NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported record first quarter financial results that exceed the top end of its guidance range.
Revenue for the first quarter of 2014 increased 17 percent to a record $72.2 million, compared with revenue of $61.6 million for the first quarter of 2013. The Company's revenue guidance range for the first quarter was $69.5 to $70.5 million. The increase in revenue was driven by continued strong adoption of the NxStage® System One™ hemodialysis machine within the Home, both within US and international markets, and the Critical Care market.
Home revenue increased 16 percent to $36.5 million for the first quarter of 2014 compared with revenue of $31.5 million for the first quarter of 2013.
Critical Care revenue increased 37 percent to $14.7 million for the first quarter of 2014 compared with revenue of $10.7 million for the first quarter of 2013, reflecting stronger-than-anticipated disposable and equipment sales.
In-center revenue increased to $18.9 million for the first quarter of 2014 compared with revenue of $18.7 million for the first quarter of 2013.
NxStage reported a net loss of $5.3 million, or $(0.09) per share for the first quarter of 2014 compared with a net loss of $5.0 million, or $(0.08) per share for the first quarter of 2013. Higher revenues and favorable product mix resulted in a better-than-expected net loss for the first quarter of 2014 versus the Company's guidance for net loss to be in a range of $7.5 to $6.5 million. Consistent with the Company's expectations, net loss for the first quarter of 2014 included $3.0 million in losses associated with the Company's market development activities with NxStage Kidney Care.
"NxStage had a strong start to the year and exceeded our guidance across all key metrics," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "The progress we are making on our near term growth drivers is reflected in both strong growth across our business and increasing demand for our innovative new products with patients and customers. Our strategic growth initiatives remain solidly on track and we believe they are positioning the Company toward our goal of 15% annual home revenue growth in 2014."
"After a strong first quarter, we believe we are trending towards the higher end of our annual revenue guidance which was originally set to be between $283 million and $288 million," stated Matthew W. Towse, Chief Financial Officer. "Looking ahead to the second quarter, we expect revenue to be between $70.0 million and $71.5 million, and a net loss in the range of $7.5 million to $6.5 million."