- Total Revenue Increased 14% over Prior Year
First Quarter - - System Revenue Increased 112% Year over Year - -
Operating Loss Decreased 37% Year over Year - - Silicon Valley Bank
Credit Facility Extended by Three Years - - Industry Veteran Duane
DeSisto Appointed to Board of Directors - - Company to Exhibit at
Heart Rhythm Society in Boston, May 13-16 - - 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 first quarter ended March 31,
2015.
"The significant year-over-year gains we achieved in system and
total revenue for the quarter reflect progress with our ongoing
initiatives to improve commercial results," said William C. Mills,
Stereotaxis Chief Executive Officer. "We are especially encouraged
by our continued momentum in Japan, where we shipped our second
Niobe® magnetic navigation system during the quarter and continue
to engage with high priority institutions. We now have shipped
Niobe systems to Japan in consecutive quarters, which reinforces
our long-standing conviction about the significance of this new
market for Stereotaxis."
Mr. Mills continued, "In the U.S., we plan to work toward
expanded functionality of our Vdrive® robotic navigation system,
following the recent clearance of additional disposable devices.
With three Vdrive system disposables cleared for use in the U.S.,
physicians can fully avail themselves of the dual arm capabilities
of the Vdrive Duo™ system to improve procedural workflow and
results.
"The outstanding clinical safety, efficacy and efficiency of our
technology compared to manual modalities across the spectrum of
complex ablation cases continue to be supported by expanding
clinical evidence and the corroboration of respected
electrophysiologists worldwide. We look forward to sharing new
findings and observations from some of the world's leading
investigators, along with our most recent product innovations, at
the upcoming Heart Rhythm Society scientific sessions in Boston in
May, at the EUROPACE sessions in Italy in June, and at the Japan
Heart Rhythm Society scientific sessions in July."
Mr. Mills concluded, "During the quarter, the strength of our
technology franchise was further affirmed by a three-year extension
of our revolving credit facility with our valued banking partner
Silicon Valley Bank, which provides additional liquidity for the
opportunities ahead."
First Quarter 2015 Financial Results
Revenue for the first quarter of 2015 totaled $9.5 million, an
increase of 14% from $8.4 million in the prior year first quarter
and a decline of 2% sequentially from $9.8 million in the fourth
quarter 2014. System revenue was $2.8 million, up 112% from $1.3
million in the prior year quarter and down 11% sequentially from
$3.2 million in the fourth quarter. During the first quarter, the
Company recognized revenue of $2.0 million on two Niobe systems,
$0.5 million in Odyssey® solution sales and $0.3 million in Vdrive
system sales. Recurring revenue was $6.7 million in the first
quarter, compared to $7.0 million in the prior year quarter and
$6.6 million in the fourth quarter 2014. The first quarter of 2015
was the second highest procedure volume quarter in nearly two
years, with total procedures growing 1% year over year, despite a
2% sequential decline.
The Company generated new capital orders of $2.2 million on one
Niobe system order, seven Odyssey solution orders and two Vdrive
system orders in the first quarter, compared to $1.3 million in the
prior year first quarter and $2.9 million in the fourth quarter of
2014. Ending capital backlog for the 2015 first quarter was $4.8
million.
Gross margin in the quarter was $6.9 million, or 72.4% of
revenue, versus $6.7 million, or 80.6% of revenue, in the first
quarter of 2014 and $7.5 million, or 76.6% of revenue, in the
fourth quarter. Operating expenses in the first quarter were $8.3
million, a 7% improvement compared to $9.0 million in the prior
year quarter and an increase of 16% from $7.2 million in the 2014
fourth quarter.
Operating loss in the first quarter was $(1.4) million, compared
to an operating loss of $(2.2) million in the prior year first
quarter and an operating income of $0.3 million in the fourth
quarter. Interest expense was $0.8 million in all three
quarters.
Net loss for the 2015 first quarter was $(3.1) million, or
$(0.15) per share, compared to a net loss of $(4.1) million, or
$(0.21) per share, reported in the first quarter of 2014. Excluding
mark-to-market warrant revaluation, the Company would have reported
a net loss of $(2.2) million, or $(0.11) per share, for the 2015
first quarter compared to $(3.1) million, or $(0.16) per share, for
the 2014 first quarter. The weighted average diluted shares
outstanding for the first quarters of 2015 and 2014 totaled 20.7
million and 19.4 million, respectively.
