), a player in the glucose monitoring market, reported first
quarter 2013 adjusted loss per share of 16 cents, narrower than
the Zacks Consensus Estimate of a loss of 17 cents per share.
Revenues surged 47% year over year to $29.6 million in the
first quarter, beating the Zacks Consensus Estimate of $28
million. Product sales increased about 49% to $27.8 million while
development grant and other revenues improved 20% to $1.8 million
in the reported quarter.
Margins and Expenses
Gross margin improved to 55.7% in the first quarter from 46.8%
a year ago. Operating expenses increased 10.5% year over year to
$27.4 million due to higher selling, general and administrative
expenses, which grew 17.5% in the reported quarter. The company
reduced its operating loss year-over-year.
DexCom exited the first quarter with cash and short-term
marketable securities of $45.3 million, down 7% on a sequential
basis. Long-term debt (net of current portion) amounted to $6.3
million, down 7.4% sequentially.
DexCom is well placed in the industry that it serves. Given
the burgeoning diabetes population in the U.S., its products
present a considerable market opportunity. Increased awareness
and acceptance of the need for continuous glucose monitoring and
international expansion should help drive sales of DexCom's
products. The company is eyeing prospects in the vast markets of
India, China and Japan.
In addition to upgrading and enhancing the functions of
existing products, DexCom has also been active on the
collaboration front, through which it is looking to leverage its
technology with its collaborator's product offerings. We believe
that the company's move to buy healthcare IT company SweetSpot
Diabetes Care, may allow it to compete more effectively through
better data management systems.
Despite increasing revenues, DexCom remains a loss making
entity and its efforts are made more difficult by a stringent
The stock currently holds a Zacks Rank #3 (Hold).
) each carry a Zacks Rank #2 (Buy) and are expected to do
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