DexCom first-quarter product revenue up 153%

DexCom, Inc. (Nasdaq:DXCM) today reported its unaudited financial results for the quarter ended March 31, 2010.

Product revenue grew to approximately $6.8 million for the first quarter of 2010, an increase of approximately 153% from the $2.7 million in product revenue reported for the first quarter of 2009, and an increase of approximately 2% from the $6.6 million in product revenue reported for the fourth quarter of 2009. Total first quarter 2010 revenue, which includes development grant and other revenue, was $9.5 million, an increase of approximately 83% from the same quarter in 2009, and a decrease of approximately 9% from the fourth quarter of 2009. The decrease in total revenue reported compared to the fourth quarter of 2009 was primarily due to a one-time milestone payment recorded as development grant and other revenue in the fourth quarter of 2009 compared to none for the first quarter of 2010. The Company reported a net loss of $20.3 million, up from $13.1 million for the first quarter of 2009. The net loss included $11.8 million in non-cash expenses during the first quarter of 2010, attributed primarily to loss on the extinguishment of debt upon conversion of our convertible notes and share-based compensation. In particular, the increase in net loss was primarily due to $7.9 million in non-cash expense on the extinguishment of debt upon conversion of our convertible notes in the first quarter of 2010 compared to none in the first quarter of 2009. Net loss was $0.40 per share for the first quarter of 2010, up from a net loss of $0.33 per share for the first quarter of 2009. During the quarter ended March 31, 2010, we converted $54 million of the $60 million in outstanding convertible debt into approximately 7.2 million shares of common stock. Assuming we did not convert any debt during the quarter, the non-GAAP loss-per-share would have been $0.27.

Product cost of sales increased $1.6 million to $5.1 million for the first quarter of 2010 compared to $3.5 million for the same quarter in 2009, primarily due to increased volume of product sales. Total cost of sales was $6.1 million for the first quarter of 2010, compared to $5.5 million for the first quarter of 2009. The increase was due to additional product sales offset by lower development and other costs related to development and collaboration agreements entered into during 2008. Research and development expense increased by approximately $1.5 million to $4.7 million for the first quarter of 2010, compared to $3.2 million for the first quarter of 2009. The increase in research and development expense was due primarily to increased development efforts for our ambulatory products and decreased activity under our development and collaboration agreements. Selling, general and administrative expense increased by approximately $1.9 million to $9.8 million for the first quarter of 2010, compared to $7.9 million for the first quarter of 2009, with the change primarily due to additional customer service, sales and international development costs. As of March 31, 2010, the Company had $52.1 million in cash, marketable securities, and restricted cash.