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Endologix Inc Reports Operating Results (10-Q)

November 01, 2012 | About:
10qk

10qk

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Endologix Inc (ELGX) filed Quarterly Report for the period ended 2012-09-30.

Endologix, Inc. has a market cap of $851.6 million; its shares were traded at around $13.46 with and P/S ratio of 10.2.

Highlight of Business Operations:

Marketing and Sales. The $0.4 million increase in marketing and sales expenses for the three months ended September 30, 2012, as compared to the prior year period, was primarily related to marketing costs to support the growth of our U.S. business, and costs related to our direct sales force in Europe (which was largely not present in the prior year period), offset by a decrease in variable compensation expense of $0.9 million in the U.S.

Our income tax benefit was $0.2 million and our effective tax rate was (2.5)% for the three months ended September 30, 2012. During the third quarter of 2012, we made adjustments to our estimate of income tax payable for 2012, which had the effect of reducing our income tax provision in the current period. During the three months ended September 30, 2012, we had operating legal entities in the U.S., Italy, and the Netherlands (including registered sales branches in certain countries in Europe). We had a single operating legal entity in the U.S. during the prior year period until September 2011, when we formed operating legal entities in the Netherlands to begin direct sales activity in Europe.

Marketing and Sales. The $5.7 million increase in marketing and sales expenses for the nine months ended September 30, 2012, as compared to the prior year period, was primarily related to marketing costs to support the growth of our U.S. business, costs related to our direct sales force in Europe (which was largely not present in the prior year period), and an increase in variable compensation expense of $0.9 million, driven by an increase in U.S. revenue of 27.8%.

For the nine months ended September 30, 2012, our provision for income taxes was $0.3 million and our effective tax rate was 1.0% for the nine months ended September 30, 2012. During the nine months ended September 30, 2012, we had operating legal entities in the U.S., Italy, and the Netherlands (including registered sales branches in certain countries in Europe). We had a single operating legal entity in the U.S. during the prior year period until September 2011, when we formed operating legal entities in the Netherlands to begin direct sales activity in Europe.

During the nine months ended September 30, 2012 and 2011, our cash collections from customers totaled $72.7 million and $56.2 million, respectively, representing 94.7% and 93.6% of reported revenue for the same periods.

Read the The complete Report

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