DexCom, a wireless glucose monitor manufacturer based in San Diego, California, released its third quarter results. While analysts had low expectations for this earnings report, Q3 results were worse than expected.
The company reported total losses of $17.3 million for the third quarter through September 30th, 2012. This is the equivalent of a 25 cents loss per share. These losses were based on total Q3 sales of $23.1 million and were higher than the 22 cents loss per share expected by analysts.
While results were poor, shareholders reacted mildly to the news. As of Friday close, DXCM shares were down 1.2 percent from market open.
While news may be glum for DexCom, a new product may help the company in the future. In early October, DexCom was granted FDA approval for its G4 Platinum continuous glucose monitor.
One analyst at Leerink Swann, an investment bank, shared expectations about the company with investors. According to the analyst, Danielle Antalffy, the G4 device has the highest reliability of any medical device found in its class. This product line should help DexCom gain market share in the type I diabetes health management market. Antalffy stated to investors, "In 2013, we expect the G4 to drive accelerating adoption momentum and ramping new patient adds as DXCM continues to penetrate the Type 1 diabetes patient population."