NxStage Medical first-quarter net revenue increases 20% to $40.4 million

NxStage Medical, Inc. (Nasdaq: NXTM), a leading manufacturer of innovative dialysis products, today reported financial results for the first quarter of 2010 ended March  31, 2010, with total revenue above the top end of its guidance range.

Net revenue for first quarter of 2010 increased to $40.4 million compared with revenue of $33.7 million for the first quarter of 2009, representing a 20% increase.  The increase was driven by strong performance of the Company's Home and Critical Care markets, which experienced growth of 33 percent and 36 percent, respectively, when compared with the first quarter of 2009.

Home revenue grew to $19.0 million for the first quarter of 2010 compared with revenues of $14.4 million for the first quarter of 2009.  Critical Care revenue grew to $6.1 million for the first quarter of 2010 compared with revenues of $4.5 million for the first quarter of 2009.  Revenue in the In-Center market, from the Company's Medisystems business, increased to $15.3 million for the first quarter of 2010 compared with revenues of $14.9 million for the first quarter of 2009.  

"The Home market showed strong sequential growth over the fourth quarter of 2009, as a result of systematic execution against our strategic initiatives to further develop the home hemodialysis market with the System One™," stated Jeffrey H. Burbank, Chief Executive Officer of NxStage Medical, Inc.  "As the only company with a home hemodialysis product cleared for home use by the FDA, and over 3 million treatments, we feel good about our outlook for 2010 and see significant opportunity to continue to grow our top line and improve our bottom line with a lower risk profile than in the past."

NxStage reported a net loss of $9.0 million or ($0.19) per share for the first quarter of 2010 compared with a net loss of $12.2 million or ($0.26) per share for the first quarter of 2009.  

For the first quarter of 2010, the Company had an Adjusted EBITDA loss of $1.3 million, compared with an Adjusted EBITDA loss of $5.7 million in the first quarter of 2009.  

"We remain focused on achieving our goal of breakeven Adjusted EBITDA in the second quarter of 2010, and believe we are on track to meet or exceed our goal of breakeven cash flow 2 to 3 quarters following this milestone," stated Robert S. Brown, Chief Financial Officer of NxStage Medical, Inc.

Guidance:

For the second quarter of 2010, the Company is forecasting revenues to be between $40 and $42 million, a net loss in the range of $8.0 to $9.0 million or ($0.17) to ($0.19) per share, and an Adjusted EBITDA loss in the range of $0.0 to $1.0 million.  

SOURCE NxStage Medical, Inc.