Stereotaxis Reports 2020 Third Quarter Financial Results
November 09 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 third quarter ended September
30, 2020.
“Stereotaxis is pleased to report revenue growth
with the successful installation of the first Genesis RMN® and
Model S Imaging Systems in both the United States and Europe. Our
newest robotic technology has performed to the high expectations
demanded by premier medical institutions, been used successfully in
over ninety procedures, and proven reliable and robust with
uninterrupted up-time,” said David Fischel, Chairman and CEO.
“While hospitals remain negatively impacted by
COVID-19, we have experienced a gradual return towards more normal
capital planning. We received an additional order for a Genesis
system from a US hospital that is establishing a new robotic
electrophysiology program. Given the advanced status of multiple
additional discussions, we are comfortable providing preliminary
guidance for $10-20 million in Genesis system revenue in 2021.”
“Stereotaxis’ advanced robotically-navigated
magnetic ablation catheter is advancing on schedule with initial
commercialization and initiation of a pivotal US trial expected in
2021. Meaningful progress continues on an additional wave of
innovations within electrophysiology and beyond that are expected
to drive transformational revenue growth. We expect to share
details on this next wave of innovation towards the end of next
year.”
Third Quarter
2020 Financial
ResultsRevenue for the third quarter of 2020
totaled $8.7 million, up 6% from $8.2 million in the prior year
third quarter. System revenue was $3.0 million reflecting initial
revenue recognition on the first Genesis RMN® Systems. Recurring
revenue was $5.5 million in the quarter, compared to $6.3 million
in the prior year third quarter. The decline was primarily caused
by a 10% reduction in procedure volumes due to COVID-19.
Gross margin in the quarter was $4.7 million, or
54% of revenue. Gross margin on recurring revenue was consistent
with prior quarters. Gross margin on system revenue reflected the
allocation of overhead expenses and initial installation costs, and
was not reflective of cash margins generated from the system sales
or expected future GAAP margins. Operating expenses in the third
quarter of $6.2 million decreased from $6.4 million in the prior
year quarter with increased investment in R&D offset by reduced
travel and marketing expenses. Operating loss and net loss in the
quarter were ($1.6) million. Adjusted negative free cash flow for
the quarter was ($0.2) million.
Cash Balance and LiquidityAt
September 30, 2020, Stereotaxis had cash and cash equivalents of
$43.8 million.
Forward Looking
ExpectationsStereotaxis continues to experience
significant interest in the Genesis system and anticipates robust
double-digit revenue growth in 2021, with Genesis RMN System
revenue of $10-20 million. Stereotaxis is increasing its previously
provided guidance for year-end cash balance and now anticipates
ending 2020 with greater than $43 million cash and cash
equivalents. Stereotaxis’ balance sheet allows it to reach
profitability without the need for additional financings.
Conference Call and
WebcastStereotaxis will host a conference call and webcast
today, November 9, 2020, at 10:00 a.m. Eastern Time. To access the
conference call, dial 1-800-437-2398 (US and Canada) or
1-856-344-9206 (International) and give the participant pass code
9232669. 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. PeeryChief Financial Officer
314-678-6100investors@stereotaxis.com
|
STEREOTAXIS,
INC. |
STATEMENTS
OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Systems |
$ |
2,953,005 |
|
|
$ |
1,696,964 |
|
|
$ |
2,965,774 |
|
|
$ |
1,755,015 |
|
Disposables, service and accessories |
|
5,504,048 |
|
|
|
6,258,252 |
|
|
|
16,099,915 |
|
|
|
19,515,125 |
|
Sublease |
|
246,530 |
|
|
|
246,532 |
|
|
|
739,590 |
|
|
|
739,593 |
|
Total
revenue |
|
8,703,583 |
|
|
|
8,201,748 |
|
|
|
19,805,279 |
|
|
|
22,009,733 |
|
|
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
|
|
Systems |
|
3,031,440 |
|
|
|
665,463 |
|
|
|
3,253,976 |
|
|
|
722,828 |
|
Disposables, service and accessories |
|
747,285 |
|
|
|
