NxStage Reports Record Third Quarter 2014 Financial Results And Raises Full-Year Revenue Guidance

LAWRENCE, Mass., Nov. 6, 2014 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported third quarter revenue that exceeds the top end of its guidance range.

Revenue for the third quarter of 2014 increased 13 percent to a record $75.3 million, compared with revenue of $66.9 million for the third quarter of 2013, and exceeded the Company's guidance range for the third quarter. The increase in revenue was driven by strong adoption of the NxStage^® System One^TM hemodialysis machine within the Home, both within US and international markets, and the Critical Care market.

Home revenue increased 20 percent to $40.4 million for the third quarter of 2014 compared with revenue of $33.7 million for the third quarter of 2013. 

Critical Care revenue increased 24 percent to $13.3 million for the third quarter of 2014 compared with revenue of $10.7 million for the third quarter of 2013.

Consistent with the Company's expectations, in-center revenue was $19.4 million for the third quarter of 2014 compared with revenue of $21.3 million for the third quarter of 2013.

NxStage reported a net loss of $6.7 million, or $(0.11) per share for the third quarter of 2014 compared with a net loss of $5.0 million, or $(0.08) per share for the third quarter of 2013. The Company's net loss for the third quarter of 2014 was better than its guidance and included $4.1 million in expected losses associated with the Company's market development activities with NxStage Kidney Care, which is designed to support the adoption of home hemodialysis.

"We continue to build solid momentum with our strategic initiatives and deliver strong year-over- year revenue growth ahead of our expectations.  Importantly, this consistent outperformance is being driven by increasing adoption of the System One within our largest and fastest growing market opportunities," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "Based on our performance and increasing confidence around the fourth quarter, we expect to exceed our 15% Home revenue growth target for 2014, and we're again raising our total revenue guidance for the year. We are also increasingly confident that 2015 will be another strong year for NxStage, consistent with our target of a sustainable 15% Home revenue growth rate."

Burbank also commented on new data to be presented at the American Society of Nephrology (ASN) meeting in Philadelphia next week.  "Peritoneal dialysis (PD) has historically been the most prevalent therapy in the home.  New data to be presented at this meeting show that mortality, hospitalization and patient dropout are significantly improved with frequent home hemodialysis (HHD) with the System One versus PD.  This data shows that HHD therapy is not just another home alternative, but a differentiated therapy with significant clinical advantages."

Guidance:

The Company now expects full-year revenue for 2014 to be between $296 and $298 million, versus its previous guidance of $290 to $293 million. The Company now expects full-year net loss to be between $24 and $26 million, versus its previous guidance of $23 to $27 million.

For the fourth quarter of 2014, the Company expects revenue to be in a range of $74.5 and $76.5 million, and a net loss in the range of $5 to $7 million.

Conference Call:

NxStage will also host a conference call  today, Thursday, November 6, 2014 at 9:00 a.m. Eastern Time to discuss its third quarter financial results. To listen to the conference call, please dial 877-392-9886 (domestic) or 707-287-9329 (international). The call will also be webcast LIVE and can be accessed via the investor relations section of the Company's website at http://ir.nxstage.com.

A replay of the conference call will be available two hours after the completion of the call through November 14, 2014. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 14534785. An online archive of the conference call can be accessed via the investor relations section of the Company's website at http://ir.nxstage.com.

About the NxStage System One

The NxStage System One is the first and only truly portable hemodialysis system cleared for home use by the FDA. Its simplicity and revolutionary size (just over a foot tall) are intended to allow convenient use in patients' homes and give patients the freedom to travel with their therapy. When combined with the NxStage PureFlow™ SL Dialysis Preparation System, patients are able to further simplify, using ordinary tap water to create dialysis fluid. Unlike conventional hemodialysis systems, the System One requires no special infrastructure to operate. Under the guidance of their physician, patients can use the NxStage System One, with their trained partners, where, how and when it best meets their needs, at home or on vacation. http://www.nxstage.com/.

About NxStage

NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of ESRD and acute kidney failure. For more information on NxStage and its products, please visit the Company's website at www.nxstage.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for the Company's products, anticipated operating results, including revenues, loss, gross margin, and other expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage's products domestically and internationally, growth in home and/or more frequent hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and more frequent hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our customers, including DaVita Healthcare Partners Inc. and Fresenius Medical Care, including in response to the Company's NxStage Kidney Care initiative, and certain other factors that may affect future operating results and which are detailed in NxStage's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.

In addition, the statements in this press release represent NxStage's expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage's expectations or beliefs as of any date subsequent to the date of this press release.

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SOURCE NxStage Medical, Inc.

Related Links

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