Full Press Release Details
Reports 2019 First Quarter Financial & Operational Results
LOUIS, MO, May 9, 2019 - Stereotaxis (OTCQX: STXS), the global leader in innovative robotic technologies for
the treatment of cardiac arrhythmias, today reported financial results for the first quarter ended March 31, 2019. In separate
press releases issued concurrently with this release, Stereotaxis showcased for the first time a next-generation robotic system,
a novel x-ray imaging system, and a development program for a proprietary robotically-navigated magnetic ablation catheter.
start of 2019 is highlighted by significant innovation accomplishments across all key aspects of our technology," said David
Fischel, Chairman and CEO. "These innovations will positively impact patient care, the physician experience, and the broad
availability of our robotic technology in electrophysiology. They create a new financial and strategic foundation for the company
and set Stereotaxis on a path for sustainable and significant growth."
innovation updates, as detailed in separate press releases include:
| Stereotaxis Genesis RMN System - initial launch of a next generation robotic system that is designed to provide the established benefits and reliability of robotic magnetic navigation in an architecture that is faster, smaller, lighter and more flexible. | ||
| Stereotaxis Imaging Model S - launch of an advanced x-ray imaging solution offered in combination with Stereotaxis Genesis RMN to increase the accessibility and affordability of robotics in electrophysiology. | ||
| Proprietary Magnetic Ablation Catheter - development program proceeding on an advanced next-generation robotically-navigated magnetic ablation catheter. | ||
| Acutus Mapping Integration & OpenMappingAPI - integration with Acutus' novel mapping system was successfully accomplished in March using a software architecture that facilitates a more open collaborative environment. |
Fischel continued, "The impact of these innovations will be transformational in the coming quarters and years. In parallel
with our technological achievements, we are making continued progress in establishing and implementing the commercial infrastructure
to ensure robotic electrophysiology practices are successful clinically and commercially. We are proud that we are able to accomplish
this progress while being financially prudent."
Quarter 2019 Financial Results
for the first quarter of 2019 totaled $7.0 million, consistent with the prior year first quarter. Recurring revenue was $6.7 million
in the quarter, consistent sequentially with the $6.7 million in the fourth quarter of 2018 and down from $7.0 million in the
first quarter of 2018. New lease accounting guidance required the presentation of $0.2 million of sublease income and cost within
revenue and cost of goods sold for the quarter.
margin in the quarter was $5.6 million, or 80% of revenue. Excluding the impact of the new accounting for subleases, gross margin
would have been 83%, slightly up from the first quarter of 2018. Operating expenses in the first quarter of $7.7 million increased
from $6.8 million in the prior year quarter, reflecting $1.0 million in additional investments in research and development. Operating
loss and net loss in the first quarter were ($2.1) million. Negative free cash flow for the quarter was ($1.8) million, compared
to negative free cash flow of ($2.0) million in the year ago first quarter. Negative free cash flow in the first quarter was impacted
by the timing of cash payments, which are typically higher in the first quarter than subsequent quarters.
Balance and Liquidity
March 31, 2019, Stereotaxis had cash and cash equivalents of $9.0 million, no debt, and $3.3 million in unused borrowing capacity
on its revolving credit facility, for total net liquidity of $12.3 million.
Year 2019 Expectations
innovation accomplishments support an expectation of robust and consistent overall revenue growth beginning in the coming quarters.
