-Total Quarterly Revenue Increased 5% Year over
Year on Improved System and Recurring Revenues- -Total Revenue
for First Nine Months Increased 13% Year over Year to $28.5
Million- -System Revenue for First Nine Months Increased 76%
Year over Year to $8.2 Million- -Operating Loss Decreased 23%
Year over Year and 29% for the First Nine-Month Period--Third
Niobe® ES System Shipment to Japan--New System Automation Features
Released--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 third quarter ended September
30, 2015.
“Our year-over-year revenue gains reflect increased Niobe® ES
system sales and strong recurring revenue,” said William C. Mills,
Stereotaxis Chief Executive Officer. “During the quarter, we
recognized revenue on two new Niobe ES systems, including our third
system shipment to Japan and our first to the Canadian province of
Quebec. We also reduced operating loss by 23% in the third quarter
and by 29% for the nine-month period compared to last year.
“Our ongoing marketing strategies in Japan are fueling
excitement among high-profile physicians on the benefits of
bringing Stereotaxis technologies to their patients, and we look
forward to engaging with them and others in the region at the Asia
Pacific Heart Rhythm Society Scientific Sessions later this month.
We also are increasing interest worldwide in our technologies
through enhanced automation features and growing clinical evidence
of improved outcomes with our remote navigation suite in the
setting of ventricular tachycardia (VT) compared to traditional
approaches.
“As we continue to focus on optimizing patient outcomes and
expanding adoption of our cutting-edge solutions, we are encouraged
by our progress in building a commercial base in Japan, translating
the clinical value of our system into a greater share of the VT
market, and introducing new innovations that exceed customer
expectations and support our vision of fully automated procedures,”
Mr. Mills concluded.
Third Quarter 2015 Financial Results
Revenue for the third quarter of 2015 totaled $9.3 million, a 5%
increase from $8.9 million in the prior year third quarter and a 4%
decline from $9.7 million in the second quarter 2015. System
revenue was $2.3 million, up 5% from $2.2 million in the prior year
quarter and down 26% sequentially from $3.1 million in the second
quarter. During the third quarter, the Company recognized revenue
of $1.7 million on two Niobe ES systems and $0.5 million in
Odyssey® solution sales. Recurring revenue was $7.0 million in the
third quarter on strong service contract revenue, compared to $6.7
million in the prior year quarter and $6.6 million in the second
quarter. Total procedures declined 6% year over year.
The Company generated new capital orders of $3.1 million on two
Niobe ES system orders, seven Odyssey solution orders and one
Vdrive® system, compared to $1.5 million in the prior year third
quarter and $1.6 million in the second quarter. Ending capital
backlog for the 2015 third quarter was $3.6 million.
Gross margin in the quarter was $6.8 million, or 73.6% of
revenue, versus $6.5 million, or 73.6% of revenue, in the third
quarter of 2014 and $6.7 million, or 69.5% of revenue, in the
second quarter of 2015. Operating expenses in the third quarter
were $7.7 million, unchanged from the prior year quarter and a
sequential decrease from $8.4 million in the second quarter.
Operating loss in the third quarter was $(0.9) million, a 23%
improvement over $(1.2) million in the prior year third quarter and
a 47% improvement from $(1.7) million in the second quarter.
Interest expense was $0.8 million in all three
quarters.
Net loss for the 2015 third quarter was $(1.0) million, or
$(0.05) per share, compared to net income of less than $0.1
million, or $0.00 per share, reported in the third quarter of 2014.
Excluding mark-to-market warrant revaluation, the Company would
have reported a net loss of $(1.7) million, or $(0.08) per share,
for the 2015 third quarter, compared to a net loss of $(2.0)
million, or $(0.10) per share, for the 2014 third quarter. The
weighted average diluted shares outstanding for the third quarters
of 2015 and 2014 totaled 21.1 million and 20.5 million,
respectively.
Cash burn was less than $0.1 million, compared to $2.3 million
in the year ago quarter and $0.9 million in the second quarter.
