ST. LOUIS, Nov. 10, 2022 (GLOBE NEWSWIRE) -- Stereotaxis (NYSE: STXS), a pioneer and global leader in surgical robotics for minimally invasive endovascular intervention, today reported financial results for the third quarter ended September 30, 2022.
“Stereotaxis continues to demonstrate robust commercial and technological progress,” said David Fischel, Chairman and CEO. “We received two system orders in the third quarter, and have already received two additional signed purchase contracts as we start the fourth quarter, reflecting continued global demand for our robotic technology. Our growing system backlog of over $13 million, along with a healthy capital pipeline, sets us up well for the coming year.”
“Alongside this commercial execution, we are making significant progress on a robust innovation strategy. The CE Mark submission of the MAGiC ablation catheter successfully passed a completeness check by the notified body and is in the midst of its technical review. Development of the accessible next generation robotic system is progressing well and remains on track for an initial launch next summer. Our collaboration with MicroPort is advancing rapidly on multiple fronts and we expect near-term regulatory submission of the Genesis system in China.”
“This progress brings us closer to a future when the benefits of robotic magnetic navigation are broadly accessible, available with a vibrant ecosystem in electrophysiology, and impactful across multiple endovascular indications. We are cognizant of the importance of financial prudence and remain confident in the ability to advance our strategy, generate organic growth, and reach profitability with our current financial resources.”
2022 Third Quarter Financial Results
Revenue for the third quarter of 2022 totaled $7.7 million, compared to $9.1 million in the prior year third quarter. Recurring revenue for the third quarter was $5.3 million and system revenue was $2.4 million. The decrease in revenue is primarily driven by reduced system revenue, as hospital construction delays continue to slow the conversion of order backlog into revenue.
Gross margin for the third quarter of 2022 was 60% of revenue, with recurring revenue gross margin of 80% and system gross margin of 16%. Operating expenses in the quarter of $9.6 million include $2.7 million in non-cash stock compensation expense. Excluding stock compensation expense, adjusted operating expenses were $6.9 million compared to $6.8 million in the prior year third quarter and down from $7.2 million sequentially from the current year second quarter.
Operating loss and net loss for the third quarter of 2022 were ($5.1) million and ($4.9) million, respectively, compared to ($4.6) million for both in the previous year. Adjusted operating loss and adjusted net loss, excluding non-cash stock compensation expense were ($2.4) million and ($2.2) million for the quarter. Negative free cash flow for the third quarter was ($2.7) million. Negative cash flow this year so far has been significantly impacted by over $2 million spent on one-time expenses for our new headquarters and manufacturing facility as well as an over $3 million increase in inventory.
Cash Balance and Liquidity
At September 30, 2022, Stereotaxis had cash and cash equivalents, including restricted cash, of $32.4 million and no debt.
Forward Looking Expectations
While system revenue in any given quarter remains difficult to predict, growing system backlog of over $13 million, along with a healthy capital pipeline support an expectation of year-over-year revenue growth over the coming quarters. Substantial revenue growth in the coming years is expected to be supported by new technology launches and an enhanced commercial organization. Stereotaxis’ robust balance sheet allows it to reach profitability without the need for additional financings.
Conference Call and Webcast
Stereotaxis will host a conference call and webcast today, November 10, 2022, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-800-715-9871 (US and Canada) or 1-646-307-1963 (International) and give the participant pass code 5729833. Participants are asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website at www.Stereotaxis.com.
About Stereotaxis
Stereotaxis (NYSE: STXS) is a pioneer and global leader in innovative surgical robotics for minimally invasive endovascular intervention. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, expand access to minimally invasive therapy, and enhance the productivity, connectivity, and intelligence in the operating room. Stereotaxis technology has been used to treat over 100,000 patients across the United States, Europe, Asia, and elsewhere. For more information, please visit www.Stereotaxis.com.
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. Factors that would cause or contribute to such differences include, but are not limited to, the Company's ability to manage expenses at sustainable levels, 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 technology, competitive factors, changes resulting from healthcare policy, dependence upon third-party vendors, timing of regulatory approvals, the impact of pandemics or other disasters, 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 because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company's control and may be revised, modified, delayed, or canceled.
