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URL:  https://boards.fool.com/podd-q2-and-analysis-30195805.aspx

Subject:  PODD Q2 and analysis Date:  8/9/2012  4:39 PM
Author:  TMFTypeoh Number:  12903 of 13725

Hey Breakers,

Here are my notes on how the call went last night.

Expectations:

Revenue: $52.09 MM
Earnings: -0.26/share

Actual Results:

Revenue: $51.0 MM, +58% year over year (miss)
Earnings: -0.30/share (miss)

Considering that PODD came in a little short on both fronts, its pleasantly surprising to see that the stock is up 6% or so today. Which begs the question, why are we up when we came up a little short?

My guess is that its due to some of the comments from the press release and the call. Namely, this:

"With sales climbing, gross profits increasing and completion of our infrastructure integration with Neighborhood Diabetes, we remain on track to be at or near operating cash flow break even by the end of this year. Further, we continue to make significant progress towards 510(k) clearance of the smaller, lighter next generation OmniPod. Our manufacturing capacity continues to increase and we expect to be poised for launch once clearance is obtained from the US Food and Drug Administration."

Also, there was this:


• In July, the Company received two final follow-up comments from the US Food and Drug Administration (FDA) about the 510(k) submission for the next generation OmniPod that the Agency believes need to be resolved before its review of the Company's 510(k) submission can be successfully completed. The Company is currently working on its response to address both comments.
• Last month the Company announced the appointment of W. Mark Lortz to its board of directors. Mr. Lortz brings extensive expertise in the diabetes industry, having served as the Chairman, President and Chief Executive Officer of blood glucose monitoring manufacturer TheraSense, Inc. from 1997 to 2004, when it was acquired by Abbott Laboratories.
• Investments made to the commercial organization in the first half of 2012, including the addition of an inside sales capability and incremental field personnel, have begun to show a return, as new referrals increased over 20% year over year.
As for the call itself, there isn’t a whole lot to share. Duane went into some additional details about what the FDA was asking for from us (labeling changes to the user guide and additional human factor studies).


As you can imagine, the analysts were most interested in learning about the timing of the approval of the next generation product and how it will affect sales and margins going forward. Duane said he was going to stop trying to predict the FDA’s timeline, as clearly it is very, very hard.

All in all, nothing to major was released. I think it was a fine quarter for the company, even if we they came up a little short of expectations.

Here is the link to the release: http://investor.insulet.com/releasedetail.cfm?ReleaseID=6993...

And if you want to hear a replay of the call: http://investor.insulet.com/eventdetail.cfm?eventid=117150

Feel free to shoot me an questions.

Brian
SA/RB Welcome Fool
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