919,599 |
|
|
|
2,068,085 |
|
|
|
2,928,718 |
|
Sublease |
|
246,530 |
|
|
|
246,531 |
|
|
|
739,590 |
|
|
|
739,592 |
|
Total cost
of revenue |
|
4,025,255 |
|
|
|
1,831,593 |
|
|
|
6,061,651 |
|
|
|
4,391,138 |
|
|
|
|
|
|
|
|
|
Gross
margin |
|
4,678,328 |
|
|
|
6,370,155 |
|
|
|
13,743,628 |
|
|
|
17,618,595 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
|
1,952,641 |
|
|
|
1,751,081 |
|
|
|
6,038,753 |
|
|
|
7,405,462 |
|
Sales and marketing |
|
2,822,680 |
|
|
|
3,120,632 |
|
|
|
8,279,853 |
|
|
|
9,666,975 |
|
General and administrative |
|
1,466,046 |
|
|
|
1,539,648 |
|
|
|
4,962,227 |
|
|
|
4,186,277 |
|
Total
operating expenses |
|
6,241,367 |
|
|
|
6,411,361 |
|
|
|
19,280,833 |
|
|
|
21,258,714 |
|
Operating
loss |
|
(1,563,039 |
) |
|
|
(41,206 |
) |
|
|
(5,537,205 |
) |
|
|
(3,640,119 |
) |
|
|
|
|
|
|
|
|
Interest
income (expense) |
|
(9,933 |
) |
|
|
84,954 |
|
|
|
71,596 |
|
|
|
133,329 |
|
Net income
(loss) |
$ |
(1,572,972 |
) |
|
$ |
43,748 |
|
|
$ |
(5,465,609 |
) |
|
$ |
(3,506,790 |
) |
Cumulative
dividend on convertible preferred stock |
|
(343,101 |
) |
|
|
(360,647 |
) |
|
|
(1,028,950 |
) |
|
|
(1,071,351 |
) |
Net loss
attributable to common stockholders |
$ |
(1,916,073 |
) |
|
$ |
(316,899 |
) |
|
$ |
(6,494,559 |
) |
|
$ |
(4,578,141 |
) |
|
|
|
|
|
|
|
|
Net loss per
share attributed to common stockholder: |
|
|
|
|
|
|
|
Basic |
$ |
(0.03 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.07 |
) |
Diluted |
$ |
(0.03 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
Weighted
average number of common shares and equivalents: |
|
|
|
|
|
|
|
Basic |
|
74,488,771 |
|
|
|
64,294,153 |
|
|
|
72,004,956 |
|
|
|
61,405,083 |
|
Diluted |
|
74,488,771 |
|
|
|
64,294,153 |
|
|
|
72,004,956 |
|
|
|
61,405,083 |
|
|
|
|
|
|
|
|
|
|
STEREOTAXIS,
INC. |
BALANCE
SHEETS |
|
|
|
September 30, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
43,595,829 |
|
|
$ |
30,182,115 |
|
Compensating cash arrangement |
|
250,295 |
|
|
|
- |
|
Accounts receivable, net of allowance of $265,233 and $380,212 at
2020 and 2019, respectively |
|
5,409,722 |
|
|
|
5,329,577 |
|
Inventories, net |
|
2,846,051 |
|
|
|
1,847,530 |
|
Prepaid expenses and other current assets |
|
1,774,792 |
|
|
|
1,470,922 |
|
Total
current assets |
|
53,876,689 |
|
|
|
38,830,144 |
|
Property and
equipment, net |
|
234,858 |
|
|
|
250,443 |
|
Operating
lease right-of-use assets |
|
2,764,022 |
|
|
|
4,286,064 |
|
Other
assets |
|
256,669 |
|
|
|
218,103 |
|
Total
assets |
$ |
57,132,238 |
|
|
$ |
43,584,754 |
|
|
|
|
|
Liabilities
and stockholders' equity |
|
|
|
Current
liabilities: |
|
|
|
Short-term debt |
$ |
457,244 |
|
|
$ |
- |
|
Accounts payable |
|
1,568,581 |
|
|
|
2,099,097 |
|
Accrued liabilities |
|
2,956,130 |
|
|
|
2,721,104 |
|
Deferred revenue |
|
6,189,796 |
|
|
|
5,092,455 |
|
Current portion of operating lease liabilities |
|
2,275,436 |
|
|
|
2,248,189 |
|
Total
current liabilities |
|
13,447,187 |
|
|
|
12,160,845 |
|
|
|
|
|
Long-term
debt |
|
1,701,066 |
|
|
|
- |
|
Long-term
deferred revenue |
|
569,475 |
|
|
|
554,258 |
|
Operating
lease liabilities |
|
540,536 |
|
|
|
2,089,537 |
|
Other
liabilities |
|
255,517 |
|
|
|
255,517 |
|
Total
liabilities |
|
16,513,781 |
|
|
|
15,060,157 |
|
|
|
|
|
Series A -
Convertible preferred stock: |
|
|
|
Convertible preferred stock, Series A, par value $0.001; 22,513 and
23,110 shares outstanding at 2020 and 2019, respectively |
|
5,605,323 |
|
|
|
5,758,190 |
|
Stockholders' equity: |
|
|
|
Convertible preferred stock, Series B, par value $0.001; 10,000,000
shares authorized, 5,610,121 at 2020 and 2019 |
|
5,610 |
|
|
|
5,610 |
|
Common stock, par value $0.001; 300,000,000 shares authorized,
73,678,206 and 68,529,623 shares issued at 2020 and 2019,
respectively |
|
73,678 |
|
|
|
68,530 |
|
Additional paid-in capital |
|
521,918,228 |
|
|
|
504,211,040 |
|
Treasury stock, 4,015 shares at 2020 and 2019 |
|
(205,999 |
) |
|
|
(205,999 |
) |
Accumulated deficit |
|
(486,778,383 |
) |
|
|
(481,312,774 |
) |
Total
stockholders' equity |
|
35,013,134 |
|
|
|
22,766,407 |
|
Total
liabilities and stockholders' equity |
$ |
57,132,238 |
|
|
$ |
43,584,754 |
|
|
|
|
|
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