NxStage reports revenue increases for fourth quarter, full year

NxStage Medical Inc. reported that revenue for the fourth quarter of 2014 increased 15% to $79.9 million, compared with revenue of $69.5 million in the same quarter last year. Revenue for the full year increased 14% to $301.5 million, compared with revenue of $263.4 million in 2013.

The increases in both periods were driven by outperformance in the System One segment, which consists of home dialysis and critical care, according to NxStage.

Home dialysis revenue increased 19% to $157.8 million for the full-year 2014, compared with revenue of $132.9 million for the full-year 2013, exceeding the company's target for 15% annual growth. Home revenue increased 21% to $42.5 million in the fourth quarter of 2014, compared with revenue of $35.1 million in the fourth quarter of 2013, exceeding the top end of its recent guidance.

Critical Care revenue increased 27% to $55.6 million for the full-year 2014, compared with revenue of $43.8 million for the full-year 2013. Revenue in critical care increased 31% to $15.2 million in the fourth quarter of 2014, compared with revenue of $11.6 million in the fourth quarter of 2013.

The company's in-center dialysis segment revenue fell almost 4% to $78.9 million for the full-year 2014, compared with revenue of $81.9 million in 2013. Fourth quarter 2014 revenue fell more than 5% to $19.5 million, compared with $20.6 million in the fourth quarter of 2013.

Net loss attributable to NxStage Medical, Inc.'s stockholders was $23.9 million for the full-year 2014, compared with a net loss of $18.6 million for the full-year 2013. Net loss was $4.9 million for the fourth quarter of 2014, compared with a net loss of $5.2 million for the fourth quarter of 2013.

NxStage Medical, Inc.'s net loss for both the full-year and fourth quarter of 2014 was better than its guidance and included $14.6 million and $4.5 million, respectively, in anticipated losses from operations from the Company's Services segment

"Our strong fourth quarter results capped a year of solid growth and execution for NxStage," said CEO Jeffrey H. Burbank. "We delivered on our key goals for 2014, exceeding our target of 15% annual growth in the Home, advancing our growth strategy and extending our market leadership with yet another first-ever indication, home nocturnal hemodialysis. Our priorities for 2015 remain the same: 15% annual growth in the Home, strong top-line growth, and progress toward sustainable operating profitability. As we look beyond 2015, we believe we are well positioned to capitalize on the tremendous market opportunity with the System One. With an innovative pipeline that includes, among others, our peritoneal dialysis system and our next generation hemodialysis system, we intend to extend our reach to a much larger patient base across the broader chronic and critical care dialysis markets. We look forward to bringing these revolutionary innovations to the market to improve the standard of renal care for patients and deliver higher value to our shareholders."

The Company is forecasting revenue to be between $324 million and $328 in 2015, and between $77.5 million and $78.5 million for the first quarter of 2015. The company also expects a net loss in the range of $20 million to $24 million for the full fiscal year 2015, and a net loss in the range of $6.5 million to $7.5 million for the first quarter of 2015. NxStage said the majority of the company's projected net loss in both periods will be related to its investment in NxStage Kidney Care, which opened two new dialysis centers in the Boston area this month.