NxStage Medical, Inc. Reports Second Quarter Financial Results And Raises Full-Year Revenue Guidance

LAWRENCE, Mass., Aug. 4, 2016 /PRNewswire/ -- NxStage Medical, Inc. (Nasdaq: NXTM), a leading medical technology company focused on advancing renal care, today reported second quarter revenue above the top end of its guidance.

NxStage Medical, Inc. (PRNewsFoto/NxStage Medical, Inc.)

Total revenue for the second quarter of 2016 increased 15 percent to $92.2 million, compared with revenue of $80.3 million for the second quarter of 2015. The Company's revenue guidance range for the second quarter was $89.0 million to $91.0 million.

The Company's revenue performance was driven by the Products Business, and more specifically, outperformance in NxStage's largest segment, System One, which consists of its Home and Critical Care markets. Home revenue increased 14 percent to $51.1 million for the second quarter of 2016 compared with revenue of $44.8 million for the second quarter of 2015. Critical Care revenue increased 28 percent to $18.7 million for the second quarter of 2016 compared with revenue of $14.6 million for the second quarter of 2015.

Net loss attributable to NxStage Medical, Inc.'s stockholders improved to $1.7 million for the second quarter of 2016 compared with a net loss of $5.3 million for the second quarter of 2015 and included $5.0 million of income from operations from the Products Business.

"We delivered another strong quarter of growth and improving profitability. Looking ahead, we believe we are well positioned with tremendous growth opportunities which include an impressive stream of system launches expected over the next three years: our next generation hemodialysis system, our peritoneal dialysis system and our next generation critical care system," stated Jeffrey H. Burbank, Founder and CEO of NxStage.

The Company also announced that it launched enhanced priming features, the first of many upcoming capabilities of its next generation hemodialysis system. "The NxStage team is thrilled to provide patients and customers with access to new enhanced priming features that deliver on our promise of improved ease of use and reduced set-up time. In addition, these features are compatible with current generation System Ones, which means patients and customers can easily access them today," stated Burbank.

Guidance:
The Company now expects full-year revenue for 2016 to be in the range of $360 to $365 million, versus its previously increased guidance for revenue to be at the high end of its range of $355 to $360 million, reflecting Critical Care's outperformance during the quarter. The Company now expects its net loss for the full-year to be at the better end of its guidance range of $7 to $12 million.

For the third quarter of 2016, the Company expects revenue to be in the range of $89 to $91 million, which reflects expectations for lower revenue from the Company's In-Center segment as previously disclosed earlier this year. The Company also expects a net loss in the range of $1 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.

Conference Call:
NxStage will also host a conference call today, Thursday, August 4, 2016, 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 11, 2016. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 44443371. 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 13 million treatments with thousands of patients around the world.

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