Endologix (NSDQ:ELGX) beat Wall Street estimates by 2 cents and cut losses in the 2nd quarter, sending share prices up 5.3% to almost $16 in the days following the earnings results.
Analysis pegged the Irvine, Calif.-based company’s adjusted per-share losses at -5¢ for Q2, but Endologix beat that estimate by 2¢. The device maker leveled with investors by changing the estimated "fair value" of a new acquisition, accepting a $7.6 million hit to the books for the goodwill adjustment.
The company’s GAAP numbers tell an even cheerier story, showing not only a trimming of losses but a swing to black. For the 2nd quarter 2013 Endologix posted profits of $5.7 million, or 9¢ per diluted share, on sales of $34 million. That’s a 33% increase in sales and a swing to black in compared with the same period last year, when Endologix posted losses of $6.7 million, or -11¢ per share, on sales of $25.5 million.
Endologix, which specialized in grafts to treat aneurysms, partially attributed the discrepancy between GAAP and non-GAAP results to a "decrease in fair value of the contingent consideration (solely payable in the form of our common stock) related to the Nellix acquisition," according to SEC filings.
"Our 2nd quarter revenue was in-line with preliminary results released earlier this month," said CEO John McDermott in the regulatory filing. "In Europe, our controlled market release of the Nellix EndoVascular Aneurysm Sealing System is tracking to plan, providing us an excellent opportunity to further enhance the procedure and training ahead of a broader commercial launch anticipated in 2014."
ELGX shares closed at a 0.7% increase on the day yesterday, trading at $16.03 apiece. That’s a 5.3% bump since the morning prior to the company’s earnings release, when shares opened at $15.23.
