8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) May 8, 2003

ENDOLOGIX, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	0-28440	68-0328265
(State or other jurisdiction Employer of incorporation)	(Commission File Number)	(IRS Identification No.)

13900 ALTON PARKWAY, SUITE 122         IRVINE, CA	92618
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (949) 595-7200

TABLE OF CONTENTS

	Item 7. Financial Statements and Exhibits.
	Item 9. Regulation FD Disclosure.
SIGNATURES
EXHIBIT INDEX
Exhibit 99.1

Item 7. Financial Statements and Exhibits.

99.1 Press Release, dated May 8, 2003, issued by Endologix, Inc.

Item 9. Regulation FD Disclosure.

The information included in this section is intended to be included under “Item 12. Disclosure of Results of Operations and Financial Condition” and is included under this Item 9 in accordance with SEC Release No. 33-8216.

On May 8, 2003, Endologix, Inc. announced financial results for the first quarter ended March 31, 2003. A copy of the press release making this announcement is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

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SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ENDOLOGIX, INC.
Date:    May 8, 2003	By  /s/  David Richards        Chief Financial Officer and        Secretary

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EXHIBIT INDEX

Exhibit 99.1 Earnings Release of Endologix, Inc. dated May 8, 2003

4 EX-99.1 3 a89928exv99w1.htm EXHIBIT 99.1

Exhibit 99.1

{ENDOLOGIX, INC. LOGO}
PRESS RELEASE
DATE:	May 8, 2003
CONTACTS:	Paul McCormick, President and Chief Executive Officer,
	949-595-7200
	David Richards, Chief Financial Officer, 949-595-7200
	www.endologix.com

Endologix, Inc. Reports 1st Quarter 2003 Results

Irvine, CA — May 8, 2003 — Endologix, Inc., (NASDAQ: ELGX) today announced financial results for the first quarter ended March 31, 2003. Total revenues for the first quarter of 2003 were 34% lower at $1,162,000, compared with $1,768,000 for the first quarter of fiscal 2002. Product revenue increased to $490,000 for the first quarter ended March 31, 2003, from $-0- for the first quarter of fiscal 2002, due to sales of PowerLink AAA products in 2003. License revenues for the quarter ended March 31, 2003 decreased 62% to $672,000 from $1,768,000 from the corresponding period of 2002. License revenues are primarily derived from royalties received from Guidant related to our licensed Focus technology. We believe that the decrease in Guidant license revenues is primarily due to the introduction by Guidant of non-licensed products in the U.S. in 2002 and competition from drug-eluting stent products. We anticipate that Guidant license revenues will continue to decline.

Net loss for the first quarter of 2003 was $(1,190,000), or $(0.05) per share, compared with net income of $548,000, or $0.04 per share, for the same period of fiscal 2002. The results for the first quarter of 2002 reflect expense reductions following the restructuring of the Company in the third quarter of 2001; while the results for the first quarter of 2003 reflect expenses to commercialize the PowerLink AAA technology acquired in May 2002. Research, development and clinical expenses for the first quarter of fiscal 2003 were 82% higher at $1,846,000, compared with $1,017,000 for the first quarter of fiscal 2002. The increase was due primarily to research and development expenditures for PowerLink AAA technology, whereas the research, development and clinical expenses for the first quarter of fiscal 2002 were for continuing clinical studies for our brachytherapy technology. Marketing and sales expenses of $283,000 for the first quarter of 2003 were to support PowerLink AAA distribution. General and administrative expenses decreased 65% to $138,000 for the first quarter of 2003, compared to $398,000 for the same period of 2002. The decrease resulted primarily from a reimbursement to the Company of legal costs and expenses of $468,000, which were previously expensed as general

and administrative expense, as part of a legal settlement with Jomed-Endosonics.

Commenting on the activities of the quarter, Paul McCormick, President & CEO, said, “The results of the first quarter are in line with our financial plans, and the Company continues to execute on its regulatory timelines.”

Endologix, Inc. develops and manufactures minimally invasive treatments for vascular diseases. The Company’s PowerLink System is an endoluminal stent graft for treating AAA. AAA is a weakening of the wall of the aorta, the largest artery in the body, resulting in a balloon-like enlargement. Once AAA develops, it continues to enlarge and, if left untreated, becomes increasingly susceptible to rupture. The overall patient mortality rate for ruptured abdominal aortic aneurysms is approximately 75%, making it the 13th leading cause of death in the United States. Additional information can be found on the Company’s Web site at www.endologix.com.

Except for historical information contained herein, this news release contains forward-looking statements, the accuracy of which are necessarily subject to risks and uncertainties, including reduction of Company revenue resulting from declines in sales of Guidant’s royalty-bearing products, and the unpredictability of clinical trials and regulatory approval, changes in future economic, competitive and market conditions, uncertainty of acceptance in the marketplace and future business decisions, adequacy of financial resources to support operations after December 31, 2003 and our ability to raise capital, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Endologix, and the risk factors and other matters set forth in the Company’s Annual Report on Form 10-K for the year ended Dec. 31, 2002.

ENDOLOGIX, INC..

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

		Three Months Ended March 31,
		2003			2002
Revenues:
	Product	$	490		$	--
	License		672			1,768
Total revenues			1,162			1,768
Cost of product sales			257			69
Gross profit			905			1,699
Operating expenses:
	Research, development and clinical		1,846			1,017
	Marketing and sales		283			--
	General and administrative		138			398
	Minority interest		(17	)		(8	)
Total operating expenses			2,250			1,407
Income (loss) from operations			(1,345	)		292
Other income (expense):
	Interest income		154			226
	Gain on sale of assets		3			34
	Other income (expense)		(2	)		(4	)
Total other income			155			256
Net income (loss)		$	(1,190	)	$	548
Basic earnings (loss) per share		$	(0.05	)	$	0.04
Shares used in computing basic earnings (loss) per share			24,047			13,157
Diluted earnings (loss) per share		$	(0.05	)	$	0.04
Shares used in computing diluted earnings (loss) per share			24,047			13,277

ENDOLOGIX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

(unaudited)

		March 31,		December 31,
		2003		2002
ASSETS
Cash, cash equivalents and marketable securities		$	8,046	$	7,659
Accounts receivable, net			405		622
Other receivables			734		1,004
Inventories			1,949		2,043
Other current assets			368		431
	Total current assets		11,502		11,759
Property and equipment, net			161		185
Marketable securities			572		2,051
Goodwill and other intangibles, net			19,189		19,541
Other assets			375		371
	Total Assets	$	31,799	$	33,907
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities		$	1,666	$	2,348
Minority interest			67		83
	Total liabilities		1,733		2,431
Stockholders’ equity			30,066		31,476
	Total Liabilities and Stockholders’ Equity	$	31,799	$	33,907

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EX-99.1

Exhibit 99.1