DexCom (DXCM), a prominent player in the glucose monitoring market, reported fourth-quarter fiscal 2010 loss per share of 16 cents, lower than the Zacks Consensus Estimate of a loss of 19 cents and the year-ago loss of 25 cents. Net loss for the quarter trimmed roughly 15% year over year to $9.8 million owing to a healthy double-digit revenue growth.
For fiscal 2010, adjusted (excluding one-time items) loss per share of 82 cents was below the Zacks Consensus Estimate of a loss of 88 cents and the earlier-year loss of $1.18. Net loss (as reported) for the year rose 3% year over year to $55.2 million or 97 cents a share.
Revenues for the quarter shot up roughly 49% year over year to $15.6 million, beating the Zacks Consensus Estimate of $15 million. Product sales more than doubled year over year to $13.6 million while development grant and other revenues dipped 47% to $2 million. For fiscal 2010, sales zoomed 64% year over year to $48.6 million, also ahead of the Zacks Consensus Estimate of $48 million.
Margins and Expenses
Gross margin for the quarter increased to 44.7% from 39.2% a year ago. Operating expenses leaped 24% year over year to $16.9 million, largely on account of higher R&D spending, which surged 65% to $6.9 million.
Balance Sheet
The company exited fiscal 2010 with cash and short-term marketable securities of $47.1 million, up 68% year over year. The company de-leveraged its balance sheet as long-term debt (inclusive of current portion) declined to roughly $0.5 million at the end of the year from $46.7 million a year-ago.
Outlook
DexCom has not provided any financial forecasts for fiscal 2011. We believe the company is poised to gain a major share of the glucose monitoring market driven by sustained product development initiatives, collaborations, favorable reimbursement coverage and increased need for continuous glucose monitoring.
However, we remain concerned about aggressive competition from larger players such as Johnson & Johnson (JNJ), Medtronic (MDT) and Abbott (ABT), and a stricter regulatory environment. We currently have a long-term Neutral recommendation on DexCom.
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DEXCOM INC (DXCM): Free Stock Analysis Report
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