Provides 2010 revenue guidance of $62 to $66 million, an increase
of 18% to 26% IRVINE, Calif., Feb. 18 /PRNewswire-FirstCall/ --
Endologix, Inc. (NASDAQ: ELGX), developer of minimally invasive
treatments for aortic disorders, today announced financial results
for the three and twelve months ended December 31, 2009. John
McDermott, Endologix President and Chief Executive Officer, said,
"The fourth quarter marks the close of a significant year for
Endologix. In 2009, we launched our new delivery systems,
IntuiTrak(TM) and IntuiTrak Express, which simplify AAA procedures
for physicians and give us the lowest profile device available in
the U.S. to treat large neck aneurysms. We strengthened our
domestic sales force, continued to expand in international markets,
generated positive cash flow and raised additional capital so we
can continue investing in the growth of our business. In November,
we became the first and only company to receive FDA approval for a
fully percutaneous EVAR clinical trial. Overall, we are in an
excellent position to execute on our growth strategy in 2010."
Financial Results Total revenue in the fourth quarter of 2009 was
$13.7 million, a 28% increase from $10.7 million in the fourth
quarter of 2008. Domestic revenue was $10.8 million, an 18%
increase compared with $9.1 million in the fourth quarter of 2008.
International revenue was $2.9 million, an 85% increase compared
with $1.6 million in the fourth quarter of 2008. For the 12 months
ended December 31, 2009, total revenue increased 39% to $52.4
million, compared with $37.7 million for the 12 months ended
December 31, 2008. For the full year 2009, domestic revenue was
$43.7 million, a 37% increase compared with $31.9 million for the
full year 2008. International revenue for the full year 2009 was
$8.8 million, a 54% increase compared with $5.7 million for the
full year 2008. Gross profit was $10.3 million in the fourth
quarter of 2009, representing a gross margin of 75%. This compares
with gross profit of $7.8 million and a gross margin of 73% in the
fourth quarter of 2008. Gross profit was $39.3 million for the 12
months ended December 31, 2009, representing a gross margin of 75%.
This compares with gross profit of $27.3 million and a gross margin
of 72% for the 12 months ended December 31, 2008. Higher gross
margin for the 12 months ended December 31, 2009 was driven by more
favorable product mix due to new products and lower cost of sales
due to volume efficiencies. Total operating expenses were $11.0
million in the fourth quarter of 2009, compared with $9.3 million
in the fourth quarter of 2008. Marketing and sales expenses
increased to $6.7 million in the fourth quarter of 2009 from $5.8
million in the same period last year. Research, development and
clinical expenses increased to $2.1 million in the fourth quarter
of 2009 from $1.4 million in the same period last year. General and
administrative expenses increased to $2.3 million in the fourth
quarter of 2009 from $2.2 million in the same period last year.
Total operating expenses for the 12 months ended December 31, 2009
were $41.6 million, compared with $39.3 million for the 12 months
ended December 31, 2008. Marketing and sales expenses increased to
$26.5 million for the full year 2009, up from $23.8 million for the
full year 2008. Research, development and clinical expenses
increased to $6.6 million for the full year 2009, up from $6.1
million for the full year 2008. General and administrative expenses
decreased to $8.6 million for the full year 2009, down from $9.5
million for the full year 2008. Endologix reported a net loss for
the fourth quarter of 2009 of $676,000, or $0.01 per share,
compared with a net loss of $1.6 million, or $0.04 per share, for
the fourth quarter of 2008. For the 12 months ended December 31,
2009, the Company reported a net loss of $2.4 million, or $0.05 per
share, compared with a net loss of $12.0 million, or $0.28 per
share, for the 12 months ended December 31, 2008. Total cash and
cash equivalents increased by $3.0 million during the fourth
quarter and were $24.1 million as of December 31, 2009, compared
with total cash and cash equivalents of $7.6 million as of December
31, 2008. The Company generated positive cash flow from operations
for the third consecutive quarter during the fourth quarter of
2009. In August 2009, the Company raised net proceeds of
approximately $14.7 million in an underwritten public offering.
