Stereotaxis Reports 2012 Financial Results; Provides 2013 Outlook
-Achieves Record Fourth Quarter Cash Burn of Less than $0.1M-
-Lowers Operating Loss to a Record $0.9M in Fourth Quarter, an 81% YOY
-Reduces Operating Expenses 31% in Quarter and for Full Year-
-Grows Full Year Total Revenue 11%-
-Hosts Conference Call Today at 4:30 p.m. Eastern Time-
ST. LOUIS, March 5, 2013 (GLOBE NEWSWIRE) -- Stereotaxis, Inc. (Nasdaq:STXS)
today reported financial results for the fourth quarter and full year ended
December 31, 2012.
Michael P. Kaminski, President and Chief Executive Officer of Stereotaxis,
said, "During 2012, we made significant progress in converting the excitement
around our unique Epoch™ platform into capital orders and customer upgrades,
resulting in an 11% increase in total full year revenue over 2011. By
year-end, we achieved our strategic milestone of upgrading half of our
installed base in North America and Europe to the new technology. We also
reached shipment targets for the Niobe® ES system, receiving an additional
$2.5 million of funding on January 31, 2013, under our existing agreement with
Healthcare Royalty Partners (previously 'Cowen')."
Mr. Kaminski continued, "Our strong financial performance for the year
included record improvement to the bottom line, primarily occurring in the
second half of the year. Through strict financial management, we reduced our
annual operating expenses 31% and cash burn by 68% from the prior year. As a
result, operating loss for the full year decreased 67% over 2011. In the
fourth quarter, operating loss declined 81% to an eight-year low of $880,000
and cash burn was a record $77,000.
"While significantly reduced, our new cost structure has not compromised our
plans for growth or ability to fund key innovation projects. We will continue
work to execute on our strategic priorities in 2013, including optimizing our
robotic EP solutions for improved top line results, securing important product
approvals in Japan and the U.S., beginning multi-center clinical studies to
expand our clinical proof and leveraging global strategic partnerships for
long-term growth," he said.
Fourth Quarter Financial Results
Revenue for the fourth quarter 2012 totaled $12.2 million, compared to $11.6
million in the prior year quarter. The Company recognized revenue of $3.6
million on three Niobe ES systems and several upgrades, $0.3 million on
Vdrive™ system sales and $1.7 million in Odyssey® system sales in the fourth
quarter 2012. Recurring revenue of $6.6 million in the quarter was down 10%
from $7.4 million in the 2011 fourth quarter. Utilization in Niobe ES sites
increased 9% for the fourth quarter of 2012 over the same period last year,
and overall utilization was down 2%.
"While procedure growth in Niobe ES sites exceeded the market rate during
2012, the rate of growth in the fourth quarter was less than expected," added
Mr. Kaminski. "We have thoroughly analyzed utilization trends and are
executing a plan of action centered on strengthening the learning path of
physicians as well as providing clinical evidence of the value of our
The Company generated new capital orders of $4.2 million in the fourth
quarter, including $2.8 million on two Niobe ES orders and eight upgrades,
compared to $3.6 million in the fourth quarter of 2011, representing a 17%
increase. New capital orders in the last six months of 2012 grew 96% over
2011. Ending capital backlog for the fourth quarter was $8.9 million.
Gross margin in the quarter was $7.9 million, or 65% of revenue, versus $8.3
million, or 71.4% of revenue, in the fourth quarter 2011. Gross margin in the
2012 fourth quarter was impacted primarily by shifts in mix from recurring
revenue to system revenue and from QuikCAS™ disposables to lower margin Vdrive
disposables (prior to the rollout of the multi-use product), as well as lower
margins on distributor sales of Odyssey systems.
Operating expenses in the fourth quarter decreased to $8.8 million, down 31.5%
from the year ago period.
Operating loss in the fourth quarter improved to $(0.9) million, an 80.8%
reduction compared to $(4.6) million in the prior year quarter, representing
the Company's lowest reported operating loss since its initial public offering
in August 2004. This significant improvement is a result of increased revenue
and lower operating expenses in 2012.
Interest expense increased to $2.0 million in the fourth quarter, compared to
$1.1 million in the prior year quarter.The increase was primarily related to
the Healthcare Royalty Partners (HC Royalty) financing in November 2011, an
additional $2.5 million in HC Royalty borrowings in August 2012 and the
issuance of $8.5 million in subordinated convertible debentures in May 2012.
The net loss for the fourth quarter was $(4.3) million, or $(0.55) per share,
compared to a net loss of $(5.5) million, or $(1.00) per share, reported for
the fourth quarter 2011. The weighted average shares outstanding for the
fourth quarter of 2012 and 2011 totaled 7.8 million and 5.5 million,
respectively. Excluding mark-to-market warrant revaluation and amortization of
convertible debt discount related to the $18.5 million financing in May 2012,
the net loss would have been $(2.3) million, or $(0.29) per share.
