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Stereotaxis Reports 2019 Third Quarter Financial Results

921 Days ago

ST. LOUIS, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Stereotaxis (NYSE: STXS), the global leader in innovative robotic technologies for the treatment of cardiac arrhythmias, today reported financial results for the third quarter ended September 30, 2019.

“The third quarter was highlighted by successful reengagement with the capital markets, meaningful progress in our commercial growth strategy, and continued innovation and industry collaboration,” said David Fischel, Chairman and CEO. “We are pleased with the methodical progress across all aspects of Stereotaxis.”

“In the quarter, we listed on the NYSE American exchange and closed a $25 million equity financing. These reflect increasing awareness and confidence in Stereotaxis’ significant clinical value and growth opportunity. Stereotaxis is in the strongest financial position in its history, and will use this strength to accelerate the development and commercial introduction of innovations in electrophysiology and beyond.”

“Our revenue growth and net income in the quarter is reflective of the positive impact a resurgence of robotic system sales can have on our financial performance. Stereotaxis continues to make tangible progress in the regulatory process, supply-chain optimization, and commercial discussions necessary for a broad launch of the Genesis RMN® System. As we plan towards 2020 and the broad commercialization of Genesis, we expect an exciting year of significant growth.”

“Development of Stereotaxis’ proprietary catheter continues to advance well in accordance with previously disclosed timelines. The multiple, recently announced collaborations to integrate advanced preoperative mapping information enhance the robotic ecosystem and will increasingly drive personalized patient-specific therapy in electrophysiology.”

Third Quarter 2019 Financial Results
Revenue for the third quarter of 2019 totaled $8.2 million, up 9% from $7.6 million in the prior year third quarter. Recurring revenue for the quarter was $6.3 million and system revenue for the quarter was $1.7 million. System revenue primarily reflects the establishment of a new robotic electrophysiology program.

Gross margin in the quarter was $6.4 million or 78% of revenue, consistent with the 78% reported in the third quarter of 2018. Gross margin on recurring revenue and system revenue were 85% and 61%, respectively. Operating expenses in the third quarter of $6.4 million increased from $6.0 million in the prior year quarter.

Operating and net income for the quarter were both near breakeven, with an operating loss of ($41,000) and net income of $44,000, compared to an operating loss and net loss of ($0.1) million in the third quarter of 2018. Negative free cash flow for the quarter was ($0.4) million.

Cash Balance and Liquidity
At September 30, 2019, Stereotaxis had cash and cash equivalents of $31.7 million and no debt.

Forward Looking Expectations
Stereotaxis’ innovation accomplishments support an expectation of robust revenue growth in 2020, accelerating throughout the year.

Conference Call and Webcast
Stereotaxis will host a conference call and webcast today, November 14, 2019, at 9:00 a.m. Eastern Time. To access the conference call, dial 1-800-367-2403 (US and Canada) or 1-334-777-6978 (International) and give the participant pass code 4492256. Participants are asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website at www.stereotaxis.com.

About Stereotaxis
Stereotaxis is the global leader in innovative robotic technologies designed to enhance the treatment of arrhythmias and perform endovascular procedures. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, improved lab efficiency and productivity, and enhanced integration of procedural information. Stereotaxis’ robotic technology has received various regulatory clearances in the United States, European Union, Japan, Canada, China, and elsewhere. The Stereotaxis Genesis RMN System is CE marked and will become available in other global geographies subject to regulatory approvals. Stereotaxis Imaging Model S is CE marked and FDA cleared. For more information, please visit www.stereotaxis.com

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe”, "estimate”, "project”, "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's ability to raise additional capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing, in either case on acceptable terms, continued acceptance of the Company's products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase its systems and the timing of such purchases, competitive factors, changes resulting from healthcare reform in the United States, including changes in government reimbursement procedures, dependence upon third-party vendors, timing of regulatory approvals, and other risks discussed in the Company's periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control. In addition, these orders and commitments may be revised, modified, delayed or canceled, either by their express terms, as a result of negotiations, or by overall project changes or delays.

