Stereotaxis Reports 2023 Second Quarter Financial Results
August 10 2023 - 9:00AM
Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical
robotics for minimally invasive endovascular intervention, today
reported financial results for the second quarter ended June 30,
2023.
“Stereotaxis delivered 28% revenue growth in the
quarter, driven by a healthy system pipeline and continued demand
for our robotic technology,” said David Fischel, Chairman and CEO.
“We received orders for two Genesis systems in the second quarter.
System backlog of $16 million, multiple upcoming installations, and
continued interest in our robotic technology support our
expectation of annual double digit revenue growth.”
“Stereotaxis continues to advance a robust
innovation strategy. During the quarter we announced a significant
strategic collaboration with Abbott to integrate the EnSite X
mapping system with our robotic technology. Successful joint
integrated procedures have begun in Europe and we expect growing
adoption in the coming months. We rapidly responded to the request
for first-in-human data to support CE Mark of the MAGiC catheter
and have submitted documentation to initiate a study. Development
of our next-generation highly-accessible robot remains on track. We
are excited by the strategic transformation underway as we advance
a new foundational product ecosystem that makes robotics broadly
accessible and impactful across endovascular surgery.”
“We remain cognizant of the importance of
maintaining financial strength and discipline. We are confident in
our balance sheet and anticipate reduced cash utilization in
upcoming quarters. Our clean balance sheet allows us to advance our
transformative product ecosystem to market, fund its
commercialization, and reach profitability without the need for
additional financing.”
2023 Second Quarter Financial
ResultsRevenue for the second quarter of 2023 totaled $7.9
million, a 28% year-over-year increase compared to $6.2 million in
the prior year second quarter. System revenue for the quarter was
$3.3 million and recurring revenue was $4.6 million, compared to
$0.6 million and $5.6 million in the prior year second quarter,
respectively. System revenue growth reflects revenue recognition on
the delivery of two Genesis systems. Recurring revenue was impacted
by the absence of catheter royalties received in the prior year and
by catheter production shortages which impacted procedure volumes
but have since been resolved.
Gross margin for the second quarter of 2023 was
53% of revenue. Recurring revenue gross margin was 79% and system
gross margin was 18%. Operating expenses in the second quarter of
$9.5 million include $2.6 million in non-cash stock compensation
expense. Excluding non-cash stock compensation expense, adjusted
operating expenses in the current quarter were $6.9 million
compared to $7.2 million for adjusted operating expenses in the
prior year second quarter.
Operating loss and net loss for the second
quarter of 2023 were ($5.3) million and ($5.0) million,
respectively, compared to approximately ($5.2) million for both in
the previous year. Adjusted operating loss and adjusted net loss
for the quarter, excluding non-cash stock compensation expense,
were ($2.7) million and ($2.4) million, respectively, compared to
($2.5) million for both in the previous year. Negative free cash
flow for the second quarter was ($2.9) million.
Cash Balance and LiquidityAt
June 30, 2023, Stereotaxis had cash and cash equivalents, including
restricted cash, of $23.9 million and no debt.
Forward Looking
ExpectationsStereotaxis reiterates its expectation of
double-digit revenue growth in 2023 driven by revenue recognition
of system backlog and new system orders. Accelerating revenue
growth in subsequent years is expected to be supported by new
technology launches.
Stereotaxis expects to end the year with $22-24
million in cash and no debt. This balance sheet allows us to
advance a transformative product ecosystem to market, fund its
commercialization, and reach profitability without the need for
additional financing.
Conference Call and
WebcastStereotaxis will host a conference call and webcast
today, August 10, 2023, at 10:00 a.m. Eastern Time. To access the
conference call, dial 1-800-715-9871 (US and Canada) or
1-646-307-1963 (International) and give the participant pass code
5648825. 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
https://ir.stereotaxis.com/.
About StereotaxisStereotaxis
(NYSE: STXS) is a pioneer and global leader in innovative surgical
robotics for minimally invasive endovascular intervention. 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,
expand access to minimally invasive therapy, and enhance the
productivity, connectivity, and intelligence in the operating room.
Stereotaxis technology has been used to treat over 100,000 patients
across the United States, Europe, Asia, 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. Factors that would cause or contribute to such
differences include, but are not limited to, the Company’s ability
to manage expenses at sustainable levels, 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 technology, competitive factors, changes resulting
from healthcare policy, dependence upon third-party vendors, timing
of regulatory approvals, the impact of pandemics or other
disasters, 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 because some of these purchase orders and other
commitments are subject to contingencies that are outside of the
Company’s control and may be revised, modified, delayed, or
canceled.
