Stereotaxis Reports 16% Revenue Increase in the Fourth Quarter 2009
New Orders Up 22% Sequentially; Second Consecutive Quarterly Increase
Recurring Revenue Reaches Record $5.1 Million
Cash Burn Declines to $2.9 Million
Full Year 2009 Revenue Up 27%; Gross Margin Percentage of 67%; Operating Expenses Decrease 14%
ST. LOUIS, Feb. 25 /PRNewswire-FirstCall/ -- Stereotaxis, Inc. (Nasdaq: STXS) today reported its financial results for the quarter and the year ended December 31, 2009. Revenue for the recent fourth quarter grew 16% to $14.1 million compared with $12.1 million in the same quarter a year ago. The Company recognized revenue on six Niobe® Magnetic Navigation Systems, nine Odyssey™ systems and four Odyssey Cinema™ systems, totaling $9.0 million. Disposables, services and accessories revenue set another record at $5.1 million, a 51% increase from the fourth quarter of 2008, attributable to favorable pricing and procedure growth. The 2009 fourth quarter operating loss decreased 9% to $5.8 million from $6.4 million in 2008.
For the full year 2009, revenue grew 27% to $51.1 million compared with $40.4 million in 2008. Recurring revenue increased 54% to $18.5 million from $12.0 million in 2008. Gross margin for the year was up 30% to $34.1 million, or 66.7% of sales, compared with 64.9% of sales in 2008. Operating expenses decreased 14%, resulting in a 42% reduction in the operating loss to $23.8 million in 2009 compared with the $41.0 million operating loss in 2008.
Michael P. Kaminski, President and Chief Executive Officer, said, "We are very pleased with our financial performance in 2009. Both systems revenue and revenue from disposables and services grew substantially during the year. During the quarter, we generated new orders totaling $7.7 million, up from $6.3 million in the third quarter and just $5.0 million in the second. The increase in orders is an indication that capital spending by hospitals is improving. The Odyssey platform continues to gain recognition in the market. There was substantial interest in the Odyssey platform at the Atrial Fibrillation Symposium in Boston last month. Physicians recognize Odyssey's value in integration of diverse sources of diagnostic and other patient information into a single format, which provides improved efficiency, enhanced archiving and a unique opportunity to network labs and sites. We anticipate significant Odyssey revenue in 2010 from non-magnetic labs. We anticipate the economic recovery in the U.S. to result in increased commitments from hospitals for new capital projects. From a financial perspective, we are committed to driving revenue growth, generating solid gross profit margins and controlling our expenses," Mr. Kaminski concluded.
Fourth Quarter 2009 Financial Performance
Gross margin for the quarter was $9.5 million, or 67.3% of revenue, compared with $8.2 million, or 67.6% of revenue, in the fourth quarter of 2008. Fourth quarter operating expenses increased 5% to $15.3 million from $14.6 million in the fourth quarter of the prior year as 2008 benefited from the reversal of certain non-cash compensation costs related to stock compensation programs. Cash burn improved 36% to $2.9 million for the fourth quarter of 2009 compared with $4.5 million in the fourth quarter of 2008.
The operating loss in the fourth quarter decreased 9% to $(5.8) million compared with $(6.4) million in the prior year. The Company reported a net loss for the fourth quarter of 2009 of $(6.7) million, or $(0.14) per share. This compares with a net loss for the fourth quarter of 2008 of $(7.5) million, or $(0.20) per share. The weighted average shares for the recent fourth quarter totaled 48.4 million compared with 36.7 million in the fourth quarter of last year. The increase was due in large part to the issuance of 7,475,000 shares as part of the secondary stock offering completed in October 2009.
Cash and equivalents at December 31, 2009 totaled $30.5 million, compared with $30.4 million at December 31, 2008. Included in the cash position at the end of 2009 was approximately $27.8 million in net proceeds received from the stock offering during the fourth quarter. Total debt was $23.7 million, including $10 million drawn against the Company's $30 million line of credit. As previously disclosed, in October 2009 the Company received a commitment to expand its line of credit from $25 million to $30 million and to extend the maturity date from March 31, 2010 to March 31, 2011.
2010 Financial Guidance
The Company provided its outlook for 2010 as follows:
- New capital order growth in excess of 40%
- Total revenue growth in the mid-20% range
- Gross margins above 65%
- Operating expenses between $60 and $65 million
Conference Call Information
The Company has scheduled a conference call for 8:30 a.m. Eastern Time today to discuss its financial results for the fourth quarter. To access the conference call, please dial (877) 941-9205. International participants can call (480) 629-9866. An audio replay of the call will be available for seven days following the call at (800) 406-7325 for U.S. callers or (303) 590-3030 for those calling outside the U.S. The password required to access the replay is 4207018#. 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=66045
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 coronary artery disease and arrhythmias. 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. Stereotaxis' Odyssey solutions integrate and manage information from disparate information sources, eliminating the challenge of interacting simultaneously with many separate diagnostic systems, driving optimized workflow and improved productivity. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe and Canada.
