Stereotaxis Reports Fourth Quarter 2008 Financial Results
Michael P. Kaminski, President and Chief Executive Officer, commented, "Our fourth quarter results were in line with our preliminary announcement and reflected some very positive trends, including the increase in revenue, continued strength of gross margins and lower operating expenses. As a result, our operating loss declined by 48% compared to the fourth quarter of last year as we continuously move Stereotaxis toward breakeven."
"The roll-out of the Thermocool irrigated catheter in Europe is proceeding well and the results have been very encouraging," continued Mr. Kaminski. "The Thermocool catheter is currently in use at 29 sites in Europe and since its reintroduction in September, utilization in Europe has increased significantly. The procedures performed to date to treat complex arrhythmias have confirmed that the efficacy, efficiency and safety record of the irrigated catheter is unsurpassed in the industry and we believe its performance has the potential to set a new standard for EP labs. As we look to the year ahead, once the magnetic irrigated catheter is approved by the U.S. Food and Drug Administration, our goal is to generate market interest in the Niobe system and resulting order momentum matching what we have achieved in Europe."
"Cash and cash equivalents totaled $30 million at the end of the year. Included in this total was $19 million in net proceeds from the additional equity that we raised in December 2008. We believe increased acceptance of our Niobe platform and Odyssey, along with our reduced expense structure and our balance sheet strength and flexibility, will position Stereotaxis to grow revenue and achieve much improved bottom-line results in 2009," concluded Mr. Kaminski.
Fourth Quarter and Full Year 2008 Financial Performance
Gross margin for the quarter was $8.2 million, or 68% of revenue, compared with $6.5 million, or 64% of revenue in the fourth quarter of 2007. Fourth quarter operating expenses decreased 23% to $14.6 million, compared to $18.9 million in the fourth quarter of 2007.
The Company reported a net loss for the fourth quarter of 2008 of $7.5 million, or $(0.20) per share. This compares to a net loss of $12.2 million, or $(0.34) per share, in the fourth quarter of 2007. The weighted average shares for the recent fourth quarter were 36.7 million compared with 36.3 million in the fourth quarter of last year.
For the full year 2008, revenue totaled $40.4 million compared with revenue of $39.3 million for 2007. The Company reported a net loss of $43.9 million for 2008 compared with a net loss of $48.1 million for 2007. On a per share basis, the net loss in 2008 represented $(1.20) compared with $(1.34) in 2007.
Cash used in operations was $3.4 million for the fourth quarter of 2008, and cash and investments at December 31, 2008 totaled $30.4 million, compared to $23.7 million at December 31, 2007.
Conference Call Information
The Company has scheduled a conference call for 8:30 a.m. Eastern Standard Time today to discuss its financial results for the fourth quarter. To access the conference call, please dial (800) 240-2134. International participants can call (303) 275-2170. An audio replay of the call will be available for seven days following the call at (800) 405-2236 for U.S. callers or (303) 590- 3000 for those calling outside the U.S. The password required to access the replay is 11125670#. The call will also be available on the Internet live and for 90 days thereafter at the following URL:
http://www.videonewswire.com/event.asp?id=55849
About Stereotaxis
Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital's interventional surgical suite to enhance the treatment of arrhythmias and coronary artery disease. The Stereotaxis system is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe, Canada and elsewhere.
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, continued acceptance for the Company's products in the marketplace, the effect of global credit and economic conditions on the ability and willingness of customers to purchase our systems, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, timing of regulatory approval and return of the irrigated catheter to the market, and other risks discussed in the Company's periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control. In addition, these orders and commitments may be revised, modified or canceled, either by their express terms, as a result of negotiations, or by project changes or delays.
STEREOTAXIS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Revenue
System $8,743,693 $7,638,750 $28,375,880 $30,118,627
Disposables,
service and
accessories 3,382,791 2,616,113 11,989,293 9,180,182
Total revenue 12,126,484 10,254,863 40,365,173 39,298,809
Cost of revenue
System 3,233,985 2,954,061 12,008,090 10,978,108
Disposables,
service and
accessories 693,558 764,897 2,169,700 2,497,459
Inventory
impairment - - - 1,870,653
Total cost of
revenue 3,927,543 3,718,958 14,177,790 15,346,220
Gross margin 8,198,941 6,535,905 26,187,383 23,952,589
Operating expenses:
Research and
development 3,561,488 5,996,138 17,422,828 25,471,809
Sales and
marketing 5,363,663 8,287,708 28,660,663 29,021,117
General and
administration 5,663,051 4,589,694 21,121,164 18,701,726
Total operating
expenses 14,588,202 18,873,540 67,204,655 73,194,652
Operating loss (6,389,261) (12,337,635) (41,017,272) (49,242,063)
Interest income 29,205 258,859 194,870 1,471,503
Interest expense (1,131,965) (134,455) (3,063,572) (350,954)
Net loss $(7,492,021) $(12,213,231) $(43,885,974) $(48,121,514)
Net loss per common
share:
Basic and diluted $(0.20) $(0.34) $(1.20) $(1.34)
Weighted average
shares used in
computing net loss
per common share:
Basic and
diluted 36,714,618 36,331,376 36,585,086 35,793,973
STEREOTAXIS, INC.
BALANCE SHEETS
December 31, December 31,
2008 2007
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $30,355,657 $17,022,200
Short-term investments 6,634,178
Accounts receivable, net of
allowance of $328,307 and
$189,040 in 2008 9,739,008 13,757,270
and 2007, respectively
Current portion of long-term
receivables 197,351 136,430
Inventories 8,086,956 9,964,460
Prepaid expenses and other current
assets 2,966,510 3,421,202
Total current assets 51,345,482 50,935,740
Property and equipment, net 6,420,600 7,011,763
Intangible assets 1,277,778 1,411,111
Long-term Receivables 298,123 272,859
Other assets 98,382 844,321
Total assets $59,440,365 $60,475,794
Liabilities and stockholders' equity
Current liabilities:
Current maturities of long-term
debt $666,667 $972,222
Accounts payable 4,561,928 7,349,426
Accrued liabilities 9,873,818 11,913,418
Deferred contract revenue 9,676,339 8,774,958
Total current liabilities 24,778,752 29,010,024
Long term debt, less current maturities 28,506,371 6,000,000
Long term deferred contract revenue 1,225,656 942,573
Other liabilities 158,905 328,790
Stockholders' equity:
Preferred stock, par value $0.001;
10,000,000 shares authorized at
2008 and 2007; none outstanding
at 2008 and 2007 - -
Common stock, par value $0.001;
100,000,000 shares authorized at
2008 and 2007; 42,049,792
and 37,132,529 issued at 2008 and
2007, respectively 42,050 37,133
Additional paid-in capital 300,892,957 276,433,662
Treasury stock, 40,151 shares at
2008 and 2007 (205,999) (205,999)
Accumulated deficit (295,958,327) (252,072,353)
Accumulated other comprehensive
gain - 1,964
Total stockholders' equity 4,770,681 24,194,407
Total liabilities and stockholders'
equity $59,440,365 $60,475,794
Note: Long-term debt includes $13,235,000 of working capital facility
which is assumed to be extended through March 31, 2010.
SOURCE Stereotaxis, Inc.
http://www.stereotaxis.com