Nine-Month Financial Results
Revenue for the first nine months of 2015 was $28.5 million, up
13% compared to $25.3 million in the first nine months of 2014.
System revenue was $8.2 million, a 76% increase compared to $4.7
million in the prior year period. Recurring revenue was $20.2
million, compared to $20.6 million in the prior year period.
Procedures were down 2% from the same period last year.
Gross margin was $20.4 million, or 71.8% of revenue, compared to
$19.3 million, or 76.5% of revenue, in the first nine months of the
prior year. Operating expenses were $24.5 million, a 2% decrease
from $25 million in the same period of 2014. Operating loss was
$(4.0) million, a 29% improvement, compared to $(5.7) million in
the first nine months of 2014.
Interest expense was $2.5 million in both the first nine months
of 2015 and 2014.
Net loss was $(5.7) million for the first nine months of 2015,
or $(0.27) per share, a 6% improvement compared to $(6.1) million,
or $(0.31) per share, for the comparable period in 2014. Excluding
mark-to-market warrant revaluation, the year-to-date 2015 net loss
would have been $(6.5) million, or $(0.31) per share, compared to
$(8.2) million, or $(0.41) per share, in 2014.
At September 30, 2015, Stereotaxis had cash and cash equivalents
of $3.6 million, unchanged from June 30, 2015, with unused
borrowing capacity of $5.8 million on its revolving line of credit
with Silicon Valley Bank. During the quarter, the Company raised
$0.3 million through its Controlled Equity Offering. Proceeds from
the Company’s recent warrants offering, which grossed $0.3 million,
will be recognized in the fourth quarter. Cash burn for the first
nine months of 2015 was $4.3 million compared to $7.8 million in
the first nine months of 2014. At September 30, 2015, total debt
was $18.3 million related to HealthCare Royalty Partners long-term
debt.
Conference Call and Webcast
Stereotaxis will host a conference call and webcast today,
November 3, 2015, at 4:30 p.m. Eastern Time, to discuss third
quarter results. To access the conference call, dial 877-876-9175
(United States and Canada) or 1-785-424-1668 (International) and
give the participant pass code 884437. 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 United States, 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 clearance in the United States,
Canada, and the European Union. 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 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.
STEREOTAXIS, INC. |
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
Systems |
$ |
2,298,608 |
|
|
$ |
2,181,088 |
|
|
$ |
8,222,722 |
|
|
$ |
4,669,224 |
|
Disposables, service and accessories |
|
6,976,006 |
|
|
|
6,673,013 |
|
|
|
20,247,169 |
|
|
|
20,587,084 |
|
Total revenue |
|
9,274,614 |
|
|
|
8,854,101 |
|
|
|
28,469,891 |
|
|
|
25,256,308 |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
|
|
|
|
|
|
Systems |
|
1,286,849 |
|
|
|
1,318,456 |
|
|
|
4,536,391 |
|
|
|
2,958,668 |
|
Disposables, service and accessories |
|
1,159,547 |
|
|
|
1,019,476 |
|
|
|
3,483,906 |
|
|
|
2,983,111 |
|
Total cost of
revenue |
|
2,446,396 |
|
|
|
2,337,932 |
|
|
|
8,020,297 |
|
|
|
5,941,779 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
6,828,218 |
|
|
|
6,516,169 |
|
|
|
20,449,594 |
