NxStage Medical revenue increases 7% to $69.4 million in fourth quarter 2013

NxStage Medical, Inc.Feb 27 2014

NxStage^® Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record financial results for the three and twelve months ended December 31, 2013, that include revenue slightly above its recent guidance.

Revenue for the full-year 2013 increased 9 percent to $263.4 million, compared with revenue of $242.1 million for the full-year 2012.  Revenue for the fourth quarter of 2013 increased 7 percent to a record $69.4 million compared with revenue of $65.0 million for the fourth quarter of 2012.  The increase in both periods was led by the Company's solid performance in the Home.

Home delivered 8 percent annual growth, with revenue increasing to $132.9 million for the full-year 2013 compared with revenue of $123.6 million for the full-year 2012.  Home revenue increased to $35.1 million in the fourth quarter of 2013 compared with revenue of $31.4 million in the fourth quarter of 2012, representing a 12 percent increase. 

Critical Care delivered 11 percent annual growth, with revenue increasing to $43.8 million for the full-year 2013 compared with revenue of $39.5 million for the full-year 2012.  Revenue in Critical Care increased to $11.6 million in the fourth quarter of 2013, compared with revenue of $11.3 million in the fourth quarter of 2012, representing a 3 percent increase.

The Company's in-center business, Medisystems, delivered 6 percent annual growth with revenue increasing to $81.9 million for the full-year 2013, compared with revenue of $76.9 million for the full-year 2012.  Fourth quarter 2013 revenue was $20.6 million, compared with $21.5 million in the fourth quarter of 2012.

NxStage reported a net loss of $18.6 million or $(0.31) per share for the full-year 2013 compared with a net loss of $15.2 million or $(0.26) per share for the full-year 2012.  The Company reported a net loss of $5.2 million or $(0.08) per share for the fourth quarter of 2013 compared with a net loss of $2.4 million or $(0.04) per share for the fourth quarter of 2012. The Company's net loss for 2013 reflects a nearly $6 million impact from our market development activities with NxStage Kidney Care.

"At the start of 2013, we placed a major focus on growth and investment to take advantage of the significant opportunity in front of us and create long term shareholder value," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "We made great progress across a number of key areas as evidenced by early positive momentum with our direct to patient marketing and solid execution on our innovation pipeline."

Burbank continued, "Similar to this past year, 2014 will be focused on growth and investment. We remain confident in the strength of our near-term initiatives to achieve our target of 15% annual growth in the Home and are continuing to invest significantly in long-term initiatives to increase patient access to our therapies and accelerate adoption. These initiatives include another robust innovation pipeline with peritoneal dialysis and next generation products, and expanded market development activities with a cadence of one to three additional NxStage Kidney Care centers each quarter in 2014, leading to a total of approximately 10 to 15 centers by the end of this year."

Guidance:

For the full fiscal year 2014, the Company is forecasting revenue to be between $283 and $288 million, and a net loss in the range of $23.0 to $27.0 million or $(0.37) to $(0.44) per share. The Company's net loss guidance includes losses in the range of $15 million related to the Company's investment in NxStage Kidney Care.

For the first quarter of 2014, the Company expects revenue to be in a range of $69.5 and $70.5 million, and a net loss in the range of $6.5 to $7.5 million or $(0.11) to $(0.12) per share.

"We remain committed to maintaining strong financial discipline. Excluding our investment in NxStage Kidney Care, we expect to have positive operating income in 2015. Together with $84 million in cash at year end and a strong balance sheet, I believe that we are well positioned to fund our strategic initiatives to expand the home market," stated Matthew W. Towse, Chief Financial Officer.