Endologix (NSDQ:ELGX) made progress in its 3rd quarter, narrowing losses despite a $5 million lawsuit loss to Cook Medical.
Irvine, Calif.-based Endologix posted $5.9 million in net losses, or 10¢ per share, on sales of $26.7 million during the 3 months ended Sept. 30, 2012. That compared with a net loss of $6.6 million, or 12¢ per share, on sales of $22.3 million during the same period last year.
That represents a 11.3% reduction in losses and 19.7% jump in sales. Adjusted for 1-time costs, losses amounted to 3¢ per share, a 57.1% reduction from adjusted losses of 7¢ for the same period last year. The report got some love from Wall Street, with adjusted earnings beating analysts’ expectations by a penny.
The losses included a $1.0 million charge for Nellix acquisition, and a $5.0 million charge for the Cook settlement, stemming from a patent infringement lawsuit over stent graft technology.
"We are pleased to put this lawsuit behind us and eliminate the ongoing costs and uncertainty of litigation," president & CEO John McDermott said in prepared remarks.
Endologix’s international sales were $5.4 million, representing a 170% increase from $2.0 million last year, driven in part by improved penetration in the Latin American and Japanese markets, according to a press release.
“During the 3rd quarter we continued to gain market share, achieving 20% revenue growth over the prior year,” McDermott said. “There continues to be strong interest in the AFX Endovascular AAA System and our new product pipeline, which will further expand our market opportunity. During the quarter we made good progress advancing our new products and expanding our global sales force and remain on track to achieve our goals for the remainder of the year.”
Endologix anticipates its 2012 revenue to be in the range of $104 million to $106 million, representing growth of 25% to 27% from 2011, according to a press release.
In September, Endologix won CE Mark approval in the European Union for its Nellix system, designed to treat abdominal aortic aneurysms. The Nellix system is not yet available for use or sale in the U.S.
ELGX closed at $13.88 on Friday, a 5.3% increase on the day.