LAWRENCE, Mass., Feb. 10, 2016 /PRNewswire/ --
Highlights:
- Full-Year Revenue Increases to $336 million, up 11% from 2014
- Full-Year Home Revenue Increases to $183 million, up 16% from 2014
- Full-Year Operating Income from Products Business Increases to $9 million
- Company Highlights Significant Product Introductions for the Next Three Years
- For Third Consecutive Year, Company Targets 15% Annual Home Revenue Growth
NxStage Medical, Inc. (Nasdaq: NXTM), a leading medical technology company focused on advancing renal care, today reported record revenue for the fourth quarter and fiscal year ended December 31, 2015, topping its recent upwardly revised revenue guidance.
Fourth Quarter Financial Results
Total revenue for the fourth quarter of 2015 increased 12 percent from 2014 to a record $89.8 million, which exceeded the top end of the Company’s revenue guidance range of $86 to $87 million. Net loss attributable to NxStage Medical, Inc.'s stockholders was $2.7 million for the fourth quarter of 2015, compared with a net loss of $4.9 million for the fourth quarter of 2014. The net loss included $3.8 million of income from operations from the Products Business.
Fiscal Year 2015 Financial Results
Total revenue for the full-year 2015 increased 11 percent from 2014 to a record $336.1 million, which exceeded the top end of the Company’s revenue guidance range of $332 to $333 million. Net loss attributable to NxStage Medical, Inc.'s stockholders was $15.3 million for the full-year 2015, compared with a net loss of $23.9 million for the full-year 2014. The net loss for the full-year included $9.2 million of income from operations from the Products Business.
The Company’s performance improvements in both periods were driven by the Products Business, and more specifically, outperformance in NxStage’s largest segment, the System One segment which consists of Home and Critical Care markets. For the full-year 2015, System One revenue increased 16 percent to $247.8 million. Home revenue increased 16 percent to $182.6 million, exceeding the Company’s target for 15 percent annual growth. Critical Care revenue increased 17 percent to $65.2 million.
“It was a strong year for NxStage. We’re very pleased to again exceed our guidance on revenue, narrow our net loss and deliver a year of increasing profitability in our Products Business,” said Jeff Burbank, Founder and Chief Executive Officer of NxStage. “We have a rich portfolio of current products that are expected to drive continued growth within Home and Critical Care, our largest high growth markets, in 2016 and beyond.”
Burbank continued, “In addition, we continue to advance our innovative pipeline, including our next generation hemodialysis system, our new peritoneal dialysis (PD) system and our next generation critical care system. As we are beginning pilot production of our next generation hemodialysis system, we continue to align our assets and focus our execution in support of these tremendous long-term growth opportunities.”
Guidance
The Company is forecasting revenue to be between $355 million and $360 million for the full fiscal year 2016, and between $87 million and $89 million for the first quarter of 2016. The Company also expects a net loss in the range of $7 million to $12 million for the full fiscal year 2016, and a net loss in the range of $2 million to $4 million for the first quarter of 2016. The Company’s net loss guidance for both periods reflects expectations for continued operating income from the Products Business offset by the Company’s continued investment in NxStage Kidney Care.
“Our guidance for the full fiscal year 2016 includes continued strong performance from our System One segment, with expectations for annual growth within Home and Critical Care of 15 percent and 9 percent, respectively, and a modest increase in our Services segment. We’ve also guided to a much lower revenue level for our low margin In-Center segment,” stated Matt Towse, Chief Financial Officer. “As we continue to scale the higher margin System One segment and align our business in support of our growth opportunities, we remain on track to achieve our long-term growth and profitability targets.”
Conference Call:
NxStage will also host a conference call today, Wednesday, February 10, 2016, 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 February 17, 2016. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 26460722. 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 leading medical technology company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of end-stage renal disease (ESRD) and acute kidney failure. NxStage has also established a small number of dialysis clinics committed to the development of innovative care delivery models for patients with ESRD. For more information on NxStage and its products and services, please visit the Company’s website at http://www.nxstage.com and www.nxstagekidneycare.com.
About the NxStage System One
The NxStage System One is the first and only truly portable hemodialysis system cleared specifically by the 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 on demand. 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. In addition, NxStage’s Nx2Me Connected Health platform collects important NxStage System One and patient information for flexible viewing, monitoring and reporting that may improve patient management and simplify alternative site care. 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 12 million treatments with thousands of patients around the world. http://www.nxstage.com/.
Forward-Looking Statements
This release contains forward-looking statements concerning our business, operations and financial condition. 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, market opportunities, timing of our new product launches, and our financial guidance for 2016 and beyond, including anticipated revenues and net loss. 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, regulatory approvals, competition, 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 NxStage Kidney Care, 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 September 30, 2015.
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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