NxStage Reports Record Revenue for the Third Quarter of Fiscal 2012

     NxStage Reports Record Revenue for the Third Quarter of Fiscal 2012

Highlights:

- Revenue Increases to $61.2 million, up 9% from Q3'11

- Home Revenue Increases to $31.9 million, up 17% from Q3'11

- Gross Margin Increases to 39%, up from 35% in Q3'11

PR Newswire

LAWRENCE, Mass., Nov. 8, 2012

LAWRENCE, Mass., Nov.8, 2012 /PRNewswire/ --NxStage^® Medical, Inc. (Nasdaq:
NXTM), a leading manufacturer of innovative dialysis products, today reported
record financial results for the third quarter ended September30, 2012, with
total revenue above the top end of its guidance range.

(Logo: http://photos.prnewswire.com/prnh/20110503/MM94799LOGO )

Revenue for the third quarter of 2012 increased 9% to $61.2 million, compared
with revenue of $55.9 million for the third quarter of 2011. The higher
revenues were driven by increased adoption of the NxStage System One™.

Home revenue for the third quarter of 2012 increased 17% to a record $31.9
million compared with revenues of $27.2 million for the third quarter of
2011.

"Home growth remains strong," commented Jeffrey H. Burbank, Founder and Chief
Executive Officer. "We continue to deliver double digit growth because we're
doing the right thing for patients. We remain committed to increasing
adoption of home, more frequent dialysis, and see multiple catalysts for
growth including; increased patient demand, our robust product portfolio and
our centers of excellence strategy. With continued execution, we believe we
can achieve over 14% annual growth in the Home for 2012."

Critical Care revenue decreased slightly to $9.1 million for the third quarter
of 2012 compared with revenues of $9.2 million for the third quarter of 2011
reflecting equipment purchasing delays by hospitals. Revenue in the In-Center
market was $19.6 million for the third quarter of 2012.

NxStage reported a net loss of $2.6 million or $(0.04) per share for the third
quarter of 2012 compared with a net loss of $5.3 million or $(0.10) per share
for the third quarter of 2011.

For the third quarter of 2012, the Company reported Adjusted EBITDA, adjusted
for stock-based compensation, deferred revenue recognized, manufacturing
transition costs and other non-cash expenses, of $2.4 million compared with
$2.4 million for the third quarter of 2011. (See the exhibits for a
reconciliation of this non-GAAP measure.)

Guidance:

"For the full fiscal year 2012, the Company is narrowing its guidance range to
reflect the impact of lengthened hospital capital budget cycles with respect
to equipment sales within the Company's critical care business as well as
lower international equipment sales in the fourth quarter of 2012 and
approximately $2 million in annual dialyzor production revenue versus our
earlier projections of $3-4 million. We expect our new manufacturing plant in
Germany to be fully operational by the end of Q4 and believe this relationship
will provide us with long-term cost efficiencies through increased dialyzer
production volumes," stated Robert Brown, Chief Financial Officer.

For the full fiscal year 2012, the Company now expects revenue to be the range
of $240 million and $242 million, a net loss in the range of $15.3 to $16.3
million, or $(0.26) to $(0.28) per share and for Adjusted EBITDA to be in the
range of $8.0 million to $9.0 million compared with its previous guidance for
full year 2012 revenue to be between $240 million and $245 million, a net loss
in the range of $14.0 to $18.0 million or ($0.25) to ($0.32) per share and for
Adjusted EBITDA to be in the range of $8.0 million to $12.0 million.

For the fourth quarter of 2012, the Company is forecasting revenues to be
between $63.0 million and $65.0 million, a net loss in the range of $2.5
million to $3.5 million, or $(0.04) to $(0.06) per share, and Adjusted EBITDA
in the range of $2.0 million to $3.0 million.

This release contains a non-GAAP financial measure. A reconciliation of the
Company's non-GAAP financial measure to its most comparable GAAP financial
measure is in the exhibits to this press release.

Conference Call:

NxStage will also host a conference call today, Thursday, November8, 2012 at
9:00 a.m. Eastern Time to discuss its third quarter financial results. To
listen to the conference call, please dial 877-392-9886 (domestic) or
707-287-9329 (international). The call will also be webcast LIVE and can be
accessed via the investor relations section of the Company's website at
www.nxstage.com.

A replay of the conference call will be available 2 hours after the completion
of the call through November 15, 2012. To access the replay dial 855-
859-2056 (domestic) or 404-537-3406 (international) and reference conference
ID 39189975. An online archive of the conference call can be accessed via the
investor relations section of the Company's website at www.nxstage.com.

