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Stereotaxis Reports 2023 Full Year Financial Results

Key Takeaway: Stereotaxis (NYSE: STXS) has reported its financial results for the fourth quarter and full year 2023, highlighting challenges due to production shortages and royalty losses. Despite these setbacks, the company is optimistic about upcoming product launches and regulatory approvals for its robotic systems. CEO David Fischel noted the foundation for future growth has been established and expects significant recovery in revenue and market position in the coming year. The company ended 2023 with a solid backlog and a focus on advancing its transformative product ecosystem.

Market Sentiment Analysis

POSITIVE FACTORS

  • Significant progress in strategic transformation expected to lead to growth.
  • Regulatory submissions made for new ablation catheter in Europe and the US.
  • Anticipation of new product launches and European regulatory clearance.

CONCERNS & RISKS

  • Revenue pressured by loss of royalties and catheter production shortages.
  • Operating loss and net loss increased compared to the previous year.
  • System revenue affected by delays in hospital construction schedules.

Full Press Release Details

Reports 2023 Full Year Financial Results
LOUIS, MO, Mar. 4, 2024 (GLOBE NEWSWIRE) - Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics
for minimally invasive endovascular intervention, today reported financial results for the fourth quarter and full year ended December
enter 2024 having made significant progress in realizing our strategic transformation. This is the year in which we expect all the key
puzzle pieces to come together, setting us up for breakout growth to follow," said David Fischel, Chairman and CEO.
innovation strategy has a strong foundation, and we are pleased with where we stand. Regulatory submissions for our proprietary robotically-navigated
ablation catheter have been made in both Europe and the United States, following stellar results from initial clinical use. We have begun
formal testing of our smaller highly-accessible robot, and anticipate achieving European regulatory clearance mid-year followed by FDA
clearance in the second half of the year. We also expect commercial launches later this year of a guidewire that expands our technology
into several new indications, a comprehensive product ecosystem in China, and a digital surgery solution enabling broad operating room
connectivity. These innovations collectively serve as a foundational product ecosystem for a high-growth medical robotics company poised
to transform endovascular surgery. They are transformational as they structurally improve our clinical, commercial, financial, and strategic
growth amidst this transition has remained challenging. Revenue in 2023 was pressured by the loss of royalties and recurring shortages
of catheters from our partner, highlighting the importance of overcoming key product dependencies. These headwinds counteracted growth
in robotic system revenue for the year. System revenue remains lumpy, but we continue to benefit from a significant backlog and pipeline
of orders. We were pleased in the fourth quarter to receive our first greenfield robotic system order from Germany in over a decade,
and we anticipate continued growth in orders and system revenue as it becomes clear to physicians and hospitals that the supply of robotic
catheters is secure."
retain a strong balance sheet which allows us to bring our transformative product ecosystem to market, fund its commercialization, and
reach profitability. We have multiple shots on goal for breakout growth in 2025."
Fourth Quarter and Full Year Financial Results
for the fourth quarter of 2023 totaled $4.6 million, compared to $7.3 million in the prior year fourth quarter. System revenue of $0.1
million and recurring revenue of $4.5 million, compared to $2.2 million and $5.1 million, respectively, in the prior year fourth quarter.
System revenue was weaker than expected due to delays in hospital construction schedules but does not reflect our normalized expectation.
Recurring revenue was in line with recent quarters. Revenue for the full year 2023 totaled $26.8 million compared to $28.1 million in
2022. Full year system revenue was $8.7 million compared to $6.8 million in the prior year, reflecting increased system deliveries. We
started 2024 with system backlog of $14.7 million. Full year recurring revenue was $18.0 million compared to $21.3 million, reflecting
the absence of catheter royalties received in the prior year and recurring catheter production shortages by our partner.
margin for the fourth quarter and full year 2023 were approximately 60% and 56% of revenue, respectively. Full year gross margins were
79% for recurring revenue and 8% for system revenue. System gross margins reflect significant allocations of overhead and other direct
expenses. Operating expenses in the fourth quarter were $8.0 million. Excluding $2.6 million in non-cash stock compensation expense,
adjusted operating expenses in the current quarter were $5.4 million, down from the prior year adjusted operating expenses of $6.2 million.
Adjusted operating expenses for the full year 2023 were $26.2 million, compared to $26.8 million in the prior year.
loss and net loss for the fourth quarter of 2023 were ($5.3) million and ($5.0) million, respectively, compared to ($4.5) million and
($4.2) million in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation
expense, were ($2.7) million, and ($2.4) million, respectively, compared to ($1.9) million and ($1.6) million in the previous year. For
the full year 2023, adjusted operating loss of ($11.3) million and adjusted net loss of ($10.2) million compared to an adjusted operating
