Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message| ()  

Executives

Zack Kubow – The Ruth Group Investor Relations

John McDermott – President and Chief Executive Officer

Bob Krist – Chief Financial Officer

Analysts

Duane Nash – Wedbush Securities

Steven Lichtman – Oppenheimer & Company

Brooks West – Piper Jaffray

John Putnam – Capstone Investments

Roberto Morales – Adage Capital

Chris Cooley – Stephens

Endologix, Inc. (ELGX) Q4 2011 Earnings Conference Call February 22, 2012 5:00 PM ET

Operator

Greetings and welcome to the Endologix Incorporated fourth quarter 2011 earnings conference call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Zack Kubow for The Ruth Group. Thank you, Mr. Kubow. You may begin.

Zack Kubow

Alright, thanks operator and thank you everyone for participating in today’s call. Joining me from the company are John McDermott, President and Chief Executive Officer; and Bob Krist, Chief Financial Officer. This call is also being broadcast live over the Internet at www.endologix.com and a replay of the call will be available on the company’s website for 30 days.

Before we begin, I would like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of Federal Securities laws. These forward-looking statements involve material risks and uncertainties. For a discussion of risk factors, I encourage you to review the Endologix’s Annual Report on Form 10-K and subsequent reports as filed with the Securities and Exchange Commission.

Furthermore, the content of this conference call contains time-sensitive information that is accurate only as of the date of the live broadcast, February 22, 2012. Endologix undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this call.

With that said, I would like to turn the call over to John McDermott.

John McDermott

Thanks Zack. 2011 was another productive year for Endologix. We made great strides advancing our new product pipeline, expanding our sales team and laying a foundation for the launch of Nellix and Ventana. We also continue to gain market share along the way generating 24% annual revenue growth.

Fourth quarter global revenue was up 22% to a record $23.4 million, this included 26% year-over-year growth in the U.S. driven by the strength of our sales team and the successful introduction of our new AFX system. Outside the U.S. we achieved 4% year-over-year growth and are pleased with our direct sales force in Europe.

Looking forward we believe we are well positioned for another year of strong growth driven by continued market penetration with AFX the expansion of our sales team in Europe and the anticipated limited introduction in Europe of Nellix and Ventana. Based upon these opportunities we anticipate full year 2012 revenue will be in the range of $102 million to $107 million representing 22% to 28% annual growth.

Now I would like to spend a minute going through our growth plans in more detail. In the U.S. we experienced a positive reaction to the launch of AFX in the third quarter and saw a high level of interest on physicians. We continue to promote to clinical advantages of AFX and expect to keep driving revenue growth in 2012. We ended 2011 with 72 reps and clinical specialists and budgeted 77 by the end of this year. We’ve now got over 400 years of EVAR experience in the U.S. sales force and I think they do a great job providing clinical support to physicians.

In 2012, the majority of our incremental sales and marketing investments will be in Europe. At the end of last year we have established a 12 person team including six people that will be supporting clinical cases. The team has effectively transitioned customers from our former distributor it is now starting to add cases on their own.

In January we introduced AFX in Europe at the Link meeting in Germany it had a very successful live case that generated lot of interest. Over the course of 2012 we plan to build our European team up to 25 to 30 people of which we will train 15 to 20 of them to support clinical cases. I expect to see a lot of growth in Europe over the next few years and the team is off to a very good start in 2012.

In December of last year we submitted our EU regulatory (Inaudible) for Nellix and expect to receive CE mark in mid 2012. The Nellix clinical experience to date will be presented at the Charing Cross Meeting in April in London. Then in summer we are planning a limited market introduction focusing on targeted number of regional EVAR centers. We will probably stay in a limited market phase through the balance of 2012 and then look at opening it up in 2013.

For Ventana, we just enrolled the final patient in our CE clinical study yesterday and expect to file our regulatory (Inaudible) in the second quarter. This positions us to potentially get CE mark for Ventana in the fall of 2012 similar to Nellix we will being with a limited roll out in selective centers with a focus on achieving positive clinical outcomes in building training centers.

Turning back to the United States we are well positioned with the recent launch of AFX and advancement of our other new product initiatives. Earlier this month we announced the completion of enrollment in our PEVAR clinical trial. This randomized trial included 150 patients and requires 30 day follow up. Based on our current time line we hope to receive the percutaneous indication by the end of the year, which would position Endologix as the only EVAR company with an on-label indication for percutaneous aneurism repair.

