Somebody should give those guys a raise.
In the same week that NxStage Medical Inc. announced that company executives will not receive bonuses or raises after last year’s dismal stock performance, company officials said sales for the Lawrence-based dialysis maker jumped 115 percent in 2008.
NxStage, which makes dialysis equipment to treat end-stage renal failure, posted fourth-quarter sales of $35.7 million, up 19 percent over $29.8 million during the same period last year.
That helped the company narrow its net loss to $9.6 million for the quarter ended Dec. 31, 2008, compared with a net loss of $17.3 million during the fourth quarter of 2007.
Annual sales rose a whopping 115 percent to $128.7 million, compared to just under $60 million for 2007.
But the company still posted a net loss of $51.2 million for 2008, compared to $58.3 million during the prior year.
NxStage officials touted increased sales of its System One portable hemodialysis system as a critical cog in driving revenues, even as its In-Center segment accounted for more than half of the company’s total sales for the year.
The company’s cash burn rate remains a concern, as its coffers diminished by about 20 percent year-over-year. The company currently has about $26 million in cash and cash equivalents, compared to over $33 million last year.
In a conference call with investors, CEO Jeff Burbank said the company has been keeping an eye on its cash reserves and trimmed about $17 million from its burn rate since the first quarter of 2008.
Overall, Burbank seemed rather upbeat about the results.
“We feel good about the progress we’ve made in 2008,” he said, according the transcript posted on the Seeking Alpha website. “Our results demonstrate the strength of our unique business model. It’s a model that has proven formidable even in today’s economy. I will remind you that our business is centered on products used in life-sustaining treatment for patients with end-stage renal disease. That’s a population that has continued to grow between 3 percent and 5 percent on an annual basis, and approximately 80 percent of whom are already Medicare patients.”
Notwithstanding Burbank’s optimism, NxStage is predicting further losses this year, saying it expects full-year revenues of between $135 million and $145 million and an annual net loss in the range of $42 million to $47 million.
First-quarter sales are expected to range between $32 million and $34 million, with a quarterly net loss in the range of $12.5 million to $13.5 million.