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.
(Tables to follow)
STEREOTAXIS, INC.
STATEMENTS OF OPERATIONS (1)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenue
System $8,966,960 $8,743,693 $32,661,573 $28,375,880
Disposables,
service and
accessories 5,114,431 3,382,791 18,487,982 11,989,293
--------- --------- ---------- ----------
Total revenue 14,081,391 12,126,484 51,149,555 40,365,173
Cost of revenue
System 3,990,424 3,233,985 13,240,430 12,008,090
Disposables,
service and
accessories 619,061 693,558 3,781,203 2,169,700
------- ------- --------- ---------
Total cost of
revenue 4,609,485 3,927,543 17,021,633 14,177,790
Gross margin 9,471,906 8,198,941 34,127,922 26,187,383
Operating expenses:
Research and
development 4,012,977 3,561,488 14,260,854 17,422,828
Sales and
marketing 7,269,738 5,363,663 28,694,540 28,660,663
General and
administration 4,003,449 5,663,051 15,010,490 21,121,164
--------- --------- ---------- ----------
Total operating
expenses 15,286,164 14,588,202 57,965,884 67,204,655
---------- ---------- ---------- ----------
Operating loss (5,814,258) (6,389,261) (23,837,962) (41,017,272)
Other income/
(expense) 845,470 - 911,977 -
Interest income 10,699 29,205 44,768 194,870
Interest expense (1,752,762) (1,131,965) (4,613,240) (3,063,572)
---------- ---------- ---------- ----------
Net loss $(6,710,851) $(7,492,021) $(27,494,457) $(43,885,974)
=========== =========== ============ ============
Net loss per
common share:
Basic and
diluted $(0.14) $(0.20) $(0.63) $(1.20)
====== ====== ====== ======
Weighted average
shares used in
computing net
loss per common
share:
Basic and
diluted 48,374,735 36,714,618 43,344,324 36,585,086
========== ========== ========== ==========
(1) On September 23, 2009, the Financial Accounting Standards Board
ratified Emerging Issues Task Force (EITF) Issue 08-1, creating
Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable
Revenue Arrangements". The Company adopted this standard in the
fourth quarter of 2009, effective for transactions occurring on or
after January 1, 2009. Since there were no material changes to any
amounts previously reported in 2009 or 2008, these periods were not
required to be restated.
STEREOTAXIS, INC.
BALANCE SHEETS
December 31, December 31,
2009 2008
---- ----
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $30,546,550 $30,355,657
Accounts receivable, net of allowance
of $322,463 and $328,307 in 2009 and
2008, respectively 11,152,648 9,739,008
Current portion of long-term receivables 66,800 197,351
Inventories 4,403,675 8,086,956
Prepaid expenses and other current assets 3,872,535 2,966,510
--------- ---------
Total current assets 50,042,208 51,345,482
Property and equipment, net 4,790,310 6,420,600
Intangible assets 1,144,445 1,277,778
Long-term Receivables 138,441 298,123
Other assets 5,112 98,382
----- ------
Total assets $56,120,516 $59,440,365
=========== ===========
Liabilities and stockholders' equity
Current liabilities:
Current maturities of long-term debt $3,333,333 $3,901,491
Accounts payable 3,881,205 4,561,928
Accrued liabilities 8,615,287 9,873,818
Deferred contract revenue 7,191,492 9,676,339
Warrants 4,142,614 -
--------- ---
Total current liabilities 27,163,931 28,013,576
Long term debt, less current maturities 20,346,655 25,271,547
Long term deferred contract revenue 948,574 1,225,656
Other liabilities 20,013 158,905
Stockholders' equity:
Preferred stock, par value $0.001;
10,000,000 shares authorized at 2009
and 2008; none outstanding at 2009
and 2008 - -
Common stock, par value $0.001;
100,000,000 shares authorized at 2009
and 2008; 50,208,171 and 42,049,792
issued at 2009 and 2008, respectively 50,208 42,050
Additional paid-in capital 331,249,918 300,892,957
Treasury stock, 40,151 shares at 2009
and 2008 (205,999) (205,999)
Accumulated deficit (323,452,784) (295,958,327)
------------ ------------
Total stockholders' equity 7,641,343 4,770,681
--------- ---------
Total liabilities and stockholders' equity $56,120,516 $59,440,365
=========== ===========
SOURCE Stereotaxis, Inc.
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