In January, we announced the first patient enrolled in our Ventana IVE clinical trial. As a reminder, the trial will be conducted at up to 25 U.S. clinical sites and will enroll about 120 patients. We expected it will take about a year to enroll the trial then we will follow those patients for one year gather up the data and submit our PMA. If everything goes according to plan we should get approval of Ventana in the U.S. in 2014.

The timeline for Nellix in the U.S. is to submit our IVE in Q2 and hopefully get it approved by year end. If we can start enrollment before the end of the year as expected this would position us for a potential PMA approval in 2015. As you can imagine, there is a tremendous amount of interest from U.S. physicians to participate in the Nellix clinical study.

So it’s going to be another exciting year for us at Endologix the U.S. sales team has a full year of AFX and should get PEVAR by the end of the year. In Europe, we are just now introducing AFX and will start our limited market introductions for Nellix and Ventana in the second half. While driving these commercial activities in 2012 we will be conducting clinical study that will give us additional data and position us for U.S. approvals. We believe we are well positioned to continue gaining market share and growing Endologix into a leading provider of minimally invasive devices for the treatment of aortic disorders.

With that I will turn the call over to Bob for his financial review.

Bob Krist

So thank you, John. Good afternoon all. Today I will provide a brief overview of our financial results and other key metrics for the fourth quarter and full year 2011. Total revenue as John mentioned increased by 22% year-over-year to $23.4 million in the fourth quarter and was up by 24% to $83.4 million for the full year of 2011. This growth was driven by a full year of sales of our new product sizes by increased sales productivity, the addition of seven net new sales territories, the additional of clinical support specialist and the domestic launch of the AFX and the vascular system in August.

This was balanced by relatively flat year for international sales as we transition from a distributor only model to a combination of direct sales and distribution in Europe during the third quarter. In the fourth quarter, domestic revenue increased by 26% versus the prior year to $19.4 million and international revenue increased by 4% year-over-year to $4 million.

In Q4 we began to see the early impact from our direct sales team in Europe, which contributed $839,000 in revenue. International growth in the fourth quarter was also driven by good results from our distributors in Eastern Europe, Mexico and South America. Gross margin in the quarter was 76.9% compared to 78% in the fourth quarter of last year. Fourth quarter gross margin includes a royalty expense resulting from our settlement agreement with Bard, which was reached in October. For the full year gross margin was 77.5% compared to 77.7% in the prior year.

As John has highlighted in addition to this solid execution of our base business in terms of revenue growth and gross margin there were a number of key investments made in 2011, which will drive continued revenue growth in 2012 and future years. For example we more than doubled our inventory position in 2011 in order to support the launch of AFX in the United States and to provide an initial stocking inventory to support our direct sales efforts in Europe.

We increased the size and clinical capability of our U.S. sales force and we executed on the plan that we articulated following our acquisition of Nellix in late 2010 by increasing R&D and clinical by $10 million and by investing $5 million into Europe including buying back distribution rates to most of the major Western European markets. Consequently operating expenses for the full year 2011 were $83.1 million compared to $56.4 million in 2010. Operating expenses for the fourth quarter only were $21.3 million compared to $18.3 million in the same period last year.

Marketing and sales expenses grew from $8.7 million in the fourth quarter of 2010 to $11.5 million in the fourth quarter of 2011 due to the growth in our base business and cost associated with establishing the direct sales organization in Europe. Research development and clinical expenses grew to $5.4 million from $3.1 million in the fourth quarter of 2010. This was in line with our expectation and was driven primarily by our pipeline programs and clinical trials in support of PEVAR, Nellix and Ventana.

G&A expenses decreased from $6.5 million in the fourth quarter of 2010 to $4.4 million in the current quarter. The fourth quarter of 2011 included about $1 million in G&A related to Europe and a year-over-year increase in legal fees liable fourth quarter of 2010 included $3.4 million of costs associated with the Nellix acquisition.

Overall for the fourth quarter 2011 our GAAP net loss was $3.7 million or $0.06 per share compared to a net income of $11.7 million or $0.23 per share for the fourth quarter of 2011, pardon me 2010. That fourth quarter of 2010 included a $15 million favorable income tax provision related to the Nellix acquisition, which was partially offset by the $3.4 million of non-recurring transaction costs.

