NxStage Reports Second Quarter 2008 Financial Results
Tuesday August 5, 7:05 am ET
LAWRENCE, Mass., Aug. 5 /PRNewswire-FirstCall/ -- NxStage Medical, Inc. (Nasdaq: NXTM - News), a leading manufacturer of innovative dialysis products, today announced its financial results for the second quarter ended June 30, 2008. Revenues for the second quarter were $31.6 million, compared to $31.0 million in the first quarter of 2008 and $10.0 million in the second quarter of 2007.
Revenues in the Company's home dialysis market were $11.9 million in the second quarter of 2008, compared to $10.5 million in the first quarter of 2008. Revenues in the in-center market, from the Company's Medisystems in-center business, were $15.4 million in the second quarter of 2008, compared to $16.1 million in the first quarter of 2008. Revenues in the critical care market were $4.4 million for the second quarter of 2008, compared to $4.3 million in the first quarter of 2008.
NxStage reported a net loss of $12.5 million, or ($0.32) per share, based on shares outstanding as of June 30, 2008, for the second quarter of 2008, compared with a net loss of $13.9 million, or $(0.38) per share, for the first quarter of 2008, and a net loss of $12.9 million, or ($0.43) per share, for the second quarter of 2007. The 2008 second quarter net loss includes a $2.1 million non-cash gain, recorded in other income, reflecting the liability accounting treatment under SFAS No. 150 for the common stock and warrants issued in connection with the Company's previously announced $43 million private placement.
For the second quarter of 2008, the Company had an Adjusted EBITDA loss, adjusted for stock-based compensation, deferred revenue recognized and the accounting impact of its private equity financing recorded as other income (expense), of $7.7 million, compared to a loss of $8.3 million in the first quarter of 2008, and a loss of $11.6 million in the second quarter of 2007 (see the exhibits for a reconciliation of this non-GAAP measure).
Cash, cash equivalents and short term investments as of June 30, 2008 were $26.4 million. While the Company's balance sheet at June 30, 2008 reflects gross proceeds of $25 million from the first tranche of its $43 million private placement, it does not include the impact of the additional $18 million from the second tranche, which closed on August 1, 2008.
As of the end of the second quarter of 2008, NxStage had increased the number of centers with greater than 10 patients to a total of 67, representing a 22% increase when compared with the first quarter of 2008 and 91% increase when compared with the second quarter of 2007.
"We executed on the strategic initiatives outlined last quarter, further solidifying a business model focused on three target markets, and delivering both improved underlying operations and financial results," stated Jeffrey H. Burbank, President and Chief Executive Officer of NxStage Medical. "We remain confident in our ability to grow revenue and achieve profitability in the longer term, creating greater value for our shareholders."
Recent Highlights
-- On August 1, 2008, the Company completed a $43 million private
placement of its common stock and warrants.
-- In July 2008, the Company announced access to demographic and outcomes
information for its growing U.S. daily home hemodialysis patient
population, including the following data points:
-- Survival and transplant rates are notably higher among the NxStage
patient population undergoing home daily therapy vs. reported
figures for conventional, less frequent dialysis treatment. NxStage
patients on home daily hemodialysis experienced a better than 50%
reduction in expected mortality compared to the overall U.S.
hemodialysis patient population. This observed difference was
statistically significant (P<0.0001).
-- Patients of varied size, age, vascular access type, and geographic
location are participating in home daily hemodialysis, indicating
its broad applicability.
-- 92% of the U.S. dialysis population resides within 60 miles of a
center offering NxStage home hemodialysis training, and nearly 80%
are within 30 miles. This indicates that geographic barriers to
initiating daily home hemodialysis are being addressed.
-- In July 2008, NxStage elected Jonathan Silverstein, a General Partner
of OrbiMed Advisors, LLC, to its Board of Directors in connection with
the recently announced private placement.
-- In June 2008, Jeff Smith joined the Company as Vice President and
General Manager, Home Market.
Guidance:
For the third quarter of 2008, the Company expects revenue to be in the range of $30 to $32 million. The Company also expects a net loss in the range of $13.5 to $14.5 million or ($0.30) to ($0.32) per share, excluding any accounting impact of its private equity financing, and an Adjusted EBITDA loss in the range of $7.0 to $8.0 million for the third quarter of 2008.
This release contains non-GAAP financial measures, a reconciliation of the Company's non-GAAP financial measures to their most comparable GAAP financial measure is in the exhibits to this press release.
