NxStage Medical, Inc. (NASDAQ:NXTM), a leading medical technology company focused on advancing renal care, today reported third quarter financial results above the top end of its guidance.
Total revenue for the third quarter of 2016 increased 6 percent to $92.0 million, above the high end of its guidance range of $89 million to $91 million, compared with revenue of $86.5 million for the third quarter of 2015.
The Company’s revenue performance was driven by the Products Business, and more specifically, outperformance in NxStage’s largest segment, System One, which consists of the Home and Critical Care markets. Home revenue increased 16 percent to $53.8 million for the third quarter of 2016 compared with revenue of $46.5 million for the third quarter of 2015. Critical Care revenue increased 11 percent to $18.2 million for the third quarter of 2016 compared with revenue of $16.3 million for the third quarter of 2015.
Net loss attributable to NxStage Medical, Inc.’s stockholders improved to $0.2 million for the third quarter of 2016 compared with a net loss of $1.7 million for the third quarter of 2015. The net loss for the third quarter of 2016 was better than its guidance for a net loss of $1 to $3 million and included $6.6 million of income from operations from the Products Business.
“With these solid results and continued positive momentum with our growth drivers, we are raising full-year revenue guidance and cutting our net loss projections in half,” stated Jeffrey H. Burbank, Founder and CEO of NxStage. “In addition to feeling good about a solid finish to the year, we remain confident in our outlook for 2017 and beyond that includes targets for increasing the Company’s revenue growth and profitability. I believe we have a solid foundation, compelling growth drivers and an amazing technology pipeline.”
The Company also announced that it expects to launch the next sequence of features and capabilities of its next generation hemodialysis system this quarter. “We continue to systematically advance one of the industry’s most innovative pipelines. We’re excited to be moving closer to our goals and bringing these significant advancements in renal care to patients and their care teams,” stated Burbank.
For the full-year of 2016, the Company now expects revenue to be at the high end of its previously increased guidance range of $360 to $365 million, and a net loss in a range of $4 to $5 million versus its previously revised guidance for a loss at the better end of a range of $7 to $12 million.
For the fourth quarter of 2016, the Company expects revenue to be approximately $92 million with a net loss in the range of $1 to $2 million.
NxStage will host a conference call today, Thursday, November 3, 2016, at 9:00 a.m. Eastern Time to discuss its third 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 http://ir.nxstage.com.
A replay of the conference call will be available two hours after the completion of the call through November 10, 2016. To access the replay, dial 855-859-2056 (domestic) or 404-537-3406 (international) and reference conference ID 94591098. An online archive of the conference call can be accessed via the investor relations section of the Company’s website at http://ir.nxstage.com.
NxStage Medical, Inc. (Nasdaq:NXTM) is a leading medical technology company, headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and markets innovative products for the treatment of end-stage renal disease (ESRD) and acute kidney failure. NxStage has also established a small number of dialysis clinics committed to the development of innovative care delivery models for patients with ESRD. For more information on NxStage and its products and services, please visit the Company’s website at http://www.nxstage.com and www.nxstagekidneycare.com.
About the NxStage System One
The NxStage System One is the first and only truly portable hemodialysis system cleared specifically by the FDA for home hemodialysis and home nocturnal hemodialysis. Its simplicity and revolutionary size (just over a foot tall) are intended to allow convenient use in patients’ homes and give patients the freedom to travel with their therapy. When combined with the NxStage PureFlow SL Dialysis Preparation System, patients are able to further simplify, using ordinary tap water to create dialysis fluid on demand. Unlike conventional hemodialysis systems, the System One requires no special infrastructure to operate. Under the guidance of their physician, patients can use the NxStage System One, with their trained partners, where, how and when it best meets their needs, including while they are sleeping – at home or on vacation and at a medically appropriate treatment frequency. In addition, NxStage’s Nx2me Connected Health platform collects important NxStage System One and patient information for flexible viewing, monitoring and reporting that may improve patient management and simplify alternative site care. The System One is also used to provide a range of flexible therapy options in more traditional care settings such as hospitals and NxStage Kidney Care dialysis centers. Its safety and efficacy have been demonstrated by experience with more than 13 million treatments with thousands of patients around the world. http://www.nxstage.com/.