Full Press Release Details
Reports 2018 Third Quarter Financial Results
| Continued progress on strategic innovation initiatives; expect to showcase in 1H 2019 | ||
| 4% recurring revenue growth; reaffirming 2018 record recurring revenue expectations | ||
| Conference call today at 10:00 a.m. Eastern Time |
LOUIS, MO, Nov. 12, 2018 - Stereotaxis, Inc. (OTCQX: 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, 2018.
continue to make meaningful progress on our strategic innovation initiatives, and expect to be able to publicly showcase our progress
in the first half of 2019," said David Fischel, Chairman and CEO. "We are confident that our innovation strategy is
clinically and commercially sound, will provide significant benefits to patients, physicians and hospitals, and will substantially
increase Stereotaxis' financial opportunity."
recurring revenue growth in the quarter positions us to achieve record recurring revenue this year. The development of foundational
commercial infrastructure to support the success of robotic electrophysiology practices is best reflected in the recent launch
of www.RoboticEP.com, a platform by which our technology and clinical value can be presented in an organized and elegant fashion
to the broader community."
making significant investments in innovation and commercial infrastructure, our financial discipline has allowed us to reduce
cash utilization. The negative free cash flow in the first nine months of 2018 is the closest to breakeven in the history of the
medical device industry and healthcare community are rapidly embracing robotics in laparoscopic, orthopedic, and spinal surgery.
This was exemplified in the September acquisition of Mazor Robotics by Medtronic. As the pioneer and undisputed leader of robotics
in endovascular surgery, Stereotaxis is excited and encouraged by these broader developments. We are confident that endovascular
surgery will similarly be transformed by this wave of technological progress."
Quarter and First Nine Months 2018 Financial Results
for the third quarter of 2018 totaled $7.6 million. Recurring revenue was $6.8 million in the third quarter, up 4% from $6.5 million
in the prior year quarter. Recurring revenue for the first nine months of 2018 of $21.0 million was up 5% from the first nine
months of 2017. System revenue in the third quarter was $0.7 million, down from $1.6 million in the prior year quarter. System
revenue in the prior year quarter primarily reflected the shipment of a Niobe System to an international distributor.
margin in the quarter was $5.9 million, or 78% of revenue, compared to $6.2 million and 76% of revenue in the third quarter of
2017. Operating expenses in the third quarter were $6.0 million, down from $6.1 million in the prior year quarter. Operating loss
and net loss in the third quarter were $(0.1) million.
free cash flow in the third quarter was ($0.4) million, compared to ($0.6) million in the year ago third quarter. Negative free
cash flow for the first nine months of 2018 was ($2.0) million, compared to ($3.9) million in the first nine months of 2017. The
negative free cash flow for the first nine months of 2018 represents the strongest performance in nearing breakeven for the company
Balance and Liquidity
September 30, 2018, Stereotaxis had cash and cash equivalents of $11.6 million, no debt, and $3.2 million in unused borrowing
capacity on its revolving credit facility, for total net liquidity of $14.8 million.
Year 2018 Expectations
Company is reaffirming its expectation of achieving record high annual recurring revenue of approximately $28 million for the
Company continues to expect moderate increases in operating expenses as it invests in strategic innovation initiatives. The benefits
of these initiatives are expected to meaningfully contribute to revenue in 2019 and beyond. Stereotaxis' balance sheet will
allow the Company to deliver on its commercial and innovation initiatives over the coming years and reach profitability without
the need for additional financings.
will host a conference call and webcast today, November 12, 2018, at 10:00 a.m. Eastern Time. To access the conference call, dial
888-256-1007 (US and Canada) or 1-323-994-2093 (International) and give the participant pass code 5173966. 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.
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. Over 100 issued patents
support the Stereotaxis platform. 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.
