-Achieves First Quarterly Operating Income in
Company History-
-Increases Fourth Quarter Revenue 8% Year over
Year and 10% Sequentially-
-Reports Record Annual Recurring Revenue of $27.2
Million-
-Reduces Annual Operating Loss to $(5.4) Million
and Net Loss to $(5.2) Million, the Lowest Since 2004 Initial
Public Offering-
-Improves Quarterly Procedure Volume 9% Year over
Year and 12% Sequentially-
-Receives FDA Clearance of Vdrive® with V-CAS™
System, Japan Approval of Odyssey® Solution-
-Hosts Conference Call Today at 4:30 p.m. Eastern
Time-
Stereotaxis, Inc. (Nasdaq:STXS), a global leader in innovative
technologies for the treatment of cardiac arrhythmias, today
reported financial results for the fourth quarter and full year
ended December 31, 2014.
William C. Mills, Stereotaxis Chief Executive Officer, said, "We
achieved an operating profit in the fourth quarter, the first in
Company history, reflecting our ongoing emphasis on both
operational efficiencies and clinical adoption through
technological innovation, as well as a sequential improvement in
quarterly capital sales. Our focus on these objectives over the
course of the year resulted in record recurring revenue and our
lowest reported annual operating loss and net loss since our IPO,
despite challenges in new Niobe® system sales for much of the
year."
"Our leadership in robotic navigation solutions for the cardiac
ablation market was further affirmed in December, when we surpassed
75,000 worldwide procedures performed with our remote magnetic
navigation system," Mr. Mills continued. "During 2014, we
aggressively worked to drive clinical adoption and awareness around
the efficacy of our technologies and successfully improved
utilization in the fourth quarter by 9% year over year and 12%
sequentially. We continue to focus on helping physicians realize
the significant clinical benefits of a fully remote,
computer-assisted procedure environment."
Mr. Mills concluded, "As we move into 2015, we look forward to
building on our positive momentum in Japan, where we secured a
second system order during the quarter, along with leveraging the
release of our Vdrive® robotic navigation platform in the U.S. and
continuing to develop powerful software features that further
enhance our platform. We have proven we can achieve profitability
and believe we can drive increased market penetration and long-term
shareholder value with our commitment to improve the practice of
cardiac interventional medicine."
Fourth Quarter 2014 Financial Results
Revenue for the fourth quarter of 2014 totaled $9.8 million, an
increase of 8% from $9.1 million in the prior year fourth quarter
and up 10% sequentially from $8.9 million in the third quarter
2014. System revenue was $3.2 million, up 16% from $2.7 million in
the prior year quarter and 45% sequentially from $2.2 million in
the third quarter. During the fourth quarter, the Company
recognized revenue of $2.2 million on two Niobe ES systems, $0.9
million in Odyssey® solution sales and $0.1 million in Vdrive
system sales. Recurring revenue was $6.6 million in the fourth
quarter, compared to $6.3 million in the prior year quarter and
$6.7 million in the third quarter 2014. Procedures increased 9%
from the same quarter last year and 12% sequentially.
The Company generated new capital orders of $2.9 million on two
Niobe ES system orders, including a second system order from
Japan, three Odyssey solution orders and one Vdrive system order in
the fourth quarter, compared to $3.9 million in the prior year
fourth quarter and $1.5 million in the third quarter of 2014.
Ending capital backlog for the 2014 fourth quarter was $5.7
million.
Gross margin in the quarter was $7.5 million, or 76.6% of
revenue, versus $6.2 million, or 68.7% of revenue, in the fourth
quarter of 2013. Operating expenses in the fourth quarter were $7.2
million, a 17% improvement compared to $8.7 million in the prior
year quarter and a record low since the Company's initial public
offering in 2004.
Operating income in the fourth quarter, the first reported
operating income in Company history, was $0.3 million, compared to
an operating loss of $(2.4) million in the prior year fourth
quarter. Interest expense was consistent year over year at
approximately $0.8 million.
Net income for the 2014 fourth quarter was $0.9 million, or
$0.04 per share, compared to a net loss of $(4.0) million, or
$(0.23) per share, reported in the fourth quarter of 2013.
Excluding mark-to-market warrant revaluation, the Company would
have reported a net loss of $(0.5) million, or $(0.03) per share,
for the 2014 fourth quarter compared to $(3.3) million, or $(0.19)
per share, for the 2013 fourth quarter. The weighted average
diluted shares outstanding for the fourth quarters of 2014 and 2013
totaled 20.6 million and 17.2 million, respectively.
