ST. LOUIS, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Stereotaxis (NYSE: STXS), the global leader in innovative robotic technologies for the treatment of cardiac arrhythmias, today reported financial results for the second quarter ended June 30, 2020.
“Stereotaxis responded to the challenges of COVID-19 with resilience, prudence and creativity. Despite a 21% year-over-year reduction in quarterly revenue caused by procedure declines, we have made significant progress in commercializing the Genesis RMN® System, advancing strategic innovations, and protecting Stereotaxis’ financial strength,” said David Fischel, Chairman and CEO.
“The world’s first Genesis system was installed in July and has successfully treated patients. A second Genesis system is currently being installed. We continue to see significant interest in Genesis and have hosted 198 physicians and hospital administrators from 76 hospitals since April on TeleRobotic visits. Approximately 30% of these represent greenfield opportunities.”
“Stereotaxis is pioneering unique TeleRobotic connectivity solutions in electrophysiology and was pleased to host the Inaugural Symposium of the TeleRobotic Surgery Leadership Council. This adds an important new dimension to our operational capabilities and the value of robotics for patients, physicians and hospitals.”
“We finalized the design of Stereotaxis’ advanced robotically-navigated magnetic ablation catheter, produced the first batch of catheters with a newly established manufacturing process, and are now testing, refining and validating that process. Meaningful progress has been made on a wave of additional innovations within electrophysiology and beyond.”
“We responded prudently to the financial impact of COVID-19 by reducing expenses in a fashion that does not harm organizational capabilities or slow progress. The financing announced during the quarter leaves Stereotaxis in the strongest financial position in its history and reinforces our commitment to invest in impactful innovation and commercial activities.”
2020 Second Quarter Financial Results
Revenue for the second quarter of 2020 totaled $5.3 million, down 21% compared to $6.8 million in the prior year second quarter. This decrease was primarily due to a 38% reduction in procedure volumes versus the prior year. Procedure volumes improved during the quarter with declines compared to last year of 57% in April, 44% in May, and 13% in June. The impact of this decline on overall revenue was cushioned by the stability of Stereotaxis’ service revenue.
Gross margin for the second quarter was $4.3 million, or 80% of revenue. Operating expenses in the quarter of $6.2 million were 13% lower than the prior year second quarter. The reduction in operating expenses was predominantly driven by timing of R&D projects and pandemic-related reductions in sales and marketing activities, partially offset by increased non-cash general and administrative expenses. Operating loss and net loss in the second quarter were ($1.9) million. Negative free cash flow for the quarter was ($1.2) million.
Cash Balance and Liquidity
At June 30, 2020, Stereotaxis had cash and cash equivalents of $44.0 million.
Forward Looking Expectations
Stereotaxis expects to recognize revenue on the sale of two Genesis systems in the third quarter, driving year-over-year growth for the quarter. The continued uncertain duration and scope of the COVID-19 pandemic makes it difficult to confidently estimate recurring revenue or the timing of additional system sales. Despite the uncertainty, Stereotaxis continues to experience significant interest in Genesis and expects a resurgence of system sales to existing and new hospital customers as the pandemic recedes.
Cash utilization in the second half of the year is expected to be lower than in the first half of the year, and Stereotaxis anticipates ending 2020 with greater than $40 million cash and no debt. Stereotaxis’ 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, August 6, 2020, at 10:00 a.m. Eastern Time. To access the conference call, dial 1-888-394-8218 (US and Canada) or 1-786-789-4776 (International) and give the participant pass code 6170258. 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 is the global leader in innovative robotic technologies designed to enhance the treatment of arrhythmias and perform endovascular procedures. 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, improved lab efficiency and productivity, and enhanced integration of procedural information. The core components of Stereotaxis’ systems have received regulatory clearance in the United States, European Union, Japan, Canada, China, 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 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 continue to manage expenses and cash burn rate at sustainable levels, 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 policy in the United States, including changes in government reimbursement of procedures, dependence upon third-party vendors, timing of regulatory approvals, the impact of the recent coronavirus (COVID-19) pandemic and our response to it, 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, delayed or canceled, either by their express terms, as a result of negotiations, or by overall project changes or delays.
