NxStage Medical, Inc. (NXTM) saw its loss narrow to $1.60 million, or $0.02 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.67 million, or $0.04 a share.
Revenue during the quarter grew 3.57 percent to $93.01 million from $89.80 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 40.71 percent. Operating margin for the quarter stood at negative 2.32 percent as compared to a negative 2.56 percent for the previous year period.
Operating loss for the quarter was $2.15 million, compared with an operating loss of $2.30 million in the previous year period.
"NxStage had a terrific fourth quarter, finishing off a great 2016. It"s an exciting time at NxStage. Our focus on innovation and execution is delivering the results we talked about and setting the foundation for the next wave of growth. Most importantly, we believe our efforts are having a positive impact on patient lives," said Jeff Burbank, Founder and chief executive officer of NxStage. "We expect this momentum to continue in 2017. For the fourth consecutive year we’re targeting 15% annual home revenue growth, above market growth in critical care and solid top line revenue growth for the total company. We’re also guiding to total company profitability in 2017."
For financial year 2017, NxStage Medical, Inc. projects revenue to be in the range of $400 million to $405 million.
For the first-quarter 2017, NxStage Medical, Inc. projects revenue to be in the range of $95 million to $97 million. The company expects net loss to be in the range of $1 million to $3 million.
Working capital increases
NxStage Medical, Inc. has recorded an increase in the working capital over the last year. It stood at $95.64 million as at Dec. 31, 2016, up 11 percent or $9.48 million from $86.16 million on Dec. 31, 2015. Current ratio was at 2.94 as on Dec. 31, 2016, down from 3.02 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 43 days for the quarter from 36 days for the last year period. Days sales outstanding went up to 16 days for the quarter compared with 13 days for the same period last year.
Days inventory outstanding has increased to 39 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding went up to 12 days for the quarter from 9 for the same period last year.
Debt comes down
NxStage Medical, Inc. has recorded a decline in total debt over the last one year. It stood at $1.63 million as on Dec. 31, 2016, down 17.48 percent or $0.35 million from $1.98 million on Dec. 31, 2015. Total debt was 0.51 percent of total assets as on Dec. 31, 2016, compared with 0.64 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.01 as on Dec. 31, 2016, when compared with the last year.
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