Navigation Links
NxStage Reports Record Revenue For The Second Quarter Of Fiscal 2012

LAWRENCE, Mass., Aug. 8, 2012 /PRNewswire/ --


  • Revenue Increases to $59.0 million, up 10% from Q2'11
  • Home Revenue Increases to $30.7 million, up 14% from Q2'11
  • Gross Margin Increases to 38%, up from 35% in Q2'11
  • Company Announces European Market Approval for Enhancements to System One
  • NxStage® Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record financial results for the second quarter ended June 30, 2012, with total revenue above the top end of its guidance range. 


    Revenue for the second quarter of 2012 increased 10% to $59.0 million, compared with revenue of $53.8 million for the second quarter of 2011.  The higher revenues were driven by increased adoption of the NxStage System One™.

    Home revenue for the second quarter of 2012 increased 14% to a record $30.7 million compared with revenues of $27.0 million for the second quarter of 2011. 

    "Home and more frequent hemodialysis with the System One is great therapy that has been consistently reported to give patients access to a much richer and longer life.
    We continue to show that our therapy can benefit patients, providers and payors," stated Jeffrey H. Burbank, Chief Executive Officer of NxStage. "As a result, we continue to break down the barriers to adoption and deliver strong revenue growth consistent with our expectations."

    Critical Care revenue increased 9% to $9.4 million for the second quarter of 2012 compared with revenues of $8.6 million for the second quarter of 2011.  Revenue in the In-Center market was $18.2 million for the second quarter of 2012. 

    "Our results in the second quarter reflect solid and consistent progress. We achieved record revenues, a 300 bps improvement in gross margin, and advanced our robust product pipeline," continued Burbank. "In sum, our growth strategy remains on track and we remain confident in our outlook for 2012."

    NxStage reported a net loss of $5.1 million or $(0.09) per share for the second quarter of 2012 compared with a net loss of $5.6 million or $(0.10) per share for the second quarter of 2011.  The net loss for the second quarter of 2012 includes the impact of $1.0 million for the write-off of unamortized debt discount related to the Asahi debt conversion that occurred in May 2012.

    For the second quarter of 2012, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses, of $1.7 million compared with $1.8 million for the second quarter of 2011.  (See the exhibits for a reconciliation of this non-GAAP measure.)

    Separately, the Company announced that the European regulatory authority has approved a new feature to automate the administration of bolus for use in the EU.  Burbank concluded, "This approval enables us to further advance the simplicity and safety of the System One in Europe. This is an amazing accomplishment to be able to take tap water, purify it, add concentrate, filter it, and infuse it; effectively our system produces fluid similar to that produced in a pharmaceutical plant right in a patient's home from tap water."


    For the third quarter of 2012, the Company is forecasting revenues to be between $60.0 million and $61.0 million, a net loss in the range of $3.5 million to $4.5 million, or $(0.06) to $(0.08) per share, and Adjusted EBITDA in the range of $1.5 million to $2.5 million.  The Company is reaffirming its full year 2012 guidance, which includes Asahi dialyzer sales.

    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.

    Conference Call:NxStage will also host a conference call today, Wednesday, August 8, 2012 at 9:00 a.m. Eastern Time to discuss its second quarter financial results. To listen to the conference call, please dial 877-392-9886 (domestic) or 707-287-9329 (international).  The call will also be webcast LIVE and can be accessed via the investor relations section of the Company's website at

    A replay of the conference call will be available 2 hours after the completion of the call through August 22, 2012.  To access the replay dial 855- 859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 97740600.  An online archive of the conference call can be accessed via the investor relations section of the Company's website at

    About NxStageNxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of ESRD and acute kidney failure. For more information on NxStage and its products, please visit the company's website at

    Forward-Looking StatementsThis release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. Examples of these forward-looking statements include statements as to the anticipated demand for the Company's products, anticipated operating results, including revenues, loss, gross margin and Adjusted EBITDA numbers, and other expectations as to future operating results. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond NxStage's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements, including market acceptance and demand for NxStage's products, growth in home and/or daily hemodialysis, unanticipated difficulties in achieving operational efficiencies and cost reductions, changes in reimbursement for home and daily hemodialysis, changes in the regulatory environment, changes in the historical purchasing patterns and preferences of our customers, including DaVita Inc. and Fresenius Medical Care, and certain other factors that may affect future operating results and which are detailed in NxStage's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

    In addition, the statements in this press release represent NxStage's expectations and beliefs as of the date of this press release. NxStage anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while NxStage may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing NxStage's expectations or beliefs as of any date subsequent to the date of this press release.

