Stereotaxis Reports Third Quarter 2017 Financial Results
- 3% year-over-year growth in recurring revenue and 2% year-over-year growth in global procedures
- Reduced operating expenses leads to small quarterly operating profit
- Substantial progress on strategic innovation plans
- Scientific publication demonstrates significant clinical advantages of
Stereotaxis technology - Conference call today at 10:00 a.m. Eastern Time
“I am pleased with the continued progress we are making on many fronts, and primarily on our two strategic focuses: supporting electrophysiologists build successful robotic ablation practices and identifying and initiating the strategic innovation paths that improve patient care, physician choice and our technology availability,” said
“The third quarter should also be noted for other meaningful events. In August we celebrated the milestone of 100,000 patients treated, a testament to the robust validation and significant clinical value of our technology. This clinical value was dramatically demonstrated in an independent meta-analysis of studies published in September in the
2017 Third Quarter and First Nine Months Financial Results
Revenue for the third quarter of 2017 totaled $8.1 million. Recurring revenue was $6.5 million in the quarter, up 3% from
Gross margin in the quarter was $6.2 million, or 76% of revenue, versus $6.1 million, or 73% of revenue, in the third quarter of 2016 and $6.3 million, or 74% of revenue, in the second quarter of 2017.
Operating expenses in the third quarter were $6.1 million, down 17% from $7.3 million in the prior year quarter and down 10% sequentially from
Cash Balance and Liquidity
At September 30, 2017, Stereotaxis had cash and cash equivalents of $4.5 million, no debt, and $3.0 million in unused borrowing capacity on its revolving credit facility, for total liquidity of $7.5 million.
Full Year 2017 Expectations
The Company is reaffirming its guidance for full year 2017 revenue to exceed
Development and initiation of activities on a long-term product innovation plan have progressed more rapidly than originally guided. The innovation plan addresses each of the five core technologies utilized in a robotic cardiac ablation procedure, and is designed to improve patient care, physician choice, and technology availability. Tangible activity on several components of the plan has been initiated and others are in negotiation and expected to commence in the coming months. Additional details on specific components of the plan will be disclosed as appropriate.
We expect continued modest cash burn over the coming quarters and believe our financial position is sufficient to advance the company significantly over that period.
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 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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2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Systems | $ | 1,597,537 | $ | 1,954,859 | $ | 3,644,871 | $ | 4,965,855 | |||||||
Disposables, service and accessories | 6,546,198 | 6,378,608 | 19,943,562 | 19,890,240 | |||||||||||
Total revenue | 8,143,735 | 8,333,467 | 23,588,433 | 24,856,095 | |||||||||||
Cost of revenue: | |||||||||||||||
Systems | 888,800 | 1,245,330 | 2,029,760 | 2,724,326 | |||||||||||
Disposables, service and accessories | 1,032,569 | 1,008,662 | 3,350,480 | 2,805,550 | |||||||||||
Total cost of revenue | 1,921,369 | 2,253,992 | 5,380,240 | 5,529,876 | |||||||||||
Gross margin | 6,222,366 | 6,079,475 | 18,208,193 | 19,326,219 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 1,159,617 | 1,295,130 | 3,599,314 | 4,189,596 | |||||||||||
Sales and marketing | 2,965,479 | 3,396,989 | 10,063,698 | 11,502,808 | |||||||||||
General and administrative | 1,929,473 | 2,561,513 | 6,715,019 | 7,934,350 | |||||||||||
Total operating expenses | 6,054,569 | 7,253,632 | 20,378,031 | 23,626,754 | |||||||||||
Operating income (loss) | 167,797 | (1,174,157 | ) | (2,169,838 | ) | (4,300,535 | ) | ||||||||
Other expense | (4,459,042 | ) | (9,852,514 | ) | (1,029,479 | ) | (9,685,850 | ) | |||||||
Interest income | 7 | - | 15 | 362 | |||||||||||
Interest expense | (43,084 | ) | (818,738 | ) | (135,351 | ) | (2,466,803 | ) | |||||||
Gain on extinguishment of debt | - | 5,632,171 | - | 5,632,171 | |||||||||||
Net loss | $ | (4,334,322 | ) | $ | (6,213,238 | ) | $ | (3,334,653 | ) | $ | (10,820,655 | ) | |||
Deemed dividend on convertible preferred stock | - | (6,137,476 | ) | - | (6,137,476 | ) | |||||||||
Cumulative dividend on convertible preferred stock | (337,963 | ) | - | (1,070,812 | ) | - | |||||||||
Net loss attributable to common stockholders | $ | (4,672,285 | ) | $ | (12,350,714 | ) | $ | (4,405,465 | ) | $ | (16,958,131 | ) | |||
Net loss per share attributed to common stockholders: | |||||||||||||||
Basic | $ | (0.21 | ) | $ | (0.56 | ) | $ | (0.20 | ) | $ | (0.78 | ) | |||
Diluted | $ | (0.21 | ) | $ | (0.56 | ) | $ | (0.20 | ) | $ | (0.78 | ) | |||
Weighted average number of common shares and equivalents: | |||||||||||||||
Basic | 22,750,405 | 21,869,177 | 22,551,496 | 21,758,529 | |||||||||||
Diluted | 22,750,405 | 21,869,177 | 22,551,496 | 21,758,529 | |||||||||||
STEREOTAXIS, INC. | |||||||
BALANCE SHEETS | |||||||
September 30, 2017 |
December 31, 2016 |
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(Unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,487,066 | $ | 8,501,392 | |||
Accounts receivable, net of allowance of $494,531 and $379,817 in 2017 and 2016, respectively | 4,048,086 | 4,665,959 | |||||
Inventories | 4,605,526 | 5,381,103 | |||||
Prepaid expenses and other current assets | 926,929 | 855,295 | |||||
Total current assets | 14,067,607 | 19,403,749 | |||||
Property and equipment, net | 724,761 | 1,086,244 | |||||
Intangible assets, net | 287,078 | 436,569 | |||||
Other assets | 46,346 | 39,241 | |||||
Total assets | $ | 15,125,792 | $ | 20,965,803 | |||
Liabilities and stockholders' deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,733,142 | $ | 2,623,010 | |||
Accrued liabilities | 3,511,638 | 4,491,164 | |||||
Deferred revenue | 6,058,646 | 8,751,336 | |||||
Warrants | 20,816,486 | 19,787,007 | |||||
Total current liabilities | 32,119,912 | 35,652,517 | |||||
Long-term deferred revenue | 717,244 | 522,329 | |||||
Other liabilities | 497,314 | 320,409 | |||||
Total liabilities | 33,334,470 | 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, 22,787,136 and 22,063,582 shares issued at 2017 and 2016, respectively | 22,787 | 22,064 | |||||
Additional paid-in capital | 450,594,110 | 449,939,406 | |||||
Treasury stock, 4,015 shares at 2017 and 2016 | (205,999 | ) | (205,999 | ) | |||
Accumulated deficit | (474,580,051 | ) | (471,245,398 | ) | |||
Total stockholders' deficit | (24,169,153 | ) | (21,489,927 | ) | |||
Total liabilities and stockholders' deficit | $ | 15,125,792 | $ | 20,965,803 | |||