At December 31, 2014, Stereotaxis had cash and cash equivalents
of $7.3 million, compared to $8.7 million at September 30, 2014 and
$13.8 million a year ago. Cash burn for the fourth quarters of 2014
and 2013 was $1.4 million. At year end, total debt was $18.4
million related to HealthCare Royalty Partners long-term debt.
Full Year Financial Results
Revenue for the full year ended December 31, 2014 was $35.0
million compared to $38.0 million for 2013. System revenue in 2014
was $7.8 million on three Niobe ES system sales, six Vdrive system
sales and $2.8 million in Odyssey solution sales, compared to $12.7
million in 2013. Recurring revenue was $27.2 million, an increase
of 7% over 2013. Procedure volume was unchanged from total year
2013, but increased 6% in the second half of 2014 compared to the
second half of 2013.
New capital orders for the full year 2014 totaled $6.3 million,
compared to $12.1 million in 2013.
Gross margin in the full year 2014 was $26.8 million, or 77% of
revenue, compared with $27.0 million, or 71% of revenue, in 2013.
Operating expenses for 2014 were $32.2 million, a 10% reduction
compared to $35.9 million in 2013, and a record low for the Company
since going public.
Operating loss was $(5.4) million, the lowest full year
operating loss since going public and a 39% improvement from the
prior year.
Interest expense in full year 2014 was $3.3 million, compared to
$12.6 million in the prior year, which was primarily related to a
one-time, non-cash expense in the 2013 third quarter as a result of
the extinguishment of the Company's convertible
debt.
Net loss for the full year 2014 was $(5.2) million, or $(0.26)
per share, which included $3.5 million in income for mark-to-market
warrant revaluation, compared to a net loss for the full year 2013
of $(68.8) million, or $(5.95) per share, which included $53.9
million in one-time charges related to transactions with
convertible note holders and other equity investors. Excluding
these adjustments, the net loss for 2014 would have been $(8.7)
million, or $(0.44) per share, and the net loss for 2013 would have
been $(14.9) million, or $(1.29) per share.
Cash burn for 2014 was $9.2 million, compared to $6.3 million in
the prior year.
Conference Call and Webcast
Stereotaxis will host a conference call and webcast today,
February 25, 2015, at 4:30 p.m. Eastern Time, to discuss fourth
quarter and full year results. To access the conference call, dial
1-888-468-2440 (US and Canada) or 1-719-325-2455 (International)
and give the participant pass code 5077183. Participants are asked
to call the above numbers 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 a healthcare technology and innovation leader in
the development of robotic cardiology instrument navigation systems
designed to enhance the treatment of arrhythmias and coronary
disease, as well as information management solutions for the
interventional lab. Over 100 issued patents support the Stereotaxis
platform, which helps physicians around the world provide
unsurpassed patient care with robotic precision and safety,
improved lab efficiency and productivity, and enhanced integration
of procedural information. Stereotaxis' core Epoch™ Solution
includes the Niobe® ES remote magnetic navigation system, the
Odyssey® portfolio of lab optimization, networking and patient
information management solutions and the Vdrive® robotic navigation
system and consumables.
The core components of Stereotaxis systems have received
regulatory clearance in the U.S., European Union, Canada, China,
Japan and elsewhere. The V-Sono™ ICE catheter manipulator, V-Loop™
variable loop catheter manipulator and V-CAS™ catheter advancement
system have received U.S. clearance. 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 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 the recently enacted healthcare
reform in the U.S., 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.