Also the fourth quarter of 2011 loss includes a $500,000 equal to about $0.01 per share non-cash fair value adjustment related to the contingent consideration from the Nellix acquisition. On an adjusted or non-GAAP basis we reported adjusted net loss in the fourth quarter of 2011 of $3.2 million or $0.06 per share. For the full year of 2011 the GAAP net loss was $28.7 million or $0.51 per share compared with a GAAP net income of $10.7 million or $0.22 per share in 2010.

On the same adjusted basis we reported a full year 2011 net loss of $18.2 million or $0.32 per share and that included $1.7 million or $0.03 per share of business development expenses to require distribution rates to those markets in Europe.

Days sales outstanding including both U.S. and international accounts was 59 days at the end of the fourth quarter 2011 that compared to 54 days at the close of 2010 and 60 days at the end of the third quarter 2011. Inventory turnover was 1.2 turns at December 31 versus 2 turns at year end 2010. As I mentioned earlier inventory turnover slowed somewhat in 2011 in order for us to support the launch of AFX in the U.S. and to put in place stocking inventories to support direct sales in Europe. Inventory turnover should improve to the 1.5 to 2 turns range over the course of 2012.

With the significant cash investments made in 2011 we ended the year with $20 million in cash. In the second half of 2012 we expect to once again become cash flow positive and while we have no outstanding bank debt and no expectation that we will make any draw downs we have newly expanded line of credit of up to $20 million giving us ample resources to execute on our growth initiatives.

Turning to guidance, as John mentioned for the full year of 2012 we expect revenue to be in the range of $102 million to $107 million a 22% to 28% increase over 2011. On the bottom line we project 2012 guidance of an adjusted net loss between $0.12 and $0.18 per share with quarterly progress towards profitability over the course of the year. This net loss guidance takes into account the plan growth of the direct sales force in Europe and research development and clinical programs particularly for the Nellix and Ventana programs.

Not included in this loss per share guidance however are potential adverse litigation outcomes, fair value adjustments associated with the Nellix contingent consideration and the effects of possible business development transactions. And as I just mentioned we do expect to be cash flow positive in the second half of 2012 and believe that together with our available line of credit we have adequate cash resources to fund our current operations and continue to invest in our growth strategies.

So, with that I will turn the call back to John.

John McDermott

Thanks Bob. Overall we are pleased with 2011 and believe we are well positioned to generate another year of solid growth. All of our new product programs remain on track our U.S. sale force continues to perform well and we are off to a very good start in Europe. Our investment in technology and people have strengthen the company and will provide a solid foundation for our long-term growth.

In 2012 we expect sales to increase by 22% to 28% and demonstrate sequential improvements in our bottom line leading to full year profitability in 2013. Following our key objectives and milestones for 2012 first we will continue to increase market share with AFX, next build our team in Europe with talented and experienced sales and marketing professionals, get CE mark approval for both Nellix and Ventana, launch IntuiTrak in Japan and AFX in the rest of the international markets, drive enrollment in the U.S. Ventana IDE clinical study and lastly obtain FDA approval for our percutaneous EVAR indication in the fourth quarter.

We look forward to keeping you posted on our progress and are planning to participate in the Lazard and Roth conferences in March and we look forward to seeing many of you there. With that we will open it up for questions. Operator?

Question-and-Answer Session

Operator

(Operator Instructions) thank you. Our first question comes from the line of Duane Nash with Wedbush Securities. Please proceed with your question.

Duane Nash – Wedbush Securities

Good afternoon, thanks for taking the questions. I believe you mentioned that gross margins were affected during the quarter by the Bard cross license. Do you have any color on where we may see gross margins in 2012?

Bob Krist

Duane, this is Bob. I will go ahead and feel that question. Overall I see the gross margins in 2012 averaging about 77% we came in 77.6 in 2011 we will get a little bit of a favorable bump out of our direct sales model in Europe. But we do have the Bard royalty now to factor into the mix that should average about 1.5 of margin impact in 2012 and then diminish from there. Because as I think you know that royalty does not apply to our new products AFX, Nellix or Ventana only to the legacy products, which will be facing out overtime. But overall I see that’s around 77% in 2012.