About NxStage

NxStage Medical, Inc. (Nasdaq: NXTM) is a medical device company,
headquartered in Lawrence, Massachusetts, USA, that develops, manufactures and
markets innovative products for the treatment of ESRD and acute kidney
failure. For more information on NxStage and its products, please visit the
company's website at www.nxstage.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements contained in
this release that are not clearly historical in nature are forward-looking,
and the words "anticipate," "believe," "expect," "estimate," "plan," and
similar expressions are generally intended to identify forward-looking
statements. Examples of these forward-looking statements include statements as
to the anticipated demand for the Company's products, anticipated operating
results, including revenues, loss, gross margin and Adjusted EBITDA numbers,
and other expectations as to future operating results. All forward-looking
statements involve risks, uncertainties and contingencies, many of which are
beyond NxStage's control, which may cause actual results, performance, or
achievements to differ materially from anticipated results, performance or
achievements, including market acceptance and demand for NxStage's products,
growth in home and/or daily hemodialysis, unanticipated difficulties in
achieving operational efficiencies and cost reductions, changes in
reimbursement for home and daily hemodialysis, changes in the regulatory
environment, changes in the historical purchasing patterns and preferences of
our customers, including DaVita Inc. and Fresenius Medical Care, and certain
other factors that may affect future operating results and which are detailed
in NxStage's filings with the Securities and Exchange Commission, including
its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.

In addition, the statements in this press release represent NxStage's
expectations and beliefs as of the date of this press release. NxStage
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. However, while NxStage may elect to update
these forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so, whether as a result of new information,
future events, or otherwise. These forward-looking statements should not be
relied upon as representing NxStage's expectations or beliefs as of any date
subsequent to the date of this press release.

Contact:
Kristen K. Sheppard, Esq.
VP, Investor Relations
ksheppard@nxstage.com

Non-GAAP Financial Measure

The Company discloses a certain non-GAAP financial measure to supplement the
Company's consolidated financial statements presented on a GAAP basis. This
non-GAAP measure is not in accordance with, or an alternative for, generally
accepted accounting principles in the United States and may be different from
similar non-GAAP financial measures used by other companies. The non-GAAP
financial measure disclosed by the Company is not meant to be considered
superior to or a substitute for results of operations prepared in accordance
with GAAP. Management uses Adjusted EBITDA (EBITDA adjusted for stock
based-compensation, deferred revenue recognized, manufacturing transition
costs and other non-cash expenses) to understand operational cash usage. The
Company believes the non-GAAP financial measure provides useful and
supplementary information allowing investors greater transparency to one
measure used by management. The non-GAAP financial measure is meant to
supplement, and to be viewed in conjunction with, GAAP financial measures.
The non-GAAP financial measure is reconciled to the most comparable GAAP
financial measure below.





NxStage Medical, Inc.

Condensed Consolidated Statements of Comprehensive Loss

(in thousands, except per share data)

(unaudited)


                              Three Months Ended      Nine Months Ended
                              September 30,           September 30,
                              2012        2011        2012         2011
Revenues                      $ 61,152    $ 55,903    $ 177,112    $ 160,235
Cost of revenues              37,404      36,363      109,663      103,797
Gross profit                  23,748      19,540      67,449       56,438
Operating expenses:
Selling and marketing         10,168      9,446       30,006       28,025
Research and development      4,274       3,388       12,421       10,694
Distribution                  4,731       4,709       13,845       13,298
General and administrative    6,921       5,708       20,473       16,750
Total operating expenses      26,094      23,251      76,745       68,767
Loss from operations          (2,346)     (3,711)     (9,296)      (12,329)
Other expense:
Interest expense              (26)        (1,186)     (2,675)      (3,513)
Other income (expense), net   13          (146)       (118)        (342)
                              (13)        (1,332)     (2,793)      (3,855)
Net loss before income taxes  (2,359)     (5,043)     (12,089)     (16,184)
Provision for income taxes    223         235         700          654
Net loss                      $ (2,582)   $ (5,278)   $ (12,789)   $ (16,838)
Net loss per share, basic and $ (0.04)    $ (0.10)    $ (0.22)     $ (0.31)
diluted
Weighted-average shares
outstanding, basic and        58,945      54,428      57,482       53,953
diluted
Other comprehensive loss:
Foreign currency gain (loss)  $ 164       $ (232)     $ 64         $ 72
Other gain (loss)             547         (17)        523          (11)
Comprehensive loss            $ (1,871)   $ (5,527)   $ (12,202)   $ (16,777)







NxStage Medical, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share data)

(unaudited)