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 raise additional
capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable
levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing,
in either case on acceptable terms, 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 reform in the United States, 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 delays.
and Chief Executive Officer
STATEMENTS OF OPERATIONS
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue: | ||||||||||||||||
| Systems | $ | 715,484 | $ | 1,597,537 | $ | 1,043,510 | $ | 3,644,871 | ||||||||
| Disposables, service and accessories | 6,839,995 | 6,546,198 | 21,035,002 | 19,943,562 | ||||||||||||
| Total revenue | 7,555,479 | 8,143,735 | 22,078,512 | 23,588,433 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Systems | 596,869 | 888,800 | 1,257,980 | 2,029,760 | ||||||||||||
| Disposables, service and accessories | 1,036,589 | 1,032,569 | 3,029,875 | 3,350,480 | ||||||||||||
| Total cost of revenue | 1,633,458 | 1,921,369 | 4,287,855 | 5,380,240 | ||||||||||||
| Gross margin | 5,922,021 | 6,222,366 | 17,790,657 | 18,208,193 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,000,780 | 1,619,749 | 5,995,800 | 4,976,892 | ||||||||||||
| Sales and marketing | 2,819,101 | 3,079,562 | 9,911,514 | 10,479,626 | ||||||||||||
| General and administrative | 1,215,920 | 1,355,258 | 3,753,703 | 4,921,513 | ||||||||||||
| Total operating expenses | 6,035,801 | 6,054,569 | 19,661,017 | 20,378,031 | ||||||||||||
| Operating income (loss) | (113,780 | ) | 167,797 | (1,870,360 | ) | (2,169,838 | ) | |||||||||
| Other income (expense) | - | (4,459,042 | ) | 2,590,361 | (1,029,479 | ) | ||||||||||
| Interest expense (net) | (2,515 | ) | (43,077 | ) | (33,271 | ) | (135,336 | ) | ||||||||
| Net income (loss) | $ | (116,295 | ) | $ | (4,334,322 | ) | $ | 686,730 | $ | (3,334,653 | ) | |||||
| Cumulative dividend on convertible preferred stock | (361,447 | ) | (337,963 | ) | (1,072,553 | ) | (1,070,812 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (477,742 | ) | $ | (4,672,285 | ) | $ | (385,823 | ) | $ | (4,405,465 | ) | ||||
| Net loss per share attributed to common stockholder: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.20 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.20 | ) | ||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||
| Basic | 59,008,219 | 22,750,405 | 49,733,553 | 22,551,496 | ||||||||||||
| Diluted | 59,008,219 | 22,750,405 | 49,733,553 | 22,551,496 |
prior year amounts have been reclassified to conform to the 2018 presentation.
| September 30, 2018 | December 31, 2017 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,570,566 | $ | 3,686,302 | ||||
| Accounts receivable, net of allowance of $300,510 and $361,350 in 2018 and 2017, respectively | 5,088,111 | 4,287,255 | ||||||
| Inventories, net | 1,202,457 | 1,146,971 | ||||||
| Prepaid expenses and other current assets | 970,397 | 750,085 | ||||||
| Total current assets | 18,831,531 | 9,870,613 | ||||||
| Property and equipment, net | 452,639 | 592,688 | ||||||
| Intangible assets, net | 109,979 | 159,470 | ||||||
| Other assets | 226,939 | 44,432 | ||||||
| Total assets | $ | 19,621,088 | $ | 10,667,203 | ||||
| Liabilities and stockholders' equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,574,035 | $ | 1,654,101 | ||||
| Accrued liabilities | 2,822,958 | 3,195,247 | ||||||
| Deferred revenue | 6,365,676 | 5,702,769 | ||||||
| Warrants | - | 19,574,977 | ||||||
| Total current liabilities | 10,762,669 | 30,127,094 | ||||||
| Long-term deferred revenue | 502,893 | 611,863 | ||||||
| Other liabilities | 621,573 | 535,369 | ||||||
| Total liabilities | 11,887,135 | 31,274,326 | ||||||
| Convertible preferred stock: | ||||||||
| Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,900 shares outstanding at 2018 and 2017 | 5,960,475 | 5,960,475 | ||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 59,044,164 and 22,805,731 shares issued at 2018 and 2017, respectively | 59,044 | 22,806 | ||||||
| Additional paid-in capital | 478,071,950 | 450,748,403 | ||||||
| Treasury stock, 4,015 shares at 2018 and 2017 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (476,151,517 | ) | (477,132,808 | ) | ||||
| Total stockholders' equity (deficit) | 1,773,478 | (26,567,598 | ) | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 19,621,088 | $ | 10,667,203 |