    Kristen K. Sheppard, Esq.
    VP, Investor Relations

    Non-GAAP Financial Measure

    The Company discloses a certain non-GAAP financial measure to supplement the Company's consolidated financial statements presented on a GAAP basis. This non-GAAP measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States and may be different from similar non-GAAP financial measures used by other companies. The non-GAAP financial measure disclosed by the Company is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP. Management uses Adjusted EBITDA (EBITDA adjusted for stock based-compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses) to understand operational cash usage.  The Company believes the non-GAAP financial measure provides useful and supplementary information allowing investors greater transparency to one measure used by management.  The non-GAAP financial measure is meant to supplement, and to be viewed in conjunction with, GAAP financial measures.  The non-GAAP financial measure is reconciled to the most comparable GAAP financial measure below.NxStage Medical, Inc.Condensed Consolidated Statements of Comprehensive Loss(in thousands, except per share)(unaudited)Three Months Ended June 30,Six Months Ended June 30,2012201120122011Revenues





    104,332Cost of revenues

    36,62034,90372,25967,434Gross profit

    22,38918,86543,70136,898Operating expenses:Selling and marketing

    9,9189,36919,83818,579Research and development


    4,5824,4319,1148,589General and administrative

    6,9305,46013,55211,042Total operating expenses

    25,68022,84950,65145,516Loss from operations

    (3,291)(3,984)(6,950)(8,618)Other expense:Interest expense

    (1,456)(1,170)(2,649)(2,327)Other expense, net

    (79)(170)(131)(196)(1,535)(1,340)(2,780)(2,523)Net loss before income taxes

    (4,826)(5,324)(9,730)(11,141)Provision for income taxes

    237226477419Net loss





    (11,560)Net loss per share, basic and diluted





    (0.22)Weighted-average shares outstanding, basic and diluted

    57,73354,01455,31953,716Other comprehensive loss:Foreign currency (loss) gain





    304Other (loss) gain

    (48)1(24)6Comprehensive loss





    (11,250) NxStage Medical, Inc.Condensed Consolidated Balance Sheets(in thousands, except share data)(unaudited)June 30,December 31,20122011ASSETSCurrent assets:Cash and cash equivalents



    102,909Accounts receivable, net


    34,67032,775Prepaid expenses and other current assets

    2,0842,777Total current assets

    157,256154,269Property and equipment, net

    29,04917,599Field equipment, net

    9,97112,182Deferred cost of revenues

    39,79241,132Intangible assets, net


    42,69842,698Other assets

    2,0661,213Total assets



    291,708LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable



    15,634Accrued expenses

    17,93215,165Total current liabilities

    32,49130,799Deferred revenues

    55,66857,014Long-term debt

    —43,235Other long-term liabilities

    18,6129,474Total liabilities

    106,771140,522Commitments and contingenciesStockholders' equity:Undesignated preferred stock: par value $0.001, 5,000,000 shares authorized;  no shares

    issued and outstanding as of June 30, 2012 and December 31, 2011

    ——Common stock: par value $0.001, 100,000,000 shares authorized; 59,391,169 and

    56,167,090 shares issued as of June 30, 2012 and December 31, 2011, respectively

    5956Additional paid-in capital

    544,997489,542Accumulated deficit

    (340,035)(329,828)Accumulated other comprehensive loss

    (192)(68)Treasury stock, at cost: 541,584 and 480,923 shares as of June 30, 2012 and December

    31, 2011, respectively

    (9,551)(8,516)Total stockholders' equity

    195,278151,186Total liabilities and stockholders' equity



    291,708 NxStage Medical, Inc.Cash Flows from Operating Activities(in thousands)(unaudited)Six Months Ended June 30,20122011Cash flows from operating activities:Net loss



    (11,560)Adjustments to reconcile net loss to net cash provided by (used in) operating activities:Depreciation and amortization

    11,58011,459Stock-based compensation


    2,3451,737Changes in operating assets and liabilities:Accounts receivable


    (7,809)(13,363)Prepaid expenses and other assets

    (170)(546)Accounts payable

    (946)5,471Accrued expenses and other liabilities

    3,038(2,446)Deferred revenues

    (1,346)629Net cash provided by (used in) operating activities



    (3,671) NxStage Medical, Inc.Revenues by Segment(in thousands)(unaudited)Three Months Ended June 30,Six Months Ended June 30,2012201120122011System One segmentHome





