Dialysis product manufacturer NxStage Medical, Inc. (Nasdaq: NXTM) reported second quarter financial results at and above the top end of its guidance ranges.
Revenue for the second quarter of 2015 increased 8% to $80.3 million, compared to $74.1 million for the second quarter of 2014. The company’s revenue guidance range for the second quarter was $79.0 million to $80.5 million. The increase was driven by the System One segment, which consists of home dialysis and critical care.
Home dialysis revenue increased 16% to $44.8 million, compared to revenue of $38.5 million for the same quarter last year.
During a conference call, the company also released details about new dialysis systems in the pipeline.
Critical Care revenue increased 18% to $14.6 million for the second quarter of 2015, compared with revenue of $12.4 million for the second quarter of 2014.
Consistent with the Company’s guidance, In-center dialysis revenue dropped to $18.6 million for the second quarter of 2015, compared to revenue of $21 million for the second quarter of 2014.
Net loss attributable to NxStage Medical, Inc.’s stockholders improved to $5.3 million for the second quarter of 2015 compared toa net loss of $7.1 million for the second quarter of 2014. Net loss for the second quarter of 2015 was better than its guidance for a net loss of $5.5 million to $7.0 million and included $1 million of income from operations from the Products Business and $5.8 million in losses from operations from the Services segment, NxStage Kidney Care, less noncontrolling interest.
The company also announced that its blood tubing distribution agreement with Baxter International, Inc. has been renewed through December of 2016.
“NxStage’s solid performance proves our commitment to strong, profitable long-term growth,” stated Jeffrey H. Burbank, Founder and Chief Executive Officer of NxStage. “Consistent with our growth strategy, we are driving increased demand for our therapy options and giving patients and clinicians more flexibility to meet both their clinical and lifestyle needs.”
“After a strong first half of the year, we expect to achieve the top end of our annual revenue guidance which was originally set to be between $324 million and $328 million,” said Matthew W. Towse, Chief Financial Officer. “Since early 2014, we have indicated that one of our key financial goals was to achieve sustainable operating income in the Products Business. Q2 marks our third consecutive quarter of profitable operations in that business and we remain confident in our ability to sustain this performance moving forward. Taken together with our expectations for the remainder of the year, we are improving and narrowing our annual net loss guidance to be in a range of $18.0 million to $20.0 million versus our previous guidance for a net loss in the range of $20.0 million to $24.0 million, and dramatically reducing our targeted annual cash usage to approximately $10 million, which is about half our original projection and one-third of our cash usage in 2014.”
For the third quarter, the Company expects revenue to be between $82 million and $83 million, and a net loss in the range of $4.5 million to $5.5 million. The Company’s net loss guidance reflects expectations for continued operating income from the Products Business offset by the Company’s continued investment in NxStage Kidney Care.