Full Press Release Details
Stereotaxis Reports 2010 Financial Results,
Provides 2011 Financial Outlook
-2010 Revenue of $54.1 Million, Up 5.7% from 2009-
-2010 Record Recurring Revenue of $22.9 Million, Up 24.0% from 2009-
-2010 Global Capital Orders of $41.0 Million, Up 48% from 2009-
-2010 Gross Margin of 71.2%, Compared to 66.7% in 2009-
-Conference Call Today at 4:30 p.m. Eastern Time-
ST. LOUIS, MO, February 28,
2011 Stereotaxis, Inc. (NASDAQ: STXS) today reported financial results for the full year and fourth quarter ended December 31, 2010. Full year 2010 results included continued momentum in new capital orders, record recurring revenue and
record gross margins. In addition, the Company reported reduced operating expenses for the year, which helped to drive decreases in both operating loss and net loss compared to 2009. The Company also provided its financial outlook for 2011.
For the full year 2010, revenue grew 5.7% to $54.1 million compared with $51.1 million in 2009. Recurring revenue increased 24.0% to $22.9
million from $18.5 million in 2009.
Revenue for the fourth quarter 2010 totaled $14.5 million, compared to $14.1 million
in the fourth quarter 2009 and $13.9 million in the third quarter of 2010. The Company recognized revenue of $5.0 million in
Niobe robotic systems and $3.3 million in OdysseyTM systems in the fourth quarter 2010. As the Company expected and previously announced in its third quarter 2010
financial results, installation delays during the fourth quarter 2010 impacted revenue growth in the period. Disposables, services and accessories revenue for the quarter ended December 31, 2010 increased 22.2% to a
record $6.3 million from the recurring revenue reported for the year-ago quarter, and reflects continued growth in clinical procedures.
In 2010 we achieved significant progress toward our goal of establishing our Niobe robotic platform as a new standard of care for EP interventional medicine that we believe offers improved safety,
efficacy and cost of care, said Michael P. Kaminski, President and Chief Executive Officer of Stereotaxis. The strength in global new capital orders confirms that we continue to make progress in our key initiatives of driving stronger
Niobe reference sites and expanding our Odyssey business into standard EP labs. Our efforts to increase gross margins led to gross margins for the year of 71 percent. In addition, we continue to effectively manage operating expenses, which resulted
in substantial reductions in both operating loss and net loss compared to 2009.
As we look ahead to 2011, we are poised to
further drive clinical adoption of Niobe with the recent expansion of our catheter strategic partnership, our growing body of clinical research and our focus on innovation to bring compelling value to the EP lab, stated Mr. Kaminski.
During 2010, a total of 8,900 electrophysiology (EP) procedures were performed with the Niobe robotic system, a 26% increase from the 7,000
EP procedures performed in 2009.
Full year 2010 new capital orders were $41.0 million, up 48% over the level reported in 2009. The Company
generated global new capital orders in the fourth quarter 2010 of $11.4 million, a 48% increase over the capital orders placed during the fourth quarter of 2009. Global orders for the Company s Niobe robotic system for the fourth quarter 2010
increased 84% to $8.3 million from the $4.5 million in Niobe orders reported in the fourth quarter 2009. Odyssey system orders in the fourth quarter 2010 were $3.1 million. New capital orders from North America were $4.2 million, or 37% of total
orders in the fourth quarter of 2010.
Fourth Quarter 2010 Financial Performance
Gross margin for the quarter ended December 31, 2010 increased 12.8% to $10.7 million from $9.5 million in the fourth quarter of 2009. This
represents a gross margin percentage of 73.4% compared with 67.3% in the year ago period. Fourth quarter 2010 operating expenses totaled $14.1 million, substantially below the $15.3 million reported in fourth quarter 2009, representing the
Company s continued focus on cost control. Cash burn for the fourth quarter of 2010 was $5.6 million.
The operating loss for the fourth
quarter 2010 was $(3.4) million, compared to an operating loss of $(5.8) million for the fourth quarter 2009. The net loss for the fourth quarter 2010 was $(2.5) million, or $(0.05) per share, compared to a net loss of $(6.7) million, or $(0.14) per
share, reported for the fourth quarter 2009. Net loss for the fourth quarter 2010 included other income of $1.5 million in federal grants under the Qualifying Therapeutic Discovery Project Program that was enacted under the Patient Protection and
Affordable Care Act of 2010. The weighted average shares for the fourth quarter of 2010 totaled 52.5 million compared with 48.4 million in the fourth quarter of last year. The
increase was due in large part to the issuance of 4.6 million shares as part of the stock offering completed in November 2010.
At December 31, 2010, Stereotaxis had cash and cash equivalents of $35.2 million, compared to $21.8 million on September 30, 2010. Total debt was $28.9 million, including $11.0 million drawn
against the Company s $30 million line of credit.
2011 Financial Outlook
Stereotaxis provided its outlook for 2011 as follows:
Conference Call Information
Stereotaxis will hold a conference call today, February 28, 2011 at 4:30 p.m. Eastern Time, to discuss fourth quarter and full year 2010 results and
operational highlights. The dial-in number for the conference call is 1-877-941-6010 for domestic participants and 1-480-629-9772 for international participants. An audio replay of the call will be available for seven days following the call, and
can be accessed by dialing 1-800-406-7325 for domestic callers and 303-590-3030 for international callers, both using passcode 4411034#. The call will also be available on the Internet live and for 90 days thereafter at www.stereotaxis.com.
Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital s
interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias. The Niobe
Remote Magnetic Navigation System is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment
sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure.
