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,
2016.
“We made significant progress in several strategic areas in the
first quarter, including continued year-over-year growth of
ventricular tachycardia (VT) procedures and further momentum in our
newest major market—Japan,” said William C. Mills, Stereotaxis
Chief Executive Officer. “With our third consecutive quarter of
greater than 20% year-over-year growth in VT procedures, we are
beginning to see the benefits of our ongoing efforts to build
awareness worldwide of the outstanding efficacy, efficiency, and
safety of our technology with these complex and, typically, very
challenging procedures.
“In March, we announced the publication of a special supplement
to the Journal of Cardiovascular Electrophysiology, which features
seven peer-reviewed clinical papers studying the results of the use
of our magnetic navigation platform in ablation of complex
arrhythmias, including VT. As the body of independent clinical
evidence supporting the unique capabilities of our platform in VT
ablations continues to grow, we believe we are well positioned to
build a significant franchise in this relatively untapped market.
At the same time, we are very gratified by the improved clinical
outcomes being achieved with our platform in atrial fibrillation
(AF) procedures, such as those reported recently by Lund University
Hospital in Sweden. Physicians should continue to see outstanding
results in AF as we further develop and commercialize an expanded
set of cutting-edge automation features. This progress, combined
with our growing success in VT, helped stabilize total procedure
count for the quarter compared to last year and enabled our highest
quarterly volume since the fourth quarter of 2014.
“During the quarter, we shipped our fourth Niobe® system to
Japan and reached a milestone of more than 120 patients treated
with the Niobe system at Takatsuki General Hospital, which
completed patient enrollment for the required post-market
surveillance in this key market. The Asia-Pacific market is
emerging as a meaningful contributor to procedure growth, with
procedures increasing approximately 100% year over year in the
first quarter and now representing nearly 10% of our total
procedures worldwide,” Mr. Mills concluded.
First Quarter 2016 Financial ResultsRevenue for
the first quarter of 2016 totaled $8.6 million, a decrease of 9%
from $9.5 million in the prior year first quarter and down 6%
sequentially from $9.2 million in the fourth quarter of 2015.
System revenue was $2.1 million, down 27% from $2.8 million in the
prior year quarter and 14% sequentially from $2.4 million in the
fourth quarter. During the first quarter, the Company recognized
revenue of $1.2 million on one Niobe ES system and one Niobe ES
upgrade, along with $0.9 million in Odyssey® solution sales.
Recurring revenue was $6.6 million in the first quarter, compared
to $6.7 million in the prior year quarter and $6.8 million in the
fourth quarter. Total procedures were unchanged from the prior year
quarter, while VT procedures increased 27% year over year.
The Company did not generate new capital orders in the first
quarter, following new capital orders totaling $5.1 million in the
2015 fourth quarter. Ending capital backlog for the 2016 first
quarter was $3.9 million.
Gross margin in the quarter was $6.5 million, or 74.8% of
revenue, versus $6.9 million, or 72.4% of revenue, in the first
quarter of 2015 and $6.8 million, or 73.7% of revenue, in the
fourth quarter of 2015. Operating expenses in the first quarter
were $8.0 million, a 4% improvement from $8.3 million in the prior
year quarter and down sequentially from $8.2 million in the fourth
quarter.
Operating loss in the first quarter was $(1.5) million, compared
to an operating loss of $(1.4) million in both the prior year first
quarter and fourth quarter. Interest expense was $0.8 million in
all three quarters.
Net loss for the 2016 first quarter was $(2.3) million, or
$(0.11) per share, compared to a net loss of $(3.1) million, or
$(0.15) per share, reported in the first quarter of 2015. Excluding
mark-to-market warrant revaluation, the Company would have reported
a net loss of $(2.3) million, or $(0.11) per share, for the 2016
first quarter compared to a net loss of $(2.2) million, or $(0.11)
per share, for the 2015 first quarter. The weighted average diluted
shares outstanding for the first quarters of 2016 and 2015 totaled
21.6 million and 20.7 million, respectively.
At March 31, 2016, Stereotaxis had cash and cash equivalents of
$1.6 million and unused borrowing capacity of $4.9 million on its
revolving line of credit with Silicon Valley Bank, resulting in
total liquidity of $6.5 million. Cash burn was $3.2 million for the
trailing twelve months, including cash burn of $3.9 million during
the 2016 first quarter and free cash flow of $1.6 million during
the fourth quarter. Cash burn in the first quarter 2016 increased
compared to the prior year first quarter cash burn of $3.3 million
due to working capital adjustments. The Company has total debt of
$18.1 million related to HealthCare Royalty Partners long-term
debt, net of deferred financing costs of $0.3 million.
Conference Call and WebcastStereotaxis will
host a conference call and webcast today, May 9, 2016, at 4:30 p.m.
Eastern Time, to discuss first quarter results. To access the
conference call, dial 888-471-3843 (US and Canada) or 719-325-2472
(International) and give the participant pass code 4919601.
