Stereotaxis Reports 2018 Second Quarter Financial Results
Progress on strategic internal innovation and external collaborations- Continued growth in recurring revenue
- Positive cash flow from operations
- Reaffirming 2018 expectations
- Conference call today at
10:00 a.m. Eastern Time
“The second quarter was notable for the strategic agreements announced with Johnson & Johnson’s Biosense Webster and with Acutus Medical. These agreements are important parts of our broader strategic innovation initiative, which continues to advance both internally and in collaboration with others,” said
“The recurring revenue growth in the quarter represents the fourth consecutive quarter of year-over-year growth, putting us on track to achieve record recurring revenue this year. Our commercial focus remains on developing the institutional infrastructure and processes to support electrophysiologists build successful robotic ablation practices.”
“We are simultaneously investing in our future and enhancing our capabilities while being financially disciplined and attentive to shareholder value. Consistent with our previous guidance, our cash balance increased during the second quarter.”
“The increase in quantity and quality of peer-reviewed clinical literature supporting our technology continued in the second quarter. Twenty-four publications have showcased our technology year-to-date. A recent publication in the
Second Quarter and First Half 2018 Financial Results
Revenue for the second quarter of 2018 totaled
Gross margin in the quarter was
Free cash flow in the second quarter was positive
Cash Balance and Liquidity
At
Full Year 2018 Expectations
The Company is reaffirming its expectation of continued year-over-year recurring revenue growth throughout 2018. For the full year 2018, expected recurring revenue of approximately
Operating expenses are expected to moderately increase in the second half of 2018 driven by R&D spending on strategic innovation initiatives. The benefits of these initiatives are expected to meaningfully contribute to revenue in 2019 and beyond. Stereotaxis’ balance sheet will allow the Company to deliver on its commercial and innovation initiatives over the coming years and reach profitability without the need for additional financings.
Conference Call and Webcast
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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2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Systems | $ | 310,751 | $ | 1,828,439 | $ | 328,026 | $ | 2,047,334 | |||||||
Disposables, service and accessories | 7,240,650 | 6,638,587 | 14,195,008 | 13,397,364 | |||||||||||
Total revenue | 7,551,401 | 8,467,026 | 14,523,034 | 15,444,698 | |||||||||||
Cost of revenue: | |||||||||||||||
Systems | 457,509 | 920,517 | 661,111 | 1,140,961 | |||||||||||
Disposables, service and accessories | 931,541 | 1,281,729 | 1,993,286 | 2,317,911 | |||||||||||
Total cost of revenue | 1,389,050 | 2,202,246 | 2,654,397 | 3,458,872 | |||||||||||
Gross margin | 6,162,351 | 6,264,780 | 11,868,637 | 11,985,826 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 2,032,394 | 1,756,266 | 3,995,020 | 3,357,143 | |||||||||||
Sales and marketing | 3,457,416 | 3,618,615 | 7,092,413 | 7,400,064 | |||||||||||
General and administrative | 1,298,604 | 1,324,678 | 2,537,783 | 3,566,255 | |||||||||||
Total operating expenses | 6,788,414 | 6,699,559 | 13,625,216 | 14,323,462 | |||||||||||
Operating loss | (626,063 | ) | (434,779 | ) | (1,756,579 | ) | (2,337,636 | ) | |||||||
Other income | - | 300,255 | 2,590,361 | 3,429,563 | |||||||||||
Interest expense (net) | (6,142 | ) | (42,775 | ) | (30,757 | ) | (92,258 | ) | |||||||
Net income (loss) | $ | (632,205 | ) | $ | (177,299 | ) | $ | 803,025 | $ | 999,669 | |||||
Cumulative dividend on convertible preferred stock | (357,518 | ) | (369,661 | ) | (711,107 | ) | (732,849 | ) | |||||||
Net income attributable to convertible preferred stock | - | - | (42,936 | ) | (167,539 | ) | |||||||||
Net income (loss) attributable to common stockholders | $ | (989,723 | ) | $ | (546,960 | ) | $ | 48,982 | $ | 99,281 | |||||
Net income (loss) per share attributed to common stockholder: | |||||||||||||||
Basic | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.00 | $ | 0.00 | |||||
Diluted | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.00 | $ | 0.00 | |||||
Weighted average number of common shares and equivalents: | |||||||||||||||
Basic | 58,926,545 | 22,581,330 | 45,019,358 | 22,450,392 | |||||||||||
Diluted | 58,926,545 | 22,581,330 | 45,728,732 | 22,458,479 | |||||||||||
Certain prior year amounts have been reclassified to conform to the 2018 presentation. | |||||||||||||||
STEREOTAXIS, INC. | |||||||
BALANCE SHEETS | |||||||
June 30, 2018 |
December 31, 2017 |
||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 11,991,731 | $ | 3,686,302 | |||
Accounts receivable, net of allowance of $297,409 and $361,350 in 2018 and 2017, respectively | 4,793,396 | 4,287,255 | |||||
Inventories, net | 1,545,393 | 1,146,971 | |||||
Prepaid expenses and other current assets | 883,756 | 750,085 | |||||
Total current assets | 19,214,276 | 9,870,613 | |||||
Property and equipment, net | 366,447 | 592,688 | |||||
Intangible assets, net | 126,476 | 159,470 | |||||
Other assets | 262,037 | 44,432 | |||||
Total assets | $ | 19,969,236 | $ | 10,667,203 | |||
Liabilities and stockholders' equity (deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,353,215 | $ | 1,654,101 | |||
Accrued liabilities | 2,958,873 | 3,195,247 | |||||
Deferred revenue | 6,910,210 | 5,702,769 | |||||
Warrants | - | 19,574,977 | |||||
Total current liabilities | 11,222,298 | 30,127,094 | |||||
Long-term deferred revenue | 523,646 | 611,863 | |||||
Other liabilities | 534,413 | 535,369 | |||||
Total liabilities | 12,280,357 | 31,274,326 | |||||
Convertible preferred stock: | |||||||
Convertible preferred stock, par value $0.001; 10,000,000 shares authorized, 23,900 shares outstanding at 2018 and 2017 | 5,960,475 | 5,960,475 | |||||
Stockholders' equity (deficit): | |||||||
Common stock, par value $0.001; 300,000,000 shares authorized, 58,933,384 and 22,805,731 shares issued at 2018 and 2017, respectively | 58,933 | 22,806 | |||||
Additional paid-in capital | 477,910,692 | 450,748,403 | |||||
Treasury stock, 4,015 shares at 2018 and 2017 | (205,999 | ) | (205,999 | ) | |||
Accumulated deficit | (476,035,222 | ) | (477,132,808 | ) | |||
Total stockholders' equity (deficit) | 1,728,404 | (26,567,598 | ) | ||||
Total liabilities and stockholders' equity (deficit) | $ | 19,969,236 | $ | 10,667,203 | |||
Company Contacts:
Chairman and Chief Executive Officer
Chief Financial Officer
314-678-6100
investors@stereotaxis.com