Full Press Release Details
Reports Third Quarter 2008 Financial Results
YORK, NY-November 14, 2008
Nephros, Inc. (AMEX:
announced today unaudited financial results for the three and nine month periods
ended September 30, 2008.
Performance for the Quarter Ended September 30, 2008:
quarter ended September 30, 2008, Nephros reported net product revenues of
$393,000 for the three months ended September 30, 2008, compared with $112,000
in the corresponding period of 2007, an increase of $281,000 or 251%.
Approximately $231,000 of the increase in revenue is attributable to sales
and MD220 products in Europe and the Dual Stage Ultrafilter (DSU) water filter
in the United States. Nephros generated approximately $50,000 of additional
revenue in the third quarter of 2008 from its U.S. Defense Department project,
which began in 2008.
expenses for the three months ended September 30, 2008 were $1,517,000 compared
with $1,792,000 in the corresponding period of 2007. The decrease of $275,000
15% represented a $107,000 or 37% reduction in Research and Development expenses
as well as a $166,000 or 12% reduction in Selling, General and Administrative
increase in revenue and gross margin combined with the reduction in operating
expenses resulted in a loss from operations of $1,378,000 for the three months
ended September 30, 2008 compared to a net loss from operations of $1,811,000
for the same period in 2007. This is a $433,000 or 24% improvement in results
net loss was $1,346,000 or $0.04 per basic and diluted common share for the
third quarter of 2008 versus a net loss of $1,462,000 or $0.12 per basic and
diluted common share in the third quarter of 2007. Nephros's net loss decreased
$116,000 or 8% in the current quarter primarily due to the $433,000 reduction
loss from operations which was offset by a net amount of other income in the
amount of $317,000 that occurred in 2007 but did not repeat in 2008. Nephros's
decrease in net loss per basic and diluted common share during the current
quarter was primarily due to the increase in the weighted-average number of
shares outstanding from 12,317,992 in the third quarter of 2007 to 38,165,380
the comparable period of 2008.
product revenues for the nine months ended September 30, 2008 were $1,033,000
compared to $755,000 in the corresponding period of 2007, an increase of
approximately $278,000 or 37%. The increase is primarily due to an increase
approximately $165,000 or 22%
of the OLp r MD190 and MD220 Dialyzers in Europe and revenues in the Unites
States of $9,000 from the sale of DSU water filtration products. The DSU
represents a new and complementary product line, and Nephros had generated
revenues from it during
comparable period in 2007. Nephros generated approximately $103,000 of
additional revenue during the nine months ended September 30, 2008 from its
Defense Department project which did not begin until 2008.
expenses for the nine months ended September 30, 2008 were $6,157,000 compared
with $5,052,000 in the corresponding period of 2007. The increase of $1,105,000
or 22% was primarily due to a $970,000 or 88% increase in Research and
Development expenses due to the cost of the clinical trial that was conducted
module and OLp r MD 220 filter.
increase of $133,000 or 4% in Selling, General and Administrative expenses
contributed to the overall increase as well.
net loss was $5,430,000 or $0.14 per basic and diluted common share for the
months ended September 30, 2008 compared with $4,663,000 or $0.38 per basic
diluted common share for the corresponding period of 2007. While net loss
increased for the nine months ended September 30, 2008 from the corresponding
period of 2007, Nephros's net loss per basic and diluted common share actually
decreased as a result of the increase in the weighted-average number of shares
outstanding from 12,317,992 during the 2007 period to 38,165,380 during the
September 30, 2008, Nephros had cash, cash equivalents short-term investments
and other current assets of $4,747,000.
510k Submission Update
submitted two 510k applications to the FDA for approval to market our
leading-edge products here in the U.S. In addition to filing for approval of
hemodiafiltration system, we also filed a 510k for approval to use our DSU
product within dialysis clinics," said Mr. Elgin.
Company will provide a corporate update in a separate press release to be issued
within the next week.
Inc., headquartered in New York, is a medical device company developing and
marketing products designed to improve the quality of life for the End-Stage
Renal Disease (ESRD) patient, while addressing the critical financial and
clinical needs of the care provider. ESRD is a disease state characterized
the irreversible loss of kidney function. Nephros products are sold and
distributed throughout Europe and are currently being used in over fifty clinics
also markets a line of water filtration products incorporating its patented
stage cold sterilization filtration technology, the Dual Stage Ultrafilter
(DSU), which produces biologically safe water. The DSU has the capability to
filter out bacteria and, due to its exceptional filtration levels, filter out
many viruses, parasites, and other biotoxins as well. The DSU is in pilot-use
programs at several U.S. medical centers and has been selected for further
development by the U.S. Marine Corps.
information on Nephros, please visit the Nephros's website at www.nephros.com.
in this news release that are not historical facts constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
of 1995 (the "PSLRA"). Such statements may be preceded by words such as "may,"
"plans," "expects," "believes," "hopes," "potential" or similar words. For
statements, Nephros claims the protection of the PSLRA.
statements are not guarantees of future performance, are based on assumptions
and are subject to various known and unknown risks and uncertainties, many
which are beyond Nephros's control. Actual results may differ materially from
the expectations contained in the forward-looking statements. Factors that
cause such differences include the risks that Nephros may not be able: (i)
obtain funding if and when needed or on favorable terms; (ii) to continue as
going concern; (iii) to maintain compliance with the AMEX's continued listing
standards; (iv) to demonstrate in pre-clinical or clinical trials the
anticipated efficacy, safety or cost savings of products that appeared promising
to Nephros in research or clinical trials; (v) to obtain appropriate or
necessary governmental approvals to achieve its business plan or effectively
market its products; (vi) to have its technologies and products accepted in
current or future target markets; or (viii) to secure or enforce adequate legal
protection, including patent protection, for its products. More detailed
information about Nephros and the risk factors that may affect the realization