|
|
|
19,314,529 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
|
1,494,201 |
|
|
|
1,214,405 |
|
|
|
4,399,734 |
|
|
|
4,030,594 |
|
Sales and
marketing |
|
3,691,805 |
|
|
|
3,717,670 |
|
|
|
11,976,955 |
|
|
|
11,445,089 |
|
General
and administrative |
|
2,549,690 |
|
|
|
2,763,667 |
|
|
|
8,116,989 |
|
|
|
9,537,043 |
|
Total operating
expenses |
|
7,735,696 |
|
|
|
7,695,742 |
|
|
|
24,493,678 |
|
|
|
25,012,726 |
|
Operating loss |
|
(907,478 |
) |
|
|
(1,179,573 |
) |
|
|
(4,044,084 |
) |
|
|
(5,698,197 |
) |
|
|
|
|
|
|
|
|
Other
income |
|
725,356 |
|
|
|
2,034,731 |
|
|
|
832,148 |
|
|
|
2,139,718 |
|
Interest
income |
|
267 |
|
|
|
1,736 |
|
|
|
1,622 |
|
|
|
5,665 |
|
Interest
expense |
|
(815,071 |
) |
|
|
(834,224 |
) |
|
|
(2,460,881 |
) |
|
|
(2,505,842 |
) |
Net
income (loss) |
$ |
(996,926 |
) |
|
$ |
22,670 |
|
|
$ |
(5,671,195 |
) |
|
$ |
(6,058,656 |
) |
|
|
|
|
|
|
|
|
Net
earnings (loss) per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
(0.27 |
) |
|
$ |
(0.31 |
) |
Diluted |
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
(0.27 |
) |
|
$ |
(0.31 |
) |
|
|
|
|
|
|
|
|
Weighted
average shares used in computing net earnings (loss) per common
share: |
|
|
|
|
|
|
|
Basic |
|
21,142,795 |
|
|
|
20,326,169 |
|
|
|
20,965,012 |
|
|
|
19,767,545 |
|
Diluted |
|
21,142,795 |
|
|
|
20,518,757 |
|
|
|
20,965,012 |
|
|
|
19,767,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEREOTAXIS, INC. |
BALANCE SHEETS |
|
|
|
September 30,
2015 |
|
December 31,
2014 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and
cash equivalents |
$ |
3,618,469 |
|
|
$ |
7,270,301 |
|
Accounts
receivable, net of allowance of $113,963 and $131,464 in 2015 and
2014, respectively |
|
6,598,667 |
|
|
|
6,480,499 |
|
Inventories |
|
5,132,532 |
|
|
|
6,371,903 |
|
Prepaid
expenses and other current assets |
|
760,745 |
|
|
|
1,094,837 |
|
Total
current assets |
|
16,110,413 |
|
|
|
21,217,540 |
|
Property
and equipment, net |
|
1,076,692 |
|
|
|
894,728 |
|
Intangible assets, net |
|
1,154,778 |
|
|
|
1,379,653 |
|
Other
assets |
|
294,900 |
|
|
|
388,850 |
|
Total
assets |
$ |
18,636,783 |
|
|
$ |
23,880,771 |
|
|
|
|
|
Liabilities and stockholders' deficit |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
2,323,086 |
|
|
$ |
2,353,133 |
|
Accrued
liabilities |
|
6,042,517 |
|
|
|
5,505,142 |
|
Deferred
revenue |
|
6,447,824 |
|
|
|
6,658,170 |
|
Warrants |
|
1,302,039 |
|
|
|
2,134,187 |
|
Total
current liabilities |
|
16,115,466 |
|
|
|
16,650,632 |
|
|
|
|
|
Long-term debt, less current maturities |
|
18,283,492 |
|
|
|
18,388,764 |
|
Long-term deferred revenue |
|
812,070 |
|
|
|
976,165 |
|
Other
liabilities |
|
5,589 |
|
|
|
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, 21,271,844
and 20,480,874 shares issued at 2015 and 2014, respectively |
|
21,272 |
|
|
|
20,481 |
|
Additional paid-in capital |
|
447,881,991 |
|
|
|
446,241,703 |
|
Treasury
stock, 4,015 shares at 2015 and 2014 |
|
(205,999 |
) |
|
|
(205,999 |
) |
Accumulated deficit |
|
(464,277,098 |
) |
|
|
(458,605,903 |
) |
Total
stockholders' deficit |
|
(16,579,834 |
) |
|
|
(12,549,718 |
) |
Total
liabilities and stockholders' deficit |
$ |
18,636,783 |
|
|
$ |
23,880,771 |
|
|
|
|
|
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