"During the fourth quarter we generated strong positive cash flow
from operations and we finished the year with more than $24 million
in cash and cash equivalents, a $10 million available line of
credit, and no meaningful outstanding debt. We believe the Company
is in a solid financial position to aggressively expand our sales
force and make significant investments in research and development
programs that will support long term growth," stated Endologix
Chief Financial Officer Bob Krist. Financial Guidance For the full
year 2010, the Company anticipates total 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. 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. 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 may be weighted to the second half of the year. For the first
quarter of 2010, the Company expects domestic revenue to grow
sequentially from the fourth quarter of 2009. Mr. McDermott
commented, "In 2010, we plan to continue focusing on sales force
productivity while increasing our number of territories by nearly
30%. We expect to make significant investments in research and
development to expand our product offerings and enable us to
participate in additional aortic markets. The combination of our
sales force expansion and promising new product pipeline puts us in
an excellent position to continue to drive growth in the years
ahead, while remaining cash flow positive." 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 343302. The conference call
will be broadcast live over the Internet at
http://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 http://www.endologix.com/. Except for
historical information contained herein, this news release contains
forward-looking statements, including with respect to 2010
financial guidance, expansion of the number of sales territories in
2010 and planned investments in research and development activities
and sales force expansion, 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, 2008, 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. 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 http://www.endologix.com/
ENDOLOGIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share amounts) Three Months
Ended Twelve Months Ended December 31, December 31, 2009 2008 2009
2008 Revenue: Domestic Product Revenue $10,800 $9,129 $43,682
$31,936 Non-US Product Revenue 2,862 1,550 8,759 5,695 Total
Product Revenue 13,662 10,679 52,441 37,631 License Revenue --- ---
--- 33 Total revenue 13,662 10,679 52,441 37,664 Cost of product
revenue 3,361 2,835 13,181 10,380 Gross profit 10,301 7,844 39,260
27,284 Operating expenses: Research, development and clinical 2,058
1,353 6,569 6,082 Marketing and sales 6,700 5,777 26,483 23,794
General and administrative 2,260 2,206 8,550 9,455 Total operating
expenses 11,018 9,336 41,602 39,331 Loss from operations (717)
(1,492) (2,342) (12,047) Other income (loss): Interest income
(expense) 9 (37) (144) 22 Other income (expense) 32 (47) 52 33
Total other income (expense) 41 (84) (92) 55 Net loss ($676)
($1,576) ($2,434) ($11,992) Basic and diluted net loss per share
($0.01) ($0.04) ($0.05) ($0.28) Shares used in computing basic and
diluted net loss per share 47,801 43,127 45,194 43,045 ENDOLOGIX,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In
thousands, except per share amounts) December 31, December 31, 2009
2008 ASSETS Current assets: Cash and cash equivalents $24,065
$7,611 Restricted cash equivalents --- 500 Accounts receivable, net
8,342 6,371 Other receivables 3 3 Inventories 5,540 7,099 Other
current assets 389 443 Total current assets 38,339 22,027 Property
and equipment, net 2,089 2,993 Goodwill 4,631 4,631 Intangibles,
net 6,104 7,508 Other assets 129 104 Total Assets $51,292 $37,263
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable and accrued expenses $7,225 $5,401 Current portion of long
term debt 79 750 Current liabilities 7,304 6,151 Long term
liabilities: Long term debt 83 4,250 Other long term liabilities
1,051 1,045 Long term liabilities 1,134 5,295 Total liabilities
8,438 11,446 Stockholders' equity: Convertible preferred stock,
$.001 par value; 5,000 shares authorized, no shares issued and
outstanding Common stock, $.001 par value; 75,000 shares
authorized, 49,152 and 44,365 shares issued, and 48,657 and 43,870
outstanding 49 44 Additional paid-in capital 189,656 170,239
Accumulated deficit (146,164) (143,730) Treasury stock, at cost,
495 shares (661) (661) Accumulated other comprehensive income (26)
(75) Total stockholders' equity 42,854 25,817 Total Liabilities and
Stockholders' Equity $51,292 $37,263 DATASOURCE: Endologix, Inc.
CONTACT: John McDermott, CEO, Endologix, Inc., +1-949-595-7200, or
INVESTOR CONTACTS, Nick Laudico, +1-646-536-7030, Zack Kubow,
+1-646-536-7020, both of The Ruth Group Web Site:
http://www.endologix.com/
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