IRVINE, Calif., April 22 /PRNewswire-FirstCall/ -- Endologix,
Inc. (Nasdaq: ELGX), developer of minimally invasive treatments for
aortic disorders, today announced financial results for the three
months ended March 31, 2010.
John McDermott, Endologix
President and Chief Executive Officer, said, "Our strong first
quarter results were driven by the effectiveness of our U.S. sales
organization, plus continued success in international markets.
We achieved 11% sequential growth domestically, reflecting
the continued adoption of our unique approach to abdominal aortic
aneurysm repair. Our planned 30% sales force expansion in the U.S.
is on track and we expect to fill all additional territories with
highly qualified new representatives by year end."
Mr. McDermott continued, "We recently announced the first
patient enrollment in our PEVAR (Percutaneous Endovascular Aneurysm
Repair) clinical study at Oklahoma Heart Hospital and expect
patients to begin enrolling at the other trial sites in the near
future. We are excited at the prospect of becoming the first
Company to gain FDA approval for a percutaneous indication for EVAR
(Endovascular Aneurysm Repair). During the quarter we also
continued to make progress with our other new product initiatives,
which will keep Endologix at the forefront of the innovation curve
for the endovascular treatment of aortic disorders."
Financial Results
Total revenue in the first quarter of 2010 was $14.5 million, a 22% increase from $11.8 million in the first quarter of 2009.
Domestic revenue was a record $12.0
million, an 18% increase compared with $10.2 million in the first quarter of 2009.
International revenue was $2.5
million, a 49% increase compared with $1.7 million in the first quarter of 2009.
Gross profit was $11.1 million in
the first quarter of 2010, representing a gross margin of 77%. This
compares with gross profit of $8.9
million and a gross margin of 75% in the first quarter of
2009. Higher gross margin for the first quarter of 2010 was
driven by more favorable product mix due to new products and volume
related efficiencies.
Total operating expenses were $11.3
million in the first quarter of 2010, compared with
$10.0 million in the first quarter of
2009. Marketing and sales expenses increased to $7.0 million in the first quarter of 2010 from
$6.6 million in the same period last
year. Research, development and clinical expenses increased to
$2.3 million in the first quarter of
2010 from $1.4 million in the same
period last year. General and administrative expenses were
$2.1 million in the first quarter of
both 2009 and 2010.
Endologix reported a net loss for the first quarter of 2010 of
$225,000, or $(0.00) per share, compared with a net loss of
$1.2 million, or $(0.03) per share, for the first quarter of
2009.
Total cash and cash equivalents were $22.6 million as of March
31, 2010, compared with total cash and cash equivalents of
$24.1 million as of December 31, 2009.
"During the first quarter, the Company paid 2009 annual
performance bonuses and increased its working capital investment in
support of sales growth, which resulted in the reduction in cash,"
stated Endologix Chief Financial Officer Bob Krist. "We expect to generate
sufficient positive cash flow from operations for the full year
2010 to fully fund our investments in the sales force expansion and
in our new product pipeline. We continue to have a strong
financial position and are confident we have the resources needed
to execute our long-term growth strategy."
Financial Guidance
Based on the first quarter 2010 results, the Company is
reiterating its full year 2010 revenue and GAAP earnings per share
guidance. The Company anticipates 2010 revenue to be in the
range of $62 million to $66 million,
representing annual growth of 18% to 26%. For the full year
2010, the Company expects to generate positive GAAP earnings per
share. Based on the timing of new product launches and
continued improvements in sales force productivity, the Company
expects that the majority of the revenue and earnings growth in
2010 will occur in the second half of the year. The Company's
GAAP EPS guidance assumes planned investments in sales force
expansion, research and development, and clinical initiatives and
excludes the potential impact of litigation and acquisitions or
other business development transactions.
Conference Call Information
Endologix management will host a conference call to discuss
these topics today beginning at 5:00 p.m.
Eastern time (2:00 p.m. Pacific
time). To participate via telephone please call (877)
407-0789 from the U.S. or (201) 689-8562 from outside the U.S. A
telephone replay will be available for seven days following the
completion of the call by dialing (877) 660-6853 from the U.S. or
(201) 612-7415 from outside the U.S., and entering account number
3055 and conference ID number 348731. The conference call will be
broadcast live over the Internet at www.endologix.com and will be
available for 30 days.
