NxStage Medical plunges on wider-than-expected Q4 loss
NxStage Medical, Inc. (Nasdaq: NXTM) shares are plunging after the dialysis products maker reported a larger-than-expected loss for the fourth quarter.
The Lawrence, Mass.-based company posted a net loss of $17.4 million, or $0.47 per share, down 67% from a loss of $10.4 million, or $0.37 per share, a year earlier. Analysts predicted a loss of $0.34 per share.
NxStage Medical’s quarterly revenue totaled $29.9 million, more than triple the $15.7 million in sales during the year-ago period. Wall Street analysts, on average, projected revenue of $28 million.
“We are now in three dialysis markets: home, critical care and in-center," CEO Jeffrey Burbank said in a statement. “In our existing business, we formed key supply and distribution agreements and grew our home hemodialysis revenues by 134%. We hope to build on this momentum and continue to lead the development of the home hemodialysis market in 2008.”
The firm’s net loss was due to higher spending to fund the launch of its System One product and higher distribution expenses.
In afternoon trading, NXTM shares are plunging to a new year low — down 32.71%, or $4.17, to $8.58. Over the last 52 weeks, shares have ranged from $10.94, posted on Aug. 6, to $15.61, posted on Oct. 2.
