors per month to go up in any meaningful fashion.

我們對 G4 PLATINUM 在過去 18 個月所說的是，我們看到的是兩件事的組合：更多病人是全天候配戴，以及流失率（attrition）下降。但這不一定代表所有病人例如每個月會用三個感測器或每個月三個半感測器。所以，你在期待使用率（以每月感測器數衡量）會有任何顯著上升時，必須非常小心。

What we do think is we've moved the buckets of patients where, before a patient might wear it periodically, might wear one sensor a month and take a break; that patient may be wearing two or two-and-a-half or three sensors a month because they're wearing it all the time. But you can't expect utilization in that sense to keep rising because, if a patient's wearing it all the time but extending the life, the utilization is not going to go up.

我們確實認為，我們已經把病人分布的「桶」往前移了：以前病人可能是間歇性配戴，可能一個月用一個感測器然後休息一下；現在那位病人可能每月用兩個、兩個半或三個感測器，因為他們是一直配戴。但你不能期待這種意義下的使用率持續上升，因為如果病人一直配戴但延長使用天數，使用率就不會上升。

What we've said is that, and Kevin said it in his remarks, is that attrition trends remain very positive and patients are continuing to utilize sensors. And so (inaudible) on utilization.

我們說過的，以及 Kevin 在他的談話中也提到的是，流失趨勢仍然非常正向，病人也持續在使用感測器。所以（聽不清）關於使用率。

Yes. The average, as a whole, of sensors used per month per patient has gone up but, like Steve said, we think it's probably because patients are having a better experience overall. We have not seen a reduction in the amount of days people use it across the board. We know people extend the wear.

是的。整體而言，每位病人每月使用的感測器平均數確實上升了，但如 Steve 所說，我們認為這可能是因為病人的整體使用體驗更好。我們並沒有看到大家使用天數在全面性地下降。我們知道有人會延長配戴時間。

Okay, great. Thanks so much. And just wanted to ask you guys about, ADA is coming up here I guess next month. Wondering if there's anything coming out at ADA from you guys or from the artificial pancreas side of things that we should be paying attention to.

好的，很好。非常感謝。另外我想問一下，ADA 似乎下個月就要到了。想請教你們在 ADA 上是否會有任何消息要發布，或是在人工胰臟方面有沒有什麼我們應該特別關注的？

We have about eight poster presentations at ADA. We'll be very busy. And please come and take a look at them. But we'll keep that under wraps until we get there.

我們在 ADA 會有大約八篇海報發表。我們會非常忙。也請你來看看。不過在到現場之前，我們會先保密。

With respect to the artificial pancreas, certainly there will be a lot of discussions about that. And, again, it will be programs we're heavily involved with, with groups that are seeing tremendous results and measurements from our CGM to drive the success of those programs. So, yes, there will be a lot. It will be a very busy show for DexCom. You'll hear a lot about us there.

至於人工胰臟，當然會有很多討論。同樣地，這些會是我們高度參與的計畫，與一些團隊合作；他們正取得非常亮眼的成果，而我們的 CGM 測量數據也在推動這些計畫的成功。所以，是的，會有很多內容。對 DexCom 來說會是一場非常忙碌的展會。你會在那裡聽到很多關於我們的消息。

Okay. Thanks so much.

好的。非常感謝。

Greg Chodaczek, Sterne Agee.

Greg Chodaczek，Sterne Agee。

Hey guys, most of my questions have been answered but just one quick one. Kevin, in terms of operating expense growth excluding non-cash equity, what were those growth rates you were quoting again?

各位好，我大部分問題都已經被回答了，只剩一個快速的問題。Kevin，就排除非現金股權（non-cash equity）之後的營業費用成長而言，你剛剛引用的成長率是多少來著？

We said last year that it would be a 10% to 20% growth on the R&D side, on the cash side, and we said we we'd try and keep SG&A at around 20%. On both cases, and I'll be very candid with you, when you look at opportunities to spend money to find growth for the future.

我們去年說過，研發（R&D）端在現金基礎上會成長 10% 到 20%，而 SG&A 我們說會盡量維持在大約 20%。兩者都是，而且我會很坦白地說，當你看到花錢以尋求未來成長的機會時……

As you heard about the build-out of the commercial team over the past 12 months, that's a lot more than a 20% increase. We've managed to keep that down in the 20% range because we haven't spent very much on the G&A side. But we'll continue to make investments where we think it's going to grow our business, where it's going to grow our business and where we need to.

如你所聽到的，過去 12 個月商業團隊的擴編，遠不只 20% 的增加。我們能把它控制在 20% 左右，是因為我們在 G&A 端花得不多。但我們會持續在我們認為能帶動業務成長、以及我們需要的地方進行投資。

That expense growth, we'll stick to that guidance now. We'll take a look at where we are in six months and give you a bit more. But, if you just go back to Q4, the growth from Q4 is very much dialed in to the expansion of the sales force for the full quarter, on those efforts that we undertook.