Company Contacts:
David L. Fischel
Chairman and Chief Executive Officer
Kimberly R. Peery
Chief Financial Officer
314-678-6100
investors@stereotaxis.com
STEREOTAXIS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
| Revenue: | ||||||||||||||||||||||
| Systems | $ | 12,769 | $ | - | $ | 12,769 | $ | 58,051 | ||||||||||||||
| Disposables, service and accessories | 5,086,156 | 6,546,115 | 10,595,867 | 13,256,873 | ||||||||||||||||||
| Sublease | 246,530 | 251,996 | 493,060 | 493,061 | ||||||||||||||||||
| Total revenue | 5,345,455 | 6,798,111 | 11,101,696 | 13,807,985 | ||||||||||||||||||
| Cost of revenue: | ||||||||||||||||||||||
| Systems | 157,514 | 6,201 | 222,536 | 57,365 | ||||||||||||||||||
| Disposables, service and accessories | 680,937 | 894,760 | 1,320,800 | 2,009,119 | ||||||||||||||||||
| Sublease | 246,530 | 246,531 | 493,060 | 493,061 | ||||||||||||||||||
| Total cost of revenue | 1,084,981 | 1,147,492 | 2,036,396 | 2,559,545 | ||||||||||||||||||
| Gross margin | 4,260,474 | 5,650,619 | 9,065,300 | 11,248,440 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Research and development | 1,976,942 | 2,695,162 | 4,086,112 | 5,654,381 | ||||||||||||||||||
| Sales and marketing | 2,541,749 | 3,236,516 | 5,457,173 | 6,546,342 | ||||||||||||||||||
| General and administrative | 1,663,456 | 1,178,469 | 3,496,181 | 2,646,629 | ||||||||||||||||||
| Total operating expenses | 6,182,147 | 7,110,147 | 13,039,466 | 14,847,352 | ||||||||||||||||||
| Operating loss | (1,921,673) | (1,459,528) | (3,974,166) | (3,598,912) | ||||||||||||||||||
| Interest income | 567 | 31,810 | 81,529 | 48,374 | ||||||||||||||||||
| Net loss | $ | (1,921,106) | $ | (1,427,718) | $ | (3,892,637) | $ | (3,550,538) | ||||||||||||||
| Cumulative dividend on convertible preferred stock | (342,126) | (357,194) | (685,849) | (710,704) | ||||||||||||||||||
| Loss attributable to common stockholders | $ | (2,263,232) | $ | (1,784,912) | $ | (4,578,486) | $ | (4,261,242) | ||||||||||||||
| Net loss per share attributable to common stockholders: | ||||||||||||||||||||||
| Basic | $ | (0.03) | $ | (0.03) | $ | (0.06) | $ | (0.07) | ||||||||||||||
| Diluted | $ | (0.03) | $ | (0.03) | $ | (0.06) | $ | (0.07) | ||||||||||||||
| Weighted average number of common shares and equivalents: | ||||||||||||||||||||||
| Basic | 71,628,762 | 60,052,673 | 70,749,401 | 59,936,606 | ||||||||||||||||||
| Diluted | 71,628,762 | 60,052,673 | 70,749,401 | 59,936,606 | ||||||||||||||||||
STEREOTAXIS, INC.
BALANCE SHEETS
| June 30, 2020 | December 31, 2019 | ||||||
| Assets | (Unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 44,006,162 | $ | 30,182,115 | |||
| Accounts receivable, net of allowance of $412,813 | 3,041,100 | 5,329,577 | |||||
| and $380,212 at 2020 and 2019, respectively | |||||||
| Inventories, net | 4,576,078 | 1,847,530 | |||||
| Prepaid expenses and other current assets | 1,611,504 | 1,470,922 | |||||
| Total current assets | 53,234,844 | 38,830,144 | |||||
| Property and equipment, net | 263,039 | 250,443 | |||||
| Operating lease right-of-use assets | 3,282,783 | 4,286,064 | |||||
| Other assets | 269,542 | 218,103 | |||||
| Total assets | $ | 57,050,208 | $ | 43,584,754 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Short-term debt | $ | 2,158,310 | $ | - | |||
| Accounts payable | 1,571,679 | 2,099,097 | |||||
| Accrued liabilities | 2,401,625 | 2,721,104 | |||||
| Deferred revenue | 5,456,595 | 5,092,455 | |||||
| Current portion of operating lease liabilities | 2,265,546 | 2,248,189 | |||||
| Total current liabilities | 13,853,755 | 12,160,845 | |||||
| Long-term deferred revenue | 508,772 | 554,258 | |||||
| Operating lease liabilities | 1,069,090 | 2,089,537 | |||||
| Other liabilities | 255,517 | 255,517 | |||||
| Total liabilities | 15,687,134 | 15,060,157 | |||||
| Series A - Convertible preferred stock: | |||||||
| Convertible preferred stock, Series A, par value $0.001; 22,813 and | |||||||
| 23,110 shares outstanding at 2020 and 2019, respectively | 5,682,141 | 5,758,190 | |||||
| Stockholders’ equity: | |||||||
| Convertible preferred stock, Series B, par value $0.001; 10,000,000 | 5,610 | 5,610 | |||||
| shares authorized, 5,610,121 shares outstanding at 2020 and 2019 | |||||||
| Common stock, par value $0.001; 300,000,000 shares authorized, | |||||||
| 73,030,824 and 68,529,623 shares issued at 2020 and 2019, respectively | 73,031 | 68,530 | |||||
| Additional paid in capital | 521,013,702 | 504,211,040 | |||||
| Treasury stock, 4,015 shares at 2020 and 2019 | (205,999) | (205,999) | |||||
| Accumulated deficit | (485,205,411) | (481,312,774) | |||||
| Total stockholders’ equity | 35,680,933 | 22,766,407 | |||||
| Total liabilities and stockholders’ equity | $ | 57,050,208 | $ | 43,584,754 | |||