Previous Statements by NXTM
» NxStage Medical, Inc. Q1 2010 Earnings Call Transcript
» NxStage Medical, Inc F4Q and Full Year 2008 Earnings Call Transcript
» NxStage Medical Inc. Q3 2008 Earnings Call Transcript
Because such statements deal with future events they are subject to various risks and uncertainties and actual results may differ materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in our SEC filings, including our quarterly report on Form 10-Q for the quarter ended March 31, 2009.In addition, any forward-looking statements made on this call represent the company’s views only as of today and should not be relied upon as representing our views as of subsequent dates. Future events and developments may cause these expectations to change and while we may elect to update forward-looking statements at some point in the future, the company disclaims any obligation to do so, and therefore you should not rely on these forward-looking statements as representing our views on any dates subsequent to today. Now, I’d like to hand the call over to our CEO, Jeff Burbank. Jeff Burbank Thanks Kirsten. Good morning everyone. I will start by reviewing the quarter’s highlights and provide thoughts on our progress and prospects. After that, Robert will review our financial results along with our guidance, then we will take your questions. Q2 was a record quarter for NxStage with all three markets outperforming. Revenue, gross margin, adjusted EBITDA and cash were all records. Revenue increased to 44 million, up 21% from last year and well above the top end of our guidance. This was also our largest quarterly sequential growth in total revenue ever. Home drove this performance with the third straight quarter of record sequential growth. Gross margin increased to 31%, a 200 basis point improvement from the first quarter. Adjusted EBITDA neared our breakeven target at a loss of $200,000, which was great given the number of machines we have sold and their impact on this calculation. All this good work resulted in positive cash flow of $1 million, well ahead of our cash flow plan.
We believe we are in good position at the halfway point of the year. We are confident in our ability to deliver continued sequential improvements in our fundamentals. Based on these results, we are increasing our projections for a sequential growth in the home, and raising our revenue guidance for the year from 163 million to 170 million to 170 million to 175 million.Turning to an update on those three markets. First home, I am pleased to announce that we finalized a new strategic agreement with DaVita for the home. DaVita has made substantial investments in building their home hemodialysis capabilities, and in partnership with NxStage, they have become the largest hemodialysis provider in the world. We believe this new agreement capitalizes on that progress. I believe this agreement represents a good way to move forward with such a key strategic partner, while ensuring all stakeholders will benefit from superior execution. This was accomplished with the use of warrants as a rebate for DaVita achieving significant home patient performance targets. With this agreement now finalized, we will continue to focus on our four growth drivers, reimbursement, going deep, clinical data, and product. Continued progress in these areas contributed to a strong quarter in the home with revenues growing 9.3% sequentially and 37% over the same period last year. With regard to reimbursement, we believe the outcomes and benefits of home hemodialysis therapy with the System One are well aligned with the objectives of CMS’ expanded bundle, which is going into effect on January 1, 2011, and even broader, the overall health care reform goals. Read the rest of this transcript for free on seekingalpha.com