Stereotaxis Reports Improved First Quarter 2012 Financial Results
Management Comments
"We also improved operating loss by
"In order to accelerate our timeline to achieve breakeven, we are executing a plan to reduce operating costs by an additional 15% to 20% without compromising our revenue growth strategies. With the Epoch™ Solution product development behind us, we can focus research dollars on enhancements that ensure market adoption and long-term success of the robotic platform. In addition, we have opportunity for greater efficiencies within our capital sales organization through alignment with our local clinical organization.
"These strategies, which are built on the successful commercial launch and improving revenue of the Niobe® ES system, position us to reach breakeven while continuing to refine our technology, expand our offering through the Vdrive™ product and leverage our strategic partners in global market opportunities," concluded Kaminski.
Financial Results
Revenue for the first quarter 2012 totaled
The Company generated global new capital orders of
Gross margin in the quarter was
Operating expenses were
Operating loss in the quarter was
The net loss for the first quarter was
Cash burn for the first quarter 2012 was
At
Capitalization
"In line with our commitment to capitalize the company, we have entered into definitive agreements to raise approximately
The financing consists of
Cost Reduction
The Company has announced immediate plans to further lower its cost structure throughout the organization with reductions that do not directly impact top line growth. As a result, it expects to reduce operating spend by an additional 15-20% from first quarter levels by the 2012 fourth quarter.
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 the first half of 2012
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 1-800-406-7325 for domestic callers and 1-303-590-3030 for international callers, both using passcode 4536824. 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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March 31, |
December 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ 10,468,699 |
$ 13,954,919 |
|
Accounts receivable, net of allowance of $704,328 and $667,529 in 2012 and 2011, respectively |
10,293,481 |
11,104,038 |
|
Current portion of long-term receivables |
59,811 |
59,679 |
|
Inventories |
7,214,994 |
6,036,051 |
|
Prepaid expenses and other current assets |
3,416,740 |
3,081,484 |
|
Total current assets |
31,453,725 |
34,236,171 |
|
Property and equipment, net |
3,061,673 |
3,323,856 |
|
Intangible assets, net |
2,204,195 |
2,279,153 |
|
Long-term receivables |
31,118 |
51,892 |
|
Other assets |
41,635 |
40,760 |
|
Total assets |
$ 36,792,346 |
$ 39,931,832 |
|
Liabilities and stockholders' equity (deficit) |
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Current liabilities: |
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Current maturities of long-term debt |
$ 26,731,186 |
$ 21,173,321 |
|
Accounts payable |
6,003,094 |
5,610,181 |
|
Accrued liabilities |
5,510,409 |
5,703,166 |
|
Deferred contract revenue |
8,277,817 |
8,220,306 |
|
Warrants |
313,485 |
125,415 |
|
Total current liabilities |
46,835,991 |
40,832,389 |
|
Long-term debt, less current maturities |
12,720,806 |
17,290,531 |
|
Long-term deferred contract revenue |
602,520 |
634,713 |
|
Other liabilities |
1,561 |
3,094 |
|
Stockholders' equity (deficit): |
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Preferred stock, par value $0.001; 10,000,000 shares authorized at |
- |
- |
|
Common stock, par value $0.001; 100,000,000 shares authorized at |
56,372 |
55,432 |
|
Additional paid-in capital |
358,001,453 |
356,729,118 |
|
Treasury stock, 40,151 shares at 2012 and 2011 |
(205,999) |
(205,999) |
|
Accumulated deficit |
(381,220,358) |
(375,407,446) |
|
Total stockholders' equity (deficit) |
(23,368,532) |
(18,828,895) |
|
Total liabilities and stockholders' equity (deficit) |
$ 36,792,346 |
$ 39,931,832 |
STEREOTAXIS, INC. |
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STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended |
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2012 |
2011 |
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Revenue |
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System |
$ 5,179,505 |
$ 4,288,176 |
|
Disposables, service and accessories |
7,103,723 |
5,936,528 |
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Total revenue |
12,283,228 |
10,224,704 |
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Cost of revenue |
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System |
2,342,410 |
2,184,478 |
|
Disposables, service and accessories |
1,419,421 |
820,501 |
|
Total cost of revenue |
3,761,831 |
3,004,979 |
|
Gross margin |
8,521,397 |
7,219,725 |
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Operating expenses: |
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Research and development |
2,825,207 |
3,394,259 |
|
Sales and marketing |
5,998,739 |
8,338,336 |
|
General and administration |
3,872,873 |
4,250,269 |
|
Total operating expenses |
12,696,819 |
15,982,864 |
|
Operating loss |
(4,175,422) |
(8,763,139) |
|
Other income |
(188,070) |
20,346 |
|
Interest income |
1,363 |
3,187 |
|
Interest expense |
(1,450,783) |
(810,327) |
|
Net loss |
$ (5,812,912) |
$ (9,549,933) |
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Net loss per common share: |
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Basic and diluted |
$ (0.11) |
$ (0.17) |
|
Weighted average shares used in computing net |
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Basic and diluted |
54,993,157 |
54,719,677 |
SOURCE
Sam Duggan, Chief Financial Officer, +1-314-678-6007, or Media, Frank Cheng, Senior Vice President, Marketing & Business Development, +1-314-678-6111, both of Stereotaxis; or Investors, Gregory Gin, +1-646-445-4801, or Doug Sherk, +1-415-568-4887, both of EVC Group, Inc., for Stereotaxis