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Endologix – In 2011 continued to capture market share

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Endologix, Inc. (Nasdaq:ELGX), developer and marketer of innovative medical devices for the treatment of aortic disorders, today announced financial results for the three and twelve months ended December 31, 2011.

John McDermott, Endologix President and Chief Executive Officer, said, “In 2011 we continued to capture market share, while also making significant progress in our new product portfolio, expanding our domestic sales force and beginning to build our sales and marketing organization in Europe. Turning to 2012, we will continue to advance our new product pipeline and expect limited market introductions of both Nellix and Ventana in Europe, as well as a percutaneous indication for AFX by year end. Overall, we believe the Company is well positioned to achieve another year of robust revenue growth and look forward to making our new aortic technologies available to patients worldwide.”

Fourth Quarter Financial Results


Global revenue in the fourth quarter of 2011 was $23.4 million, a 22% increase from the same quarter of 2010. U.S. revenue was $19.4 million in the fourth quarter of 2011, a 26% increase from the fourth quarter of 2010, and included increased sales related to the U.S. launch of the AFX™ Endovascular AAA System. International revenue was $4.0 million in the fourth quarter of 2011, a 4% increase from the fourth quarter of 2010.

Gross profit was $18.0 million in the fourth quarter of 2011, which represents a gross margin of 77%. This compares with a gross margin of 78% in the fourth quarter of 2010.

Total operating expenses were $21.3 million in the fourth quarter of 2011. Marketing and sales expenses increased to $11.5 million in the fourth quarter of 2011, from $8.7 million in the same period in 2010. This increase was driven by the ongoing expansion of the U.S. sales force, marketing expenses associated with the AFX launch, and costs associated with building the direct sales organization in Europe.

Research & development, and clinical/regulatory expenses increased to $5.4 million in the fourth quarter of 2011, from $3.1 million in the same period in 2010, driven by the ongoing development activities associated with the Nellix® Endovascular System and Ventana™ Fenestrated Stent Graft System.

General and administrative expenses decreased to $4.4 million in the fourth quarter of 2011, from $6.5 million in the same period in 2010. This decrease is mainly due to $3.4 million of non-recurring transaction costs for the Nellix acquisition in the prior year, partially offset by an increase in administrative costs related to the Company’s European operations, and an increase in litigation costs related to the Company’s patent disputes with Cook Medical Corporation and Bard Peripheral Vascular, Inc. During October 2011, Endologix and Bard entered into a cross license agreement that settled their dispute, while the Cook matter remains ongoing.

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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