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MiMedx Group Announces Second Quarter 2011 Results
Date:7/25/2011

ed to both the first quarter of 2011 and the second quarter of 2010, due to reductions in spending related to the Company's HydroFix™ and CollaFix™ platforms. The R & D expense reductions were somewhat offset by continuing investments in support of the FDA clearance process and European CE mark process for the Company's HydroFix™ and CollaFix™ platforms and increased investments in support of the Company's amniotic tissue platform. Selling, General and Administrative expenses increased only $101,000 in the second quarter of 2011 as compared to the first quarter of 2011, despite the 85% increase in revenue. The increase was primarily due to increased sales commissions on the higher revenue. The increase in Selling, General and Administrative expenses of $1,062,000 as compared to the second quarter of 2010 includes $822,000 in Surgical Biologics related costs, including $175,000 in non-cash related charges due to the depreciation of equipment and amortization of intangibles, and sales and administrative costs of $647,000 related primarily to support of the Company's amniotic tissue platforms, AmnioFix™ and EpiFix®.  The increase also included non-cash related charges of $240,000 for share based compensation expenses.

Management CommentaryParker H. "Pete" Petit, Chairman and CEO, stated, "MiMedx Group had a very good quarter.  Our amniotic membrane tissue revenue exceeded our expectations.  Our HydroFix™ products fell short of expectations; however, we did receive an additional FDA clearance during the quarter which will broaden our indications for use. We continue to be gratified by the enthusiasm from physicians regarding both AmnioFix™ and EpiFix®, our amniotic membrane tissues.  The results the physicians are achieving, plus the results from our ongoing clinical studies are very reassuring.  We believe our tissue offerings for orthopedics, spinal procedures, wound care and b
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