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DexCom Sess Narrower Loss

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DexCom, Inc. (DXCM - Free Report) reported a narrower loss of $1.1 million or 2 cents per share in the second quarter of the year compared with $14.7 million or 21 cents in the same quarter of 2012 as well as the Zacks Consensus Estimate of a loss of 16 cents per share.

Including $9.0 million in non-cash expenses, comprising primarily of share-based compensation, depreciation, and amortization, reported loss was $10.1 million or 14 cents in the quarter.

DexCom’s total revenue soared 53.0% to $35.8 million, exceeding the Zacks Consensus Estimate of $31.0 million. Product revenues surged 65.1% to $35.5 million while development grant and other revenues fell drastically to $0.3 million from $1.9 million in the prior year quarter.  Product gross profit was $21.8 million in the quarter, which more than doubled compared to $10.6 million in the second quarter of 2012.

Total cost of sales rose nearly 14.0% to $13.9 million compared to $12.2 million in the second quarter of 2012. Product cost of sales increased 25.7% to $13.7 million from $10.9 million in the comparable quarter of 2012, primarily due to increased volumes of product sales.

Research and development expenses rose 11.0% to $11.1 million in the quarter compared to $10.0 million for the second quarter of 2012. The higher research and development expenses were stemmed from additional payroll costs and share-based compensation.

Selling, general and administrative expense increased 30.2% to $20.7 million in the second quarter from $15.9 million in the previous year quarter. The increase was attributable to additional payroll costs, share-based compensation and commissions.

DXCM had cash and cash equivalents of $28.2 million as of Jun 30, 2013, significantly up from $8.1 million as of Dec 31, 2012. Total debt was flat at $7.0 million as of Jun 30, 2013 compared with the same as of Dec 31, 2012.

Calif.-based DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems. The company relies significantly on its base of recurring revenue which reflects increasing usage rate with existing patients. Thus, higher patient base will bolster top-line for DexCom.

DXCM currently retains a Zacks Rank #4 (Sell). Currently, other medical stocks that are performing well include Thoratec Corporation and Cyberonics , both with a Zacks Rank #1 (Strong Buy), and IDEXX Laboratories, Inc. (IDXX - Free Report) with a Zacks Rank #2 (Buy).

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