About Endologix
Endologix, Inc. develops and manufactures minimally invasive
treatments for aortic disorders. The Company's flagship product is
the Powerlink® System, which is an endovascular stent graft for the
treatment of 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, including with respect
to 2010 financial guidance, the launch of new products, expansion
of the number of sales territories in 2010, planned investments in
research and development activities, and clinical trial
initiatives, 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 the success of sales
efforts for the Powerlink System and related new products, product
research and development efforts, and other economic, business,
competitive, legal matters 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, 2009, 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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ENDOLOGIX, INC.
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CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Unaudited
|
|
(In thousands, except per
share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2010
|
2009
|
|
Revenue:
|
|
|
|
Domestic Product Revenue
|
$12,015
|
$10,176
|
|
Non – U.S. Product Revenue
|
2,465
|
1,658
|
|
Total
Revenue:
|
14,480
|
11,834
|
|
Cost of product revenue
|
3,361
|
2,905
|
|
Gross
profit
|
$11,119
|
$8,929
|
|
Gross
profit as a % of total revenue
|
77%
|
75%
|
|
Operating
expenses:
|
|
|
|
Research, development and clinical
|
$2,275
|
$1,355
|
|
Marketing and sales
|
6,977
|
6,622
|
|
General and administrative
|
2,071
|
2,068
|
|
Total
operating expenses
|
11,323
|
10,045
|
|
Loss
from operations
|
$(204)
|
$(1,116)
|
|
Other
income:
|
|
|
|
Interest income
|
4
|
12
|
|
Interest expense
|
(5)
|
(62)
|
|
Other expense
|
(20)
|
(11)
|
|
Total other
|
(21)
|
(61)
|
|
Net
loss
|
($225)
|
($1,177)
|
|
Basic
and diluted net loss per share
|
($0.00)
|
($0.03)
|
|
Shares
used in computing basic and diluted net loss per share
|
47,994
|
43,345
|
|
|
|
|
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ENDOLOGIX, INC.
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CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
Unaudited
|
|
(In thousands)
|
|
|
|
|
|
March
31,
2010
|
December
31,
2009
|
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ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$22,555
|
$24,065
|
|
Accounts
receivable, net
|
9,754
|
8,342
|
|
Other
receivables
|
28
|
3
|
|
Inventories
|
5,963
|
5,540
|
|
Other
current assets
|
424
|
389
|
|
Total
current assets
|
38,724
|
38,339
|
|
Property
and equipment, net
|
2,067
|
2,089
|
|
Goodwill
|
4,631
|
4,631
|
|
Intangibles,
net
|
5,752
|
6,104
|
|
Other
assets
|
176
|
129
|
|
Total
Assets
|
$51,350
|
$51,292
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LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued expenses
|
$6,805
|
$7,225
|
|
Current
portion of long term debt
|
80
|
79
|
|
Current
liabilities
|
6,885
|
7,304
|
|
Long
term liabilities:
|
|
|
|
Long
term debt
|
63
|
83
|
|
Other
long term liabilities
|
1,045
|
1,051
|
|
Long term liabilities
|
1,108
|
1,134
|
|
Total liabilities
|
7,993
|
8,438
|
|
Stockholders'
equity:
|
|
|
|
Common
stock, $.001 par value; 75,000 shares authorized, and 49,181 and
49,152 shares issued, and 48,686 and 48,657 outstanding
|
49
|
49
|
|
Additional
paid-in capital
|
190,448
|
189,656
|
|
Accumulated
deficit
|
(146,389)
|
(146,164)
|
|
Treasury
stock at cost, 495 shares
|
(661)
|
(661)
|
|
Accumulated
other comprehensive income
|
(90)
|
(26)
|
|
Total
stockholders' equity
|
43,357
|
42,854
|
|
Total
Liabilities and Stockholders' Equity
|
$51,350
|
$51,292
|
|
|
|
|
|
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COMPANY
CONTACT:
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INVESTOR
CONTACTS:
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Endologix, Inc.
|
The Ruth
Group
|
|
John McDermott, CEO
|
Nick
Laudico (646)
536-7030
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(949) 595-7200
|
Zack Kubow (646) 536-7020
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www.endologix.com
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SOURCE Endologix, Inc.