就費用成長而言，我們目前會維持這個指引。我們會在六個月後再看看我們的位置，並提供你更多資訊。不過，如果你回到第四季（Q4），從 Q4 的成長主要就是反映我們為了整個季度而擴充銷售團隊、以及我們所採取的那些行動。

And on the R&D side, the growth in the R&D expense is very much tied, really, just to the share-based compensation. That was almost 70% of the sequential R&D growth. So, we're looking at that. And we'll probably give you a little more update on that spending once we get six months into the year.

而在研發端，研發費用的成長很大程度上其實主要與股份基礎薪酬（share-based compensation）相關。那幾乎占了研發費用環比成長的 70%。所以我們正在檢視這點。等今年進行到六個月左右，我們可能會就這些支出再給你多一些更新。

Okay. Thank you for the clarification. And, in terms of pediatrics, your long-term goal is roughly about 30% of your revenues coming from pediatrics?

好的。謝謝你的說明。另外，關於兒科，你們的長期目標大約是讓兒科貢獻你們營收的 30%？

Yes, it is.

是的，沒錯。

Okay. That's all I have. Thanks, guys.

好的。我就這些。謝謝各位。

Thank you.

謝謝。

(Operator Instructions). Jayson Bedford, Raymond James.

（接線員指示）。Jayson Bedford，Raymond James。

Good afternoon and thanks for taking the questions. I don't mean to be repetitive here but just on the sequential jump in SG&A spending, it was a big number. I'm realize the $2.3 million in stock-based comp, the 20 new reps. But, did you increase your marketing efforts there or increase a cost associated with the pediatric launch at all in the first quarter?

各位下午好，謝謝讓我提問。我不想重複，但關於 SG&A 支出環比跳升，數字很大。我知道其中有 230 萬美元的股份基礎薪酬，以及新增 20 位業務代表。不過，你們是否也提高了行銷力道，或是在第一季增加了任何與兒科上市相關的成本？

Certainly, we've got in there. And, again, when you talk to sequential, you'd be talking Q4 to Q1 versus Q1 of last year. If we're going to compare Q1 of last year to Q1 of this year, you need to go back to my remarks.

當然，我們確實有包含在裡面。而且再說一次，你談環比（sequential）時，是在比較 Q4 到 Q1，而不是拿去年 Q1 來比。如果要比較去年 Q1 與今年 Q1，你需要回到我剛才的說明。

We had 48 reps in the field at the start of Q1 of 2013. We have almost 90 by the end of Q1 of 2014 and all those were in place early in the year. So, you've almost doubled feet on the street there. We more than doubled the size of our distribution channel management team with respect to payers, distributors, and all the other things associated with getting pharmacy reimbursement over time.

2013 年第一季（Q1）開始時，我們在外勤有 48 位業務代表。到 2014 年第一季末，我們接近 90 位，而且這些人員在年初就已到位。所以你在前線的人力幾乎翻倍。我們在通路管理團隊方面也擴大到兩倍以上，涵蓋付款方（payers）、經銷商（distributors），以及所有與隨時間推進取得藥局給付（pharmacy reimbursement）相關的事項。

We have built the marketing team up as well, not to the significance we've built up the sales side. Those expenses will probably come more over the course of the year as we do more marketing campaigns and as we run some clinical studies geared towards positioning the product for better reimbursement over time, which won't be part of R&D.

我們也擴編了行銷團隊，但幅度沒有像銷售端那麼大。這些費用可能會在今年的過程中逐步增加，因為我們會做更多行銷活動，也會進行一些臨床研究，目的是讓產品在未來能取得更好的給付定位，而這些不會列在研發（R&D）裡。

So, as you're comparing to last year, think 48 to almost 90 reps. Think double the number of people on the reimbursement side. That's where that growth comes from on the cash side.

所以，當你拿今年跟去年比時，想想 48 位到接近 90 位業務代表；想想給付端的人數翻倍。現金端的成長主要就是來自這些。

If you go from Q4 of last year to Q1, it's probably 20 new reps and a few people on the other side and the growth isn't near as much. I think the issue with the OpEx, as you compare this year with last year; we're a lot bigger than we were a year ago. We just are. There's no other way to describe it.

如果你從去年 Q4 比到今年 Q1，大概就是新增 20 位業務代表，再加上另一端少數幾位人員，成長就沒有那麼大。我認為在營業費用（OpEx）上，當你拿今年跟去年比；我們比一年前大了很多。我們確實就是更大了。沒有其他方式可以形容。

Right. Okay. Okay, that's helpful, Kevin. I guess the international strength, was it largely due to the entry of new countries or is same country sales growth also tracking above U.S. growth levels?

