NxStage Medical reports net revenue of 15% for twelve months ended December 31, 2009

Feb 25 2010

NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported financial results for the three months and twelve months ended December 31, 2009, that include revenue and Adjusted EBITDA results above the top end of its guidance ranges.

Net revenue for the twelve months ended December 31, 2009, increased 15 percent to $148.7 million compared with revenue of $128.8 million for the full-year 2008.  Revenue for the fourth quarter of 2009 increased 14 percent to a record $40.5 million compared with revenue of $35.7 million for the fourth quarter of 2008.  The increase in both periods was driven by better than expected performance within the Company's Home and Critical Care markets, which experienced annual growth of 31 percent and 20 percent, respectively, over 2008.  

Home revenues grew to $63.5 million for the full-year 2009 compared with revenues of $48.3 million for the full-year 2008.  Home revenues increased to $17.5 million in the fourth quarter of 2009 compared with revenue of $13.5 million in the fourth quarter of 2008, representing a 30 percent increase.

Critical Care revenues grew to $22.3 million for the full-year 2009 compared with revenues of $18.6 million for the full-year 2008.  Revenues in the Critical Care market increased to $7.0 million in the fourth quarter of 2009, compared with revenue of $5.4 million in the fourth quarter of 2008, representing a 28 percent increase.

Annual revenues in the In-Center market, from the Company's Medisystems business, were $62.9 million for the full-year 2009, compared with revenues of $61.9 million for the full-year 2008.  Fourth quarter revenues were $16.0 million, in line with the Company's expectations and compared with $16.7 million in the fourth quarter of 2008.

"We are very pleased with the performance of the Company operationally, financially and strategically," stated Jeffrey H. Burbank, Chief Executive Officer of NxStage Medical, Inc.  "As a result of many successful activities during 2009, our business is strikingly different than it was a year ago at this time.  We believe the systematic execution against our strategic initiatives throughout the past year positions us well for future growth and improved cash flow."

NxStage reported a net loss of $43.5 million or ($0.93) per share for the full-year 2009 compared with a net loss of $51.2 million or ($1.23) per share for the full-year 2008.  The Company reported a net loss of $8.7 million or ($0.19) per share for the fourth quarter of 2009 compared with a net loss of $9.8 million, or ($0.21) per share for the fourth quarter of 2008.

For the full-year 2009, the Company reported an Adjusted EBITDA loss, adjusted for stock-based compensation, deferred revenue recognized and other non-cash and non-recurring expenses, of $12.7 million, compared with an Adjusted EBITDA loss of $29.2 million for the full-year 2008.  For the fourth quarter of 2009, the Company had a $1.2 million Adjusted EBITDA loss, compared with an Adjusted EBITDA loss of $6.0 million in the fourth quarter of 2008.  Both the annual and quarterly results were better than the Company's guidance for an Adjusted EBITDA loss of $13 to $18 million and $1.5 to $2.5 million for the full-year and fourth quarter of 2009, respectively. (See the exhibits for a reconciliation of this non-GAAP measure.)

Guidance:

For the first quarter of 2010, the Company is forecasting revenues to be between $38 million and $39.5 million, a net loss in the range of $9.0 to $10.0 million or ($0.19) to ($0.21) per share, and an Adjusted EBITDA loss in the range of $1 to $2 million.  

For the full fiscal year 2010, the Company is forecasting revenues to be between $163 to $170 million, a net loss in the range of $28 to $33 million or ($0.60) to ($0.71) per share, and for Adjusted EBITDA to be in the range of a positive $1 million to ($3.0) million.  The Company expects to achieve consolidated gross margins of between 33 percent to 37 percent in the fourth quarter of 2010.  

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.

in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from similar non-GAAP financial