Full Press Release Details
Reports 2020 Third Quarter Financial Results
LOUIS, MO, Nov. 9, 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 third quarter ended September
is pleased to report revenue growth with the successful installation of the first Genesis RMN and Model S Imaging
Systems in both the United States and Europe. Our newest robotic technology has performed to the high expectations demanded by
premier medical institutions, been used successfully in over ninety procedures, and proven reliable and robust with uninterrupted
up-time," said David Fischel, Chairman and CEO.
hospitals remain negatively impacted by COVID-19, we have experienced a gradual return towards more normal capital planning. We
received an additional order for a Genesis system from a US hospital that is establishing a new robotic electrophysiology program.
Given the advanced status of multiple additional discussions, we are comfortable providing preliminary guidance for $10-20 million
in Genesis system revenue in 2021."
advanced robotically-navigated magnetic ablation catheter is advancing on schedule with initial commercialization and initiation
of a pivotal US trial expected in 2021. Meaningful progress continues on an additional wave of innovations within electrophysiology
and beyond that are expected to drive transformational revenue growth. We expect to share details on this next wave of innovation
towards the end of next year."
Quarter 2020 Financial Results
for the third quarter of 2020 totaled $8.7 million, up 6% from $8.2 million in the prior year third quarter. System revenue was
$3.0 million reflecting initial revenue recognition on the first Genesis RMN Systems. Recurring revenue was $5.5
million in the quarter, compared to $6.3 million in the prior year third quarter. The decline was primarily caused by a 10% reduction
in procedure volumes due to COVID-19.
margin in the quarter was $4.7 million, or 54% of revenue. Gross margin on recurring revenue was consistent with prior
quarters. Gross margin on system revenue reflected the allocation of overhead expenses and initial installation costs, and was
not reflective of cash margins generated from the system sales or expected future GAAP margins. Operating expenses in the
third quarter of $6.2 million decreased from $6.4 million in the prior year quarter with increased investment in R&D offset
by reduced travel and marketing expenses. Operating loss and net loss in the quarter were ($1.6) million. Adjusted negative free
cash flow for the quarter was ($0.2) million.
Balance and Liquidity
September 30, 2020, Stereotaxis had cash and cash equivalents of $43.8 million.
Looking Expectations
continues to experience significant interest in the Genesis system and anticipates robust double-digit revenue growth in 2021,
with Genesis RMN System revenue of $10-20 million. Stereotaxis is increasing its previously provided guidance for year-end cash
balance and now anticipates ending 2020 with greater than $43 million cash and cash equivalents. Stereotaxis' balance sheet
allows it to reach profitability without the need for additional financings.
will host a conference call and webcast today, November 9, 2020, at 10:00 a.m. Eastern Time. To access the conference call, dial
1-800-437-2398 (US and Canada) or 1-856-344-9206 (International) and give the participant pass code 9232669. 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue: | ||||||||||||||||
| Systems | $ | 2,953,005 | $ | 1,696,964 | $ | 2,965,774 | $ | 1,755,015 | ||||||||
| Disposables, service and accessories | 5,504,048 | 6,258,252 | 16,099,915 | 19,515,125 | ||||||||||||
| Sublease | 246,530 | 246,532 | 739,590 | 739,593 | ||||||||||||
| Total revenue | 8,703,583 | 8,201,748 | 19,805,279 | 22,009,733 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Systems | 3,031,440 | 665,463 | 3,253,976 | 722,828 | ||||||||||||
