LAWRENCE, Mass., Nov. 3, 2015 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported third quarter financial results above the top end of its guidance ranges.
Revenue for the third quarter of 2015 increased 15 percent to $86.5 million, compared with revenue of $75.3 million for the third quarter of 2014. The Company’s revenue guidance range for the third quarter was $82.0 million to $83.0 million. The increase was driven by the System One segment which consists of Home and Critical Care.
Home revenue increased 15 percent to $46.5 million for the third quarter of 2015 compared with revenue of $40.4 million for the third quarter of 2014.
Critical Care revenue increased 23 percent to $16.3 million for the third quarter of 2015 compared with revenue of $13.3 million for the third quarter of 2014.
Consistent with the Company’s guidance, In-center revenue was $19.4 million for the third quarter of 2015 compared with revenue of $19.4 million for the third quarter of 2014.
Net loss attributable to NxStage Medical, Inc.'s stockholders improved to $1.7 million for the third quarter of 2015 compared with a net loss of $6.7 million for the third quarter of 2014. NxStage Medical, Inc.'s net loss for the third quarter of 2015 was better than its guidance for a net loss of $4.5 million to $5.5 million and included $4.2 million of income from operations from the Products Business and $5.6 million in losses from operations from the Services segment, NxStage Kidney Care, less noncontrolling interest.
“Based on our performance and confidence around the fourth quarter, we are again raising our total revenue guidance for the year,” said Jeffrey H. Burbank, Founder and CEO of NxStage. “We remain confident in our 15% annual home revenue growth target for 2015. We are also increasingly confident that 2016 will be another strong year for NxStage, consistent with our target of a sustainable 15% Home revenue growth rate.”
Regarding the Company’s innovation pipeline, Burbank showcased key elements of the products in development including new features and functionality designed to delight patients, reduce supplies, increase ease of use and expand clinical flexibility. Burbank also unveiled details of the Company’s next generation fluid system designed for universal fluid delivery across both its existing and future therapy portfolio.
“A significant advantage of our innovations is that both our current and next generation fluid systems are fully interoperable with our current and next generation hemodialysis systems, our new peritoneal dialysis (PD) system and our next generation critical care system, and are specifically designed to easily build on investments our customers and patients have already made in our equipment. This simple, yet elegant approach is expected to help customers bridge from our existing systems to our new technologies and access other modalities and therapy paradigms in a cost effective manner,” said Burbank.
The Company reiterated its expectation that it would begin launching its next generation hemodialysis system late next year.
Guidance:
The Company now expects full-year revenue for 2015 to be between $332 and $333 million, versus its previously increased guidance for revenue to be at the high end of its range of $324 to $328 million. The Company now expects full-year net loss to be between $15 and $16 million, versus its previous guidance of $18 to $20 million, which was revised from its original guidance of $20 to $24 million.
For the fourth quarter of 2015, the Company expects revenue to be in a range of $86 and $87 million, and a net loss in the range of $2 to $3 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.
Webcast Information:
NxStage will host its Financial Analyst Day today beginning at 9:00 a.m. Eastern Time to discuss its third quarter financial results and its latest breakthrough technologies. NxStage invites the public and media to view the presentation slides and listen to the live audio webcast of the event through the Investor Relations section of the Company’s website at http://ir.nxstage.com. An audio replay of the webcast and a copy of the presentation slides will be available shortly after the end of the event at the same location.
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 System One and patient information for flexible viewing, monitoring and reporting that may improve patient management and simplify alternative site care.
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.
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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