IRVINE, Calif., April 21, 2011 /PRNewswire/ -- Endologix, Inc.
(NASDAQ: ELGX), developer and marketer of innovative treatments for
aortic disorders, today announced financial results for the three
months ended March 31, 2011.
John McDermott, Endologix
President and Chief Executive Officer, said, "First quarter revenue
grew by 28% year-over-year, reflecting our continued momentum in
the marketplace as the innovation leader in the endovascular
treatment of abdominal aortic aneurysms (AAA). Our expanded
sales force is successfully driving adoption of our products with
existing customers and introducing the benefits of anatomical
fixation to new customers. We also expect to launch our new
AFX™ Endovascular AAA System during the second half of the year,
which will provide another important growth opportunity.
Accordingly, we are reiterating our full year 2011 revenue
guidance of $78 million to $82
million."
Mr. McDermott added, "During the quarter we also continued to
execute on our longer-term development and clinical initiatives.
This includes the ongoing patient enrollment in our PEVAR
(Percutaneous Endovascular Aneurysm Repair) clinical trial and
further development of our Ventana™ and Nellix® programs. Ventanais
a fenestrated-stent graft that will enable us to treat patients
with more complex aortic anatomies, which represents approximately
20% of the diagnosed aneurysms. We plan to begin patient
enrollment in an IDE trial in the U.S. this year and launch Ventana
in Europe in 2012. The
Nellix integration is going extremely well and we remain
enthusiastic about our plans to launch this revolutionary new
technology in Europe in 2012."
Financial Results
Total revenue in the first quarter of 2011 was $18.5 million, a 28% increase from $14.5 million in the first quarter of 2010.
Domestic revenue was $15.4
million, a 28% increase compared with $12.0 million in the first quarter of 2010.
International revenue was $3.2
million, a 29% increase compared with $2.5 million in the first quarter of 2010.
Gross profit was $14.2 million in
the first quarter of 2011, which represents a gross margin of
76.4%. This compares with gross profit of $11.1 million and a gross margin of 76.8% in the
first quarter of 2010.
Total operating expenses were $19.0
million in the first quarter of 2011, a 68% increase
compared with $11.3 million in first
quarter of 2010. Marketing and sales expenses increased to
$10.5 million in the first quarter of
2011 from $7.0 million in the same
period last year. This increase included the effect of growth in
the base business, development of a direct sales organization in
Europe, and a one-time payment to
transition our distribution relationship in Italy. Research, development and
clinical expenses increased to $4.9
million in the first quarter of 2011 from $2.3 million in the same period last year due to
the Nellix development program. General and administrative expenses
increased to $3.6 million in the
first quarter of 2011, from $2.1
million in the same period last year due to Nellix
integration costs and an increase in patent litigation
expenses.
Endologix reported a net loss for the first quarter of 2011 of
$4.8 million, or $(0.09) per share, compared with a net loss of
$225,000, or $(0.00) per share, for the first quarter of
2010.
Total cash and cash equivalents were $34.3 million as of March
31, 2011, compared with total cash and cash equivalents of
$38.2 million as of December 31, 2010.
"Our first quarter 2011 financial results were in-line with our
expectations on the top and bottom lines, driven by the effective
execution of our strategic growth and development initiatives,"
stated Endologix Chief Financial Officer Bob Krist. "We closed the quarter with more than
$34 million in cash, giving us ample
resources to continue investing in our base business growth, new
product pipeline, and European sales force expansion."
Financial Guidance
Based on the first quarter results, the Company is reiterating
its full year 2011 revenue and GAAP net loss per share guidance.
The Company anticipates total revenue to be in the range of
$78 million to $82 million,
representing growth of 16% to 22%. In 2011, the Company
expects to generate a GAAP net loss of between $0.25 to $0.30 per share due to planned
investments in building a direct sales force in Europe and developing the acquired Nellix
technology in anticipation of both a commercial launch in
Europe and the initiation of a
U.S. IDE clinical trial in 2012. The Company's 2011 loss per share
guidance also includes ongoing investments in the U.S. sales force,
research and development and clinical initiatives, and litigation
expenses, but excludes the potential impact of adverse litigation
outcomes, 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) 870-5176 from the U.S. or
(858) 384-5517 from outside the U.S., and entering pin number
370293. 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 2011 financial guidance, the launch and market acceptance of new
products and product sizes, planned investments in research and
development and sales and marketing activities, the integration of
Nellix's technology, the progress of clinical trial initiatives,
and the establishment of a direct sales force in Europe, 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 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, 2010, 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.