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 StereotaxisStereotaxis 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 continued listing on the NASDAQ
Capital Market, 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 March
31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Revenue |
|
|
|
Systems |
$ |
2,075,019 |
|
|
$ |
2,831,178 |
|
Disposables, service and
accessories |
|
6,572,987 |
|
|
|
6,699,848 |
|
Total revenue |
|
8,648,006 |
|
|
|
9,531,026 |
|
|
|
|
|
Cost of revenue |
|
|
|
Systems |
|
1,083,099 |
|
|
|
1,400,267 |
|
Disposables, service and
accessories |
|
1,097,715 |
|
|
|
1,230,370 |
|
Total cost of
revenue |
|
2,180,814 |
|
|
|
2,630,637 |
|
|
|
|
|
Gross margin |
|
6,467,192 |
|
|
|
6,900,389 |
|
|
|
|
|
Operating
expenses: |
|
|
|
Research and development |
|
1,473,086 |
|
|
|
1,485,706 |
|
Sales and marketing |
|
3,894,113 |
|
|
|
4,034,371 |
|
General and administrative |
|
2,586,791 |
|
|
|
2,794,590 |
|
Total operating
expenses |
|
7,953,990 |
|
|
|
8,314,667 |
|
Operating loss |
|
(1,486,798 |
) |
|
|
(1,414,278 |
) |
|
|
|
|
Other
income (expense) |
|
31,294 |
|
|
|
( 892,377 |
) |
Interest
income |
|
222 |
|
|
|
862 |
|
Interest
expense |
|
(819,019 |
) |
|
|
(829,788 |
) |
Net
loss |
$ |
(2,274,301 |
) |
|
$ |
(3,135,581 |
) |
|
|
|
|
Net loss
per common share: |
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
(0.15 |
) |
Diluted |
$ |
(0.11 |
) |
|
$ |
(0.15 |
) |
|
|
|
|
Weighted
average shares used in computing net loss per common share: |
|
|
|
Basic |
|
21,611,612 |
|
|
|
20,742,932 |
|
Diluted |
|
21,611,612 |
|
|
|
20,742,932 |
|
|
|
|
|
STEREOTAXIS, INC. |
BALANCE SHEETS |
|
|
|
March 31,
2016 |
|
December 31,
2015 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
1,602,951 |
|
|
$ |
5,593,582 |
|
Accounts receivable, net of
allowance of $155,964 and $93,478 in 2016 and 2015,
respectively |
|
6,397,660 |
|
|
|
6,376,470 |
|
Inventories |
|
4,446,363 |
|
|
|
4,504,282 |
|
Prepaid expenses and other current
assets |
|
1,150,631 |
|
|
|
668,659 |
|
Total
current assets |
|
13,597,605 |
|
|
|
17,142,993 |
|
Property
and equipment, net |
|
969,927 |
|
|
|
1,067,321 |
|
Intangible assets, net |
|
586,059 |
|
|
|
635,889 |
|
Other
assets |
|
32,341 |
|
|
|
31,693 |
|
Total
assets |
$ |
15,185,932 |
|
|
$ |
18,877,896 |
|
|
|
|
|
Liabilities and stockholders' deficit |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
2,042,246 |
|
|
$ |
1,840,135 |
|
Accrued liabilities |
|
5,245,395 |
|
|
|
6,058,390 |
|
Deferred revenue |
|
6,627,020 |
|
|
|
7,445,935 |
|
Warrants |
|
762,836 |
|
|
|
794,130 |
|
Total
current liabilities |
|
14,677,497 |
|
|
|
16,138,590 |
|
|
|
|
|
Long-term debt |
|
18,078,308 |
|
|
|
18,080,159 |
|
Long-term deferred revenue |
|
1,782,155 |
|
|
|
2,009,198 |
|
Other
liabilities |
|
270,433 |
|
|
|
275,603 |
|
|
|
|
|
Stockholders' deficit: |
|
|
|
Preferred stock, par value
$0.001; 10,000,000 shares authorized, none outstanding at 2016 and
2015 |
|
- |
|
|
|
- |
|
Common stock, par value $0.001;
300,000,000 shares authorized, 21,738,923 and 21,551,173 shares
issued at 2016 and 2015, respectively |
|
21,739 |
|
|
|
21,551 |
|
Additional paid-in
capital |
|
448,794,778 |
|
|
|
448,517,472 |
|
Treasury stock, 4,015 shares
at 2016 and 2015 |
|
(205,999 |
) |
|
|
(205,999 |
) |
Accumulated deficit |
|
(468,232,979 |
) |
|
|
(465,958,678 |
) |
Total
stockholders' deficit |
|
(19,622,461 |
) |
|
|
(17,625,654 |
) |
Total
liabilities and stockholders' deficit |
$ |
15,185,932 |
|
|
$ |
18,877,896 |
|
|
|
|
|
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