STEREOTAXIS,
INC. |
STATEMENTS OF
OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Revenue |
|
|
|
|
Systems |
$ 3,169,782 |
$ 2,742,292 |
$ 7,839,006 |
$ 12,743,218 |
Disposables, service and
accessories |
6,585,186 |
6,325,734 |
27,172,270 |
25,287,863 |
Total revenue |
9,754,968 |
9,068,026 |
35,011,276 |
38,031,081 |
|
|
|
|
|
Cost of revenue |
|
|
|
|
Systems |
1,246,051 |
1,738,947 |
4,204,719 |
6,870,954 |
Disposables, service and
accessories |
1,035,550 |
1,098,197 |
4,018,661 |
4,130,347 |
Total cost of revenue |
2,281,601 |
2,837,144 |
8,223,380 |
11,001,301 |
|
|
|
|
|
Gross margin |
7,473,367 |
6,230,882 |
26,787,896 |
27,029,780 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
1,127,737 |
1,358,468 |
5,158,331 |
5,672,058 |
Sales and marketing |
3,723,851 |
3,918,565 |
15,168,940 |
17,132,093 |
General and administrative |
2,308,246 |
3,377,987 |
11,845,289 |
13,066,103 |
Total operating expenses |
7,159,834 |
8,655,020 |
32,172,560 |
35,870,254 |
Operating income (loss) |
313,533 |
(2,424,138) |
(5,384,664) |
(8,840,474) |
|
|
|
|
|
Other income (expense) |
1,370,721 |
( 689,038 ) |
3,510,439 |
(47,349,378) |
Interest income |
1,419 |
1,827 |
7,084 |
5,800 |
Interest expense |
(829,458) |
(850,859) |
(3,335,300) |
(12,573,537) |
Net income (loss) |
$ 856,215 |
$ (3,962,208) |
$ (5,202,441) |
$ (68,757,589) |
|
|
|
|
|
Net earnings (loss) per common
share: |
|
|
|
|
Basic |
$ 0.04 |
$ (0.23) |
$ (0.26) |
$ (5.95) |
|
|
|
|
|
Diluted |
$ 0.04 |
$ (0.23) |
$ (0.26) |
$ (5.95) |
|
|
|
|
|
Weighted average shares used in computing net
earnings (loss) per common share: |
|
|
|
|
Basic |
20,471,730 |
17,235,096 |
19,945,038 |
11,554,566 |
|
|
|
|
|
Diluted |
20,636,656 |
17,235,096 |
19,945,038 |
11,554,566 |
|
STEREOTAXIS,
INC. |
BALANCE
SHEETS |
|
|
|
|
|
|
|
December 31,
2014 |
December 31,
2013 |
|
(Unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 7,270,301 |
$ 13,775,130 |
Accounts receivable, net of
allowance of $131,464 and $383,077 in 2014 and 2013,
respectively |
6,480,499 |
7,558,152 |
Inventories |
6,371,903 |
4,879,039 |
Prepaid expenses and other
current assets |
1,094,837 |
1,479,956 |
Total current assets |
21,217,540 |
27,692,277 |
Property and equipment, net |
894,728 |
1,184,589 |
Intangible assets, net |
1,379,653 |
1,679,486 |
Long-term receivables |
-- |
20,431 |
Other assets |
388,850 |
499,613 |
Total assets |
$ 23,880,771 |
$ 31,076,396 |
|
|
|
Liabilities and stockholders' deficit |
|
|
Current liabilities: |
|
|
Current maturities of long-term
debt |
$ -- |
$ 49,733 |
Accounts payable |
2,353,133 |
3,512,339 |
Accrued liabilities |
5,505,142 |
7,069,759 |
Deferred contract revenue |
6,658,170 |
7,519,754 |
Warrants |
2,134,187 |
5,644,626 |
Total current liabilities |
16,650,632 |
23,796,211 |
|
|
|
Long-term debt, less current maturities |
18,388,764 |
18,481,478 |
Long-term deferred contract revenue |
976,165 |
491,080 |
Other liabilities |
414,928 |
9,622 |
|
|
|
Stockholders' deficit: |
|
|
Preferred stock, par value
$0.001; 10,000,000 shares authorized, none outstanding at 2014 and
2013 |
-- |
-- |
Common stock, par value $0.001;
300,000,000 shares authorized, 20,480,874 and 19,311,390 shares
issued at 2014 and 2013, respectively |
20,481 |
19,311 |
Additional paid-in capital |
446,241,703 |
441,888,155 |
Treasury stock, 4,015 shares at
2014 and 2013 |
(205,999) |
(205,999) |
Accumulated deficit |
(458,605,903) |
(453,403,462) |
Total stockholders' deficit |
(12,549,718) |
(11,701,995) |
Total liabilities and stockholders'
deficit |
$ 23,880,771 |
$ 31,076,396 |
CONTACT: Company Contact:
Martin C. Stammer
Chief Financial Officer
314-678-6155
Investor Contact:
Todd Kehrli / Jim Byers
MKR Group, Inc.
323-468-2300
stxs@mkr-group.com