| Investor Contacts: | Media Contact: |
| David L. Fischel | Bethanne Schluter |
| Chairman and Chief Executive Officer | Director, Marketing & Communications |
| Kimberly Peery | |
| Chief Financial Officer | |
| 314-678-6100 | |
| Investors@Stereotaxis.com |
| STEREOTAXIS, INC. | |||||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (in thousands, except share and per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Revenue: | |||||||||||||||
| Systems | $ | 2,413 | $ | 3,541 | $ | 4,649 | $ | 8,829 | |||||||
| Disposables, service and accessories | 5,244 | 5,319 | 16,197 | 17,211 | |||||||||||
| Sublease | - | 246 | - | 740 | |||||||||||
| Total revenue | 7,657 | 9,106 | 20,846 | 26,780 | |||||||||||
| Cost of revenue: | |||||||||||||||
| Systems | 2,016 | 3,375 | 3,817 | 6,200 | |||||||||||
| Disposables, service and accessories | 1,074 | 751 | 2,868 | 2,558 | |||||||||||
| Sublease | - | 246 | - | 740 | |||||||||||
| Total cost of revenue | 3,090 | 4,372 | 6,685 | 9,498 | |||||||||||
| Gross margin | 4,567 | 4,734 | 14,161 | 17,282 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 2,818 | 2,500 | 8,158 | 7,584 | |||||||||||
| Sales and marketing | 3,111 | 2,910 | 9,337 | 8,902 | |||||||||||
| General and administrative | 3,690 | 3,944 | 10,986 | 10,335 | |||||||||||
| Total operating expenses | 9,619 | 9,354 | 28,481 | 26,821 | |||||||||||
| Operating loss | (5,052 | ) | (4,620 | ) | (14,320 | ) | (9,539 | ) | |||||||
| Interest income (expense), net | 135 | 1 | 182 | (5 | ) | ||||||||||
| Gain on extinguishment of debt | - | - | - | 2,183 | |||||||||||
| Net loss | $ | (4,917 | ) | $ | (4,619 | ) | $ | (14,138 | ) | $ | (7,361 | ) | |||
| Cumulative dividend on convertible preferred stock | (339 | ) | (338 | ) | (1,005 | ) | (1,007 | ) | |||||||
| Net loss attributable to common stockholders | $ | (5,256 | ) | $ | (4,957 | ) | $ | (15,143 | ) | $ | (8,368 | ) | |||
| Net loss per share attributed to common stockholders: | |||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.11 | ) | |||
| Diluted | $ | (0.07 | ) | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.11 | ) | |||
| Weighted average number of common shares and equivalents: | |||||||||||||||
| Basic | 76,100,007 | 75,700,389 | 75,977,920 | 75,476,381 | |||||||||||
| Diluted | 76,100,007 | 75,700,389 | 75,977,920 | 75,476,381 | |||||||||||
| STEREOTAXIS, INC. | |||||||
| BALANCE SHEETS | |||||||
| (in thousands, except share amounts) | September 30, 2022 | December 31, 2021 | |||||
| (Unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 30,938 | $ | 38,739 | |||
| Restricted cash - current | 618 | 454 | |||||
| Accounts receivable, net of allowance of $227 and $180 at 2022 and 2021, respectively | 5,077 | 5,406 | |||||
| Inventories, net | 8,161 | 4,433 | |||||
| Prepaid expenses and other current assets | 1,285 | 2,356 | |||||
| Total current assets | 46,079 | 51,388 | |||||
| Property and equipment, net | 3,409 | 2,632 | |||||
| Restricted cash | 875 | 952 | |||||
| Operating lease right-of-use assets | 5,479 | 5,735 | |||||
| Prepaid and other non-current assets | 233 | 278 | |||||
| Total assets | $ | 56,075 | $ | 60,985 | |||
| Liabilities and stockholders' equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,941 | $ | 4,189 | |||
| Accrued liabilities | 3,211 | 2,528 | |||||
| Deferred revenue | 8,043 | 6,277 | |||||
| Current portion of operating lease liabilities | 359 | 268 | |||||
| Total current liabilities | 15,554 | 13,262 | |||||
| Long-term deferred revenue | 1,416 | 2,238 | |||||
| Operating lease liabilities | 5,586 | 5,842 | |||||
| Other liabilities | 168 | 219 | |||||
| Total liabilities | 22,724 | 21,561 | |||||
| Series A - Convertible preferred stock: | |||||||
| Convertible preferred stock, Series A, par value $0.001; 22,386 and 22,387 shares outstanding at 2022 and 2021, respectively | 5,584 | 5,584 | |||||
| Stockholders' equity: | |||||||
| Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,121 shares outstanding at 2022 and 2021 | 6 | 6 | |||||
| Common stock, par value $0.001; 300,000,000 shares authorized, 74,832,278 and 74,618,240 shares issued at 2022 and 2021, respectively | 75 | 75 | |||||
| Additional paid-in capital | 540,706 | 532,641 | |||||
| Treasury stock, 4,015 shares at 2022 and 2021 | (206 | ) | (206 | ) | |||
| Accumulated deficit | (512,814 | ) | (498,676 | ) | |||
| Total stockholders' equity | 27,767 | 33,840 | |||||
| Total liabilities and stockholders' equity | $ | 56,075 | $ | 60,985 | |||
