Insulet beats Q4, full-year expectations

February 9, 2010 by MassDevice staff

Insulet Corp.'s fourth-quarter and full-year revenues beat its own and analysts' expectations as it continues its drive toward profitability.

Insulet Corp. (NSDQ:PODD) continued down the road to profitability, increasing its fourth-quarter and full-year revenues and narrowing its net losses by 48.9 percent and 16.1 percent, respectively.

The Bedford, Mass.-based insulin management system maker posted a net loss of $14.9 million, or 42 cents per share, on sales of $20.2 million during the three months ended Dec. 31, 2009, compared with net losses of $29.2 million, or $1.05 per share, on sales of $11.9 million during the fourth quarter of 2008.

For the full year, Insulet reported sales of $66 million, up 83.1 percent compared with $36.1 million during 2008, and net losses of $79.5 million, or $2.86 per share, compared with net losses of $94.8 million, or $3.43 per share, during 2008.

President and CEO Duane DeSisto said the company also improved its gross margin and reduced its operating losses during the year. Insulet posted a gross loss of $4.6 million during 2008, or -13 percent, compared with gross profits of $$18.3 million, or 28 percent, during 2009. Operating losses narrowed from $$89.3 million in 2008 to $59.4 million last year.

DeSisto also cited the company's focus on new product launches (a new model of its PDM insulin pump manager last year and new versions of its OmniPod pump and PDM planned for 2009) and market expansion. Insulet took the OmniPod global early this year, inking an exclusive, five-year distribution deal with Swiss distributor Ypsomed AG (SIX:YPSN) that will see its flagship device introduced to nine European countries, China and Australia.

The company also shored up its balance sheet, landing $66.1 million from the sale of 6.9 million shares of stock in a public offering at $10.25 per share. Insulet had cash and equivalents of $128 million as of Dec. 31, 2009, compared with $56.7 million at the end of 2008.

Insulet said it expects sales in the range of $90 million to $100 million for 2010 and $20 million to $21 million in the first quarter. The company's shares closed at $13.48 as of the end of trading Feb. 9, up 2.4 percent.