Summary
DexCom, Inc. (DXCM) reported its quarterly results for the period ended September 30, 2011. The company, a medical device firm focused on continuous glucose monitoring (CGM) systems, demonstrated significant revenue growth in both its product and development grant segments. For the three months ended September 30, 2011, total revenue increased to $18.25 million from $11.66 million in the prior year period. The company's product revenue grew by approximately 53% year-over-year, indicating increasing market adoption of its SEVEN PLUS system. Despite revenue growth, the company continued to operate at a net loss, reporting a net loss of $13.28 million for the quarter. This was largely due to increased operating expenses, particularly in research and development and selling, general, and administrative functions, reflecting ongoing investment in product development and commercialization efforts. The company ended the quarter with a healthy cash position of $17.52 million and significant short-term marketable securities, providing liquidity for future operations.
Financial Highlights
42 data points| Revenue | $18.30M |
| Cost of Revenue | $10.09M |
| Gross Profit | $8.20M |
| R&D Expenses | $8.23M |
| SG&A Expenses | $13.24M |
| Operating Expenses | $21.50M |
| Operating Income | -$13.31M |
| Interest Expense | $1K |
| Net Income | -$13.30M |
| EPS (Basic) | $-0.05 |
Key Highlights
- 1Total revenue for the third quarter of 2011 increased by 56.5% to $18.3 million compared to $11.7 million in the third quarter of 2010.
- 2Product revenue grew by 53.2% to $16.7 million for the three months ended September 30, 2011, driven by increased sales volume and average selling prices.
- 3Research and Development expenses increased by 35.2% to $8.2 million, reflecting investment in next-generation ambulatory products.
- 4Selling, General, and Administrative expenses rose by 28.1% to $13.2 million, supporting revenue growth and product commercialization.
- 5The company reported a net loss of $13.3 million for the quarter, a slight improvement from the $13.4 million net loss in the same period last year.
- 6Cash and cash equivalents significantly increased to $17.5 million from $4.9 million at the end of the previous fiscal year, supplemented by substantial short-term marketable securities.
- 7DexCom continues to face significant legal challenges with Abbott Diabetes Care regarding patent infringement, with no amounts accrued as of the reporting date.