NxStage Medical (NASDAQ: NXTM) reported strong revenue growth driven by its key segments as second-quarter net loss narrowed, prompting the company to raise its outlook.
NxStage develops, manufactures and markets products for the treatment of kidney failure, fluid overload and related blood treatments and procedures
Shares in the company rose $1.52, or 9% to $18.24 on Nasdaq in recent trade.
Revenue climbed 22% to $53.8 million, for the second-quarter that ended June 30. That compares with $44 million the year earlier. The company said the increase was driven by strong performance across its three segments.
NxStage reported a net loss of $5.6 million, or 10 cents a share, compared with a net loss of $8.3 million, or 17 cents a share.
Analysts, on average, had expected a net loss of 10 cents on sales of $51.1 million, according to Bloomberg.
"Building on last quarter's momentum, we delivered strong results across our business and topped expectations," Jeffrey Burbank, Chief Executive of NxStage Medical said in a statement.
"With the portable hemodialysis system cleared for home use by the Food and Drug Administration and similar competition still a number of years away; we see significant opportunities for growth, continued innovation and expansion within the home.”
Segment wise, Home sales grew 30% to $27 million, up from $20.8 million.
Sales in critical care rose 29% to $8.6 million in the latest quarter. That compares to $6.7 million just one year ago.
Revenue in the in-center market, from the Company's Medisystems business, increased 10% to $18.2 versus $16.5 million.
The company said it recently concluded its renegotiation of its U.S. home market agreement with one of its largest customers, extending the terms of the agreement to December 2012 and up to one additional year.
NxStage also said DaVita Inc. is entitled to become vested in warrants to purchase 250,000 shares of NxStage's common stock.
Looking ahead, the company expects full-year revenue to be $210 million to $215 million, up from its prior forecast of $205 million to $213 million.
For the third quarter, it predicts a loss of nine cents to 11 cents a share on revenue of $53.5 to $54.5 million, compared with analysts' prediction of a loss of nine cents on revenue of $52 million.