Duane Nash – Wedbush Securities

Very good and then one quick follow up. To the extent you are comfortable of pining on this do you have any opinion on what the size of the market was both U.S. and internationally the total market for AAA repairs?

Bob Krist

Yeah Duane the most recent report that we have acquired actually set the U.S. market last year at 44,000 procedures and forecast the market this year to be at 47,000. So that’s a forecasted U.S. growth rate of about 7%. When we look at our procedure volumes at the end of last year for the full year that puts us right about 10% market share on a procedure basis and if you annualize our Q4 numbers it’s closer to 11%. In Europe, we don’t have any updated numbers from our previous estimates, which are that the European market is about 23,000 procedures and another 15,000 procedures done in all of the other international markets. But we are looking at a couple of other updated reports and as we get newer information we will let you know what that looks like.

Duane Nash – Wedbush Securities

And these procedure numbers I presume they are into vascular and not open or are these all?

Bob Krist

That’s correct yeah that what I just gave you is just EVAR and so as an example if you go back to the U.S. estimate they’ve got the mix between open and EVAR now at 35% open and 65% EVAR so continued gradual shift in procedure mix.

Duane Nash – Wedbush Securities

Great. Well, thanks very much and congratulations on the quarter.

Operator

Thank you. Our next question comes from the line of Steven Lichtman with Oppenheimer & Company. Please proceed with your question.

Steven Lichtman – Oppenheimer & Company

Thanks. Hi guys. In terms of the market share growth that you saw in 2011 and then what’s in U.S. and what you are anticipating in ’12 I wonder if you could characterize that a little bit more as you are growing the sales force. Are you getting deeper into current accounts or to an extent are you really getting into new accounts that you are not in before maybe a little characterize sort of both types of market share gains.

Bob Krist

Yeah, it’s a little bit above Steve. I can tell you that when we look back over the last 18 to 24 months historically we were in about 25% of the U.S. hospitals doing EVAR and in those accounts that were customers we had about 25% of their business. More recently as we’ve looked at finishing last year it looks now like we are in around a third of the U.S. hospitals and in those hospitals we have about a third of their business. So we are gaining share both in terms of new accounts as well as penetration in the accounts we have.

Steven Lichtman – Oppenheimer & Company

And to increase that first to more account is it really just feed on the street is the Ventana trial beginning to help in terms of opening up new doors. What’s going to sort of continue to march that third of accounts at your end forward?

John McDermott

Yeah, I think I mean more feed on the street certainly helpful we’ve got for an average number of filled territories we will see an increase this year over last year. But I know they are contributing factors tenure so as we know from our experience as these folks gain more and more experience with the devices in their markets they take share. So and that share isn’t just more penetration in existing accounts its more accounts. So I think well between AFX having a full year of AFX having a more tenured sales organization with a full complement of clinical specialists that will enable us to continue to add both new accounts as well as take more share from existing accounts this year.

Steven Lichtman – Oppenheimer & Company

Okay, great. And then just lastly as we think about PEVAR indication later this year in the U.S. can you talk to us about how you guys plan on turning that to your advantage in terms of market share whether it’s training, marketing how once it’s sort of get that quick through do you start getting new business from that new indication?

John McDermott

Yeah, so what it looks like is when we have the indication then we will be able to very actively promote training courses basically, we will establish training centers across the United States and we will run a series of courses on a regular basis. So if a physician wants to go get trained on percutaneous EVAR he will register, he will coordinate with our reps and go to the course and we will teach them our device as well as teach them how to close the growing percutaneous. And our belief is that in that training they will favor our device and that we will pick up incremental cases and share as a result of those courses. So ideally we will be able to run our first course by the end of this year, just depends on timeline for the FDA to turn around our PMA supplement.

Steven Lichtman – Oppenheimer & Company

Okay, great. Thanks guys.

Operator

Thank you. Our next question comes from the line of Brooks West with Piper Jaffray. Please proceed with your question.

Brooks West – Piper Jaffray

Hi, can you hear me?

John McDermott

Yeah, very fine Brooks.