了解。好。好，這很有幫助，Kevin。我想問國際市場的強勁表現，主要是因為新增國家的進入，還是同一國家的銷售成長也同樣高於美國的成長水準？

You know, it's both. We do very well and we have some core markets; Germany, Italy, Sweden, the Netherlands. We do extremely well in Europe in those four. And the other markets are growing as well. Those four are kind of the backbone of our European business.

你知道的，兩者都有。我們表現非常好，而且我們有一些核心市場：德國、義大利、瑞典、荷蘭。我們在歐洲這四個市場表現極佳。其他市場也在成長。這四個市場算是我們歐洲業務的骨幹。

On top of that, we got into Canada in late 2013 and did very, very well in Q1 of 2014 in Canada, both with our standalone CGM and with the Vibe system. So, Canada has really been a very positive launch for us.

除此之外，我們在2013年末進入加拿大，並在2014年第一季於加拿大表現非常、非常好，無論是我們獨立的CGM，或是Vibe系統皆然。所以，加拿大對我們而言確實是一個非常正面的上市推進。

Okay. And then, lastly for me, just on the pediatric strategy and I may be getting into your sales comp structure here, but is the focus here on a portion of the pediatric endocrinologists out there and to go deep into those physicians or is more of a blanket approach where the goal is to; hey, let's touch them all by year end?

好的。最後一個問題，關於兒科策略。我可能會問到你們的銷售獎酬結構，但這裡的重點是鎖定部分兒科內分泌科醫師並深入經營這些醫師，還是採取較全面的方式，目標是：嘿，到年底把所有人都接觸到？

Our focus with respect to compensation is to grow the business in total. We reward our team for -- we have, obviously, a model. The biggest reward in our compensation structure is adding new patients to the Company. If our reps are achieving that through pediatric or adult patients, they're compensated the same. We will watch and we will monitor and make those reps that we have out there are going into both areas. If we see somebody not doing adults or not doing ped's, obviously we go check on the territory. But, they're rewarded the same for both.

就獎酬而言，我們的重點是推動整體業務成長。我們獎勵團隊——我們當然有一套模型。我們獎酬結構中最大的獎勵是為公司新增病患。如果我們的業務代表透過兒科或成人病患達成，他們獲得的獎酬是相同的。我們會觀察、監控，確保外勤代表同時涵蓋兩個領域。如果我們看到有人不做成人或不做兒科，我們當然會去檢視該區域。但兩者的獎勵是一樣的。

They have, again, very high numbers to meet, to meet our expectations. So, I can tell these guys are trying to get deep into everywhere they call and also call on a number of clinics. They are measured on both the number of calls that they do, the number of physicians they call on, and also how deep they go. And our term for that is a DexCom Champion. How many champions do you have and how many can you create? And so, all these guys are measured on a number of factors that really meet our overall company and business goals. Our goals are very congruent.

他們同樣有非常高的目標要達成，以符合我們的期望。所以我可以告訴你，這些人正努力在每個拜訪的對象上深入經營，同時也會拜訪多家診所。他們的衡量指標包括：拜訪次數、拜訪的醫師數量，以及他們深入的程度。我們對此的用語是DexCom Champion。你有多少位champion、你能創造多少位？因此，這些人會依多項因素被衡量，而這些因素確實符合我們整體公司與業務目標。我們的目標非常一致。

Okay. That's helpful. Thank you.

好的。這很有幫助。謝謝。

William Plovanic, Canaccord Genuity.

William Plovanic，Canaccord Genuity。

Great. Thanks for taking this. Just what was D&A and stock comp in the quarter? And my second question is the depreciation and amortization and stock comp overall for the quarter because there's not a cash flow out?

很好。謝謝讓我提問。本季的折舊與攤銷（D&A）以及股票薪酬是多少？第二個問題是，本季整體的折舊與攤銷以及股票薪酬是多少，因為那裡沒有現金流出？

You're going to see that probably in about literally five minutes when we file the Q. But share-based compensation was $8.7 million for the quarter and then we had depreciation and amortization of $1.9 million. All non-cash charges were (inaudible) for the quarter, which includes some accretion, change in far value for some contingent liabilities we have with Sweet Spot, etc.

你大概在大約五分鐘後、真的就是五分鐘後，我們提交Q（季報）時就會看到。不過，以股份為基礎的薪酬本季是870萬美元，折舊與攤銷是190萬美元。本季所有非現金費用為（聽不清），其中包含一些折價攤銷、我們與Sweet Spot相關的一些或有負債的公允價值變動等。

So, the total non-cash expenses are $12.1 million.