Company Contacts:                                                                         
David L. Fischel
Chairman and Chief Executive Officer

Kimberly R. Peery                                                                             
Chief Financial Officer


    Three Months Ended
September 30,

  Nine Months Ended
September 30,

      2019       2018       2019       2018  
Systems   $ 1,696,964     $ 715,484     $ 1,755,015     $ 1,043,510  
Disposables, service and accessories     6,258,252       6,839,995       19,515,125       21,035,002  
Sublease     246,532       -       739,593       -  
Total revenue     8,201,748       7,555,479       22,009,733       22,078,512  
Cost of revenue:                                
Systems     665,463       596,869       722,828       1,257,980  
Disposables, service and accessories     919,599       1,036,589       2,928,718       3,029,875  
Sublease     246,531       -       739,592       -  
Total cost of revenue     1,831,593       1,633,458       4,391,138       4,287,855  
Gross margin     6,370,155       5,922,021       17,618,595       17,790,657  
Operating expenses:                                
Research and development     1,751,081       2,000,780       7,405,462       5,995,800  
Sales and marketing     3,120,632       2,819,101       9,666,975       9,911,514  
General and administrative     1,539,648       1,215,920       4,186,277       3,753,703  
Total operating expenses     6,411,361       6,035,801       21,258,714       19,661,017  
Operating loss     (41,206 )     (113,780 )     (3,640,119 )     (1,870,360 )
Other income     -       -       -       2,590,361  
Interest income (expense)     84,954       (2,515 )     133,329       (33,271 )
Net income (loss)   $ 43,748     $ (116,295 )   $ (3,506,790 )   $ 686,730  
Cumulative dividend on convertible preferred stock     (360,647 )     (361,447 )     (1,071,351 )     (1,072,553 )
Net loss attributable to common stockholders   $ (316,899 )   $ (477,742 )   $ (4,578,141 )   $ (385,823 )
Net loss per share attributed to common stockholder:                                
Basic   $ (0.00 )   $ (0.01 )   $ (0.07 )   $ (0.01 )
Diluted   $ (0.00 )   $ (0.01 )   $ (0.07 )   $ (0.01 )
Weighted average number of common shares and equivalents:                                
Basic     64,294,153       59,008,219       61,405,083       49,733,553  
Diluted     64,294,153       59,008,219       61,405,083       49,733,553  

  September 30,
  December 31,
Current assets:              
Cash and cash equivalents $ 31,650,559     $ 10,796,072  
Accounts receivable, net of allowance of $368,191 and $398,847 in 2019 and 2018, respectively   3,830,395       5,021,111  
Inventories, net   1,546,716       1,191,666  
Prepaid expenses and other current assets   1,022,322       963,700  
Total current assets   38,049,992       17,972,549  
Property and equipment, net   270,751       343,693  
Operating lease right-of-use assets   4,771,187       -  
Other assets   214,042       198,365  
Total assets $ 43,305,972     $ 18,514,607  
Liabilities and stockholders' equity              
Current liabilities:              
Accounts payable $ 1,031,975     $ 1,726,360  
Accrued liabilities   2,641,254       2,642,481  
Deferred revenue   5,283,783       5,825,536  
Current portion of operating lease liabilities   2,235,465       -  
Total current liabilities   11,192,477       10,194,377  
Long-term deferred revenue   560,508       407,151  
Operating lease liabilities   2,574,469       -  
Other liabilities   260,947       641,461  
Total liabilities   14,588,401       11,242,989  
Series A - Convertible preferred stock:              
Convertible preferred stock, Series A, par value $0.001; 23,780 and
23,900 shares outstanding at 2019 and 2018
  5,929,749       5,960,475  
Stockholders' equity:              
Convertible preferred stock, Series B, par value $0.001; 10,000,000
shares authorized, 5,610,000 and no shares outstanding at 2019 and
  5,610       -  
Common stock, par value $0.001; 300,000,000 shares authorized,
66,677,111 and 59,058,297 shares issued at 2019 and 2018,
  66,677       59,058  
Additional paid-in capital   503,149,814       478,179,574  
Treasury stock, 4,015 shares at 2019 and 2018   (205,999 )     (205,999 )
Accumulated deficit   (480,228,280 )     (476,721,490 )
Total stockholders' equity   22,787,822       1,311,143  
Total liabilities and stockholders' equity $ 43,305,972     $ 18,514,607  

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