Brooks West – Piper Jaffray

Great, thanks for taking the question. Bob, I’m trying to get to the right adjusted EPS number for the quarter. You mentioned a penny and I forgot exactly what you said but a penny from the Nellix acquisition and then the $1.7 million BD expense certainly feels like a one-time event. So should we be looking at a kind of true adjusted EPS number of $0.03 instead of a loss of $0.06 or how should. Can you provide a little bit more clarity there?

Bob Krist

Sure, the $0.06 number does include $0.5 million charge in the fourth quarter for the Nellix contingent consideration. And while that on its own is roughly a penny just the grounding cost the numbers after the adjustment to remain $0.06 although it’s around $0.055. The $1.7 million of the business development charges if I misspoke I apologize those actually occurred earlier in the year and the reference to the $0.03 impact there was to suggest that the $0.32 of adjusted net loss on a full year basis included those $0.03, which are non-recurring and otherwise would have been about $0.29.

Brooks West – Piper Jaffray

Okay, that’s helpful thanks. And then John the sequential decline in U.S. AFX sales is that just coming off of strong August launch could there have been some fall off after you announced the Ventana IDE sites. Could there been some hospital destocking and how should we think about that?

John McDermott

Yeah, I think it’s primarily a function of unusually big Q3 so recall that we grew 22% sequentially in that quarter so we were not surprised to see a little pull back in Q4 in fact try to signal that as best we could in our guidance going into the end of the year. And I would also keep in mind that it still represents 26% domestic growth over Q4 2010. But that been said we did see a little slow down over the holidays it’s kind of the second half of December and the first part of January we are a little bit off pace. But that picked up nicely in the middle part of January and we are off to a very good start. So we feel good about the business.

Brooks West – Piper Jaffray

Okay and then one last if I could on just on the guidance. You are guiding 22 to 28 on the top line. You’ve talked about kind of managing the business to 25% top line growth. Is that the strategy I mean you certainly seem like you have a lot of opportunities to maybe hit the gas a little bit more and then as a corollary to that you know on the earnings leverage a little bit below what we had expected and I’m guessing if you kind of balance the managing of the top line to your earnings leverage and then when should we see a positive earnings quarter this year or is the first positive EPS in ’13. Thanks.

John McDermott

Yeah, sure that was a good question. So that range is designed to give us we modeled a variety of scenarios as you can imagine and that range gives us a little bit of room if in the unlikely event that Ventana and Nellix programs don’t materialize in the time frame that they are expected to and so a softer sales would result in a higher EPS loss. So there is a correlation there and that’s what accounts for the low and the high end ranges there is a direct relationship mostly connected to sales. What was the second part of your question?

Brooks West – Piper Jaffray

Yeah, just on the earnings leverage a little bit.

John McDermott

Oh, right, right. Yeah. Sorry.

Brooks West – Piper Jaffray

When are we going to see the first positive quarter?

John McDermott

We don’t want to really give quarterly guidance as you can appreciate it’s difficult for me to tell you within a few cents in the fourth quarter am I going to be positive or negative. So all I know if I give you a number I will be wrong either I will beat it or miss it by a little. So what we know from our modeling is that we will show good sequential improvement over the course of the year and be fully profitable in 2013. So I think you will see a very positive trend over the course of the year but I’m reluctant to stick an exact number on it in Q4. We’ve got certainly internal goals to be positive there. But I would like a little bit of latitude to just show the progress and be fully profitable in 2013.

Brooks West – Piper Jaffray

Great, thanks John.

Operator

(Operator Instructions) thank you. Our next question comes from the line of John Putnam with Capstone Investments. Please proceed with your question.

John Putnam – Capstone Investments

Yeah, thanks very much and good afternoon. John you had a nice sequential increase in your international sales in the fourth quarter and I guess does that kind of become the base for going forward in 2012 and how do you sort of look at the mix between domestic and international in your $102 million to $108 million guidance.

John McDermott

Yeah, so part of the sequential bump in Q4 was that we set the bar nice and low coming out of Q3 with the distribution change that we did in Europe that we talked about. That Q3 was the quarter where we made that switch and so there wasn’t much happening on the top line. Q4 was a little more representative although still very early as it relates to our direct activities in Europe we were starting to do cases on our own and things were coming together. So I don’t know if I want to characterize that as new base line for Europe but we do expect good growth internationally. Historically, John our mix has been roughly 85% domestic, 15% international. We see that mix shifting this year up to 80% U.S. 20% international.

