Stereotaxis Reports 2020 First Quarter Financial Results
May 05 2020 - 9:00AM
Stereotaxis (NYSE: STXS), the global leader in innovative robotic
technologies for the treatment of cardiac arrhythmias, today
reported financial results for the first quarter ended March 31,
2020.
“Despite the challenges and disruptions
inflicted by COVID-19, Stereotaxis continues to support the
patients and physicians that rely on its technology, maintain
effective operations, rapidly advance strategic innovations, and
protect its financial stability,” said David Fischel, Chairman and
CEO.
“Our financial performance late in the quarter
was impacted by broad-based reductions in procedure volumes as
hospitals globally curtailed activity to lessen infection risk,
preserve equipment, and focus their resources on battling the
pandemic. This impacted revenue from disposables and temporarily
disrupted the completion of certain project-specific service
activities. Stereotaxis has responded to the disruptions with broad
deployment of TeleRobotic support, leveraging proprietary
connectivity technology to enable remote clinical and technical
support of robotic electrophysiology practices.”
“While the pandemic has slowed progress on
multiple Genesis purchase orders we had expected to announce at
this time, we continue to see significant interest in Genesis. Over
the last three weeks we hosted 51 physicians from 29 hospitals on
TeleRobotic visits to remotely view and test drive the Genesis
system. Progress on the two Genesis orders previously announced
continues without interruption, with installations and revenue
recognition expected in early summer.”
“We continue to make progress on strategic
innovations and look forward to finalizing the design of
Stereotaxis’ advanced robotically-navigated magnetic ablation
catheter in the near term. We are delighted with its performance
and the feedback provided by expert physicians.”
“We are addressing the financial impact of
COVID-19 by reducing expenses in a manner that ensures long-term
financial stability, maintains our organizational capabilities, and
does not negatively impact our progress. In April we received a
$2.2 million forgivable loan from the government’s Paycheck
Protection Program.”
2020 First Quarter Financial
ResultsRevenue for the first quarter of 2020 totaled $5.8
million compared to $7.0 million in the prior year first quarter.
This decrease was primarily due to broad based reductions in
procedure volumes in Asia throughout the quarter and in the United
States and Europe starting the second week of March. Approximately
30% of the reduced revenue was due to temporarily delayed
completion of certain service activities due to travel
restrictions.
Gross margin for the first quarter was $4.8
million, or 83% of revenue. Operating expenses in the quarter of
$6.9 million were 11% lower than the prior year first quarter. The
reduction in operating expenses was predominantly driven by timing
of R&D projects and pandemic-related reductions in sales and
marketing activities, partially offset by increased non-cash
general and administrative expenses. Operating loss and net loss in
the first quarter were ($2.1) million and ($2.0) million
respectively. Negative free cash flow for the first quarter was
($2.2) million, compared to ($1.8) million in the prior year first
quarter.
Cash Balance and LiquidityAt
March 31, 2020, Stereotaxis had cash and cash equivalents of $28.0
million and no debt.
Forward Looking
ExpectationsGiven the impact of COVID-19, Stereotaxis is
suspending its guidance of robust double-digit revenue growth for
the year. The uncertain duration and scope of the pandemic makes it
difficult at this time to reliably provide an alternative guidance.
While indications point towards a gradual return to more normal
procedure activity, drawing conclusions from short-term volatile
data is imprudent. Stereotaxis continues to experience significant
interest in the recently launched Genesis RMN® System and continues
to expect a resurgence of system sales to new and existing hospital
customers as the pandemic recedes. In the long-term, increased
appreciation and acceptance of TeleRobotic capabilities are
expected to accelerate adoption of robotics in interventional
medicine.
Conference Call and
WebcastStereotaxis will host a conference call and webcast
today, May 5, 2020, at 10:00 a.m. Eastern Time. To access the
conference call, dial 1-833-423-0423 (US and Canada) or
1-918-922-3067 (International) and give the participant pass code
9794597. 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 StereotaxisStereotaxis 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. The core components of Stereotaxis’
systems have received regulatory clearance in the United States,
European Union, Japan, Canada, China, and elsewhere. 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 continue to manage expenses
and cash burn rate at sustainable levels, 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 policy in the United
States, including changes in government reimbursement of
procedures, dependence upon third-party vendors, timing of
regulatory approvals, the impact of the recent coronavirus
(COVID-19) pandemic and our response to it, 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. FischelChairman and Chief Executive Officer
Kimberly R.
