It doesn't mean the person filing the appeal LOST technically, it means they courts felt they had no basis for appeal, no hope of winning, so it pretty much boils down to the same thing as a loss I guess. They could appeal to a higher court but that is costly and has a good chance of also being denied.
If an appeal is dismissed by the court it means the appellant lost the case. Therefore, the court will not look at the appeal. The person who filed it has lost the case and it cannot be reviewed. For more information, go to http://legal-dictionary.thefreedictionary.com/dismissal.