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Dendreon (DNDN) Q3/12 Results

Net loss was $154.9 M, or $1.04 per share …

Net loss was $154.9 M, or $1.04 per share, compared to a net loss of $147.1 M, or $1.00 per share, for Q3/11.

The current period includes a one-time charge of approximately $81 M related to cash and non-cash restructuring expenses. Excluding these expenses and other non-cash charges, DNDN had a non-GAAP loss of approximately $50 M, or $0.33 per share. Net product revenue was $78 M, compared to $61 M for Q3/11, up 27% year over year and down 2.5% on a sequential basis. Operating expenses included: costs of product revenue of $51.75 M, R&D expenses of $18.64 M, SG&A expenses of $68.1 M and restructuring, contract termination and asset impairment costs of $80.99 M for a total operating expenses of $219.4 M. Shares used in computation of net loss were 149.59 M

  • As of 9/30/12, DNDN had approximately $445.1 M in cash, cash equivalents, and short-term and long-term investments, compared to $617.7 M as of 12/31/11.

The Bottom Line: The restructuring is in full swing as DNDN struggles to appease shareholders and perceptions. Positive cash flow of $100 M could offset perception as DNDN misses Q3 EPS of <-$1.04> by -$0.29 and revenues by $3 M. Many might think - this is overall good and shows they are getting their costs under control and running a company, despite the revenue miss. The stock has taken a terrible beating over the last year having closed at a paltry $3.85 on 11/1/12, ever since the previous management withdrew guidance. DNDN is UP in the pre-market by +$0.35 to $4.20 or +9.09%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.