loss of ($8.3) million and an adjusted net loss of ($7.8) million in the prior year. Negative free cash flow for the full year 2023 was
($9.1) million compared to ($10.8) million for the full year 2022.
Balance and Liquidity
December 31, 2023, Stereotaxis had cash and cash equivalents, including restricted cash, of $20.6 million and no debt.
Looking Expectations
anticipates double digit revenue growth for the full year 2024 driven by revenue recognition of system backlog and new system orders.
Cognizant of the volatility in quarterly revenue and challenge in reliably anticipating revenue in any specific quarter, Stereotaxis
is providing specific revenue guidance only for the first quarter of 2024 of approximately $7.0 million.
balance sheet allows it to advance its transformative product ecosystem to market, fund its commercialization, and reach profitability
without the need for additional financing.
will host a conference call and webcast today, March 4, 2024, at 4:30 p.m. Eastern Time. To access the conference call, dial 1-800-715-9871
(US and Canada) or 1-646-307-1963 (International) and give the participant pass code 7954885. 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
(NYSE: STXS) is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention. 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, expand access to minimally invasive
therapy, and enhance the productivity, connectivity, and intelligence in the operating room. Stereotaxis technology has been used to
treat over 100,000 patients across the United States, Europe, Asia, 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. Factors that would cause or contribute to such differences
include, but are not limited to, the Company's ability to manage expenses at sustainable levels, 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 technology,
competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the
impact of pandemics or other disasters, 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 because some of these purchase orders and other commitments are subject to contingencies that
are outside of the Company's control and may be revised, modified, delayed, or canceled.
and Chief Executive Officer
STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts) Three Months Ended December 31, Year Ended December 31,
2023 2022 2023 2022
Revenue:
Systems $ 66 $ 2,196 $ 8,739 $ 6,845
Disposables, service and accessories 4,499 5,105 18,032 21,302
Total revenue 4,565 7,301 26,771 28,147
Cost of revenue:
Systems 749 1,985 8,058 5,802
Disposables, service and accessories 1,078 1,007 3,853 3,875
Total cost of revenue 1,827 2,992 11,911 9,677
Gross margin 2,738 4,309 14,860 18,470
Operating expenses:
Research and development 2,212 2,400 10,273 10,558
Sales and marketing 2,791 2,988 12,376 12,325
General and administrative 3,039 3,377 14,050 14,363
Total operating expenses 8,042 8,765 36,699 37,246
Operating loss (5,304 ) (4,456 ) (21,839 ) (18,776 )
Other income 3 - 30 -
Interest income, net 261 302 1,096 484
Net loss $ (5,040 ) $ (4,154 ) $ (20,713 ) $ (18,292 )
Cumulative dividend on convertible preferred stock (339 ) (338 ) (1,343 ) (1,343 )
Net loss attributable to common stockholders $ (5,379 ) $ (4,492 ) $ (22,056 ) $ (19,635 )
Net loss per share attributed to common stockholders:
Basic $ (0.07 ) $ (0.06 ) $ (0.27 ) $ (0.26 )
Diluted $ (0.07 ) $ (0.06 ) $ (0.27 ) $ (0.26 )
Weighted average number of common shares and equivalents:
Basic 82,702,722 76,308,259 80,702,358 76,061,183
Diluted 82,702,722 76,308,259 80,702,358 76,061,183
(in thousands, except share amounts) December 31, 2023 December 31, 2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 19,818 $ 8,586
Restricted cash - current 525 525
Short-term investments - 19,844
Accounts receivable, net of allowance of $672 and $235 at 2023 and 2022, respectively 3,822 5,090
Inventories, net 8,426 7,876
Prepaid expenses and other current assets 676 1,325
Total current assets 33,267 43,246
Property and equipment, net 3,304 3,831
Restricted cash 219 744
Operating lease right-of-use assets 4,982 5,384
Prepaid and other non-current assets 137 208
Total assets $ 41,909 $ 53,413
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 3,190 $ 3,270
Accrued liabilities 2,972 3,306
Deferred revenue 6,657 7,342
Current portion of operating lease liabilities 428 373
Total current liabilities 13,247 14,291
Long-term deferred revenue 1,637 1,654
Operating lease liabilities 5,062 5,488
Other liabilities 43 51
Total liabilities 19,989 21,484
Series A - Convertible preferred stock:
Convertible preferred stock, Series A, par value $0.001; 22,358 and 22,383 shares outstanding at 2023 and 2022, respectively 5,577 5,583
Stockholders' equity:
Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022 - 6
Common stock, par value $0.001; 300,000,000 shares authorized, 80,949,697 and 74,874,459 shares issued at 2023 and 2022, respectively 81 75
Additional paid-in capital 554,148 543,438
Treasury stock, 4,015 shares at 2023 and 2022 (206 ) (206 )
Accumulated deficit (537,680 ) (516,967 )
Total stockholders' equity 16,343 26,346
Total liabilities and stockholders' equity $ 41,909 $ 53,413

Frequently Asked Questions

What were Stereotaxis' total revenues for 2023?

Stereotaxis reported total revenues of $26.8 million for 2023.

What is the expected revenue for Q1 2024?

Stereotaxis anticipates approximately $7.0 million in revenue for Q1 2024.

What growth does Stereotaxis project for 2024?

The company expects double-digit revenue growth for the full year 2024.

What is the status of Stereotaxis' product approvals?

Regulatory submissions for a new ablation catheter have been made in the U.S. and Europe.

What is Stereotaxis' financial situation at year-end 2023?

Stereotaxis had cash and cash equivalents of $20.6 million and no debt.

Last updated: Mar 4, 2024