| Disposables, service and accessories | 747,285 | 919,599 | 2,068,085 | 2,928,718 | ||||||||||||
| Sublease | 246,530 | 246,531 | 739,590 | 739,592 | ||||||||||||
| Total cost of revenue | 4,025,255 | 1,831,593 | 6,061,651 | 4,391,138 | ||||||||||||
| Gross margin | 4,678,328 | 6,370,155 | 13,743,628 | 17,618,595 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,952,641 | 1,751,081 | 6,038,753 | 7,405,462 | ||||||||||||
| Sales and marketing | 2,822,680 | 3,120,632 | 8,279,853 | 9,666,975 | ||||||||||||
| General and administrative | 1,466,046 | 1,539,648 | 4,962,227 | 4,186,277 | ||||||||||||
| Total operating expenses | 6,241,367 | 6,411,361 | 19,280,833 | 21,258,714 | ||||||||||||
| Operating loss | (1,563,039 | ) | (41,206 | ) | (5,537,205 | ) | (3,640,119 | ) | ||||||||
| Interest income (expense) | (9,933 | ) | 84,954 | 71,596 | 133,329 | |||||||||||
| Net income (loss) | $ | (1,572,972 | ) | $ | 43,748 | $ | (5,465,609 | ) | $ | (3,506,790 | ) | |||||
| Cumulative dividend on convertible preferred stock | (343,101 | ) | (360,647 | ) | (1,028,950 | ) | (1,071,351 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (1,916,073 | ) | $ | (316,899 | ) | $ | (6,494,559 | ) | $ | (4,578,141 | ) | ||||
| Net loss per share attributed to common stockholder: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
| Diluted | $ | (0.03 | ) | $ | (0.00 | ) | $ | (0.09 | ) | $ | (0.07 | ) | ||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||
| Basic | 74,488,771 | 64,294,153 | 72,004,956 | 61,405,083 | ||||||||||||
| Diluted | 74,488,771 | 64,294,153 | 72,004,956 | 61,405,083 |
| September 30, 2020 | December 31, 2019 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,595,829 | $ | 30,182,115 | ||||
| Compensating cash arrangement | 250,295 | - | ||||||
| Accounts receivable, net of allowance of $265,233 and $380,212 at 2020 and 2019, respectively | 5,409,722 | 5,329,577 | ||||||
| Inventories, net | 2,846,051 | 1,847,530 | ||||||
| Prepaid expenses and other current assets | 1,774,792 | 1,470,922 | ||||||
| Total current assets | 53,876,689 | 38,830,144 | ||||||
| Property and equipment, net | 234,858 | 250,443 | ||||||
| Operating lease right-of-use assets | 2,764,022 | 4,286,064 | ||||||
| Other assets | 256,669 | 218,103 | ||||||
| Total assets | $ | 57,132,238 | $ | 43,584,754 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | 457,244 | $ | - | ||||
| Accounts payable | 1,568,581 | 2,099,097 | ||||||
| Accrued liabilities | 2,956,130 | 2,721,104 | ||||||
| Deferred revenue | 6,189,796 | 5,092,455 | ||||||
| Current portion of operating lease liabilities | 2,275,436 | 2,248,189 | ||||||
| Total current liabilities | 13,447,187 | 12,160,845 | ||||||
| Long-term debt | 1,701,066 | - | ||||||
| Long-term deferred revenue | 569,475 | 554,258 | ||||||
| Operating lease liabilities | 540,536 | 2,089,537 | ||||||
| Other liabilities | 255,517 | 255,517 | ||||||
| Total liabilities | 16,513,781 | 15,060,157 | ||||||
| Series A - Convertible preferred stock: | ||||||||
| Convertible preferred stock, Series A, par value $0.001; 22,513 and 23,110 shares outstanding at 2020 and 2019, respectively | 5,605,323 | 5,758,190 | ||||||
| Stockholders' equity: | ||||||||
| Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 at 2020 and 2019 | 5,610 | 5,610 | ||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 73,678,206 and 68,529,623 shares issued at 2020 and 2019, respectively | 73,678 | 68,530 | ||||||
| Additional paid-in capital | 521,918,228 | 504,211,040 | ||||||
| Treasury stock, 4,015 shares at 2020 and 2019 | (205,999 | ) | (205,999 | ) | ||||
| Accumulated deficit | (486,778,383 | ) | (481,312,774 | ) | ||||
| Total stockholders' equity | 35,013,134 | 22,766,407 | ||||||
| Total liabilities and stockholders' equity | $ | 57,132,238 | $ | 43,584,754 |