Full Press Release Details
Reports 2023 Third Quarter Financial Results
LOUIS, Nov. 9, 2023 (GLOBE NEWSWIRE) - Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics for
minimally invasive endovascular intervention, today reported financial results for the third quarter ended September 30, 2023.
continues to deliver commercial results and advance a robust innovation strategy, while maintaining financial discipline," said
David Fischel, Chairman and CEO. "Revenue growth in the quarter was driven by continued demand for Genesis with revenue recognition
of two robotic systems. System revenue growth counteracted the loss of royalties and residual pressure on procedures. A robust system
pipeline along with existing system backlog of $13 million supports continued growth in the coming quarters."
are making broad, methodical progress across the late stages of a comprehensive innovation strategy. Approval to enroll patients in a
European clinical study of the MAGiC ablation catheter is expected within weeks. In the US, we determined it reasonable to submit a PMA
Supplement for MAGiC and plan to make the regulatory submission prior to year-end. This approach holds the potential to significantly
accelerate availability of MAGiC to physicians and patients who would benefit from it. Our collaborations with Abbott and MicroPort,
and internal development of a next-generation highly-accessible robot, vascular interventional devices, and a digital surgery solution,
continue to make meaningful progress. We remain confident these collectively drive a strategic transformation that makes robotics broadly
accessible and impactful across endovascular surgery."
cash utilization reflects continued attention to financial discipline and benefits from the significant build up in inventory in previous
quarters. We remain cognizant of the importance of maintaining financial strength and are confident in our ability to realize our innovation
strategy with our current resources."
Third Quarter Financial Results
for the third quarter of 2023 totaled $7.8 million, compared to $7.7 million in the prior year third quarter. System revenue for the
quarter was $3.5 million and recurring revenue was $4.3 million, compared to $2.4 million and $5.3 million in the prior year third quarter,
respectively. System revenue growth reflects revenue recognition on the delivery of two Genesis systems. Recurring revenue was impacted
by the absence of catheter royalties received in the prior year.
margin for the third quarter of 2023 was 52% of revenue. Recurring revenue gross margin was 80% and system gross margin was 18%. Operating
expenses in the third quarter of $9.7 million include $2.6 million in non-cash stock compensation expense. Excluding non-cash stock compensation
expense, adjusted operating expenses in the current quarter were $7.1 million compared to $6.9 million in the prior year third quarter.
loss and net loss for the third quarter of 2023 were ($5.6) million and ($5.4) million, respectively, compared to ($5.1) million and
($4.9) million in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation
expense, were ($3.0) million and ($2.8) million, respectively, compared to ($2.4) million and ($2.2) million in the previous year. Negative
free cash flow for the third quarter was ($1.0) million.
Balance and Liquidity
September 30, 2023, Stereotaxis had cash and cash equivalents, including restricted cash, of $23.0 million and no debt.
Looking Expectations
expects continued revenue growth in the coming quarters driven by revenue recognition of system backlog and new system orders. Accelerating
revenue growth in subsequent years is expected to be supported by new technology launches.
expects to end the year with $22 million in cash and no debt. This balance sheet allows us to advance a 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, November 9, 2023, at 10:00 a.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 3519052. 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
| (in thousands, except share and per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue: | ||||||||||||||||
| Systems | $ | 3,539 | $ | 2,413 | $ | 8,673 | $ | 4,649 | ||||||||
| Disposables, service and accessories | 4,260 | 5,244 | 13,533 | 16,197 | ||||||||||||
| Total revenue | 7,799 | 7,657 | 22,206 | 20,846 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Systems | 2,909 | 2,016 | 7,309 | 3,817 | ||||||||||||
| Disposables, service and accessories | 831 | 1,074 | 2,775 | 2,868 | ||||||||||||
| Total cost of revenue | 3,740 | 3,090 | 10,084 | 6,685 | ||||||||||||
| Gross margin | 4,059 | 4,567 | 12,122 | 14,161 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,668 | 2,818 | 8,061 | 8,158 | ||||||||||||
| Sales and marketing | 3,097 | 3,111 | 9,585 | 9,337 | ||||||||||||
| General and administrative | 3,933 | 3,690 | 11,011 | 10,986 | ||||||||||||
| Total operating expenses | 9,698 | 9,619 | 28,657 | 28,481 | ||||||||||||
| Operating loss | (5,639 | ) | (5,052 | ) | (16,535 | ) | (14,320 | ) | ||||||||
| Other income | - | - | 27 | - | ||||||||||||
| Interest income, net | 270 | 135 | 835 | 182 | ||||||||||||
| Net loss | $ | (5,369 | ) | $ | (4,917 | ) | $ | (15,673 | ) | $ | (14,138 | ) | ||||
| Cumulative dividend on convertible preferred stock | (338 | ) | (339 | ) | (1,004 | ) | (1,005 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (5,707 | ) | $ | (5,256 | ) | $ | (16,677 | ) | $ | (15,143 | ) | ||||
| Net loss per share attributed to common stockholders: | ||||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.21 | ) | $ | (0.20 | ) | ||||
| - | ||||||||||||||||
| Diluted | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.21 | ) | $ | (0.20 | ) | ||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||
| Basic | 82,468,971 | 76,100,007 | 80,028,243 | 75,977,920 | ||||||||||||
| Diluted | 82,468,971 | 76,100,007 | 80,028,243 | 75,977,920 |
| September 30, | December 31, | |||||||
| (in thousands, except share amounts) | 2023 | 2022 | ||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 22,100 | $ | 8,586 | ||||
| Restricted cash - current | 525 | 525 | ||||||
| Short-term investments | - | 19,844 | ||||||
| Accounts receivable, net of allowance of $596 and $235 at 2023 and 2022, respectively | 5,246 | 5,090 | ||||||
| Inventories, net | 6,788 | 7,876 | ||||||
| Prepaid expenses and other current assets | 855 | 1,325 | ||||||
| Total current assets | 35,514 | 43,246 | ||||||
| Property and equipment, net | 3,443 | 3,831 | ||||||
| Restricted cash | 350 | 744 | ||||||
| Operating lease right-of-use assets | 5,086 | 5,384 | ||||||
| Prepaid and other non-current assets | 135 | 208 | ||||||
| Total assets | $ | 44,528 | $ | 53,413 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,243 | $ | 3,270 | ||||
| Accrued liabilities | 3,160 | 3,306 | ||||||
| Deferred revenue | 6,216 | 7,342 | ||||||
| Current portion of operating lease liabilities | 413 | 373 | ||||||
| Total current liabilities | 13,032 | 14,291 | ||||||
| Long-term deferred revenue | 1,982 | 1,654 | ||||||
| Operating lease liabilities | 5,173 | 5,488 | ||||||
| Other liabilities | 43 | 51 | ||||||
| Total liabilities | 20,230 | 21,484 | ||||||
| Series A - Convertible preferred stock: | ||||||||
| Convertible preferred stock, Series A, par value $0.001; 22,383 shares outstanding at 2023 and 2022 | 5,583 | 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, 80,873,295 and 74,874,459 shares issued at 2023 and 2022, respectively | 81 | 75 | ||||||
| Additional paid-in capital | 551,480 | 543,438 | ||||||
| Treasury stock, 4,015 shares at 2023 and 2022 | (206 | ) | (206 | ) | ||||
| Accumulated deficit | (532,640 | ) | (516,967 | ) | ||||
| Total stockholders' equity | 18,715 | 26,346 | ||||||
| Total liabilities and stockholders' equity | $ | 44,528 | $ | 53,413 |