Stereotaxis Reports 2011 Financial Results; Provides 2012 Milestones
Management Comments
"While 2011 was challenged by the transition to a new robotic platform, we are confident the strategic initiatives we put in place will lead to improved operating performance and financial results beginning in 2012," said
Kaminski continued, "After much anticipation, we were excited to launch our next generation Niobe® ES, or Epoch™ system, in December and are encouraged by the positive initial results and validation from multiple physician users. The Niobe ES system is designed to transform the practice of electrophysiology (EP), and we believe it provides a strong competitive advantage in terms of efficiency and safety. To date, we have upgraded 21 sites and anticipate solid market traction and system revenue growth this year based on the significant early market interest."
"The recognized value of our robotic technology for complex ablations in the EP lab was further evidenced by 23% growth in utilization for complex procedures in 2011. Overall, utilization grew 11% and contributed to record levels of recurring revenue during the year.
"Moving forward, our immediate priority is to address the capital needs of the company, including securing an extension of our credit agreement with
2011 Financial Results
Fourth Quarter
Revenue for the fourth quarter 2011 totaled
The Company generated global new capital orders of
Gross margin in the quarter was 71.4% of revenue or 73.2% excluding a
Operating expenses were
The net loss for the fourth quarter was
Cash burn for the fourth quarter 2011 was
Full Year
For the full year 2011, total revenue was
Conversely, recurring revenue increased 15.1% over the previous year to
Gross margin for the full year 2011 was 70.2% of revenue compared to 71.2% in 2010, and was positively impacted by a higher mix of recurring revenue, which averaged an 85.1% gross margin. Excluding a
Operating expenses were
The net loss for full year 2011 was
At
Capitalization
On
The Company anticipates that its lower cost structure and the expected rebound in revenue will improve cash flow and reduce capital requirements. The Company is also working to secure additional financing and is actively looking at and considering a number of potential alternatives. Successfully completing these steps in the near term will be fundamental for the Company to continue to be able to drive its business model forward as planned.
Clinical Results
As of
2012 Milestones
- Complete additional capital raise and secure extended credit agreement with
Silicon Valley Bank - Achieve at least 10 new Niobe ES system sales
- Complete 40 Niobe ES system upgrades during first half of the year
Conference Call and Webcast
An audio replay of the call will be available for seven days following the call and can be accessed by dialing 1-888-286-8010 for domestic callers and 1-617-801-6888 for international callers, both using passcode 14422617. The call also will be available for 90 days at www.stereotaxis.com.
About
The core components of
This 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, our continued access to capital and financial resources, including our ability to extend our current loan facility and to obtain additional capital through other financing arrangements, in each case on a timely basis and on terms that are acceptable, 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 our systems and the timing of such purchases, the outcome of various shareholder litigation recently filed against us, competitive factors, changes resulting from the recently enacted healthcare reform in the U.S., 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
STEREOTAXIS, INC. |
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BALANCE SHEETS |
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(Unaudited) |
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December 31, |
December 31, |
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(Unaudited) |
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Assets |
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Current assets: |
||||
Cash and cash equivalents |
$ 13,954,919 |
$ 35,248,819 |
||
Accounts receivable, net of allowance of $667,529 and $367,536 in |
11,104,038 |
13,915,569 |
||
Current portion of long-term receivables |
59,679 |
30,800 |
||
Inventories |
6,036,051 |
5,441,475 |
||
Prepaid expenses and other current assets |
3,081,484 |
4,557,718 |
||
Total current assets |
34,236,171 |
59,194,381 |
||
Property and equipment, net |
3,323,856 |
