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Nephros Reports Second Quarter 2012 Financial Results
Date:8/14/2012

expenses instead of being apportioned to cost of revenue.

Depreciation [and amortization] expense increased by $18,000 in the second quarter of 2012 compared to the same period in 2011 due to the amortization of the capitalized costs associated with the Medica supply agreement entered into in April 2012.

Nephros' net loss was approximately $754,000 or $0.07 per basic and diluted common share for the second quarter of 2012 versus a net loss of approximately $602,000 or $0.06 per basic and diluted common share in the second quarter of 2011.  Nephros' net loss increased $152,000 or 25% in the current year's second quarter primarily due to the increase in operating expenses in the second quarter of 2012 compared to the second quarter in 2011.

For the first six months of 2012, Nephros has received $356,000 of proceeds from the exercise of warrants.

As of June 30, 2012, Nephros had cash and cash equivalents in the amount of $987,000.

Hospital and Dialysis Applications - Ultrafilters

For the second quarter of 2012, Nephros recorded approximately $132,000 of sales related to its water and bicarbonate ultrafiltration products, an 18% decrease over the prior year.  For the first half of 2012 Nephros recorded $379,000 of sales related to its water and bicarbonate ultrafiltration products, a 24% increase over the prior year.  With the recent additions of three Regional Sales Managers, the execution of distribution agreements with national distributors and the introduction of an enhanced product range, we believe that Nephros is positioned for growth in the waterborne hospital infection control and dialysis markets.  More stringent standards for dialysis water purity from the Association for the Advancement of Medical Instruments (AAMI), bundling of dialysis reimbursement payments, and Centers for Medicare & Medicaid (CMS) initiatives which relate hospital reimbursement rates to infection control compliance can al
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SOURCE Nephros, Inc.
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