Shares of Seattle, Wash.-based Dendreon (OTC:DNDNQ) are cratering, down more than 12% in after-hours trading Thursday after the company reported Q2 2013 earnings results that fell short of analyst expectations on both revenues and earnings.

Dendreon lost $68.8 million in Q2 -- $0.45 per share -- on $73.3 million in revenues. These numbers represented an 8% decline in sales year over year (a bad decline), but a 28% decline in the company's losses (thus, a good decline).

Company CEO John H. Johnson characterized the results as showing "progress" after a "challenging first quarter." Johnson highlighted the company's "solid growth in large accounts where we are focused." Investors, however, appear to be more concerned with the decline in sales overall.