LAWRENCE, Mass., May 6, 2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported first quarter financial results that exceed the top end of its guidance range.
Revenue for the first quarter of 2015 increased 10 percent to $79.5 million, compared with revenue of $72.2 million for the first quarter of 2014. The Company’s revenue guidance range for the first quarter was $77.5 million to $78.5 million. The increase was driven by outperformance in the System One segment which consists of Home and Critical Care.
Home revenue increased 19 percent to $43.5 million for the first quarter of 2015 compared with revenue of $36.5 million for the first quarter of 2014.
Critical Care revenue increased 9 percent to $16.1 million for the first quarter of 2015 compared with revenue of $14.7 million for the first quarter of 2014.
Consistent with the Company’s guidance, In-center revenue was $17.9 million for the first quarter of 2015 compared with revenue of $18.9 million for the first quarter of 2014.
Net loss attributable to NxStage Medical, Inc.'s stockholders was $5.7 million for the first quarter of 2015 compared with a net loss of $5.3 million for the first quarter of 2014. NxStage Medical, Inc.'s net loss for the first quarter of 2015 was better than its guidance for a net loss of $6.5 million to $7.5 million, and included $5.6 million in losses from operations from the Company’s Services segment, NxStage Kidney Care, less noncontrolling interest.
“NxStage had a strong start to the year,” stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. “We delivered solid revenue growth and made good progress across a number of key financial metrics in the first quarter. We are continuing the momentum we established in 2014 with initiatives aimed at capitalizing on our expanding opportunity with the NxStage System One. Our strategic growth initiatives remain solidly on track and we believe they are positioning the Company toward our goal of sustainable 15% annual home revenue growth in 2015 and beyond.”
Guidance:
“After a strong first quarter, we believe we are trending towards the higher end of our annual revenue guidance which was originally set to be between $324 million and $328 million,” stated Matthew W. Towse, Chief Financial Officer. “Looking ahead to the second quarter, we expect revenue to be between $79.0 million and $80.5 million, and a net loss in the range of $5.5 million to $7.0 million. As we expect to work towards sustainable operating profit in the products business, we expect the majority of the Company’s projected net loss to be related to our investment in NxStage Kidney Care.”
Conference Call:
NxStage will also host a conference call today at 9:00 a.m. Eastern Time to discuss its first 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 May 14, 2015. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 20785879. 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 portable hemodialysis machine cleared specifically by the U.S. Food & Drug Administration (FDA) for home hemodialysis and home nocturnal hemodialysis. 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, including while they are sleeping - at home or on vacation and at a medically appropriate treatment frequency. The System One is also used to provide a range of flexible therapy options in more traditional care settings such as hospitals and dialysis centers. Its safety and efficacy have been demonstrated by experience with more than 10 million treatments with thousands of patients around the world. 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 Annual Report on Form 10-K for the year ended December 31, 2014.
In addition, the statements in this press release represent NxStage’s expectations and beliefs as of the date of this press release.
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