I'm long but looking at their financials man they are ugly....has DXCM ever given any guidance/indication to the tipping point of when they believe they will be profitable? Seems like CGM systems could easily become a standard for individuals with Type I or II Diabetes. I wonder what the tipping point will be for these guys..
Sept 08 revenue - 1.92 million Dec 08 revenue - 4.07 million Mar 09 revenue - 5.2 million June 09 revenue - 6.7 million
The cost of revenue in each one of those quarters was greater than their revenue...meaning they got no margin....i am not saying this wouldnt drastically improve as they get to higher production levels.
Also, quadrupled revenues doesnt mean squat when you quadruple pennies. They are trading at a 300million dollar market cap and let me tell you its got nothing to do with their current revenues....they are trading at those levels based on speculation.
Its easy to grow your revenues at a high rate when they are almost non existent to begin with. The question is can they sustain the same growth and at what point do they become gross margin positive and then at what point do they become +EBITDA, and then when do they become fully profitable. They are not trading at these levels because of there current growth rate and revenues. Their book value per share is: 0.043.
Balance Sheet Total Cash (mrq): 48.87M Total Cash Per Share (mrq): 1.065 Total Debt (mrq): 44.91M Total Debt/Equity (mrq): N/A Current Ratio (mrq): 3.256 Book Value Per Share (mrq): 0.043
go back to school and learn to read financials....