Full Press Release Details
Reports 2020 First Quarter Financial Results
LOUIS, MO, May 5, 2020 (GLOBE NEWSWIRE) - Stereotaxis (NYSE: 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, 2020.
the challenges and disruptions inflicted by COVID-19, Stereotaxis continues to support the patients and physicians that rely on
its technology, maintain effective operations, rapidly advance strategic innovations, and protect its financial stability,"
said David Fischel, Chairman and CEO.
financial performance late in the quarter was impacted by broad-based reductions in procedure volumes as hospitals globally curtailed
activity to lessen infection risk, preserve equipment, and focus their resources on battling the pandemic. This impacted revenue
from disposables and temporarily disrupted the completion of certain project-specific service activities. Stereotaxis has responded
to the disruptions with broad deployment of TeleRobotic support, leveraging proprietary connectivity technology to enable remote
clinical and technical support of robotic electrophysiology practices."
the pandemic has slowed progress on multiple Genesis purchase orders we had expected to announce at this time, we continue to
see significant interest in Genesis. Over the last three weeks we hosted 51 physicians from 29 hospitals on TeleRobotic
visits to remotely view and test drive the Genesis system. Progress on the two Genesis orders previously announced continues without
interruption, with installations and revenue recognition expected in early summer."
continue to make progress on strategic innovations and look forward to finalizing the design of Stereotaxis' advanced robotically-navigated
magnetic ablation catheter in the near term. We are delighted with its performance and the feedback provided by expert physicians."
are addressing the financial impact of COVID-19 by reducing expenses in a manner that ensures long-term financial stability, maintains
our organizational capabilities, and does not negatively impact our progress. In April we received a $2.2 million forgivable loan
from the government's Paycheck Protection Program."
First Quarter Financial Results
for the first quarter of 2020 totaled $5.8 million compared to $7.0 million in the prior year first quarter. This decrease was
primarily due to broad based reductions in procedure volumes in Asia throughout the quarter and in the United States and Europe
starting the second week of March. Approximately 30% of the reduced revenue was due to temporarily delayed completion of certain
service activities due to travel restrictions.
margin for the first quarter was $4.8 million, or 83% of revenue. Operating expenses in the quarter of $6.9 million were 11% lower
than the prior year first quarter. The reduction in operating expenses was predominantly driven by timing of R&D projects
and pandemic-related reductions in sales and marketing activities, partially offset by increased non-cash general and administrative
expenses. Operating loss and net loss in the first quarter were ($2.1) million and ($2.0) million respectively. Negative free
cash flow for the first quarter was ($2.2) million, compared to ($1.8) million in the prior year first quarter.
Balance and Liquidity
March 31, 2020, Stereotaxis had cash and cash equivalents of $28.0 million and no debt.
Looking Expectations
the impact of COVID-19, Stereotaxis is suspending its guidance of robust double-digit revenue growth for the year. The uncertain
duration and scope of the pandemic makes it difficult at this time to reliably provide an alternative guidance. While indications
point towards a gradual return to more normal procedure activity, drawing conclusions from short-term volatile data is imprudent.
Stereotaxis continues to experience significant interest in the recently launched Genesis RMN System and continues to expect
a resurgence of system sales to new and existing hospital customers as the pandemic recedes. In the long-term, increased appreciation
and acceptance of TeleRobotic capabilities are expected to accelerate adoption of robotics in interventional medicine.
