LAWRENCE, Mass., Feb. 26, 2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record revenue for the fourth quarter and fiscal year ended December 31, 2014, topping its recent guidance.
Total revenue for the full-year 2014 increased 14 percent to $301.5 million, compared with revenue of $263.4 million for the full-year 2013. Total revenue for the fourth quarter of 2014 increased 15 percent to a record $79.9 million, compared with revenue of $69.5 million for the fourth quarter of 2013. The increases in both periods were driven by outperformance in the System One segment which consists of Home and Critical Care.
Home revenue increased 19 percent to $157.8 million for the full-year 2014, compared with revenue of $132.9 million for the full-year 2013, exceeding the Company’s target for 15% annual growth. Home revenue increased 21 percent to $42.5 million in the fourth quarter of 2014, compared with revenue of $35.1 million in the fourth quarter of 2013, exceeding the top end of its recent guidance. The growth in both periods was primarily driven by increased adoption of the NxStage® System One, the first and only portable hemodialysis system cleared specifically by the U.S. Food & Drug Administration (FDA) for home hemodialysis and home nocturnal hemodialysis.
Critical Care revenue increased 27 percent to $55.6 million for the full-year 2014, compared with revenue of $43.8 million for the full-year 2013. Revenue in Critical Care increased 31 percent to $15.2 million in the fourth quarter of 2014, compared with revenue of $11.6 million in the fourth quarter of 2013.
Consistent with the Company’s guidance, In-Center segment revenue was $78.9 million for the full-year 2014, compared with revenue of $81.9 million for the full-year 2013. Fourth quarter 2014 revenue was $19.5 million, compared with $20.6 million in the fourth quarter of 2013.
Net loss attributable to NxStage Medical, Inc.'s stockholders was $23.9 million for the full-year 2014, compared with a net loss of $18.6 million for the full-year 2013. Net loss attributable to NxStage Medical, Inc.'s stockholders was $4.9 million for the fourth quarter of 2014, compared with a net loss of $5.2 million for the fourth quarter of 2013. NxStage Medical, Inc.'s net loss for both the full-year and fourth quarter of 2014 was better than its guidance and included $14.6 million and $4.5 million, respectively, in anticipated losses from operations from the Company’s Services segment, NxStage Kidney Care, less noncontrolling interest.
“Our strong fourth quarter results capped a year of solid growth and execution for NxStage. We delivered on our key goals for 2014, exceeding our target of 15% annual growth in the Home, advancing our growth strategy and extending our market leadership with yet another first-ever indication, home nocturnal hemodialysis,” stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage.
Burbank continued, “We remain confident that we can continue this momentum, while investing in our future game-changing technologies. Our priorities for 2015 remain the same: 15% annual growth in the Home, strong top-line growth, and progress toward sustainable operating profitability. As we look beyond 2015, we believe we are well positioned to capitalize on the tremendous market opportunity with the System One. With an innovative pipeline that includes, among others, our peritoneal dialysis system and our next generation hemodialysis system, we intend to extend our reach to a much larger patient base across the broader chronic and critical care dialysis markets. We look forward to bringing these revolutionary innovations to the market to improve the standard of renal care for patients and deliver higher value to our shareholders.”
Guidance:
The Company is forecasting revenue to be between $324.0 million and $328.0 million for the full fiscal year 2015, and between $77.5 million and $78.5 million for the first quarter of 2015. The Company also expects a net loss in the range of $20.0 million to $24.0 million for the full fiscal year 2015, and a net loss in the range of $6.5 million to $7.5 million for the first quarter of 2015. The majority of the Company’s projected net loss in both periods is expected to be related to the Company’s investment in NxStage Kidney Care.
“We remain committed to maintaining strong financial discipline. We are targeting roughly 50% reduction in cash usage in 2015 compared with 2014. More importantly, excluding our investment in NxStage Kidney Care, we expect to transition to quarterly positive operating income during 2015. This coupled with a strong liquidity position including over $50 million in cash at the end of last year, allows us to execute on our plans utilizing our current balance sheet,” stated Matthew W. Towse, Chief Financial Officer.
Conference Call:
NxStage will also host a conference call today, Thursday, February 26, 2015, at 9:00 a.m. Eastern Time to discuss its fourth quarter and full-year 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 March 6, 2015. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 65800439. 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 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.
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.
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