3,840,622 |
||
Intangible assets, net |
2,279,153 |
2,578,986 |
||
Long-term receivables |
51,892 |
109,266 |
||
Other assets |
40,760 |
38,537 |
||
Total assets |
$ 39,931,832 |
$ 65,761,792 |
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Liabilities and stockholders' equity (deficit) |
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Current liabilities: |
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Current maturities of long-term debt |
$ 21,173,321 |
$ 20,894,091 |
||
Accounts payable |
5,610,181 |
8,796,182 |
||
Accrued liabilities |
5,703,166 |
6,966,571 |
||
Deferred contract revenue |
8,220,306 |
6,600,313 |
||
Warrants |
125,415 |
3,541,798 |
||
Total current liabilities |
40,832,389 |
46,798,955 |
||
Long-term debt, less current maturities |
17,290,531 |
8,000,000 |
||
Long-term deferred contract revenue |
634,713 |
478,850 |
||
Other liabilities |
3,094 |
8,741 |
||
Stockholders' equity (deficit): |
||||
Preferred stock, par value $0.001; 10,000,000 shares authorized at |
- |
- |
||
Common stock, par value $0.001; 100,000,000 shares authorized at |
55,432 |
54,746 |
||
Additional paid-in capital |
356,729,118 |
354,002,770 |
||
Treasury stock, 40,151 shares at 2011 and 2010 |
(205,999) |
(205,999) |
||
Accumulated deficit |
(375,407,446) |
(343,376,271) |
||
Total stockholders' equity (deficit) |
(18,828,895) |
10,475,246 |
||
Total liabilities and stockholders' equity (deficit) |
$ 39,931,832 |
$ 65,761,792 |
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STEREOTAXIS, INC. |
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STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended |
Twelve Months Ended |
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2011 |
2010 |
2011 |
2010 |
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Revenue |
||||||||
System |
$ 4,235,077 |
$ 8,293,334 |
$ 15,585,538 |
$ 31,120,034 |
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Disposables, service and accessories |
7,381,498 |
6,250,962 |
26,401,894 |
22,931,203 |
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Total revenue |
11,616,575 |
14,544,296 |
41,987,432 |
54,051,237 |
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Cost of revenue |
||||||||
System |
2,147,500 |
3,236,975 |
8,576,283 |
12,719,200 |
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Disposables, service and accessories |
1,172,002 |
625,807 |
3,921,798 |
2,845,487 |
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Total cost of revenue |
3,319,502 |
3,862,782 |
12,498,081 |
15,564,687 |
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Gross margin |
8,297,073 |
10,681,514 |
29,489,351 |
38,486,550 |
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Operating expenses: |
||||||||
Research and development |
2,651,731 |
2,648,191 |
12,886,488 |
12,244,163 |
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Sales and marketing |
6,698,774 |
7,768,084 |
31,635,415 |
30,178,818 |
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General and administration |
3,524,343 |
3,685,052 |
16,908,656 |
15,022,689 |
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Total operating expenses |
12,874,848 |
14,101,327 |
61,430,559 |
57,445,670 |
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Operating loss |
(4,577,775) |
(3,419,813) |
(31,941,208) |
(18,959,120) |
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Other income |
164,561 |
2,010,516 |
3,416,383 |
2,060,346 |
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Interest income |
1,915 |
2,644 |
9,052 |
10,578 |
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Interest expense |
(1,102,188) |
(1,084,193) |
(3,515,402) |
(3,035,291) |
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Net loss |
$ (5,513,487) |
$ (2,490,846) |
$ (32,031,175) |
$ (19,923,487) |
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Net loss per common share: |
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Basic and diluted |
$ (0.10) |
$ (0.05) |
$ (0.58) |
$ (0.39) |
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Weighted average shares used in computing net |
||||||||
Basic and diluted |
54,923,691 |
52,501,460 |
54,826,266 |
50,522,001 |
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SOURCE
Sam Duggan, Chief Financial Officer of Stereotaxis, +1-314-678-6007; or Investors, Gregory Gin, +1-646-445-4801, or Doug Sherk, +1-415-568-4887, both of EVC Group, Inc. for Stereotaxis; or Media, Frank Cheng, Senior Vice President, Marketing & Business Development of Stereotaxis, +1-314-678-6111