LAWRENCE, Mass., Aug. 6, 2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported second quarter financial results at and above the top end of its guidance ranges.
Revenue for the second quarter of 2015 increased 8 percent to $80.3 million, compared with revenue of $74.1 million for the second quarter of 2014. The Company’s revenue guidance range for the second quarter was $79.0 million to $80.5 million. The increase was driven by the System One segment which consists of Home and Critical Care.
Home revenue increased 16 percent to $44.8 million for the second quarter of 2015 compared with revenue of $38.5 million for the second quarter of 2014.
Critical Care revenue increased 18 percent to $14.6 million for the second quarter of 2015 compared with revenue of $12.4 million for the second quarter of 2014.
Consistent with the Company’s guidance, In-center revenue was $18.6 million for the second quarter of 2015 compared with revenue of $21.0 million for the second quarter of 2014.
Net loss attributable to NxStage Medical, Inc.'s stockholders improved to $5.3 million for the second quarter of 2015 compared with a net loss of $7.1 million for the second quarter of 2014. NxStage Medical, Inc.'s net loss for the second quarter of 2015 was better than its guidance for a net loss of $5.5 million to $7.0 million and included $1.0 million of income from operations from the Products Business and $5.8 million in losses from operations from the Services segment, NxStage Kidney Care, less noncontrolling interest.
Separately, the Company announced that its blood tubing distribution agreement with Baxter International, Inc. has been renewed through December of 2016.
“NxStage’s solid performance proves our commitment to strong, profitable long-term growth,” stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. “Consistent with our growth strategy, we are driving increased demand for our therapy options and giving patients and clinicians more flexibility to meet both their clinical and lifestyle needs. In turn, we have been able to successfully execute on key financial metrics and strategic initiatives. We expect to surprise and delight our patients and customers with the launch of new game-changing technology starting next year that we believe will further extend our market leadership and fuel long-term growth.”
Guidance:
“After a strong first half of the year, we expect to achieve the top 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. “Since early 2014, we have indicated that one of our key financial goals was to achieve sustainable operating income in the Products Business. Q2 marks our third consecutive quarter of profitable operations in that business and we remain confident in our ability to sustain this performance moving forward. Taken together with our expectations for the remainder of the year, we are improving and narrowing our annual net loss guidance to be in a range of $18.0 million to $20.0 million versus our previous guidance for a net loss in the range of $20.0 million to $24.0 million, and dramatically reducing our targeted annual cash usage to approximately $10 million, which is about half our original projection and one-third of our cash usage in 2014.”
For the third quarter, the Company expects revenue to be between $82 million and $83 million, and a net loss in the range of $4.5 million to $5.5 million. The Company’s net loss guidance reflects expectations for continued operating income from the Products Business offset by the Company’s continued 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 second 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 August 14, 2015. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 77465339. 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 cash usage, anticipated success and timing of new product introductions, 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, unanticipated difficulties in developing and commercializing new products, 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 most recent quarterly or annual report.
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