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) |
|
|
|
|
|
|
|
|
(in thousands, except share
and per share amounts) |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Systems |
$ |
3,313 |
|
|
$ |
602 |
|
|
$ |
5,134 |
|
|
$ |
2,236 |
|
Disposables, service and accessories |
|
4,546 |
|
|
|
5,550 |
|
|
|
9,273 |
|
|
|
10,953 |
|
Total revenue |
|
7,859 |
|
|
|
6,152 |
|
|
|
14,407 |
|
|
|
13,189 |
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Systems |
|
2,703 |
|
|
|
509 |
|
|
|
4,400 |
|
|
|
1,801 |
|
Disposables, service and accessories |
|
969 |
|
|
|
973 |
|
|
|
1,944 |
|
|
|
1,794 |
|
Total cost of revenue |
|
3,672 |
|
|
|
1,482 |
|
|
|
6,344 |
|
|
|
3,595 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
4,187 |
|
|
|
4,670 |
|
|
|
8,063 |
|
|
|
9,594 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
2,647 |
|
|
|
2,893 |
|
|
|
5,393 |
|
|
|
5,340 |
|
Sales and marketing |
|
3,340 |
|
|
|
3,279 |
|
|
|
6,488 |
|
|
|
6,225 |
|
General and administrative |
|
3,477 |
|
|
|
3,677 |
|
|
|
7,078 |
|
|
|
7,297 |
|
Total operating expenses |
|
9,464 |
|
|
|
9,849 |
|
|
|
18,959 |
|
|
|
18,862 |
|
Operating loss |
|
(5,277 |
) |
|
|
(5,179 |
) |
|
|
(10,896 |
) |
|
|
(9,268 |
) |
|
|
|
|
|
|
|
|
Other income |
|
27 |
|
|
|
- |
|
|
|
27 |
|
|
|
- |
|
Interest income, net |
|
293 |
|
|
|
45 |
|
|
|
565 |
|
|
|
48 |
|
Net loss |
$ |
(4,957 |
) |
|
$ |
(5,134 |
) |
|
$ |
(10,304 |
) |
|
$ |
(9,220 |
) |
Cumulative dividend on
convertible preferred stock |
|
(335 |
) |
|
|
(335 |
) |
|
|
(666 |
) |
|
|
(666 |
) |
Net loss attributable to
common stockholders |
$ |
(5,292 |
) |
|
$ |
(5,469 |
) |
|
$ |
(10,970 |
) |
|
$ |
(9,886 |
) |
|
|
|
|
|
|
|
|
Net loss per share attributed
to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
- |
|
|
|
|
|
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.13 |
) |
|
|
|
|
|
|
|
|
Weighted average number of
common shares and equivalents: |
|
|
|
|
|
|
|
Basic |
|
81,049,211 |
|
|
|
75,953,916 |
|
|
|
78,787,652 |
|
|
|
75,915,864 |
|
|
|
|
|
|
|
|
|
Diluted |
|
81,049,211 |
|
|
|
75,953,916 |
|
|
|
78,787,652 |
|
|
|
75,915,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STEREOTAXIS, INC. |
BALANCE SHEETS |
|
|
(in thousands, except share
amounts) |
June 30, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
22,877 |
|
|
$ |
8,586 |
|
Restricted cash - current |
|
569 |
|
|
|
525 |
|
Short-term investments |
|
- |
|
|
|
19,844 |
|
Accounts receivable, net of allowance of $169 and $235 at 2023 and
2022, respectively |
|
6,645 |
|
|
|
5,090 |
|
Inventories, net |
|
7,703 |
|
|
|
7,876 |
|
Prepaid expenses and other current assets |
|
1,108 |
|
|
|
1,325 |
|
Total current assets |
|
38,902 |
|
|
|
43,246 |
|
Property and equipment,
net |
|
3,590 |
|
|
|
3,831 |
|
Restricted cash |
|
481 |
|
|
|
744 |
|
Operating lease right-of-use
assets |
|
5,188 |
|
|
|
5,384 |
|
Prepaid and other non-current
assets |
|
154 |
|
|
|
208 |
|
Total assets |
$ |
48,315 |
|
|
$ |
53,413 |
|
|
|
|
|
Liabilities and stockholders’
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
2,840 |
|
|
$ |
3,270 |
|
Accrued liabilities |
|
2,920 |
|
|
|
3,306 |
|
Deferred revenue |
|
8,223 |
|
|
|
7,342 |
|
Current portion of operating lease liabilities |
|
399 |
|
|
|
373 |
|
Total current liabilities |
|
14,382 |
|
|
|
14,291 |
|
Long-term deferred
revenue |
|
1,639 |
|
|
|
1,654 |
|
Operating lease
liabilities |
|
5,282 |
|
|
|
5,488 |
|
Other liabilities |
|
43 |
|
|
|
51 |
|
Total liabilities |
|
21,346 |
|
|
|
21,484 |
|
|
|
|
|
Series A - Convertible
preferred stock: |
|
|
|
Convertible preferred stock, Series A, par value $0.001; 22,383
shares outstanding at 2023 and 2022 |
|
5,583 |
|
|
|
5,583 |
|
Stockholders’ equity: |
|
|
|
Convertible preferred stock, Series B, par value $0.001; 10,000,000
shares authorized, 5,610,121 shares outstanding at 2022 |
|
- |
|
|
|
6 |
|
Common stock, par value $0.001; 300,000,000 shares authorized,
80,682,586 and 74,874,459 shares issued at 2023 and 2022,
respectively |
|
81 |
|
|
|
75 |
|
Additional paid-in capital |
|
548,782 |
|
|
|
543,438 |
|
Treasury stock, 4,015 shares at 2023 and 2022 |
|
(206 |
) |
|
|
(206 |
) |
Accumulated deficit |
|
(527,271 |
) |
|
|
(516,967 |
) |
Total stockholders’
equity |
|
21,386 |
|
|
|
26,346 |
|
Total liabilities and
stockholders’ equity |
$ |
48,315 |
|
|
$ |
53,413 |
|
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