                                                   September 30,  December 31,
                                                   2012           2011
ASSETS
Current assets:
Cash and cash equivalents                          $  102,679     $  102,909
Accounts receivable, net                           19,588         15,808
Inventory                                          34,879         32,775
Prepaid expenses and other current assets          1,895          2,777
Total current assets                               159,041        154,269
Property and equipment, net                        33,716         17,599
Field equipment, net                               10,143         12,182
Deferred cost of revenues                          38,391         41,132
Intangible assets, net                             20,518         22,615
Goodwill                                           42,698         42,698
Other assets                                       3,049          1,213
Total assets                                       $  307,556     $  291,708
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                   $  14,812      $  15,634
Accrued expenses                                   19,337         15,165
Other current liabilities                          669            —
Total current liabilities                          34,818         30,799
Deferred revenues                                  53,565         57,014
Long-term debt                                     —              43,235
Other long-term liabilities                        21,376         9,474
Total liabilities                                  109,759        140,522
Commitments and contingencies
Stockholders' equity:
Undesignated preferred stock: par value $0.001,
5,000,000 shares authorized; no shares issued and —              —
outstanding as of September 30, 2012 and December
31, 2011
Common stock: par value $0.001, 100,000,000 shares
authorized; 59,628,194 and 56,167,090 shares       59             56
issued as of September 30, 2012 and December 31,
2011, respectively
Additional paid-in capital                         549,387        489,542
Accumulated deficit                                (342,617)      (329,828)
Accumulated other comprehensive income (loss)      519            (68)
Treasury stock, at cost: 541,584 and 480,923
shares as of September 30, 2012 and December 31,   (9,551)        (8,516)
2011, respectively
Total stockholders' equity                         197,797        151,186
Total liabilities and stockholders' equity         $  307,556     $  291,708





NxStage Medical, Inc.

Cash Flows from Operating Activities

(in thousands)

(unaudited)


                                               Nine Months Ended September 30,
                                               2012             2011
Cash flows from operating activities:
Net loss                                       $  (12,789)      $  (16,838)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization                  17,495           17,415
Stock-based compensation                       9,213            10,166
Other                                          3,047            2,387
Changes in operating assets and liabilities:
Accounts receivable                            (3,753)          (3,414)
Inventory                                      (11,638)         (15,196)
Prepaid expenses and other assets              (384)            (2,067)
Accounts payable                               (863)            2,296
Accrued expenses and other liabilities         3,691            195
Deferred revenues                              (3,449)          1,316
Net cash provided by (used in) operating       $  570           $  (3,740)
activities







NxStage Medical, Inc.

Revenues by Segment

(in thousands)

(unaudited)


                         Three Months Ended    Nine Months Ended
                         September 30,         September 30,
                         2012       2011       2012        2011
System One segment
Home                     $ 31,925   $ 27,218   $ 92,171    $ 80,276
Critical Care            9,099      9,170      28,257      25,199
Total System One segment 41,024     36,388     120,428     105,475
In-Center segment        19,637     19,515     55,477      54,760
Other                    491        —          1,207       —
Total                    $ 61,152   $ 55,903   $ 177,112   $ 160,235





NxStage Medical, Inc.

Non-GAAP Financial Measures

(in millions)

(unaudited)


                         Three Months Ended           Nine Months Ended
                         September 30,                September 30,
                         2012           2011          2012           2011
Net loss                 $   (2.6)      $  (5.3)      $  (12.8)      $ (16.8)
Less: Depreciation,
amortization, interest,  6.2            7.5           21.0           21.9
and taxes
Less: Adjusting items*   (1.2)          0.2           (2.3)          0.2
Adjusted EBITDA          $   2.4        $  2.4        $  5.9         $ 5.3
* Adjusting items include stock-based compensation, deferred revenue
recognized, manufacturing transition costs and other non-cash expenses





NxStage Medical, Inc.

Non-GAAP Financial Guidance

(in millions)

(unaudited)


                                    Three Months Ended
                                    December 31, 2012
                                    High                     Low
                                    Estimate                 Estimate
Net loss                            $     (2.5)              $    (3.5)
Less: Depreciation, amortization,   6.5                      6.5
interest, and taxes
Less: Adjusting items*              (1.0)                    (1.0)
Adjusted EBITDA                     $     3.0                $    2.0
* Adjusting items include stock-based compensation, deferred revenue
recognized, manufacturing transition costs and other non-cash expenses



SOURCE NxStage Medical, Inc.

Website: http://www.nxstage.com
Contact: Kristen K. Sheppard, Esq., VP, Investor Relations, +1-978-332-5923,
ksheppard@nxstage.com