Stereotaxis Odyssey portfolio of products provides an innovative enterprise solution for integrating, recording and networking
interventional lab information within hospitals and around the world. Odyssey Vision integrates data for magnetic and standard interventional labs, enhancing the physician workflow through a consolidated display of multiple systems and
eliminating the challenge of interacting simultaneously with many separate diagnostic systems. Odyssey Enterprise Cinema then captures a
complete record of synchronized procedure data that can be viewed live or from a comprehensive archive of cases performed. Odyssey then enables hospitals to efficiently share live and
recorded clinical data anywhere around the world to maximize referrals and promote collaboration.
The core components of the Stereotaxis
systems have received regulatory clearance in the U.S., Europe, Canada and elsewhere. For more information, please visit www.stereotaxis.com and www.odysseyexperience.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, 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 our systems and the timing of such
purchases, competitive factors, changes resulting from the recently enacted healthcare reform in the U.S., 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
| December 31, 2010 | December 31, 2009 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,248,819 | $ | 30,546,550 | ||||
| Accounts receivable, net of allowance of $367,536 and $322,463 in 2010 and 2009, respectively | 13,915,569 | 11,152,648 | ||||||
| Current portion of long-term receivables | 30,800 | 66,800 | ||||||
| Inventories | 5,441,475 | 4,403,675 | ||||||
| Prepaid expenses and other current assets | 4,557,718 | 3,872,535 | ||||||
| Total current assets | 59,194,381 | 50,042,208 | ||||||
| Property and equipment, net | 3,840,622 | 4,790,310 | ||||||
| Intangible assets | 2,578,986 | 1,144,445 | ||||||
| Long-term receivables | 109,266 | 138,441 | ||||||
| Other assets | 38,537 | 5,112 | ||||||
| Total assets | $ | 65,761,792 | $ | 56,120,516 | ||||
| Liabilities and stockholders equity | ||||||||
| Current liabilities: | ||||||||
| Current maturities of long-term debt | $ | 20,894,091 | $ | 13,333,333 | ||||
| Accounts payable | 8,796,182 | 3,881,205 | ||||||
| Accrued liabilities | 6,966,571 | 8,615,287 | ||||||
| Deferred contract revenue | 6,600,313 | 7,191,492 | ||||||
| Warrants | 3,541,798 | 4,142,614 | ||||||
| Total current liabilities | 46,798,955 | 37,163,931 | ||||||
| Long-term debt, less current maturities | 8,000,000 | 10,346,655 | ||||||
| Long-term deferred contract revenue | 478,850 | 948,574 | ||||||
| Other liabilities | 8,741 | 20,013 | ||||||
| Stockholders equity: | ||||||||
| Preferred stock, par value $0.001; 10,000,000 shares authorized at 2010 and 2009; none outstanding at 2010 and 2009 | ||||||||
| Common stock, par value $0.001; 100,000,000 shares authorized at 2010 and 2009; 54,746,240 and 50,208,171 issued at 2010 and 2009, respectively | 54,746 | 50,208 | ||||||
| Additional paid-in capital | 354,002,770 | 331,249,918 | ||||||
| Treasury stock, 40,151 shares at 2010 and 2009 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (343,376,271 | ) | (323,452,784 | ) | ||||
| Total stockholders equity | 10,475,246 | 7,641,343 | ||||||
| Total liabilities and stockholders equity | $ | 65,761,792 | $ | 56,120,516 |
STATEMENTS OF OPERATIONS
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue | ||||||||||||||||
| System | $ | 8,293,334 | $ | 8,966,960 | $ | 31,120,034 | $ | 32,661,573 | ||||||||
| Disposables, service and accessories | 6,250,962 | 5,114,431 | 22,931,203 | 18,487,982 | ||||||||||||
| Total revenue | 14,544,296 | 14,081,391 | 54,051,237 | 51,149,555 | ||||||||||||
| Cost of revenue | ||||||||||||||||
| System | 3,236,975 | 3,990,424 | 12,719,200 | 13,240,430 | ||||||||||||
| Disposables, service and accessories | 625,807 | 619,061 | 2,845,487 | 3,781,203 | ||||||||||||
| Total cost of revenue | 3,862,782 | 4,609,485 | 15,564,687 | 17,021,633 | ||||||||||||
| Gross margin | 10,681,514 | 9,471,906 | 38,486,550 | 34,127,922 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,648,191 | 4,012,977 | 12,244,163 | 14,260,854 | ||||||||||||
| Sales and marketing | 7,768,084 | 7,269,738 | 30,178,818 | 28,694,540 | ||||||||||||
| General and administration | 3,685,052 | 4,003,449 | 15,022,689 | 15,010,490 | ||||||||||||
| Total operating expenses | 14,101,327 | 15,286,164 | 57,445,670 | 57,965,884 | ||||||||||||
| Operating loss | (3,419,813 | ) | (5,814,258 | ) | (18,959,120 | ) | (23,837,962 | ) | ||||||||
| Other income/(expense) | 2,010,516 | 845,470 | 2,060,346 | 911,977 | ||||||||||||
| Interest income | 2,644 | 10,699 | 10,578 | 44,768 | ||||||||||||
| Interest expense | (1,084,193 | ) | (1,752,762 | ) | (3,035,291 | ) | (4,613,240 | ) | ||||||||
| Net loss | $ | (2,490,846 | ) | $ | (6,710,851 | ) | $ | (19,923,487 | ) | $ | (27,494,457 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.05 | ) | $ | (0.14 | ) | $ | (0.39 | ) | $ | (0.63 | ) | ||||
| Weighted average shares used in computing net loss per common share: | ||||||||||||||||
| Basic and diluted | 52,501,460 | 48,374,735 | 50,522,001 | 43,344,324 |