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Nephros Reports 2010 Third Quarter Financial Results
Date:11/12/2010

RIVER EDGE, N.J., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Nephros, Inc. (OTC Bulletin Board: NEPH), a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification, announced today financial results for the three months ended September 30, 2010.

  • Increased gross margin by 22% to approximately $303,000 from prior year period.
  • Reduced loss from operations by approximately $150,000 or 28% from prior year period.
  • Announced that AmeriWater adopted the Nephros DSU as a standard component of its portable reverse osmosis water treatment systems for dialysis
  • Received $40,000 Milestone payment from STERIS Corporation

Financial Performance for the Third Quarter Ended September 30, 2010 (Unaudited)

For the quarter ended September 30, 2010, Nephros recognized net product revenues of approximately $622,000 compared with approximately $711,000 in the corresponding period of 2009, a decrease of $89,000 or 13%.  The $89,000 decrease in net product revenues is primarily due to a decrease of approximately $136,000 in billings related to our contract with the Office of U.S. Naval Research during the three months ended September 30, 2010 compared to the three months ended September 30, 2009. Revenue from sales of our MD filters in our Target European Market was approximately $54,000 lower in the three months ended September 30, 2010 compared to the same period in 2009. Approximately $20,000 of the European revenue decrease was due to less units sold plus an additional decrease of approximately $34,000 due to foreign currency exchange rate fluctuation. Unit sales in Europe decreased approximately 6% for the three months ended September 30, 2010 compared to the same period in 2009.  These decreases were partially offset by
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SOURCE Nephros, Inc.
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