Cash burn for the fourth quarter of 2012 was $0.1 million, a record low and a
99% decline compared to $14.8 million in the prior year quarter.
At December 31, 2012, Stereotaxis had cash and cash equivalents of $7.8
million, compared to $9.9 million at September 30, 2012. At year end, total
debt was $29.1 million, including $16.2 million related to HC Royalty debt.
Full Year Financial Results
Revenue for the full year ended December 31, 2012 was $46.6 million, up 11%
compared to $42 million in the 12 months ended December 31, 2011. System and
recurring revenues were $19.7 million and $26.9 million, respectively, for
2012, compared to $15.6 million and $26.4 million for system and recurring
revenues during 2011. Utilization in Niobe ES sites increased 19% compared to
last year, and overall utilization was up 7%.
Gross margin in the full year 2012 was $31.8 million, or 68.3% of revenue,
compared with $29.5 million, or 70.2% of revenue, in 2011. Operating expenses
for 2012 were $42.4 million, a 31% reduction compared to $61.4 million in
Operating loss was $(10.6) million, a 66.7% decrease from $(31.9) million in
the prior year, with the largest improvement occurring in the second half of
the year. Operating loss for the last six months of 2012 was $1.8 million.
Interest expense in full year 2012 increased to $6.9 million, compared to $3.5
million in the prior year.The increase was primarily related to the HC
Royalty financing in November 2011, an additional $2.5 million in HC Royalty
borrowings in August 2012 and the issuance of $8.5 million in subordinated
convertible debentures in May 2012.
Other income for 2012 included an $8.3 million gain primarily related to
mark-to-market conversion features of the warrants and subordinated
convertible debt associated with the $18.5 million financing in May 2012.
Results through December 31, 2011 included a $3.4 million gain in other income
related to the change in market value of certain warrants issued in December
The net loss for 2012 was $(9.2) million, a 71.2% reduction compared to
$(32.0) million for the prior year. Excluding the mark-to-market warrant
revaluation and amortization of convertible debt discount related to the $18.5
million financing in May 2012, the net loss through December 31, 2012, would
have been $(16.5) million and $(35.4) million for the comparable period in
2011, representing a 53.4% reduction.
Cash burn for 2012 was $12.2 million, compared to $38.1 million in the prior
year, a 68% improvement.
Strategic and Financing Alternatives
As the Company indicated in its third quarter earnings release, the
Stereotaxis Board of Directors is reviewing possible strategic and financing
alternatives to strengthen its balance sheet. Currently, the Company is in
advanced discussions with multiple companies concerning various geographic
rights of Stereotaxis products and the sale of non-core assets. The Company
hopes to report more on these activities in the near term.
Patient enrollment continues for the clinical trial of the Vdrive V-Loop™
circular catheter manipulator, which is studying the Vdrive system versus
manual navigation of a circular mapping catheter at five clinical sites. The
study is a critical step in obtaining clearance of the V-Loop device by the
U.S. Food and Drug Administration (FDA). In response to additional FDA
requirements for approval of V-Sono™ ICE catheter manipulator, the Company has
developed an enhanced pre-clinical trial which it will soon complete.
Additionally, the Company is launching its first-ever randomized, prospective,
multi-center study in European sites during 2013 in order to evaluate the
efficacy, efficiency and safety of the Niobe ES system versus manual catheters
for the treatment of paroxysmal atrial fibrillation. The Company anticipates
reviewing the study design with participating centers at the Heart Rhythm
Society's scientific session in May.
Stereotaxis does not provide revenue and earnings per share guidance, but
provides the following outlook for the full year 2013:
oContinue to achieve top line growth, primarily occurring in second half of
oExpand global footprint through Japanese market approval of Niobe
technology in first half of year
oManage operating expenses at current level and continue to reduce cash
burn for improved cash flow and bottom line performance
oStrengthen balance sheet through strategic and financing alternatives
Conference Call and Webcast
Stereotaxis will host a conference call and webcast today, March 5, 2013, at
4:30 p.m. Eastern Time, to discuss fourth quarter and full year results. The
dial-in number for the conference call is 1-877-941-2068 for domestic
participants and 1-480-629-9712 for international participants.Participants
are asked to call the above numbers 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.
