Endologix Expects 2008 Total Revenue Growth of 35%; Announces 2009 Financial Guidance
January 06 2009 - 4:00AM
Business Wire
Endologix, Inc. (Nasdaq: ELGX), developer and manufacturer of the
Powerlink� System endovascular stent graft for the minimally
invasive treatment of abdominal aortic aneurysms (AAA), announces
that it expects total revenue for 2008 to be approximately $37.6
million, representing a 35% increase from 2007 total revenue of
$27.8 million. Endologix expects to report total product revenue
for the fourth quarter of 2008 of approximately $10.7 million, up
35% from total product revenue of $7.9 million in the fourth
quarter of 2007. Domestic product revenue for the fourth quarter of
2008 is expected to be approximately $9.1 million, an increase of
35% compared with $6.7 million for the fourth quarter of 2007 and
up 13% from $8.1 million for the third quarter of 2008. �We
attribute our strong 2008 sales growth and ability to exceed our
revenue guidance to the increasing success of our sales force
initiatives, the introduction of new products and increased
physician adoption of our Powerlink System,� said John McDermott,
Endologix president and chief executive officer. �Our recently
launched suprarenal proximal extensions and Powerlink XL� have
opened up new market segments enabling us to treat a broader AAA
population. These new devices provide physicians with a wide range
of treatment options and the lowest profile delivery catheter in
the U.S. to treat large neck aneurysms. �Gross margin for 2008 is
expected to be approximately 72%, which compares very favorably to
a gross margin of 62% for 2007. This significant gross margin
improvement is due to the in-house manufacturing of ePTFE graft
material which began in mid-2007, as well as volume efficiencies
realized in our fully-integrated manufacturing process.� Total cash
and marketable securities as of December 31, 2008 are expected to
be approximately $7.9 million. 2009 Financial Guidance �We expect
another year of strong sales growth in 2009 with anticipated
revenue in the $44 million to $46 million range, which represents
an increase of 17% to 22% compared with expected 2008 revenue.
Gross margin is expected to continue improving in 2009 due to
efficiencies from higher manufacturing volumes required to support
our sales growth. Importantly, we remain confident that our cash
and available resources will allow us to execute on our business
plan and achieve sustainable positive cash flow from operations in
the first half of 2009,� said Mr. McDermott. �Among important
milestones for 2009, we are on schedule to launch the IntuiTrak�
Delivery System in the second quarter. This new delivery system
incorporates a 19Fr Introducer and 9Fr percutaneous, pre-cannulated
contralateral access with new design features to simplify delivery
and deployment of Powerlink devices. Physician feedback from our
limited market release has been encouraging, reinforcing the
importance of this device to the marketplace. We also expect
continued momentum from our suprarenal proximal extensions,
Powerlink XL and a series of operating initiatives, which we
believe provide us with a strong foundation for long-term growth,�
he concluded. Endologix plans to report full financial results for
the 2008 fourth quarter and year, and to hold an
investment-community conference call on February 19, 2009 at 5:00
p.m. Eastern time (2:00 p.m. Pacific time). Additional information
regarding the conference call will be made available approximately
two weeks prior to the call. About Endologix Endologix, Inc.
develops and manufactures minimally invasive treatments for
vascular diseases. Endologix's Powerlink System is an endoluminal
stent graft for treating abdominal aortic aneurysms (AAA). AAA is a
weakening of the wall of the aorta, the largest artery in the body,
resulting in a balloon-like enlargement. Once AAA develops, it
continues to enlarge and, if left untreated, becomes increasingly
susceptible to rupture. The overall patient mortality rate for
ruptured AAA is approximately 75%, making it a leading cause of
death in the U.S. Additional information can be found on
Endologix�s Web site at www.endologix.com. Except for historical
information contained herein, this news release contains
forward-looking statements, specifically with respect to 2008 and
2009 financial guidance, market introductions of new products, and
achievement of positive cash flow, the accuracy of which are
necessarily subject to risks and uncertainties, all of which are
difficult or impossible to predict accurately and many of which are
beyond the control of Endologix. Many factors may cause actual
results to differ materially from anticipated results including
sales efforts, product development efforts, and other economic,
business, competitive and regulatory factors. The Company
undertakes no obligation to update its forward looking statements.
Please refer to the Company�s Annual Report on Form 10-K for the
year ended December 31, 2007, and the company�s other filings with
the Securities and Exchange Commission, for more detailed
information regarding these risks and other factors that may cause
actual results to differ materially from those expressed or
implied.
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