Stereotaxis Reports 2023 Third Quarter Financial Results
November 09 2023 - 8:00AM
Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical
robotics for minimally invasive endovascular intervention, today
reported financial results for the third quarter ended September
30, 2023.
“Stereotaxis continues to deliver commercial
results and advance a robust innovation strategy, while maintaining
financial discipline,” said David Fischel, Chairman and CEO.
“Revenue growth in the quarter was driven by continued demand for
Genesis with revenue recognition of two robotic systems. System
revenue growth counteracted the loss of royalties and residual
pressure on procedures. A robust system pipeline along with
existing system backlog of $13 million supports continued growth in
the coming quarters.”
“We are making broad, methodical progress across
the late stages of a comprehensive innovation strategy. Approval to
enroll patients in a European clinical study of the MAGiC ablation
catheter is expected within weeks. In the US, we determined it
reasonable to submit a PMA Supplement for MAGiC and plan to make
the regulatory submission prior to year-end. This approach holds
the potential to significantly accelerate availability of MAGiC to
physicians and patients who would benefit from it. Our
collaborations with Abbott and MicroPort, and internal development
of a next-generation highly-accessible robot, vascular
interventional devices, and a digital surgery solution, continue to
make meaningful progress. We remain confident these collectively
drive a strategic transformation that makes robotics broadly
accessible and impactful across endovascular surgery.”
“Reduced cash utilization reflects continued
attention to financial discipline and benefits from the significant
build up in inventory in previous quarters. We remain cognizant of
the importance of maintaining financial strength and are confident
in our ability to realize our innovation strategy with our current
resources.”
2023 Third Quarter Financial
ResultsRevenue for the third quarter of 2023 totaled $7.8
million, compared to $7.7 million in the prior year third quarter.
System revenue for the quarter was $3.5 million and recurring
revenue was $4.3 million, compared to $2.4 million and $5.3 million
in the prior year third 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.
Gross margin for the third quarter of 2023 was
52% of revenue. Recurring revenue gross margin was 80% and system
gross margin was 18%. Operating expenses in the third quarter of
$9.7 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 $7.1 million
compared to $6.9 million in the prior year third quarter.
Operating loss and net loss for the third
quarter of 2023 were ($5.6) million and ($5.4) million,
respectively, compared to ($5.1) million and ($4.9) million in the
previous year. Adjusted operating loss and adjusted net loss for
the quarter, excluding non-cash stock compensation expense, were
($3.0) million and ($2.8) million, respectively, compared to ($2.4)
million and ($2.2) million in the previous year. Negative free cash
flow for the third quarter was ($1.0) million.
Cash Balance and LiquidityAt
September 30, 2023, Stereotaxis had cash and cash equivalents,
including restricted cash, of $23.0 million and no debt.
Forward Looking
ExpectationsStereotaxis expects continued revenue growth
in the coming quarters 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
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, November 9, 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
3519052. 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.
Peery Chief
Financial Officer
314-678-6100Investors@Stereotaxis.com
STEREOTAXIS, INC. |
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
(in thousands, except share
and per share amounts) |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Systems |
