LAWRENCE, Mass., Nov. 3, 2011 /PRNewswire/ --
Highlights:
- Revenue Increases to $55.9 million, up 24% from Q3'10
- Home Market Increases to $27.2 million, up 22% from Q3'10
- Gross Margin Increases to 35%, up from 33% in Q3'10
NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record financial results for the third quarter ended September 30, 2011, with total revenue well above the top end of its guidance range.
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Revenue for the third quarter of 2011 increased to $55.9 million, an increase of 24 percent when compared with revenue of $45.0 million for the third quarter of 2010. The growth was driven by strong operating performance across the Company's business.
The Company grew Home revenue to $27.2 million for the third quarter of 2011, representing an increase of 22 percent when compared with revenue of $22.3 million for the third quarter of 2010. Critical Care revenue grew to $9.2 million for the third quarter of 2011, representing an increase of 35 percent when compared with revenue of $6.8 million for the third quarter of 2010. Revenue for In-Center, from the Company's Medisystems business, increased to $19.5 million for the third quarter of 2011, representing an increase of 23 percent when compared with revenue of $15.9 million for the third quarter of 2010.
"Not only was this a record quarter with respect to revenues, but also one where we made meaningful progress in advancing metrics across our business," stated Jeffrey H. Burbank, CEO of NxStage Medical, Inc. "These results are strong validation of our business model and we see significant opportunities across our business to advance our long term growth strategy. We are particularly pleased with the growing strength of clinical data showing that patients benefit from more frequent hemodialysis and that they live longer and healthier lives."
NxStage reported a net loss of $5.3 million, or ($0.10) per share, for the third quarter of 2011 compared with a net loss of $8.2 million, or ($0.17) per share, for the third quarter of 2010.
For the third quarter of 2011, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses of $2.4 million, compared with an Adjusted EBITDA of $0.5 million in the third quarter of 2010. (See the exhibits for a reconciliation of this non-GAAP measure.)
Guidance:
For the fourth quarter of 2011, the Company is forecasting revenue to be within a range of $55.5 to $56.5 million. At this revenue level, the Company would expect a net loss in the range of $4.5 to $5.5 million or ($0.08) to ($0.10) per share, and Adjusted EBITDA in the range of $1.5 to $2.5 million for the fourth quarter of 2011.
The Company's fourth quarter revenue guidance translates to an upward revision of the Company's annual guidance, putting expected revenue above the top end of its previous range. The Company now expects annual revenue to be within a range of $216 to $217 million compared with previous guidance for revenue to be within a range of $210 to $215 million. The Company continues to expect a net loss in the range of $19 to $23 million or ($0.36) to ($0.43) per share, and for Adjusted EBITDA to be in the range of $6.0 million to $10.0 million for the 2011 fiscal year. The Company expects the fourth quarter gross margin percentage to be between 37 and 38 percent.
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 at 9:00 a.m. Eastern Time to discuss its third 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 www.nxstage.com/ir.cfm.
A replay of the conference call will be available 2 hours after the conclusion of the call through November 17, 2011. To access the replay dial 855-859-2056 (domestic) or 404-537-3406 (international). The conference ID is 17404745. An online archive of the conference call can be accessed via the investor relations section of the Company's website at www.nxstage.com/ir.cfm.
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.