ENDOLOGIX,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
Revenue:
|
|
|
|
|
|
Domestic revenue
|
|
$
|
15,362
|
|
|
$
|
12,015
|
|
|
Non - U.S. revenue
|
|
3,186
|
|
|
2,465
|
|
|
Total revenue:
|
|
18,548
|
|
|
14,480
|
|
|
Cost of revenue
|
|
4,373
|
|
|
3,361
|
|
|
Gross profit
|
|
$
|
14,175
|
|
|
$
|
11,119
|
|
|
Operating expenses:
|
|
|
|
|
|
Research, development and
clinical
|
|
$
|
4,923
|
|
|
$
|
2,275
|
|
|
Marketing and sales
|
|
10,498
|
|
|
6,977
|
|
|
General and
administrative
|
|
3,579
|
|
|
2,071
|
|
|
Total operating
expenses
|
|
19,000
|
|
|
11,323
|
|
|
Loss from
operations
|
|
$
|
(4,825)
|
|
|
$
|
(204)
|
|
|
Total other
income(expense)
|
|
30
|
|
|
(21)
|
|
|
Net loss
|
|
$
|
(4,795)
|
|
|
$
|
(225)
|
|
|
Basic and diluted net loss per
share
|
|
$
|
(0.09)
|
|
|
$
|
(0.00)
|
|
|
Shares used in computing basic
and diluted net loss per share
|
|
55,906
|
|
|
47,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENDOLOGIX,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
Unaudited
(In
thousands)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
34,346
|
|
|
$
|
38,191
|
|
|
Accounts receivable,
net
|
|
11,306
|
|
|
12,212
|
|
|
Other receivables
|
|
144
|
|
|
515
|
|
|
Inventories
|
|
10,390
|
|
|
8,350
|
|
|
Other current assets
|
|
644
|
|
|
560
|
|
|
Total current
assets
|
|
56,830
|
|
|
59,828
|
|
|
Property and equipment,
net
|
|
2,709
|
|
|
2,429
|
|
|
Goodwill
|
|
27,073
|
|
|
27,073
|
|
|
Intangibles, net
|
|
44,447
|
|
|
44,863
|
|
|
Other assets
|
|
268
|
|
|
182
|
|
|
Total Assets
|
|
$
|
131,327
|
|
|
$
|
134,375
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable and accrued
expenses
|
|
$
|
11,355
|
|
|
$
|
11,160
|
|
|
Current portion of long term
debt
|
|
63
|
|
|
83
|
|
|
Current
liabilities
|
|
11,418
|
|
|
11,243
|
|
|
Long term
liabilities:
|
|
|
|
|
|
Other long term
liabilities
|
|
29,250
|
|
|
29,229
|
|
|
Long term
liabilities
|
|
29,250
|
|
|
29,229
|
|
|
Total
liabilities
|
|
40,668
|
|
|
40,472
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $.001 par value;
75,000 shares authorized,
and 57,084 and 56,896
shares issued, and 56,589 and 56,401 outstanding
|
|
57
|
|
|
57
|
|
|
Additional paid-in
capital
|
|
231,568
|
|
|
230,017
|
|
|
Accumulated deficit
|
|
(140,305)
|
|
|
(135,510)
|
|
|
Treasury stock at cost, 495
shares
|
|
(661)
|
|
|
(661)
|
|
|
Total stockholders'
equity
|
|
90,659
|
|
|
93,903
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
131,327
|
|
|
$
|
134,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPANY
CONTACT:
|
INVESTOR
CONTACTS:
|
|
Endologix, Inc.
|
The Ruth Group
|
|
John McDermott, CEO
|
Nick Laudico (646)
536-7030
|
|
(949) 595-7200
|
Zack Kubow (646)
536-7020
|
|
www.endologix.com
|
|
|
|
|
|
|
SOURCE Endologix, Inc.