Stereotaxis is a healthcare technology and innovation leader in the
development of robotic cardiology instrument navigation systems designed to
enhance the treatment of arrhythmias and coronary disease, as well as
information management solutions for the interventional lab. With over 100
patents in support of technologies for electrophysiology and other
interventional applications, Stereotaxis helps physicians around the world
provide unsurpassed patient care with robotic precision and safety, improved
lab efficiency and productivity, and enhanced collaboration of life-saving
information. Stereotaxis' core technologies are the Niobe^® ES Remote Magnetic
Navigation system, the Odyssey^® portfolio of lab optimization, networking and
patient information management systems and the Vdrive™ Robotic Navigation
system and consumables.
The core components of Stereotaxis systems have received regulatory clearance
in the U.S., Europe, Canada and elsewhere. The V-Loop^™ circular catheter
manipulator is currently in clinical trials in order to obtain clearance by
the U.S. Food and Drug Administration; the Company also is pursuing U.S.
clearance for the V-Sono™ ICE catheter manipulator. For more information,
please visit www.stereotaxis.com and www.odysseyexperience.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, our continued access to
capital and financial resources, on a timely basis and on terms that are
acceptable, our continued listing on the Nasdaq Global Market, 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
our systems and the timing of such purchases, the outcome of various
shareholder litigation filed against us, competitive factors, changes
resulting from the recently enacted healthcare reform in the U.S., including
changes in government reimbursement procedures, dependence upon third-party
vendors, timing of regulatory approvals, 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.
STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
System $5,590,346 $4,235,077 $19,672,983 $15,585,538
service and 6,614,563 7,381,498 26,889,451 26,401,894
Total revenue 12,204,909 11,616,575 46,562,434 41,987,432
Cost of revenue
System 2,957,383 2,147,500 9,905,528 8,576,283
service and 1,314,942 1,172,002 4,875,527 3,921,798
Total cost of 4,272,325 3,319,502 14,781,055 12,498,081
Gross margin 7,932,584 8,297,073 31,781,379 29,489,351
Research and 1,479,158 2,651,731 8,405,086 12,886,488
Sales and 4,289,088 6,698,774 20,607,999 31,635,415
General and 3,044,739 3,524,343 13,394,556 16,908,656
Total operating 8,812,985 12,874,848 42,407,641 61,430,559
Operating loss (880,401) (4,577,775) (10,626,262) (31,941,208)
Other income (1,414,341) 164,561 8,265,507 3,416,383
Interest income 2,008 1,915 7,361 9,052
Interest expense (2,023,927) (1,102,188) (6,885,033) (3,515,402)
Net loss $(4,316,661) $(5,513,487) $(9,238,427) $(32,031,175)
Net loss per
Basic $(0.55) $(1.00) $(1.33) $(5.84)
Diluted $(0.55) $(1.00) $(1.33) $(5.84)
shares used in
loss per common
Basic 7,819,563 5,492,369 6,944,928 5,482,627
Diluted 7,819,563 5,492,369 6,944,928 5,482,627
December 31, December 31,
Cash and cash equivalents $7,777,718 $13,954,919
Accounts receivable, net of allowance of
$640,183 and $667,529 in 2012 and 2011, 11,551,651 11,104,038
Current portion of long-term receivables 18,838 59,679
Inventories 5,098,241 6,036,051
Prepaid expenses and other current assets 3,492,067 3,081,484
Total current assets 27,938,515 34,236,171
Property and equipment, net 2,141,923 3,323,856
Intangible assets, net 1,979,320 2,279,153
Long-term receivables 73,199 51,892
Other assets 32,987 40,760
Total assets $32,165,944 $39,931,832
Liabilities and stockholders' equity (deficit)
Current maturities of long-term debt $12,264,490 $21,173,321
Accounts payable 3,556,688 5,610,181
Accrued liabilities 5,361,810 5,703,166
Deferred contract revenue 9,502,939 8,220,306
Warrants 2,968,348 125,415
Total current liabilities 33,654,275 40,832,389
Long-term debt, less current maturities 16,824,736 17,290,531
Long-term deferred contract revenue 477,159 634,713
Other liabilities -- 3,094
Stockholders' equity (deficit):
Preferred stock,par value $0.001; 10,000,000
shares authorized, none outstanding at 2012 and -- --
Common stock, par value $0.001; 300,000,000
shares authorized, 8,018,615 and 5,543,157 8,019 5,543
shares issued at 2012 and 2011, respectively
Additional paid-in capital 366,053,627 356,779,007
Treasury stock, 4,015 shares at 2012 and 2011 (205,999) (205,999)
Accumulated deficit (384,645,873) (375,407,446)
Total stockholders' equity (deficit) (18,790,226) (18,828,895)
Total liabilities and stockholders' equity $32,165,944 $39,931,832
CONTACT: Company Contact:
Interim Chief Financial Officer
Todd Kehrli / Jim Byers
MKR Group, Inc.
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