ST. LOUIS, May 9 /PRNewswire-FirstCall/ -- Stereotaxis, Inc. today reported revenue of $9.2 million for the quarter ended March 31, 2007, greater than a fourfold increase over the revenue of $1.7 million for the first quarter of 2006.
System revenue amounted to $7.2 million in the first quarter of 2007 compared to $1.0 million in the prior year quarter as a result of the increase in the number of systems recognized. The average system price realized increased approximately 22 percent in the 2007 quarter compared to the 2006 quarter. Disposables, service and accessories revenue increased to $2.0 million from $749,000 in the prior year quarter. Gross profit amounted to $5.9 million in the current quarter, resulting in a 65 percent gross margin for the 2007 quarter, compared to $500,000, or a 29 percent margin for the 2006 quarter. As of March 31, 2007, Stereotaxis had delivered 72 Niobe systems worldwide.
First quarter operating expenses were approximately $16.7 million, compared to $15.0 million incurred during the first quarter of 2006. The increase was primarily attributed to increased salary, benefits and travel expenses associated with expanded sales headcount, offset by lower research and development costs compared to the prior year quarter.
Net loss for the first quarter ended March 31, 2007 was approximately $10.5 million, compared to $14.6 million reported in the prior year quarter. Net loss per diluted share for the current quarter was $0.31 compared to the $0.47 loss reported for the prior year quarter. Diluted earnings per share were based on 34.4 million and 31.2 million weighted average shares outstanding, respectively, for the two quarters. The change in weighted average shares relates primarily to the issuance of 1.9 million shares in the Company’s sale of common stock in a registered direct offering completed in March 2007 pursuant to a shelf registration and the exercise of warrants during 2006.
At March 31, 2007, Stereotaxis had purchase orders and other commitments for its Niobe(R) systems of approximately $49 million. The Company does not include orders for disposables, service or accessories in its backlog data. These purchase orders and commitments are subject to contingencies that are outside our control and may be revised, modified or canceled.
“We are very pleased with the performance of the Company in the first quarter of 2007. With approximately $11 million in new orders and total revenue for the quarter of $9.2 million, we have established the foundation for our expected 2007 full year objectives”, commented Bevil Hogg, Chief Executive Officer of Stereotaxis. “We are also excited about the recent approvals of the eight millimeter catheter in the U.S. and receipt of the CE Mark for the irrigated catheter, leaving only the FDA approval of the irrigated catheter to provide a full complement of ablation catheters to clinicians worldwide. We look forward to another exciting Heart Rhythm Society meeting beginning tomorrow, and believe that the scheduled symposium and other activities will further demonstrate advantages of the Stereotaxis Niobe system.”
Stereotaxis ended the first quarter with cash and investments of approximately $49.4 million, as compared to approximately $37.0 million at year-end 2006. Total debt at March 31, 2007 amounted to approximately $1.7 million.
The Company continues to expect that total revenue for the year ending December 31, 2007 will be in the range of 90 percent to more than 100 percent greater than the $27.2 million recorded in the year ended December 31, 2006. To reiterate, Stereotaxis’ sales cycle, similar to other companies selling capital equipment to hospitals, is relatively long and can be subject to lumpiness from quarter to quarter, as hospital budget decisions and equipments installation schedules are often subject to last-minute delays. Prudence dictates that investors should anticipate the occasional impact on the Company’s quarterly results of such unexpected delays.
The Company will host a conference call today at 8:30 a.m. Eastern Daylight Time to discuss the results for the quarter. To participate in the conference call, please dial 888.868.9083 (Domestic) or 973.935.8512 (International) a few minutes before 8:30 a.m. ET. A replay of the conference call will be available from 10:30 a.m. ET on May 9, 2007 until 9:30 a.m. p.m. ET on May 16, 2007. The replay dial in number is 877.519.4471 (Domestic) or 973.341.3080 (International). The replay pin number is 8739988.
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=39485
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 arrhythmias and coronary artery disease. 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. 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 of the Company’s products in the marketplace, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, 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 we will recognize revenue related to our 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 our 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.
Contacts: Stereotaxis, Inc. Russo Partners, LLC 314-678-6105 212-845-4235 Jim Stolze, Chief Financial Officer Matthew Haines (investors) jstolze@stereotaxis.commatthew.haines@russopartnersllc.com STEREOTAXIS, INC. STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 2007 2006 Systems revenue $7,207,443 $982,597 Disposables, service and accessories revenue 1,953,512 749,196 Total revenue 9,160,955 1,731,793 Cost of revenue 3,250,348 1,231,991 Gross margin 5,910,607 499,802 Operating expenses: Research and development 5,694,691 6,129,870 General and administration 4,942,935 4,019,751 Sales and marketing 6,079,923 4,873,377 Total operating expenses 16,717,549 15,022,998 Operating loss (10,806,942) (14,523,196) Interest income 382,454 480,992 Interest expense (79,617) (553,102) Net loss $(10,504,105) $(14,595,306) Net loss per common share: Basic and diluted $(0.31) $(0.47) Weighted average shares used in computing net loss per common share: Basic and diluted 34,409,573 31,155,200 STEREOTAXIS, INC. BALANCE SHEETS March 31, December 31, 2007 2006 (Unaudited) Assets Current Assets: Cash and cash equivalents $46,444,382 $15,210,493 Short-term investments 2,993,211 21,773,288 Accounts receivable, net of allowance of $91,514 and $90,716 in 2007 and 2006, respectively 11,849,893 15,280,628 Current portion of long-term receivables - 163,362 Inventories 10,019,323 8,285,825 Prepaid expenses and other current assets 1,635,426 2,580,773 Total current assets 72,942,235 63,294,369 Property and equipment, net 5,395,515 4,130,295 Intangible assets, net 1,511,111 1,544,444 Long-term receivables 400,740 - Other assets 316,410 321,552 Total assets $80,566,011 $69,290,660 Liabilities and stockholders’ equity Current liabilities: Current maturities of long-term debt $1,500,000 $1,666,666 Accounts payable 5,030,490 5,555,121 Accrued liabilities 11,030,310 10,025,231 Deferred contract revenue 5,058,903 5,663,553 Total current liabilities 22,619,703 22,910,571 Long term debt, less current maturities 222,223 305,556 Long term deferred contract revenue 1,098,612 1,220,174 Other liabilities 459,908 65,367 Stockholders’ equity: Preferred stock, par value $0.001; 10,000,000 shares authorized at 2007 and 2006; none outstanding at 2007 and 2006 - - Common stock, par value $0.001; 100,000,000 shares authorized at 2007 and 2006; 36,846,794 and 34,755,397 issued at 2007 and 2006, respectively 36,847 34,755 Additional paid-in capital 270,789,228 248,908,918 Treasury stock, 40,151 shares at 2007 and 2006 (205,999) (205,999) Accumulated deficit (214,454,944) (203,950,839) Accumulated other comprehensive gain/(loss) 433 2,157 Total stockholders’ equity 56,165,565 44,788,992 Total liabilities and stockholders’ equity $80,566,011 $69,290,660
Stereotaxis, Inc.
CONTACT: Jim Stolze, Chief Financial Officer of Stereotaxis, Inc.,+1-314-678-6105, jstolze@stereotaxis.com; or Investors, Matthew Haines ofRusso Partners, LLC, +1-212-845-4235, matthew.haines@russopartnersllc.com,for Stereotaxis, Inc.
