Nephros Announces Preliminary Third Quarter Revenues of $2.1 Million
Nephros, Inc. (Nasdaq: NEPH) reported preliminary financial results for Q3 2020, showing net revenues of $2.1 million, a 34% increase from Q2 2020 but a 32% decrease from Q3 2019. The company holds approximately $5.2 million in cash. CEO Andy Astor highlighted the ongoing impact of the COVID-19 pandemic on new customer acquisition and sales in hospitality sectors. However, he noted strong recurring revenue from existing customers and positive progress in product development and market opportunities, including in food and beverage sectors.
- Net revenues increased by 34% sequentially from Q2 2020.
- Recurring revenues from existing customers are meeting expectations.
- Customer retention rates remain excellent.
- Positive developments in food and beverage market opportunities.
- Progress on new pathogen detection products and second-generation HDF product.
- Net revenues decreased by 32% compared to Q3 2019.
- COVID-19 pandemic continues to affect new customer acquisition and sales in hospitality markets.
SOUTH ORANGE, NJ, Oct. 06, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Nephros, Inc. (Nasdaq: NEPH), a commercial-stage company 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 quarter ended September 30, 2020.
Net revenues for the quarter are expected to be
“The COVID-19 pandemic continues to impact our revenues, particularly in terms of new customer acquisition, emergency outbreak response, and hotel and restaurant sales,” said Andy Astor, President and CEO of Nephros. “However, we are pleased that recurring revenues from existing customers are meeting expectations and that our customer retention rates remain excellent. These metrics indicate to us the underlying strength of our business.”
Mr. Astor continued, “We are also making excellent progress in several important areas, including new opportunities in the food and beverage market, the development of new pathogen detection products, and completing our second-generation HDF product. We expect to have more to say about each of these areas in the remaining months of 2020.”
About Nephros
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 and viruses from water, providing barriers that 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 September 30, 2020, the anticipated impact of the coronavirus pandemic, expected demand for Nephros’ products, including its new pathogen detection products, and other statements that are not historical facts, including statements that 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, competitive and economic 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 Contact:
Kirin Smith, President
PCG Advisory, Inc.
(646) 863-6519
ksmith@pcgadvisory.com
Media Contact:
Bill Douglass
Gotham Communications, LLC
(646) 504-0890
bill@gothamcomm.com
Company Contact:
Andy Astor, COO & CFO
Nephros, Inc.
(201) 345-0824
andy@nephros.com
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