Peery
Chief Financial Officer
314-678-6100investors@stereotaxis.com
STEREOTAXIS, INC. |
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
Revenue: |
|
|
|
Systems |
$ |
- |
|
|
$ |
58,051 |
|
Disposables, service
and accessories |
|
5,509,711 |
|
|
|
6,710,759 |
|
Sublease |
|
246,530 |
|
|
|
241,065 |
|
Total revenue |
|
5,756,241 |
|
|
|
7,009,875 |
|
|
|
|
|
Cost of revenue: |
|
|
|
Systems |
|
65,022 |
|
|
|
51,163 |
|
Disposables, service
and accessories |
|
639,863 |
|
|
|
1,114,360 |
|
Sublease |
|
246,530 |
|
|
|
246,530 |
|
Total cost of revenue |
|
951,415 |
|
|
|
1,412,053 |
|
|
|
|
|
Gross margin |
|
4,804,826 |
|
|
|
5,597,822 |
|
|
|
|
|
Operating expenses: |
|
|
|
Research and development |
|
2,109,170 |
|
|
|
2,959,219 |
|
Sales and marketing |
|
2,915,424 |
|
|
|
3,309,829 |
|
General and administrative |
|
1,832,726 |
|
|
|
1,468,160 |
|
Total operating expenses |
|
6,857,320 |
|
|
|
7,737,208 |
|
Operating loss |
|
(2,052,494 |
) |
|
|
(2,139,386 |
) |
|
|
|
|
Interest income |
|
80,963 |
|
|
|
16,566 |
|
Net loss |
$ |
(1,971,531 |
) |
|
$ |
(2,122,820 |
) |
Cumulative dividend on
convertible preferred stock |
|
(343,723 |
) |
|
|
(353,510 |
) |
Net loss attributable to
common stockholders |
$ |
(2,315,254 |
) |
|
$ |
(2,476,330 |
) |
|
|
|
|
Net loss per share attributed
to common stockholder: |
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
Weighted average number of
common shares and equivalents: |
|
|
|
Basic |
|
69,870,040 |
|
|
|
59,196,652 |
|
|
|
|
|
Diluted |
|
69,870,040 |
|
|
|
59,196,652 |
|
STEREOTAXIS, INC. |
BALANCE SHEETS |
|
|
|
March 31, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
28,024,723 |
|
|
$ |
30,182,115 |
|
Accounts receivable, net of allowance of $401,692 and $380,212 at
2020 and 2019, respectively |
|
4,615,078 |
|
|
|
5,329,577 |
|
Inventories, net |
|
3,170,140 |
|
|
|
1,847,530 |
|
Prepaid expenses and other current assets |
|
1,390,503 |
|
|
|
1,470,922 |
|
Total current assets |
|
37,200,444 |
|
|
|
38,830,144 |
|
Property and equipment,
net |
|
220,324 |
|
|
|
250,443 |
|
Operating lease right-of-use
assets |
|
3,790,044 |
|
|
|
4,286,064 |
|
Long-term receivables |
|
95,483 |
|
|
|
- |
|
Other assets |
|
196,674 |
|
|
|
218,103 |
|
Total assets |
$ |
41,502,969 |
|
|
$ |
43,584,754 |
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,002,297 |
|
|
$ |
2,099,097 |
|
Accrued
liabilities |
|
2,342,197 |
|
|
|
2,721,104 |
|
Deferred revenue |
|
5,266,715 |
|
|
|
5,092,455 |
|
Current portion of
operating lease liabilities |
|
2,255,875 |
|
|
|
2,248,189 |
|
Total current liabilities |
|
11,867,084 |
|
|
|
12,160,845 |
|
|
|
|
|
Long-term deferred
revenue |
|
510,689 |
|
|
|
554,258 |
|
Operating lease
liabilities |
|
1,585,928 |
|
|
|
2,089,537 |
|
Other liabilities |
|
255,517 |
|
|
|
255,517 |
|
Total liabilities |
|
14,219,218 |
|
|
|
15,060,157 |
|
|
|
|
|
Series A - Convertible
preferred stock: |
|
|
|
Convertible preferred stock, Series A, par value $0.001; 22,918 and
23,110 shares outstanding at 2020 and 2019, respectively |
|
5,709,027 |
|
|
|
5,758,190 |
|
Stockholders' equity: |
|
|
|
Convertible preferred stock, Series B, par value $0.001;
10,000,000 shares authorized, 5,610,121 shares outstanding at 2020
and 2019 |
|
5,610 |
|
|
|
5,610 |
|
Common stock, par value $0.001; 300,000,000 shares authorized,
69,040,781 and 68,529,623 shares issued at 2020 and 2019,
respectively |
|
69,041 |
|
|
|
68,530 |
|
Additional paid-in
capital |
|
504,990,377 |
|
|
|
504,211,040 |
|
Treasury stock, 4,015
shares at 2020 and 2019 |
|
(205,999 |
) |
|
|
(205,999 |
) |
Accumulated
deficit |
|
(483,284,305 |
) |
|
|
(481,312,774 |
) |
Total stockholders'
equity |
|
21,574,724 |
|
|
|
22,766,407 |
|
Total liabilities and
stockholders' equity |
$ |
41,502,969 |
|
|
$ |
43,584,754 |
|
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