NxStage Medical revenue increases 11% to $65.5 million in Q2 2013

NxStage Medical, Inc.Jul 25 2013

NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported second quarter financial results with total revenue at the top end of its guidance range.

Revenue for the second quarter of 2013 increased 11% to a record $65.5 million, compared with revenue of $59.0 million for the second quarter of 2012.  The higher revenues were driven by increased adoption of the NxStage^® System One™.

Home revenue increased to $32.7 million for the second quarter of 2013 compared with revenue of $30.7 million for the second quarter of 2012. 

Critical Care revenue increased to $10.8 million for the second quarter of 2013 compared with revenue of $9.4 million for the second quarter of 2012.  In-center revenue increased to $21.2 million for the second quarter of 2013 compared with revenue of $18.2 million for the second quarter of 2012. 

NxStage reported a net loss of $3.4 million, or $(0.06) per share for the second quarter of 2013 compared with a net loss of $5.1 million, or $(0.09) per share for the second quarter of 2012.  Net loss for the second quarter of 2013 includes a $1.2 million tax benefit related to the conclusion of a foreign tax audit.

"Our results reflect solid progress and early benefit from our strategic growth initiatives, including our new direct to patient marketing programs," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage.  "We believe our efforts to further penetrate both the US and international markets are on track to deliver 15 percent annual Home revenue growth in 2014 and beyond."   

Burbank continued, "Based on our outlook and our continuing progress in key areas, we are reaffirming both our top line revenue and net loss guidance for 2013. Perhaps more importantly, we believe we're setting the Company up for an exciting new chapter of growth in 2014 and beyond."

Separately, the Company announced the opening of its first dialysis center in St. Louis, MO, through its wholly owned subsidiary, NxStage Kidney Care, Inc.  The move is in line with the Company's strategic centers of excellence initiative to expand patient access to home therapies and the life-changing benefits possible with home and more frequent dialysis using the NxStage System One.

The Company also announced its expansion into Canada through a newly established entity, NxStage Medical Canada, Inc. Through this new entity, NxStage is marketing and selling the System One and related products and services directly in Canada.  NxStage highlighted that its first Canadian customer has initiated patient treatment with the System One.

Guidance:

For the third quarter of 2013, the Company is forecasting revenues to be between $66.5 million and $68.0 million, and a net loss in the range of $4.5 million to $3.5 million, or $(0.07) to $(0.06) per share.  The Company reaffirmed its top line revenue and net loss guidance for 2013.