Endologix, Inc (Endologix), a hospital supplies company, has reported total revenues of $11.8 million for the first quarter of 2009, up 42%, compared with total revenues of $8.3 million in the year-ago quarter. It has also reported a net loss of $1.2 million or $0.03 per share, for the first quarter of 2009, compared with the net loss of $3.7 million or $0.09 per share, in the year-ago quarter.
“We are reporting another quarter of record sales, with total revenue increasing 42% year-over-year and 11% sequentially from the 2008 fourth quarter,” said John McDermott, Endologix president and chief executive officer. “Domestic revenue grew 49% versus the prior-year and 11% sequentially due to increased sales force productivity and new product introductions.
“The 2009 first quarter was the first full sales period to include our surprarenal extensions and Powerlink XL(R) products, which open new market opportunities for Endologix. Last month, we initiated the full domestic launch of our novel IntuiTrak(TM) Delivery System that features improved delivery and deployment of our Powerlink(R) System,” he added. “We are currently conducting a limited release with the IntuiTrak Express Delivery System for the Powerlink XL, which is slated for full domestic commercialization in the third quarter.”
First Quarter Financial Results
Domestic revenue of $10.2 million represented a 49% increase against $6.8 million in the 2008 first quarter, and 11% from $9.1 million in the 2008 fourth quarter. International revenue increased to $1.7 million, up 13% against $1.5 million during the comparable quarter last year and up 7% from $1.6 million in the fourth quarter of 2008.
Gross profit was $8.9 million in the first quarter of 2009 which represented a gross margin of 75% of revenue. This compares with $5.8 million and 70%, respectively, in the first quarter of 2008.
Total operating expenses were $10.0 million in the first quarter of 2009, versus $9.6 million in the first quarter of 2008. Marketing and sales expenses increased to $6.6 million in the first quarter of 2009 from $5.8 million in the comparable quarter last year. Research, development and clinical expenses for the first three months of 2009 were $1.4 million, versus $1.5 million in the same period last year, and general and administrative expenses were $2.1 million, versus $2.3 million for the prior year period.
Total cash and cash equivalents were $6.8 million as of March 31, 2009, against total cash and cash equivalents of $7.6 million as of December 31, 2008.
“As a result of strong revenue growth, gross margin improvement and our ability to control expenses during the 2009 first quarter, we were able to achieve positive cash flow from operations in the interim months of February and March,” stated Endologix chief financial officer Robert Krist. “We believe this is a strong indication that we are on track to achieve our previously announced goal of having positive cash flow from operations for the second quarter of 2009.”