    53,058Critical Care

    9,3718,59119,15816,029Total System One segment

    40,06435,60479,40469,087In-Center segment







    104,332 NxStage Medical, Inc.Non-GAAP Financial Measures(in millions)(unaudited)Three Months Ended June 30,Six Months Ended June 30,2012201120122011Net loss





    (11.6)Less: Depreciation, amortization, interest, and taxes

    7.67.314.714.4Less: Adjusting items*

    (0.8)0.1(1.0)0.1Adjusted EBITDA





    2.9* Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses NxStage Medical, Inc.Non-GAAP Financial Guidance(in millions)(unaudited)Three Months Ended September 31, 2012High EstimateLow EstimateNet loss



    (4.5)Less: Depreciation, amortization, interest, and taxes

    6.66.6Less: Adjusting items*

    (0.6)(0.6)Adjusted EBITDA



    1.5* Adjusting items include stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses 


    SOURCE NxStage Medical, Inc.
    Copyright©2012 PR Newswire.
    All rights reserved

    Related medicine technology :

    1. FREEDOM Study Data: Patients Experience Sustained Quality of Life Benefits with More Frequent Home Hemodialysis with the NxStage System One
    2. Former NxStage Patient Nikolas Gieske Celebrates Kidney Transplant
    3. Study Shows NxStage Daily Home Hemodialysis Patients More Likely to Receive Kidney Transplant
    4. InfuSystem Holdings, Inc. Reports $14.1 Million of Revenues for the Second Quarter of 2012; Announces Annualized Cost Savings in Excess of $1 million
    5. diaDexus, Inc. Reports Second Quarter 2012 Financial Results
    6. HeartWare Reports Second Quarter 2012 Results
    7. Omeros Corporation Reports Second Quarter 2012 Financial Results
    8. Express Scripts Reports Second Quarter Results
    9. Anthera Pharmaceuticals Reports 2012 Second Quarter Financial Results And Provides Clinical Progress Update
    10. Orexigen Therapeutics Reports Financial Results for the Second Quarter Ended June 30, 2012
    11. Endo Reports Second Quarter Financial Results and Updates 2012 Financial Guidance
    Post Your Comments:
    (Date:11/29/2015)... Iowa , Nov. 29, 2015 ... ultrasound guidance technology at the Radiological Society of ... in Chicago November 29 ... system is designed to offer customers unrivaled versatility, ... --> ...
    (Date:11/27/2015)... YORK , November 27, 2015 ... system is set to go online. The potential to ... processes is vast and far from fully exploited as ... to patient health records, either via mobile tablet or ... ) --> ) --> ...
    (Date:11/27/2015)... Research and Markets ( ) has ... Market 2015-2019" report to their offering. ... report, the author the present scenario and growth prospects ... calculate the market size, the report considers revenue generated ... IUDs and copper IUDs. The report forecasts the global ...
    Breaking Medicine Technology:
    (Date:11/29/2015)... ... November 30, 2015 , ... ... new company, Sublime Beauty NATURALS®. All products are available on Amazon or its ... oils, organic facial serums and USDA Certified Organic Sesame Oil for Oil Pulling," ...
    (Date:11/29/2015)... Orion, Clarkston, Metamora, Michigan (PRWEB) , ... November 29, 2015 , ... ... football games, basketball games. Things that as a Mother and Wife would love to ... was no mistake that I just happened to call Dr. Zaidan first. They have ...
    (Date:11/29/2015)... ... November 29, 2015 , ... NewsWatch featured X-wing as ... available to consumers. Amanda Forstrom, a technology expert and special reporter for NewsWatch, conducted ... reality in the future. , It’s the future because flying cars are about to ...
    (Date:11/29/2015)... ... ... While conventional walkers afford considerable help with mobility, their design does not ... inventor from Uniontown, Pa., has found a way to address those needs. , He ... walker to improve the user’s quality of life. To begin with, this improved mobility ...
    (Date:11/29/2015)... Viejo, CA (PRWEB) , ... November 29, 2015 ... ... an all new and unique analog distortion effect tool designed specially for Final ... their footage, and create limiltess looks with the easy-to-use modification controls. Destoying and ...
    Breaking Medicine News(10 mins):