LAWRENCE, Mass., May 12 /PRNewswire-FirstCall/ -- NxStage Medical, Inc. , a leading manufacturer of innovative dialysis products, today announced its financial results for the first quarter ended March 31, 2008.
Revenues for the first quarter of 2008 were $31.0 million, compared to $8.4 million in the first quarter of 2007 and $29.9 million in the fourth quarter of 2007. Revenues in the in-center market, from the Company’s Medisystems in-center business, were $16.1 million in the first quarter of 2008, compared to $15.7 million in the fourth quarter of 2007. Revenues in the home dialysis market were $10.5 million for the first quarter of 2008, compared to $5.4 million in the first quarter of 2007 and $9.3 million in the fourth quarter of 2007. Revenues in the critical care market for the first quarter of 2008 were $4.3 million, compared to $2.9 million in the first quarter of 2007 and $4.9 million in the fourth quarter of 2007.
NxStage reported a net loss of $13.9 million, or ($0.38) per share, based on shares outstanding as of March 31, 2008, for the first quarter of 2008 compared with a net loss of $12.0 million, or ($0.41) per share, for the first quarter of 2007. For the first quarter of 2008 the Company had an Adjusted EBITDA loss of $8.3 million, compared to a loss of $10.7 million in the first quarter of 2007 (see the exhibits for a reconciliation of this non-GAAP measure).
Cash, cash equivalents and short term investments as of March 31, 2008 were $16.2 million. In addition, the Company has availability of $20 million under its revolving debt facility.
At the end of the first quarter 2008, NxStage was working with 355 dialysis centers to provide home hemodialysis therapy to 2,481 end-stage renal disease (ESRD) patients prescribed to receive therapy with the Company’s System One(TM) portable dialysis machine. This compares to 200 centers and 1,295 patients at the end of the first quarter of 2007 and 334 centers and 2,223 patients at the end of the fourth quarter of 2007.
“The scale and breadth of our three markets combined to drive revenue growth and gross margin improvement in the quarter. We are confident that home daily hemodialysis is a significant market opportunity in particular, over the long-term because of its clear patient benefits. We remain focused on delivering on our top line growth and economic improvement initiatives,” said Jeffrey H. Burbank, President & CEO of NxStage Medical.
Guidance
For the second quarter 2008, the Company expects revenue to be in the range of $30.5 million to $32.5 million. The Company expects a net loss in the range of $13.5 million to $14.5 million or ($0.37) to ($0.40) per share, based on current shares outstanding. The Company expects an Adjusted EBITDA loss in a range of $7.4 million to $8.2 million for the second quarter of 2008 (see the exhibits for a reconciliation of this non-GAAP measure).
For the full year 2008, NxStage expects revenue to be in the range of $130 million to $135 million. The Company also continues to expect a net loss in the range of $52 million to $56 million or ($1.41) to ($1.52) per share for the full year 2008, based on current shares outstanding. The Company expects an Adjusted EBITDA loss in a range of $28 million to $31 million for the full year of 2008 (see the exhibits for a reconciliation of this non-GAAP measure).
The Company has reduced its projection for the number of its home hemodialysis patients at year end and now expects to end 2008 with 3100 to 3500 patients on the System One(TM).
This release contains non-GAAP financial measures, a reconciliation of the Company’s non-GAAP financial measures to their most comparable GAAP financial measure is in the exhibits to this press release.
Conference Call and Webcast Featuring Synchronized Slide Presentation
NxStage will host a conference call and a webcast featuring a synchronized slide presentation at 5:00 p.m. Eastern Time on May 12, 2008 to discuss its first quarter 2008 financial results. The webcast slide presentation will be accessible through the Investor Information section of the Company’s website at www.nxstage.com. To listen to the conference call, please dial (888) 295-4740 for domestic callers and (617) 614-3925 for international callers. The passcode is 32616701. A replay of the conference call will be available two hours after the start of the call through June 12, 2008 by dialing 888-286-8010 (domestic) and 617-801-6888 (international), passcode 13355207. An online archive of the webcast will also be available by accessing the Investor Information section of the Company’s website at www.nxstage.com.
About NxStage Medical
NxStage Medical, Inc. is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of end-stage renal disease, or ESRD, and acute kidney failure. For more information on NxStage and its products, please visit the Company’s website at http://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 home and/or daily hemodialysis products, the anticipated market acceptance and demand for NxStage’s products, including those products recently acquired through the Medisystems acquisition, anticipated increases in the availability of, and market and patient awareness regarding, home hemodialysis, anticipated benefits of the Medisystems acquisition, anticipated reductions in cost of goods sold, anticipated margin improvements, anticipated patient and center numbers, anticipated revenues, loss and Adjusted EBITDA, and 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, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the Company’s historical chronic patient drop and retention rates, changes in the regulatory environment, 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 the Annual Report on Form 10-K for the year ended December 31, 2007.
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.
Non-GAAP Financial Measures
The Company discloses certain non-GAAP financial measures to supplement the Company’s consolidated financial statements presented on a GAAP basis. These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Management believes presenting Adjusted EBITDA (EBITDA adjusted for stock based- compensation and deferred revenue recognized) allows investors greater transparency to one measure used by management to understand cash use at the Company. The non-GAAP financial measures are reconciled to the most comparable GAAP financial measure below.
Projections of Adjusted EBITDA loss for the three months ended June 30, 2008 and year ended December 31, 2008 are as follows:
CONTACT: Investors, Stephanie Marks for NxStage, 1-888-698-6472,
ir@nxstage.com
Web site: http://www.nxstage.com/
