Stereotaxis Reports Second Quarter 2017 Financial Results
- Stable recurring revenue and 2% year-over-year growth in global procedures
- Reduced operating expenses and operating loss
- Launch of e-Contact™ module in EU and progress in development of strategic innovation plans
- Reaffirming 2017 expectations
- Conference call today at 10:00 a.m. Eastern Time
“During the quarter, we launched the e-Contact™ module in
Second Quarter and First Half 2017 Financial Results
Revenue for the second quarter of 2017 totaled $8.5 million, up from $7.9 million in the prior year second quarter and up sequentially from
Gross margin in the quarter was $6.3 million, or 74% of revenue, versus $6.8 million, or 86% of revenue, in the second quarter of 2016 and $5.7 million, or 82% of revenue, in the first quarter of 2017. The reduction in gross margin percentage does not reflect any fundamental changes in product pricing or costs but is primarily the result of higher system sales in the second quarter of 2017 as well as the launch and installation of e-Contact technology at European hospitals. Gross margin of 78% for the first half of 2017 was essentially equivalent to the gross margin recorded for the full year 2016.
Operating expenses in the second quarter were $6.7 million, down from $8.4 million in the prior year quarter and
Cash Balance and Liquidity
At June 30, 2017, Stereotaxis had cash and cash equivalents of $5.0 million, no debt, and $3.9 million in unused borrowing capacity on its revolving credit facility, for total liquidity of $8.9 million.
Full Year 2017 Expectations
The Company is reaffirming each of the expectations for 2017 that were initially provided in May:
- Full year 2017 expected revenue to exceed $30 million
- Approximately cash flow neutral for the last three quarters of 2017
- Development and initiation of long term product innovation plan
About
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, the Company's ability to raise additional capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing, in either case on acceptable terms, 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 reform in
STEREOTAXIS, INC. | |||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
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2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Systems | $ | 1,828,439 | $ | 935,978 | $ | 2,047,334 | $ | 3,010,997 | |||||||
Disposables, service and accessories | 6,638,587 | 6,938,645 | 13,397,364 | 13,511,632 | |||||||||||
Total revenue | 8,467,026 | 7,874,623 | 15,444,698 | 16,522,629 | |||||||||||
Cost of revenue: | |||||||||||||||
Systems | 920,517 | 395,898 | 1,140,961 | 1,478,996 | |||||||||||
Disposables, service and accessories | 1,281,729 | 699,173 | 2,317,911 | 1,796,888 | |||||||||||
Total cost of revenue | 2,202,246 | 1,095,071 | 3,458,872 | 3,275,884 | |||||||||||
Gross margin | 6,264,780 | 6,779,552 | 11,985,826 | 13,246,745 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 1,281,264 | 1,421,380 | 2,439,697 | 2,894,465 | |||||||||||
Sales and marketing | 3,472,619 | 4,211,706 | 7,098,219 | 8,105,819 | |||||||||||
General and administrative | 1,945,676 | 2,786,046 | 4,785,546 | 5,372,838 | |||||||||||
Total operating expenses | 6,699,559 | 8,419,132 | 14,323,462 | 16,373,122 | |||||||||||
Operating loss | (434,779 | ) | (1,639,580 | ) | (2,337,636 | ) | (3,126,377 | ) | |||||||
Other income | 300,255 | 135,370 | 3,429,563 | 166,664 | |||||||||||
Interest income | 1 | 140 | 9 | 362 | |||||||||||
Interest expense | (42,776 | ) | (829,046 | ) | (92,267 | ) | (1,648,066 | ) | |||||||
Net income (loss) | $ | (177,299 | ) | $ | (2,333,116 | ) | $ | 999,669 | $ | (4,607,417 | ) | ||||
Cumulative dividend on convertible preferred stock | (369,661 | ) | - | (732,849 | ) | - | |||||||||
Net income attributable to convertible preferred stock | - | - | (167,539 | ) | - | ||||||||||
Earnings (net loss) attributable to common stockholders | $ | (546,960 | ) | $ | (2,333,116 | ) | $ | 99,281 | $ | (4,607,417 | ) | ||||
Earnings (net loss) per common share: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.11 | ) | $ | 0.00 | $ | (0.21 | ) | ||||
Diluted | $ | (0.02 | ) | $ | (0.11 | ) | $ | 0.00 | $ | (0.21 | ) | ||||
Weighted average shares used in computing earnings (net loss) per common share: | |||||||||||||||
Basic | 22,581,330 | 21,793,583 | 22,450,392 | 21,702,597 | |||||||||||
Diluted | 22,581,330 | 21,793,583 | 22,458,479 | 21,702,597 | |||||||||||
STEREOTAXIS, INC. | |||||||
BALANCE SHEETS | |||||||
June 30, 2017 |
December 31, 2016 |
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(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,035,463 | $ | 8,501,392 | |||
Accounts receivable, net of allowance of $603,588 and $379,817 in 2017 and 2016, respectively | 4,876,716 | 4,665,959 | |||||
Inventories | 4,984,115 | 5,381,103 | |||||
Prepaid expenses and other current assets | 617,412 | 855,295 | |||||
Total current assets | 15,513,706 | 19,403,749 | |||||
Property and equipment, net | 792,367 | 1,086,244 | |||||
Intangible assets, net | 336,908 | 436,569 | |||||
Other assets | 41,047 | 39,241 | |||||
Total assets | $ | 16,684,028 | $ | 20,965,803 | |||
Liabilities and stockholders' deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,737,247 | $ | 2,623,010 | |||
Accrued liabilities | 3,887,511 | 4,491,164 | |||||
Deferred revenue | 8,101,667 | 8,751,336 | |||||
Warrants | 16,357,444 | 19,787,007 | |||||
Total current liabilities | 30,083,869 | 35,652,517 | |||||
Long-term deferred revenue | 377,076 | 522,329 | |||||
Other liabilities | 321,316 | 320,409 | |||||
Total liabilities | 30,782,261 | 36,495,255 | |||||
Convertible preferred stock: | |||||||
Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,900 shares outstanding at 2017 and 2016 | 5,960,475 | 5,960,475 | |||||
Stockholders' deficit: | |||||||
Common stock, par value $0.001; 300,000,000 shares authorized, 22,612,043 and 22,063,582 shares issued at 2017 and 2016, respectively | 22,612 | 22,064 | |||||
Additional paid-in capital | 450,370,408 | 449,939,406 | |||||
Treasury stock, 4,015 shares at 2017 and 2016 | (205,999 | ) | (205,999 | ) | |||
Accumulated deficit | (470,245,729 | ) | (471,245,398 | ) | |||
Total stockholders' deficit | (20,058,708 | ) | (21,489,927 | ) | |||
Total liabilities and stockholders' deficit | $ | 16,684,028 | $ | 20,965,803 |
Stereotaxis Contacts:David Fischel Chairman and Acting Chief Executive OfficerMartin C. Stammer Chief Financial Officer investors@stereotaxis.com