LAWRENCE, Mass., Feb. 29, 2012 /PRNewswire/ --
Highlights:
- Full-Year Revenue Increases to $217.3 Million, 21% Annual Growth
- Full-Year Home Revenue Increases to $108.5 Million, 27% Annual Growth
- Full- Year Gross Margin Improves to 36%, up from 32% for 2010
- Q4'11 Revenue Increases to a Record $57.0 Million, up 15% from Q4'10
- Company Applauds Favorable Coverage Decision Supporting More Frequent Home Hemodialysis by UnitedHealthcare
NxStage® Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record financial results for the three and twelve months ended December 31, 2011, that includes revenue above the top end of its guidance range.
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Revenue for the full-year 2011 increased 21 percent to $217.3 million, compared with revenue of $179.2 million for the full-year 2010. Revenue for the fourth quarter of 2011 increased 15 percent to a record $57.0 million compared with revenue of $49.8 million for the fourth quarter of 2010. The increase in both periods was led by the Company's solid performance in the Home market as a result of growing adoption of more frequent home hemodialysis with the NxStage System One.
Home delivered 27 percent annual growth, with revenue increasing to $108.5 million for the full-year 2011 compared with revenue of $85.8 million for the full-year 2010. Home revenue increased to $28.2 million in the fourth quarter of 2011 compared with revenue of $23.6 million in the fourth quarter of 2010, representing a 20 percent increase.
"Home revenue continued to show strength both on an annual and sequential basis," stated Jeffrey H. Burbank, Chief Executive Officer of NxStage Medical, Inc. "The majority of Home's sequential revenue growth in Q4 was driven by our performance in the U.S. which was in-line with normal seasonality and slightly better than our guidance."
Critical Care delivered 25 percent annual growth, with revenue increasing to $35.0 million for the full-year 2011 compared with revenue of $28.1 million for the full-year 2010. Revenue in Critical Care increased to $9.8 million in the fourth quarter of 2011, compared with revenue of $8.6 million in the fourth quarter of 2010, representing a 14 percent increase.
The Company's in-center business, Medisystems, delivered 13 percent annual growth with revenue increasing to $73.8 million for the full-year 2011, compared with revenue of $65.4 million for the full-year 2010. Fourth quarter revenue was $19.0 million, compared with $17.6 million in the fourth quarter of 2010.
"NxStage delivered another year of solid growth in 2011. This performance is clear evidence of the strategic progress we continue to make across our business. We achieved both our financial and business objectives and advanced our mission to improve the lives of patients with ESRD," stated Burbank.
Burbank continued, "Entering 2012, I believe that we have good underlying market fundamentals, a strong balance sheet, a solid operating model, as well as the deepest product pipeline in our Company's history. We see significant opportunities to advance our long term growth strategy and remain confident in our ability to deliver continued improvement and meaningful growth."
In commenting on UnitedHealthcare's recent policy update in support of reimbursement for more frequent home hemodialysis Burbank stated, "We applaud UnitedHealthcare for their leadership in providing greater access to the life changing benefits possible with our therapy. This is an exciting and important step forward in our efforts to make reimbursement simple, predictable and appropriate across all payers, including Medicare."
NxStage reported a net loss of $21.4 million or ($0.39) per share for the full-year 2011 compared with a net loss of $31.7 million or ($0.66) per share for the full-year 2010. The Company reported a net loss of $4.6 million or ($0.08) per share for the fourth quarter of 2011 compared with a net loss of $6.3 million or ($0.13) per share for the fourth quarter of 2010.
For the full-year 2011, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses, of $7.3 million, compared with $0.5 million for the full-year 2010. For the fourth quarter of 2011, Adjusted EBITDA was $2.0 million compared with $1.5 million in the fourth quarter of 2010. (See the exhibits for a reconciliation of this non-GAAP measure.)
Guidance:
For the first quarter of 2012, the Company is forecasting revenue to be between $56.0 million and $57.0 million, a net loss in the range of $5.0 to $6.0 million or ($0.09) to ($0.11) per share, and Adjusted EBITDA in the range of $1.0 to $2.0 million.
For the full fiscal year 2012, the Company is forecasting revenue to be between $240 million and $245 million, a net loss in the range of $14.0 to $18.0 million or ($0.25) to ($0.32) per share, and Adjusted EBITDA in the range of $8.0 million to $12.0 million. The Company expects to achieve consolidated gross margins of between 39 percent to 43 percent in the fourth quarter of 2012.
This release contains a non-GAAP financial measure; a reconciliation of the Company's non-GAAP financial measure to its most comparable GAAP financial measure is in the exhibits to this press release.
Conference Call:
NxStage will also host a conference call today, Wednesday, February 29, 2012, at 9:00 a.m. Eastern Time to discuss its fourth quarter and year-end 2011 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 www.nxstage.com.
A replay of the conference call will be available 2 hours after the completion of the call through March 14, 2012. To access the replay, dial 855- 859-2056 (domestic) or 404- 537-3406 (international) and reference conference ID 45478602. An online archive of the conference call can be accessed via the investor relations section of the Company's website at 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