At March 31, 2015, Stereotaxis had cash and cash equivalents of
$4.4 million, compared to $7.3 million at December 31, 2014, and
there were no borrowings against its revolving line of credit
facility. Cash burn for the first quarter of 2015 was $3.3 million
compared to $2.4 million in the first quarter of 2014 and $1.4
million in the fourth quarter. At quarter end, total debt was $18.3
million related to HealthCare Royalty Partners long-term debt.
During the first quarter, the Company extended its $10 million
revolving credit facility with Silicon Valley Bank to March 31,
2018.
Conference Call and Webcast
Stereotaxis will host a conference call and webcast today, May
6, 2015, at 4:30 p.m. Eastern Time, to discuss first quarter
results. To access the conference call, dial 1-888-510-1765 (US and
Canada) or 1-719-457-2628 (International) and give the participant
pass code 3120989. 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® 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 March 31, |
|
2015 |
2014 |
|
|
|
Revenue |
|
|
Systems |
$ 2,831,178 |
$ 1,334,854 |
Disposables, service and accessories |
6,699,848 |
7,019,816 |
Total revenue |
9,531,026 |
8,354,670 |
|
|
|
Cost of revenue |
|
|
Systems |
1,400,267 |
559,428 |
Disposables, service and accessories |
1,230,370 |
1,059,658 |
Total cost of revenue |
2,630,637 |
1,619,086 |
|
|
|
Gross margin |
6,900,389 |
6,735,584 |
|
|
|
Operating expenses: |
|
|
Research and development |
1,485,706 |
1,503,446 |
Sales and marketing |
4,034,371 |
3,631,264 |
General and administrative |
2,794,590 |
3,829,866 |
Total operating expenses |
8,314,667 |
8,964,576 |
Operating loss |
(1,414,278) |
(2,228,992) |
|
|
|
Other expense |
( 892,377 ) |
( 1,076,139 ) |
Interest income |
862 |
2,233 |
Interest expense |
(829,788) |
(836,950) |
Net loss |
$ (3,135,581) |
$ (4,139,848) |
|
|
|
Net loss per common share: |
|
|
Basic |
$ (0.15) |
$ (0.21) |
Diluted |
$ (0.15) |
$ (0.21) |
|
|
|
Weighted average shares used in computing net
loss per common share: |
|
|
Basic |
20,742,932 |
19,403,325 |
Diluted |
20,742,932 |
19,403,325 |
|
|
STEREOTAXIS,
INC. |
BALANCE
SHEETS |
|
|
March 31,
2015 |
December 31,
2014 |
|
(Unaudited) |
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 4,438,533 |
$ 7,270,301 |
Accounts receivable, net of allowance of
$131,898 and $131,464 in 2015 and 2014, respectively |
7,736,618 |
6,480,499 |
Inventories |
6,376,082 |
6,371,903 |
Prepaid expenses and other current
assets |
946,819 |
1,094,837 |
Total current assets |
19,498,052 |
21,217,540 |
Property and equipment, net |
876,882 |
894,728 |
Intangible assets, net |
1,304,694 |
1,379,653 |
Other assets |
352,867 |
388,850 |
Total assets |
$ 22,032,495 |
$ 23,880,771 |
|
|
|
Liabilities and stockholders' deficit |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 2,603,628 |
$ 2,353,133 |
Accrued liabilities |
5,241,921 |
5,505,142 |
Deferred revenue |
6,318,529 |
6,658,170 |
Warrants |
3,026,564 |
2,134,187 |
Total current liabilities |
17,190,642 |
16,650,632 |
|
|
|
Long-term debt, less current maturities |
18,319,895 |
18,388,764 |
Long-term deferred revenue |
963,356 |
976,165 |
Other liabilities |
339,246 |
414,928 |
|
|
|
Stockholders' deficit: |
|
|
Preferred stock, par value $0.001;
10,000,000 shares authorized, none outstanding at 2015 and
2014 |
-- |
-- |
Common stock, par value $0.001;
300,000,000 shares authorized, 20,911,838 and 20,480,874 shares
issued at 2015 and 2014, respectively |
20,912 |
20,481 |
Additional paid-in capital |
447,145,927 |
446,241,703 |
Treasury stock, 4,015 shares at 2015 and
2014 |
(205,999) |
(205,999) |
Accumulated deficit |
(461,741,484) |
(458,605,903) |
Total stockholders' deficit |
(14,780,644) |
(12,549,718) |
Total liabilities and stockholders'
deficit |
$ 22,032,495 |
$ 23,880,771 |
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