Stereotaxis Reports 2018 Third Quarter Financial Results
- Continued progress on strategic innovation initiatives; expect to showcase in 1H 2019
- 4% recurring revenue growth; reaffirming 2018 record recurring revenue expectations
- Conference call today at
10:00 a.m. Eastern Time
“We continue to make meaningful progress on our strategic innovation initiatives, and expect to be able to publicly showcase our progress in the first half of 2019,” said
“The recurring revenue growth in the quarter positions us to achieve record recurring revenue this year. The development of foundational commercial infrastructure to support the success of robotic electrophysiology practices is best reflected in the recent launch of www.RoboticEP.com, a platform by which our technology and clinical value can be presented in an organized and elegant fashion to the broader community.”
“While making significant investments in innovation and commercial infrastructure, our financial discipline has allowed us to reduce cash utilization. The negative free cash flow in the first nine months of 2018 is the closest to breakeven in the history of the Company.”
“The medical device industry and healthcare community are rapidly embracing robotics in laparoscopic, orthopedic, and spinal surgery. This was exemplified in the September acquisition of
Third Quarter and First Nine Months 2018 Financial Results
Revenue for the third quarter of 2018 totaled
Gross margin in the quarter was
Negative free cash flow in the third quarter was
Cash Balance and Liquidity
At
Full Year 2018 Expectations
The Company is reaffirming its expectation of achieving record high annual recurring revenue of approximately
The Company continues to expect moderate increases in operating expenses as it invests in 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
Company Contacts:
Chairman and Chief Executive Officer
Martin C. Stammer
Chief Financial Officer
314-678-6100
investors@stereotaxis.com
STEREOTAXIS, INC. | |||||||||||||||
STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
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2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Systems | $ | 715,484 | $ | 1,597,537 | $ | 1,043,510 | $ | 3,644,871 | |||||||
Disposables, service and accessories | 6,839,995 | 6,546,198 | 21,035,002 | 19,943,562 | |||||||||||
Total revenue | 7,555,479 | 8,143,735 | 22,078,512 | 23,588,433 | |||||||||||
Cost of revenue: | |||||||||||||||
Systems | 596,869 | 888,800 | 1,257,980 | 2,029,760 | |||||||||||
Disposables, service and accessories | 1,036,589 | 1,032,569 | 3,029,875 | 3,350,480 | |||||||||||
Total cost of revenue | 1,633,458 | 1,921,369 | 4,287,855 | 5,380,240 | |||||||||||
Gross margin | 5,922,021 | 6,222,366 | 17,790,657 | 18,208,193 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 2,000,780 | 1,619,749 | 5,995,800 | 4,976,892 | |||||||||||
Sales and marketing | 2,819,101 | 3,079,562 | 9,911,514 | 10,479,626 | |||||||||||
General and administrative | 1,215,920 | 1,355,258 | 3,753,703 | 4,921,513 | |||||||||||
Total operating expenses | 6,035,801 | 6,054,569 | 19,661,017 | 20,378,031 | |||||||||||
Operating income (loss) | (113,780 | ) | 167,797 | (1,870,360 | ) | (2,169,838 | ) | ||||||||
Other income (expense) | - | (4,459,042 | ) | 2,590,361 | (1,029,479 | ) | |||||||||
Interest expense (net) | (2,515 | ) | (43,077 | ) | (33,271 | ) | (135,336 | ) | |||||||
Net income (loss) | $ | (116,295 | ) | $ | (4,334,322 | ) | $ | 686,730 | $ | (3,334,653 | ) | ||||
Cumulative dividend on convertible preferred stock | (361,447 | ) | (337,963 | ) | (1,072,553 | ) | (1,070,812 | ) | |||||||
Net loss attributable to common stockholders | $ | (477,742 | ) | $ | (4,672,285 | ) | $ | (385,823 | ) | $ | (4,405,465 | ) | |||
Net loss per share attributed to common stockholder: | |||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.20 | ) | |||
Diluted | $ | (0.01 | ) | $ | (0.21 | ) | $ | (0.01 | ) | $ | (0.20 | ) | |||
Weighted average number of common shares and equivalents: | |||||||||||||||
Basic | 59,008,219 | 22,750,405 | 49,733,553 | 22,551,496 | |||||||||||
Diluted | 59,008,219 | 22,750,405 | 49,733,553 | 22,551,496 | |||||||||||
Certain prior year amounts have been reclassified to conform to the 2018 presentation. |
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STEREOTAXIS, INC. | |||||||
BALANCE SHEETS | |||||||
September 30, 2018 |
December 31, 2017 |
||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 11,570,566 | $ | 3,686,302 | |||
Accounts receivable, net of allowance of $300,510 and $361,350 in 2018 and 2017, respectively | 5,088,111 | 4,287,255 | |||||
Inventories, net | 1,202,457 | 1,146,971 | |||||
Prepaid expenses and other current assets | 970,397 | 750,085 | |||||
Total current assets | 18,831,531 | 9,870,613 | |||||
Property and equipment, net | 452,639 | 592,688 | |||||
Intangible assets, net | 109,979 | 159,470 | |||||
Other assets | 226,939 | 44,432 | |||||
Total assets | $ | 19,621,088 | $ | 10,667,203 | |||
Liabilities and stockholders' equity (deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,574,035 | $ | 1,654,101 | |||
Accrued liabilities | 2,822,958 | 3,195,247 | |||||
Deferred revenue | 6,365,676 | 5,702,769 | |||||
Warrants | - | 19,574,977 | |||||
Total current liabilities | 10,762,669 | 30,127,094 | |||||
Long-term deferred revenue | 502,893 | 611,863 | |||||
Other liabilities | 621,573 | 535,369 | |||||
Total liabilities | 11,887,135 | 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, 59,044,164 and 22,805,731 shares issued at 2018 and 2017, respectively | 59,044 | 22,806 | |||||
Additional paid-in capital | 478,071,950 | 450,748,403 | |||||
Treasury stock, 4,015 shares at 2018 and 2017 | (205,999 | ) | (205,999 | ) | |||
Accumulated deficit | (476,151,517 | ) | (477,132,808 | ) | |||
Total stockholders' equity (deficit) | 1,773,478 | (26,567,598 | ) | ||||
Total liabilities and stockholders' equity (deficit) | $ | 19,621,088 | $ | 10,667,203 | |||