John Putnam – Capstone Investments

Great, thanks very much.

Operator

There are no further questions at this time I would like to turn the floor back over to management for closing. (Inaudible) did come up. Our next question comes from the line of Roberto Morales with Adage Capital. Please proceed with your question.

Roberto Morales – Adage Capital

Thanks. Hey John, two quick questions first the data that was going to come out in April how many patients are we going to see on the Nellix device and I guess what should we be looking for there? And then on the percutaneous side so you think about that opportunity as a market expander or is this going after the existing pool of patients? Thanks.

John McDermott

Yeah, let me answer the second question first. I think that the PEVAR indication is not as much a market expansion as it is just a shift in the way the guys are doing it. I recall that as of now there is no EVAR device and no closure devices that are on label for percutaneous and so there are still physicians that do it. But I think there is more that want to do it and they just need a place to go and there is no commercial companies promoting it.

So I see that more as a mix shift within the existing market as market expansion. Answering your question on Nellix that is not a specific data set for the Charing Cross Meeting in April we have a couple of presentations both Nellix and Ventana will be presented at that meeting plus presented in separate symposiums. But we are coming up now on our two year anniversary with the good number of patients so we will be providing kind of two year follow up on our initial CE dataset patients. So that’s what you could expect at that meeting. There will be other presentations for Ventana and Nellix throughout the year but that’s what’s scheduled for Charing Cross.

Roberto Morales – Adage Capital

Got it. Thanks so much.

Operator

Thank you. Our next question comes from the line of Chris Cooley with Stephens. Please proceed with your question.

Chris Cooley – Stephens

Thanks. Can you hear me okay?

John McDermott

Yeah, hi Chris.

Chris Cooley – Stephens

Thank you so much for taking my questions. Just two quick one to follow up just a little bit here. When you think about new product into the back half of the year in Europe in particular with both Nellix and Ventana did I treat it correctly when you are talking about your guidance range so you are basically assuming the low end of that range doesn’t assume the contribution in the high end does so obviously I’m looking at about $5 million contribution and kind of can you give a feel for that. After you kind of give us directional guidance on revenue in 2012 from those two products and I have just one quick follow up. Thanks.

John McDermott

Yeah, Chris that’s a reasonable range but it’s not quite that precise. I mean we are assuming that it’s not completely binary you know if we don’t get Nellix and Ventana our expectation as we do a little better with AFX as an example in Europe. But that’s a reasonable way to think about it, that’s kind of those products represent as you know somewhere in that range.

Chris Cooley – Stephens

Understood and then just briefly could you give us a little bit of color about when from the timing perspective you brought on your reps to fourth quarter both domestically and abroad and help us think about kind of – as it is close to the year. Now you mentioned you are going to 77s in the stage and basically doubling what we think about the European market. Could you help us think about the – there as well as in Europe what incremental markets are you going to address or you just go deeper within select markets. Thanks.

John McDermott

Yeah, so for the U.S. there is not as many ads and I honestly I don’t have that schedule in front of me Chris of the rep build throughout 2011. So I don’t know that number off the top of my head I think most of the heavy hiring was done in the first half and then what we started to do in the later part of the year is bring on clinical specialists and we are still doing that. Excuse me.

So you will see some tenure leverage with those new hires but probably not on the magnitude that you saw a year earlier would be a reasonable way to think about it. And again I’m sorry I just don’t have that hire scheduled by quarter in front of me. As it relates to Europe they will be added sequentially throughout the year. It’s a pretty linear hiring schedule and similar to what you know in the U.S. it takes a guy anywhere from six to 12 months to get effective. So you can build your forecast accordingly. Excuse me. Did that help?

Chris Cooley – Stephens

Yes, thank you very much.

Operator

There are no further questions at this time. I would like to turn the floor back over to management for closing comments.

John McDermott

Okay, well thank you, thanks everyone for joining us on the call this afternoon and for your continued interest in Endologix. We look forward to updating you at the upcoming conferences and on our next call. Have a good evening.

Operator

This concludes today’s teleconference. You may disconnect your lines at this time and thank you for your participation.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Endologix's CEO Discusses Q4 2011 Results - Earnings Call Transcript
This Transcript
All Transcripts