NxStage Reports 11 Percent Annual Revenue Growth

Comments
Print

LAWRENCE, Mass.—NxStage Medical  reported record financial results for the three and 12 months ended December 31, that includes revenue above the top end of its guidance range.

Revenue for the full-year 2012 increased 11 percent to $242.1 million, compared with revenue of $217.3 million for the full-year 2011.  Revenue for the fourth quarter of 2012 increased 14 percent to a record $65 million compared with revenue of $57 million for the fourth quarter of 2011.  The increase in both periods was led by the Company's solid performance in the Home market as a result of growing adoption of more frequent home hemodialysis with the NxStage System One.

Consistent with the Company's guidance, Home delivered 14 percent annual growth, with revenue increasing to $123.6 million for the full-year 2012 compared with revenue of $108.5 million for the full-year 2011.  Home revenue increased to $31.4 million in the fourth quarter of 2012 compared with revenue of $28.2 million in the fourth quarter of 2011, representing an 11 percent increase.  As expected, growth in the Home for the fourth quarter of 2012 was negatively impacted by the timing of capital equipment purchases from international distributors in the quarter.

Critical Care delivered 13 percent annual growth, with revenue increasing to $39.5 million for the full-year 2012 compared with revenue of $35  million for the full-year 2011.  Revenue in Critical Care increased to $11.3 million in the fourth quarter of 2012, compared with revenue of $9.8 million in the fourth quarter of 2011, representing a 15 percent increase.

The Company's in-center business, Medisystems, delivered 4 percent annual growth with revenue increasing to $76.9 million for the full-year 2012, compared with revenue of $73.8 million for the full-year 2011.  Fourth quarter 2012 revenue was $21.5 million, compared with $19 million in the fourth quarter of 2011. The Company also reported $2.1 million in Other Revenues for the full-year 2012, reflecting the Company's dialyzer manufacturing revenue from Asahi.

NxStage reported a net loss of $15.2 million or $(0.26) per share for the full-year 2012 compared with a net loss of $21.4 million or $(0.39) per share for the full-year 2011.  The Company reported a net loss of $2.4 million or $(0.04) per share for the fourth quarter of 2012 compared with a net loss of $4.6 million or $(0.08) per share for the fourth quarter of 2011.

For the full-year 2012, the Company reported Adjusted EBITDA, adjusted for stock-based compensation, deferred revenue recognized, manufacturing transition costs and other non-cash expenses, of $8 million, compared with $7.3 million for the full-year 2011.  For the fourth quarter of 2012, Adjusted EBITDA was $2.1 million compared with $2 million in the fourth quarter of 2011.  (See the exhibits for a reconciliation of this non-GAAP measure.)

"As evidenced by our 2012 results, our business and market fundamentals remain strong and positive. We believe NxStage is uniquely positioned for growth as it continues to make a difference to people's lives with significant innovations that are advancing the standard of renal care," stated Jeffrey H. Burbank, founder and chief executive officer. 

In commenting on the Company's recent advancements in its product pipeline, which include CE Mark approval for nocturnal home hemodialysis with the System One, its high flow dialysis capabilities, and its revolutionary single needle technology, Burbank stated, "Taken together with increasing confidence in our ability to drive continued growth with new direct to patient marketing programs, we believe the overall effect of our product execution is that we are better positioned to accelerate adoption of our therapies with much greater potential than in the past.  With the benefit of these programs largely expected in 2014, we expect top line 2013 revenue to remain strong and grow at a rate similar with 2012, followed by accelerated success and over 15 percent annual revenue growth in 2014 and beyond, excluding any benefit of service revenue from NxStage owned centers of excellence."

Separately, the Company announced plans to transition to a direct sales operation from a distribution relationship in the UK. The Company anticipates that this action will further strengthen its relationships with local customers and position it to more rapidly take advantage of new product approvals. 

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.

Guidance:

For the first quarter of 2013, the Company expects revenue to be in a range of $60.5 and $62 million, which includes an expected one-time reduction to revenue of approximately $0.5 - $1 million related to its plan to transition to a direct sales operation from a distribution relationship in the UK.  This accounting is expected to result in first quarter 2013 Home revenue being essentially flat with the fourth quarter of 2012. The Company expects a net loss in the range of $4.5 to $5.5 million or $(0.08) to $(0.09) per share.

For the full fiscal year 2013, the Company is forecasting revenue to be between $265 and $270 million, and a net loss in the range of $13 to $17 million or $(0.22) to $(0.28) per share.



Comments
comments powered by Disqus