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Endologix Reports 47% Third Quarter 2009 Revenue Growth
Date:10/27/2009

cond quarter 2009 that included very strong growth due to the U.S. market launch of IntuiTrak(TM) and seasonality during the summer months.

International revenue was $2.5 million, a 91% increase compared with $1.3 million in the third quarter of 2008 and a 41% sequential increase compared with $1.8 million in the second quarter of 2009. For the nine months ended September 30, 2009, total revenue increased 44% to $38.8 million, compared with $27.0 million for the nine months ended September 30, 2008.

Gross profit was $10.1 million in the third quarter of 2009, representing a gross margin of 73%. This compares with gross profit of $6.9 million and a gross margin of 74% in the third quarter of 2008. Lower gross margin for the third quarter of 2009 was a result of a higher contribution from international revenue in the quarter. Gross profit was $29.0 million for the nine months ended September 30, 2009, representing a gross margin of 75%. This compares with gross profit of $19.4 million and a gross margin of 72% for the nine months ended September 30, 2008. Higher gross margin for the nine months ended September 30, 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 $10.2 million in the third quarter of 2009, compared with $9.9 million in the third quarter of 2008. Marketing and sales expenses increased to $6.6 million in the third quarter of 2009 from $6.1 million in the same period last year. Research, development and clinical expenses increased to $1.6 million in the third quarter of 2009 from $1.4 million in the same period last year. General and administrative expenses decreased to $2.0 million in the third quarter of 2009 from $2.4 million in the same period last year.

Total operating expenses for the nine months ended September 30, 2009 were $30.6 million, compared with $30.0 million for the nine months ended September 30,
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SOURCE Endologix, Inc.
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