Guidance:
Looking ahead for Q2 2009, the company expects revenues to be between $33-35 million, a net loss in the range of $11.5-$12.5 million or $0.25 to $0.27 per share, and an Adjusted EBITDA loss in the range of $5.0-$6.0 million.
“We believe the improvements in Adjusted EBITDA continue to reflect the progress we are making against our goal to reduce cash usage and achieve profitability,” stated Burbank.
The company’s first quarter performance was primarily a result of continued execution against initiatives to drive broader market adoption in the Home market. The company increased Home revenue by 36% to $14.4 million in the Q1 2009 when compared with revenues of $10.5 million for the Q1 2008. In the company’s other markets, Critical Care and In-Center revenues were $4.5 million and $14.9 million, respectively, for the Q1 2009.
“Our business has continued to perform well, consistent with our expectations and despite challenging economic conditions. We’ve delivered another quarter showing meaningful improvements in our business fundamentals,” stated Jeffrey H. Burbank, chief executive officer of NxStage “We are pleased with the progress we’ve made on all our metrics and expect to make further advancements. We are also excited about our platforms for growth which now include expansion into the UK and Ireland via our new distribution agreement with Kimal plc.”
Gross margin improved to 21% in the Q1 2009 as compared to 13% in the Q1 2008.
Cash and cash equivalents as of March 31, 2009 were $20.0 million. The company significantly reduced its cash usage from operations to $3.8 million in the Q1 2009 when compared with cash usage of $22.1 million in the Q1 2008. The company believes based on present projections that it has the required resources to fund projected operating requirements through the first quarter of 2010 and thereafter; provided that it further restructures the repayment schedule on its current credit and security agreement with GE.
For the Q1 2009, the company had a $5.7 million Adjusted EBITDA loss, adjusted for stock-based compensation, deferred revenue recognized and other non-recurring expenses, compared with an Adjusted EBITDA loss of $8.3 million in the Q1 2008.
These results were better than the company’s first quarter guidance for an Adjusted EBITDA loss of $6.0-$7.0 million for the Q1 2009. (See the exhibits for a reconciliation of this non-GAAP measure.)
NxStage increased the number of centers with 10 or greater patients to a total of 85 in the Q1 2009, representing a 54% increase when compared with the Q1 2008.