The exact timing of the financial impact from the innovation accomplishments is uncertain and precludes providing specific revenue
maintains a healthy financial foundation to execute on its strategic plan. Operating expenses are expected to moderately increase
throughout 2019, driven primarily by increased R&D investment. Consistent with last year, the cash utilization in the first
quarter is higher than that expected in any subsequent quarter. Stereotaxis expects to end 2019 with greater than $6.0 million
in net cash and cash equivalents. 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, May 9, 2019, at 9:00 a.m. Eastern Time. To access the conference call, dial 1-855-719-5012
(US and Canada) or 1-334-323-0505 (International) and give the participant pass code 9926330. 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. Stereotaxis' robotic technology has received various regulatory clearances in the United
States, European Union, Japan, Canada, China, and elsewhere. The Stereotaxis Genesis RMN System is CE marked and will become available
in other global geographies subject to regulatory approvals. Stereotaxis Imaging Model S is CE marked and FDA cleared. 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
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue: | ||||||||
| Systems | $ | 58,051 | $ | 17,275 | ||||
| Disposables, service and accessories | 6,710,759 | 6,954,357 | ||||||
| Sublease | 241,065 | - | ||||||
| Total revenue | 7,009,875 | 6,971,632 | ||||||
| Cost of revenue: | ||||||||
| Systems | 51,163 | 203,602 | ||||||
| Disposables, service and accessories | 1,114,360 | 1,061,745 | ||||||
| Sublease | 246,530 | - | ||||||
| Total cost of revenue | 1,412,053 | 1,265,347 | ||||||
| Gross margin | 5,597,822 | 5,706,285 | ||||||
| Operating expenses: | ||||||||
| Research and development | 2,959,219 | 1,962,626 | ||||||
| Sales and marketing | 3,309,829 | 3,634,997 | ||||||
| General and administrative | 1,468,160 | 1,239,179 | ||||||
| Total operating expenses | 7,737,208 | 6,836,802 | ||||||
| Operating loss | (2,139,386 | ) | (1,130,517 | ) | ||||
| Other income | - | 2,590,361 | ||||||
| Interest income (expense) | 16,566 | (24,615 | ) | |||||
| Net income (loss) | $ | (2,122,820 | ) | $ | 1,435,229 | |||
| Cumulative dividend on convertible preferred stock | (353,510 | ) | (353,589 | ) | ||||
| Net income attributable to convertible preferred stock | - | (610,280 | ) | |||||
| Net income (loss) attributable to common stockholders | $ | (2,476,330 | ) | $ | 471,360 | |||
| Net income (loss) per share attributed to common stockholder: | ||||||||
| Basic | $ | (0.04 | ) | $ | 0.02 | |||
| Diluted | $ | (0.04 | ) | $ | 0.01 | |||
| Weighted average number of common shares and equivalents: | ||||||||
| Basic | 59,196,652 | 30,957,648 | ||||||
| Diluted | 59,196,652 | 33,122,598 |
| March 31, 2019 | December 31, 2018 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,040,816 | $ | 10,796,072 | ||||
| Accounts receivable, net of allowance of $458,701 and $398,847 in 2019 and 2018, respectively | 5,239,470 | 5,021,111 | ||||||
| Inventories, net | 1,309,134 | 1,191,666 | ||||||
| Prepaid expenses and other current assets | 774,014 | 963,700 | ||||||
| Total current assets | 16,363,434 | 17,972,549 | ||||||
| Property and equipment, net | 328,614 | 343,693 | ||||||
| Operating lease right-of-use assets | 5,580,457 | - | ||||||
| Other assets | 170,088 | 198,365 | ||||||
| Total assets | $ | 22,442,593 | $ | 18,514,607 | ||||
| Liabilities and stockholders' equity (deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,383,230 | $ | 1,726,360 | ||||
| Accrued liabilities | 2,273,687 | 2,642,481 | ||||||
| Deferred revenue | 5,645,815 | 5,825,536 | ||||||
| Current portion of operating lease liabilities | 2,159,944 | - | ||||||
| Total current liabilities | 12,462,676 | 10,194,377 | ||||||
| Long-term deferred revenue | 404,607 | 407,151 | ||||||
| Operating lease liabilities | 3,433,430 | - | ||||||
| Other liabilities | 813,641 | 641,461 | ||||||
| Total liabilities | 17,114,354 | 11,242,989 | ||||||
| Convertible preferred stock: | ||||||||
| Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,880 and 23,900 shares outstanding at 2019 and 2018 | 5,955,354 | 5,960,475 | ||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 59,308,237 and 59,058,297 shares issued at 2019 and 2018, respectively | 59,308 | 59,058 | ||||||
| Additional paid-in capital | 478,363,886 | 478,179,574 | ||||||
| Treasury stock, 4,015 shares at 2019 and 2018 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (478,844,310 | ) | (476,721,490 | ) | ||||
| Total stockholders' equity (deficit) | (627,115 | ) | 1,311,143 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 22,442,593 | $ | 18,514,607 |