NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported second quarter revenue that exceeds the top end of its guidance range.
Revenue for the second quarter of 2014 increased 13 percent to a record $74.1 million, compared with revenue of $65.5 million for the second quarter of 2013, and exceeded the Company's guidance range for the second quarter. The increase in revenue was driven by strong adoption of the NxStage® System OneTM hemodialysis machine within the Home, both within US and international markets, and the Critical Care market.
Home revenue increased 18 percent to $38.5 million for the second quarter of 2014 compared with revenue of $32.7 million for the second quarter of 2013.
Critical Care revenue increased 15 percent to $12.4 million for the second quarter of 2014 compared with revenue of $10.8 million for the second quarter of 2013.
In-center revenue was $21.0 million for the second quarter of 2014 compared with revenue of $21.2 million for the second quarter of 2013.
NxStage reported a net loss of $7.1 million, or $(0.12) per share for the second quarter of 2014 compared with a net loss of $3.4 million, or $(0.06) per share for the second quarter of 2013. Consistent with the Company's expectations, net loss for the second quarter of 2014 included $3.2 million in losses associated with the Company's market development activities with NxStage Kidney Care, which is designed to support the adoption of home hemodialysis.
"We are very pleased with our performance throughout the first half of the year which reflects continuing momentum with our strategic growth initiatives," stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. "Home is tracking ahead of plan with second quarter revenue up 18%, representing the best year over year growth in Home since Q4 of 2011. Consistent with our plans, we are accelerating adoption of home hemodialysis with the System One and building a long-term sustainable growth path for NxStage. Based on our strong start to the year, as well as our increased confidence in the second half, we believe we are well positioned to top our 15% annual Home revenue growth target and exceed our previous guidance for total revenue."
The Company now expects full-year revenue for 2014 to be between $290 and $293 million, versus its previous guidance of $283 to $288 million. The Company's full-year net loss guidance remains unchanged at $23 to $27 million.
For the third quarter of 2014, the Company expects revenue to be in a range of $71.0 and $72.5 million, and a net loss in the range of $7.5 to $8.5 million.
NxStage will also host a conference call today, Thursday, August 7, 2014 at 9:00 a.m. Eastern Time to discuss its second quarter financial results.