Quarterly Product Revenue Up 96% Year-over-Year; Total Revenue Up 88%
SOUTH ORANGE, N.J., Nov. 08, 2018 – Nephros, Inc. (NEPH) (“Nephros”), a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters, today announced financial results for the three months ended September 30, 2018.
“Today’s results represent our ninth consecutive quarter of year-over-year revenue growth averaging over 60%,” said Daron Evans, President and CEO. “Our high-performance ultrafilters and customer-service-driven culture are driving increasing confidence in Nephros products. We believe we are well positioned to continue to grow our network of customers in partnership with our valued distribution partners.”
“As announced last quarter, we are pursuing a national stock exchange listing, which will likely be coupled with a reverse split of our common stock in order to satisfy applicable listing criteria,” said Andy Astor, CFO. “We believe that an uplist is likely to increase the visibility and liquidity of Nephros’s stock, exposing us to a broader audience of additional investors who will be able to consider investing in Nephros.”
Financial Performance for the Quarter Ended September 30, 2018
Product revenues for the three months ended September 30, 2018 were approximately $1,648,000, compared to approximately $841,000 for the three months ended September 30, 2017, an increase of approximately $807,000, or 96%. Total revenues for the three months ended September 30, 2018 were approximately $1,724,000, compared to approximately $916,000 for the three months ended September 30, 2017, an increase of approximately $808,000, or 88%.
Cost of goods sold was approximately $772,000 and $384,000 for the three months ended September 30, 2018 and 2017, respectively. Research and development expenses were approximately $352,000 and $237,000 for the three months ended September 30, 2018 and 2017, respectively. Selling, general and administrative expenses were approximately $1,069,000 and $753,000 for the three months ended September 30, 2018 and 2017, respectively.
As of September 30, 2018, Nephros had cash and cash equivalents of approximately $5,322,000 on a consolidated basis, including approximately $3,000,000 of cash held by its subsidiary, Specialty Renal Products, Inc.
Conference Call Today at 4:30 p.m. EDT
Nephros will host a conference call at 4:30 PM EDT today, during which management will discuss Nephros’s financial results and provide a general business overview.
Participants may dial into the following number to access the call: 1-866-652-5200 or international callers using 1-412-317-6060. Please ask to be joined into the Nephros conference call. A replay of the call can be accessed until November 15, 2018 at 1-877-344-7529 or 1-412-317-0088 for international callers, and entering Replay Access Code: 10126116. An audio archive of the call will be available shortly after call on the Nephros investor relations page at https://www.nephros.com/investor-relations/.
About Nephros, Inc.
Nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters, known as ultrafilters. Nephros ultrafilters are primarily used in hospitals and medical clinics for added protection in retaining bacteria (e.g., Legionella, Pseudomonas), viruses, and endotoxins from water. They provide barriers that assist in improving infection control in showers, sinks, and ice machines. Additionally, Nephros ultrafilters are used by dialysis centers for assisting in the added removal of biological contaminants from the water and bicarbonate concentrate supplied to hemodialysis machines and the patients.
For more information about Nephros, please visit its website at www.nephros.com.
This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’s expected financial results for the fiscal year ending December 31, 2018, its plans to obtain a listing on a national securities exchange, and the expected benefits that may result from such a listing, its expected growth in medical, commercial and industrial filter sales, including the expansion into new markets, its anticipated reverse split of its common stock, including the timing for doing so, and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including uncertainty in clinical outcomes, potential delays in the regulatory approval process, changes in business, economic and competitive conditions, the availability of capital when needed, dependence on third party manufacturers and researchers, regulatory reforms, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Nephros’s reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2017. Nephros does not undertake any responsibility to update the forward-looking statements in this release.
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Andrew Astor, Chief Financial Officer