Nephros Announces Preliminary Financial Results for Fourth Quarter and Fiscal Year 2020

Rhea-AI Summary

Nephros, Inc. (Nasdaq: NEPH) anticipates revenues of approximately $2.3 million for Q4 2020, reflecting a 9% sequential growth from Q3, but a 27% decline year-over-year. Full-year revenue is expected to be around $8.5 million, down 17% from 2019. CEO Andy Astor noted that COVID-19 significantly impacted 2020 revenues, particularly in acquiring new customers and sales in hospitality sectors. However, the company expressed optimism for recovery and growth as vaccine distribution expands. Nephros ended the year with approximately $8.3 million in cash.

Positive

• Sequential revenue growth of 9% in Q4 2020 compared to Q3 2020.
• Positivity regarding future growth linked to vaccine distribution.
• Maintained a strong cash position of approximately $8.3 million.

Negative

• Expected Q4 2020 revenue shows a sharp 27% decline compared to Q4 2019.
• Full-year 2020 revenue decreased 17% compared to 2019.

Anticipates $2.3 Million Revenue in Fourth Quarter, $8.5 Million in Full-Year;
Quarterly Revenue Grew 9% Sequentially Over Third Quarter; Full Year Revenue Declined 17%

SOUTH ORANGE, NJ, Jan. 12, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Nephros, Inc. (Nasdaq: NEPH), a commercial-stage company (“Nephros”) that develops and sells high performance water purification products and pathogen detection systems to the medical and commercial markets, today announced preliminary financial results for the fiscal year ended December 31, 2020.

Revenues for the quarter ended December 31, 2020 are expected to be approximately $2.3 million, a sequential increase of approximately 9% over the quarter ended September 30, 2020, and a decrease of approximately 27% compared with the same quarter in 2019. Full-year 2020 revenues are expected to be approximately $8.5 million, a decrease of approximately 17% compared to the year ended December 31, 2019.

“As we have referenced previously, COVID-19’s impact on our revenues was significant in 2020, particularly with respect to new customer acquisition, emergency outbreak response, and hotel and restaurant sales,” said Andy Astor, President and CEO of Nephros. “As the world has begun to adapt to the pandemic, however, our revenues have consistently improved, with sequential quarter-over-quarter gains in both Q3 and Q4. We are optimistic that this trend will continue as we enter 2021, and that our return to high growth rates will be associated with broad vaccine distribution in the coming months.”

Nephros ended the year with approximately $8.3 million in cash on a consolidated basis.

About Nephros, Inc.

Nephros is a commercial-stage company that develops and markets high performance water purification products and pathogen detection systems for medical and commercial markets.

Nephros ultrafilters are used in hospitals, medical clinics, and commercial facilities to retain bacteria – including Legionella and other pathogens – and viruses from water, providing an important aid in infection control for showers, sinks, and ice machines. Nephros ultrafilters are also used in dialysis centers to aid in the removal of endotoxins and other biological contaminants from water and bicarbonate concentrate in hemodialysis machines.

Nephros pathogen detection systems, including the PluraPath™, SequaPath™, and DialyPath™ systems, provide data on waterborne biological content to medical and water quality professionals. Our products integrate Nephros ultrafilters with quantitative polymerase chain reaction (qPCR) technology to deliver actionable water pathogen information in real time.

Nephros commercial filters, including AETHER™ brand filters, improve the taste and odor of water, and reduce scale build-up in downstream equipment. Nephros and AETHER™ products are used in the health care, food service, hospitality, and convenience store markets.

For more information about Nephros, please visit its website at www.nephros.com.

Forward-Looking Statements

This release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’s expected revenue for the quarter ended December 31, 2020 and the fiscal year ended December 31, 2020, its anticipated revenue trends, 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 changes in business, economic and competitive conditions, particularly the continued impact of the COVID-19 pandemic on the U.S. economy, and the availability of financing or other capital when needed. 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, 2019. Nephros does not undertake any responsibility to update the forward-looking statements in this release.

Investor Relations Contacts:

Kirin Smith, President
PCG Advisory, Inc.
(646) 863-6519
ksmith@pcgadvisory.com

Andy Astor, CEO
Nephros, Inc.
andy@nephros.com
(201) 345-0824

FAQ

What are the expected revenue figures for Nephros in Q4 2020?

Nephros anticipates approximately $2.3 million in revenue for Q4 2020.

How did Nephros' revenue perform in 2020 compared to 2019?

Nephros' full-year revenue for 2020 is expected to decrease by 17% compared to 2019.

What factors impacted Nephros' 2020 revenues?

The COVID-19 pandemic significantly affected Nephros' revenue, particularly in customer acquisition and sales in the hotel and restaurant sectors.

What is Nephros' cash position at the end of 2020?

Nephros ended 2020 with approximately $8.3 million in cash.

What is the outlook for Nephros in 2021?

Nephros expressed optimism for a return to growth as vaccine distribution broadens.