Dialysis: NxStage Medical reports record sales, hits new Wall Street low

August 8, 2012 by MassDevice staff

NxStage Medical's shares hit a new 52-week low, despite the company's record sales and a forecast-beating 2nd quarter.

NxStage Medical logo

NxStage Medical (NSDQ:NXTM) notched a new low watermark for the year, despite reporting a strong 2nd quarter with records sales.

NXTM shares briefly hit $13.20 today, the lowest they've been in the last 52 weeks. Shares regained few cents by the early afternoon to trade at $13.34, still down 16% on the day.

Shares dropped despite a record-breaking financial report, with revenues higher than the company's ever scored for a single quarter.

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The Fort Lauderdale, Fla.-based hemodialysis devices maker reported $59 million in sales during the 3 months ended June 30, a 9.8% spike from the same period last year.

"Our results in the 2nd quarter reflect solid and consistent progress. We achieved record revenues, a 300 bps improvement in gross margin, and advanced our robust product pipeline," CEO Jeff Burbank said in prepared remarks. "In sum, our growth strategy remains on track and we remain confident in our outlook for 2012."

NxStage also narrowed its losses during the quarter, reporting a net loss of $5.1 million, or 9¢ per share. That's 8.8% lower than the $5.6 million, or 10¢ per share, lost during the same period last year.

NxStage has taken a hit in the last month following a proposed rule by the Centers for Medicare & Medicaid that failed to update reimbursement guidelines for home hemodialysis, dashing the company's hopes of a more favorable physician payment environment - as well as some investors' hopes of a near-term upside for NxStage Medical.