所以，非現金費用合計是1,210萬美元。

Okay. And then, just on the pediatric, you've provided your strategy, kind of what you're doing. You said that you expect this to kind of ramp a little slower. When do you expect the ped's to really gain momentum?

好的。然後關於兒科，你們已提供策略、也說明你們在做什麼。你提到你預期這會爬坡得稍微慢一些。你預期兒科何時會真正開始加速、取得動能？

I think they're gaining momentum now.

我認為他們現在就正在取得動能。

I think we all believe that there's significant momentum. I think Steve characterized it and Kevin as well that, in the adult population, as an example, when we call on an account, they're well-informed, not only about CGM, but particularly about G4 because we've been calling on them for the last several years.

我想我們都相信動能相當顯著。我想Steve以及Kevin也提到，以成人族群為例，當我們拜訪某個客戶時，他們資訊很充分，不僅了解CGM，尤其了解G4，因為我們過去幾年一直在拜訪他們。

You go into a pediatric account; number one, it's a new account for our sales reps, for the most part, in terms of, if they were co-located with an adult practice then oftentimes we know them but we never called on them. So, there's a relationship management that has to be established as well as the technology understanding. So, it is a bit of going back, as I think Kevin said; not starting over but certainly not the same type of awareness that you have in an adult population.

但你走進兒科客戶；第一，對我們的業務代表而言，多數情況下這是新客戶。就算他們與成人診所同址，很多時候我們認識他們，但我們從未拜訪過他們。因此，除了技術理解之外，也必須建立關係管理。所以這有點像回到之前，正如Kevin所說；不是從頭開始，但確實不像成人族群那樣有同等程度的認知。

And all that takes time. It takes repeated visits by the sales force to gain, quite frankly, the trust of that physician population, which we, in some cases, it's a first-time visit. I mean when we've been out in the field lately, from a management standpoint, calling on pediatric clinics, it's amazing. In fact, because I've been doing this for so long, the most startling thing to me is that it's like; holy cow, they don't understand this. We have got to be sure that they understand the basics of CGM at that level in order for them to be successful. So it is literally a step back in time but we do expect that to ramp up very quickly.

而這些都需要時間。需要銷售團隊反覆拜訪，坦白說，是為了取得那個醫師族群的信任；在某些情況下，這甚至是第一次拜訪。我的意思是，最近我們以管理層的角度到外勤拜訪兒科診所，真的很驚人。事實上，因為我做這行很久了，最讓我震驚的是：天啊，他們竟然不懂這個。我們必須確保他們在那個層級理解CGM的基本概念，才能讓他們成功。所以這確實像是回到過去一步，但我們確實預期它會很快加速。

Yes, I think the cautionary to the extent you read any cautionary language into our prepared remarks, it's really just making sure that the street doesn't get ahead of itself in thinking it was just going to be a flip-the-switch launch and kind of within a month or two we were going to have 30% or 40% penetration into the ped's market. That's all.

是的，我想如果你從我們事先準備的發言中讀到任何保守措辭，那其實只是要確保市場不要過度超前，認為這會像按下開關一樣的上市，然後在一兩個月內我們就能在兒科市場達到30%或40%的滲透率。僅此而已。

That's it.

就是這樣。

It's ramping, ramping just fine.

它正在爬坡，而且爬坡得很好。

Perfect. That's all I had. Thank you very much.

完美。我就這些。非常感謝。

We have no further questions at this time. I will now turn the call back to Terry Gregg for final remarks.

目前沒有其他問題。我現在把電話交回給Terry Gregg做最後結語。

Thank you. And thanks for joining us today. You know, I'm awfully proud of what we have accomplished. You noticed during the course of the conversation we said nothing about inclement weather having an impact on us. We blew through that, obviously, and overcame that even when officers were closed and still had a quarter to stand by and I'm very proud of the Company.

謝謝，也謝謝大家今天加入。我對我們所完成的成果感到非常自豪。你們注意到在整段對話中，我們完全沒有提到惡劣天氣對我們造成影響。我們顯然挺過去了，也克服了它，即使辦公室關閉，我們仍然交出一個值得肯定的季度表現，我對公司感到非常自豪。

And I would say this; again, for DexCom, we say what we're going to do and then we go out execute it. And that's the best thing that I can say about a company performing at this level. So, with that, I'll close. Thank you.

我還想再說一次；對DexCom而言，我們說到做到，然後出去把它執行完成。對一家能在這個水準上表現的公司，這是我能說的最好的話。那麼，我就到此結束。謝謝。

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for your participation. You may now disconnect.

謝謝各位女士、先生。今天的電話會議到此結束。感謝各位的參與。您現在可以掛線。