$ |
3,539 |
|
|
$ |
2,413 |
|
|
$ |
8,673 |
|
|
$ |
4,649 |
|
Disposables, service and accessories |
|
4,260 |
|
|
|
5,244 |
|
|
|
13,533 |
|
|
|
16,197 |
|
Total revenue |
|
7,799 |
|
|
|
7,657 |
|
|
|
22,206 |
|
|
|
20,846 |
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Systems |
|
2,909 |
|
|
|
2,016 |
|
|
|
7,309 |
|
|
|
3,817 |
|
Disposables, service and accessories |
|
831 |
|
|
|
1,074 |
|
|
|
2,775 |
|
|
|
2,868 |
|
Total cost of revenue |
|
3,740 |
|
|
|
3,090 |
|
|
|
10,084 |
|
|
|
6,685 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
4,059 |
|
|
|
4,567 |
|
|
|
12,122 |
|
|
|
14,161 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
2,668 |
|
|
|
2,818 |
|
|
|
8,061 |
|
|
|
8,158 |
|
Sales and marketing |
|
3,097 |
|
|
|
3,111 |
|
|
|
9,585 |
|
|
|
9,337 |
|
General and administrative |
|
3,933 |
|
|
|
3,690 |
|
|
|
11,011 |
|
|
|
10,986 |
|
Total operating expenses |
|
9,698 |
|
|
|
9,619 |
|
|
|
28,657 |
|
|
|
28,481 |
|
Operating loss |
|
(5,639 |
) |
|
|
(5,052 |
) |
|
|
(16,535 |
) |
|
|
(14,320 |
) |
|
|
|
|
|
|
|
|
Other income |
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
- |
|
Interest income, net |
|
270 |
|
|
|
135 |
|
|
|
835 |
|
|
|
182 |
|
Net loss |
$ |
(5,369 |
) |
|
$ |
(4,917 |
) |
|
$ |
(15,673 |
) |
|
$ |
(14,138 |
) |
Cumulative dividend on
convertible preferred stock |
|
(338 |
) |
|
|
(339 |
) |
|
|
(1,004 |
) |
|
|
(1,005 |
) |
Net loss attributable to
common stockholders |
$ |
(5,707 |
) |
|
$ |
(5,256 |
) |
|
$ |
(16,677 |
) |
|
$ |
(15,143 |
) |
|
|
|
|
|
|
|
|
Net loss per share attributed
to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.20 |
) |
|
|
|
|
- |
|
|
|
|
|
Diluted |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.20 |
) |
|
|
|
|
|
|
|
|
Weighted average number of
common shares and equivalents: |
|
|
|
|
|
|
|
Basic |
|
82,468,971 |
|
|
|
76,100,007 |
|
|
|
80,028,243 |
|
|
|
75,977,920 |
|
|
|
|
|
|
|
|
|
Diluted |
|
82,468,971 |
|
|
|
76,100,007 |
|
|
|
80,028,243 |
|
|
|
75,977,920 |
|
STEREOTAXIS, INC. |
BALANCE SHEETS |
|
|
(in thousands, except share
amounts) |
September 30,2023 |
|
December 31,2022 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
22,100 |
|
|
$ |
8,586 |
|
Restricted cash - current |
|
525 |
|
|
|
525 |
|
Short-term investments |
|
- |
|
|
|
19,844 |
|
Accounts receivable, net of allowance of $596 and $235 at 2023 and
2022, respectively |
|
5,246 |
|
|
|
5,090 |
|
Inventories, net |
|
6,788 |
|
|
|
7,876 |
|
Prepaid expenses and other current assets |
|
855 |
|
|
|
1,325 |
|
Total current assets |
|
35,514 |
|
|
|
43,246 |
|
Property and equipment,
net |
|
3,443 |
|
|
|
3,831 |
|
Restricted cash |
|
350 |
|
|
|
744 |
|
Operating lease right-of-use
assets |
|
5,086 |
|
|
|
5,384 |
|
Prepaid and other non-current
assets |
|
135 |
|
|
|
208 |
|
Total assets |
$ |
44,528 |
|
|
$ |
53,413 |
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
3,243 |
|
|
$ |
3,270 |
|
Accrued liabilities |
|
3,160 |
|
|
|
3,306 |
|
Deferred revenue |
|
6,216 |
|
|
|
7,342 |
|
Current portion of operating lease liabilities |
|
413 |
|
|
|
373 |
|
Total current liabilities |
|
13,032 |
|
|
|
14,291 |
|
Long-term deferred
revenue |
|
1,982 |
|
|
|
1,654 |
|
Operating lease
liabilities |
|
5,173 |
|
|
|
5,488 |
|
Other liabilities |
|
43 |
|
|
|
51 |
|
Total liabilities |
|
20,230 |
|
|
|
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,
80,873,295 and 74,874,459 shares issued at 2023 and 2022,
respectively |
|
81 |
|
|
|
75 |
|
Additional paid-in capital |
|
551,480 |
|
|
|
543,438 |
|
Treasury stock, 4,015 shares at 2023 and 2022 |
|
(206 |
) |
|
|
(206 |
) |
Accumulated deficit |
|
(532,640 |
) |
|
|
(516,967 |
) |
Total stockholders'
equity |
|
18,715 |
|
|
|
26,346 |
|
Total liabilities and
stockholders' equity |
$ |
44,528 |
|
|
$ |
53,413 |
|
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