Endologix, Inc. announced that it is expecting the revenue generated during last year to total approximately $37.6 million, a 35% increase from 2007 revenue of $27.8 million. The company anticipates reporting Q4 2008 revenue of approximately $10.7 million, up 35% from total product revenue of $7.9 million reported for Q4 2007.
“We attribute our strong 2008 sales growth and ability to exceed our revenue guidance to the increasing success of our sales force initiatives, the introduction of new products and increased physician adoption of our Powerlink System,” said John McDermott, Endologix president and chief executive officer. “Our recently launched suprarenal proximal extensions and Powerlink XL(R) have opened up new market segments enabling us to treat a broader AAA population. These new devices provide physicians with a wide range of treatment options and the lowest profile delivery catheter in the U.S. to treat large neck aneurysms.
“Gross margin for 2008 is expected to be approximately 72%, which compares very favorably to a gross margin of 62% for 2007. This significant gross margin improvement is due to the in-house manufacturing of ePTFE graft material which began in mid-2007, as well as volume efficiencies realized in our fully-integrated manufacturing process.”
Commenting on the expectations set for this year, he continued, “We expect another year of strong sales growth in 2009 with anticipated revenue in the $44 million to $46 million range, which represents an increase of 17% to 22% compared with expected 2008 revenue. Gross margin is expected to continue improving in 2009 due to efficiencies from higher manufacturing volumes required to support our sales growth. Importantly, we remain confident that our cash and available resources will allow us to execute on our business plan and achieve sustainable positive cash flow from operations in the first half of 2009.”
“Among important milestones for 2009, we are on schedule to launch the IntuiTrak(TM) Delivery System in the second quarter. This new delivery system incorporates a 19Fr Introducer and 9Fr percutaneous, pre-cannulated contralateral access with new design features to simplify delivery and deployment of Powerlink devices. Physician feedback from our limited market release has been encouraging, reinforcing the importance of this device to the marketplace. We also expect continued momentum from our suprarenal proximal extensions, Powerlink XL and a series of operating initiatives, which we believe provide us with a strong foundation for long-term growth,” he concluded.