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Endologix Reports 30% Third Quarter 2010 Revenue Growth
Date:10/27/2010

160;Domestic revenue was a record $15.2 million, a 35% increase from $11.3 million in the third quarter of 2009 and a 19% sequential increase.  International revenue was $2.6 million, a 6% increase (10% on a constant currency basis) from $2.5 million in the third quarter of 2009, which included initial stocking orders for the IntuiTrak product launches in Europe and China.  International sales declined by 9% sequentially due to seasonality in Europe and timing differences in orders from Japan.  For the nine months ended September 30, 2010, total revenue increased 24% to $48.0 million, compared with $38.8 million for the nine months ended September 30, 2009.

Gross profit was $14.1 million in the third quarter of 2010, representing a gross margin of 79%.  This compares with gross profit of $10.1 million and a gross margin of 73% in the third quarter of 2009.  Gross profit was $37.2 million for the nine months ended September 30, 2010, representing a gross margin of 78%.  This compares with gross profit of $29.0 million and a gross margin of 75% for the nine months ended September 30, 2009.  Higher gross margin for the three and nine months ended September 30, 2010 was driven by more favorable product mix due to new products and a reduction in manufacturing costs per unit.

Total operating expenses were $14.6 million in the third quarter of 2010, compared with $10.2 million in the third quarter of 2009.  Marketing and sales expenses increased to $8.6 million in the third quarter of 2010 from $6.6 million in the same period last year.  Research, development and clinical expenses increased to $3.3 million in the third quarter of 2010 from $1.7 million in the same period last year.  This included $500,000 related to the development and license agreement with Evasc Medical Systems.  General and administrative expenses were $2.7 million, compared with $2.0 million in the third quarter of 2009.  General
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SOURCE Endologix, Inc.
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