LAWRENCE, Mass., Aug. 5 /PRNewswire-FirstCall/ -- NxStage Medical, Inc. , a leading manufacturer of innovative dialysis products, today announced net revenue for the second quarter of 2009 of $36.4 million, an increase of 15 percent when compared with revenue of $31.6 million for the second quarter of 2008.
“Our second quarter results demonstrate our continued ability to improve key financial metrics including revenue, gross margin, adjusted EBITDA and cash usage,” stated Jeffrey H. Burbank, Chief Executive Officer of NxStage Medical. “In addition, we successfully executed against key strategic relationships to further strengthen our financial position and enhance our market position.”
Net loss for the second quarter of 2009 was $12.5 million, or ($0.27) per share. Excluding the impact of a $2.0 million pre-tax charge related to terminating the Company’s GE credit facility, recorded as interest expense, the net loss for the second quarter of 2009 was better than the Company’s second quarter guidance for a net loss of $11.5 to $12.5 million. This compares to a net loss of $12.5 million for the second quarter of 2008, which included the benefit of a $2.1 million change in fair value of financial instruments.
For the second quarter of 2009, the Company had an Adjusted EBITDA loss of $3.4 million, adjusted for stock-based compensation, deferred revenue recognized and other non-recurring expenses, compared with an Adjusted EBITDA loss of $7.7 million in the second quarter of 2008. These results were better than the Company’s guidance for an Adjusted EBITDA loss of $5.0 to $6.0 million for the second quarter of 2009. (See the exhibits for a reconciliation of this non-GAAP measure.)
Guidance:
The Company is maintaining its 2009 full-year guidance for revenues to be between $135 to $145 million, a net loss in the range of $42 to $47 million or ($0.90) to ($1.01) per share, and for an Adjusted EBITDA loss in the range of $13 to $18 million. The Company expects to achieve consolidated gross margins of between 27 percent to 32 percent in the fourth quarter of 2009.
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.
A replay of the conference call will be available 3 hours after the start of the call through August 19, 2009. To access the replay dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode 52867664. 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.
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 anticipated operating results, including revenues, loss, gross margin and Adjusted EBITDA numbers, beliefs regarding the value of strategic business relationships and statements regarding anticipated international sales, 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, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our major customers, including DaVita Inc., 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 period ended March 31, 2009.
NxStage Medical Inc.