will host a conference call and webcast today, May 5, 2020, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-833-423-0423
(US and Canada) or 1-918-922-3067 (International) and give the participant pass code 9794597. 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. 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 continue to
manage expenses and cash burn rate at sustainable levels, 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 policy in the United States, including changes in government
reimbursement of procedures, dependence upon third-party vendors, timing of regulatory approvals, the impact of the recent coronavirus
(COVID-19) pandemic and our response to it, 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, | ||||||||
| 2020 | 2019 | |||||||
| Revenue: | ||||||||
| Systems | $ | - | $ | 58,051 | ||||
| Disposables, service and accessories | 5,509,711 | 6,710,759 | ||||||
| Sublease | 246,530 | 241,065 | ||||||
| Total revenue | 5,756,241 | 7,009,875 | ||||||
| Cost of revenue: | ||||||||
| Systems | 65,022 | 51,163 | ||||||
| Disposables, service and accessories | 639,863 | 1,114,360 | ||||||
| Sublease | 246,530 | 246,530 | ||||||
| Total cost of revenue | 951,415 | 1,412,053 | ||||||
| Gross margin | 4,804,826 | 5,597,822 | ||||||
| Operating expenses: | ||||||||
| Research and development | 2,109,170 | 2,959,219 | ||||||
| Sales and marketing | 2,915,424 | 3,309,829 | ||||||
| General and administrative | 1,832,726 | 1,468,160 | ||||||
| Total operating expenses | 6,857,320 | 7,737,208 | ||||||
| Operating loss | (2,052,494 | ) | (2,139,386 | ) | ||||
| Interest income | 80,963 | 16,566 | ||||||
| Net loss | $ | (1,971,531 | ) | $ | (2,122,820 | ) | ||
| Cumulative dividend on convertible preferred stock | (343,723 | ) | (353,510 | ) | ||||
| Net loss attributable to common stockholders | $ | (2,315,254 | ) | $ | (2,476,330 | ) | ||
| Net loss per share attributed to common stockholder: | ||||||||
| Basic | $ | (0.03 | ) | $ | (0.04 | ) | ||
| Diluted | $ | (0.03 | ) | $ | (0.04 | ) | ||
| Weighted average number of common shares and equivalents: | ||||||||
| Basic | 69,870,040 | 59,196,652 | ||||||
| Diluted | 69,870,040 | 59,196,652 |
| March 31, 2020 | December 31, 2019 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 28,024,723 | $ | 30,182,115 | ||||
| Accounts receivable, net of allowance of $401,692 and $380,212 at 2020 and 2019, respectively | 4,615,078 | 5,329,577 | ||||||
| Inventories, net | 3,170,140 | 1,847,530 | ||||||
| Prepaid expenses and other current assets | 1,390,503 | 1,470,922 | ||||||
| Total current assets | 37,200,444 | 38,830,144 | ||||||
| Property and equipment, net | 220,324 | 250,443 | ||||||
| Operating lease right-of-use assets | 3,790,044 | 4,286,064 | ||||||
| Long-term receivables | 95,483 | - | ||||||
| Other assets | 196,674 | 218,103 | ||||||
| Total assets | $ | 41,502,969 | $ | 43,584,754 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,002,297 | $ | 2,099,097 | ||||
| Accrued liabilities | 2,342,197 | 2,721,104 | ||||||
| Deferred revenue | 5,266,715 | 5,092,455 | ||||||
| Current portion of operating lease liabilities | 2,255,875 | 2,248,189 | ||||||
| Total current liabilities | 11,867,084 | 12,160,845 | ||||||
| Long-term deferred revenue | 510,689 | 554,258 | ||||||
| Operating lease liabilities | 1,585,928 | 2,089,537 | ||||||
| Other liabilities | 255,517 | 255,517 | ||||||
| Total liabilities | 14,219,218 | 15,060,157 | ||||||
| Series A - Convertible preferred stock: | ||||||||
| Convertible preferred stock, Series A, par value $0.001; 22,918 and 23,110 shares outstanding at 2020 and 2019, respectively | 5,709,027 | 5,758,190 | ||||||
| Stockholders' equity: | ||||||||
| Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2020 and 2019 | 5,610 | 5,610 | ||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 69,040,781 and 68,529,623 shares issued at 2020 and 2019, respectively | 69,041 | 68,530 | ||||||
| Additional paid-in capital | 504,990,377 | 504,211,040 | ||||||
| Treasury stock, 4,015 shares at 2020 and 2019 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (483,284,305 | ) | (481,312,774 | ) | ||||
| Total stockholders' equity | 21,574,724 | 22,766,407 | ||||||
| Total liabilities and stockholders' equity | $ | 41,502,969 | $ | 43,584,754 |