Stereotaxis Inc. (STXS, Financial) filed Quarterly Report for the period ended 2011-09-30.
Stereotaxis Inc. has a market cap of $69.3 million; its shares were traded at around $1.25 with and P/S ratio of 1.3.
Cost of Revenue. Cost of revenue decreased from $3.9 million for the three months ended September 30, 2010 to $2.7 million for the three months ended September 30, 2011, a decrease of approximately 31%. Cost of revenue for systems sold decreased from $3.1 million for the three months ended September 30, 2010 to $1.7 million for the three months ended September 30, 2011, a decrease of approximately 44%. This decrease was primarily due to a decrease in the number of NIOBE and ODYSSEY systems sold. Cost of revenue for disposables, service and accessories increased from $0.8 million for the three months ended September 30, 2010 to $0.9 million for the three months ended September 30, 2011, an increase of approximately 22%. As a percentage of our total revenue, overall gross margin decreased to 69% for the three months ended September 30, 2011 from 72% for the three months ended September 30, 2010. This decrease is primarily related to a charge related to the absorption of overhead costs based on normal production levels during the quarter. Gross margin for systems was 15% for the three months ended September 30, 2011 compared to 62% for the three months ended September 30, 2010. The decrease was related to the charge related to the absorption of overhead costs as well as a change in product mix from NIOBE to ODYSSEY systems. Gross margin for disposables, service and accessories was 86% for the current quarter compared to 87% for the three months ended September 30, 2010 due to higher costs associated with software upgrades in 2011 compared to 2010.
Revenue. Revenue decreased from $39.5 million for the nine months ended September 30, 2010 to $30.4 million for the nine months ended September 30, 2011, a decrease of approximately 23%. Revenue from the sale of systems decreased from $22.8 million to $11.4 million, a decrease of approximately 50%, primarily due to a decrease in the number of NIOBE systems sold. We recognized revenue on five NIOBE systems and a total of $5.3 million for ODYSSEY systems during the 2011 period, versus sixteen NIOBE systems and a total of $6.0 million for ODYSSEY systems during the 2010 period. Revenue from sales of disposable interventional devices, service and accessories increased to $19.0 million for the nine months ended September 30, 2011 from $16.7 million for the nine months ended September 30, 2010, an increase of approximately 14%. The increase was attributable to the increased base of installed systems, the resulting disposable sales and service contracts, as well as favorable pricing.
Cost of Revenue. Cost of revenue decreased from $11.7 million for the nine months ended September 30, 2010 to $9.2 million for the nine months ended September 30, 2011, a decrease of approximately 22%. As a percentage of our total revenue, overall gross margin remained consistent at 70% for the nine months ended September 30, 2010 and 2011. Cost of revenue for systems sold decreased from $9.5 million for the nine months ended September 30, 2010 to $6.4 million for the nine months ended September 30, 2011, a decrease of approximately 32%, primarily due to the decrease in the number of NIOBE systems sold. Gross margin for systems was 43% for the nine months ended September 30, 2011 compared to 58% for the nine months ended September 30, 2010. The decrease was primarily related to a charge related to the absorption of overhead costs based on normal production levels during the quarter ended September 30, 2011. Cost of revenue for disposables, service and accessories increased to $2.7 million during the 2011 period from $2.2 million during the 2010 period, resulting in a decrease in gross margin to 86% from 87% between these periods. This decrease in cost of revenue was primarily due to higher costs associated with software upgrades in 2011 compared to 2010.
In July 2008, the Company and Biosense Webster entered into an amendment to their existing agreements relating to the development and sale of catheters. Pursuant to the amendment, Biosense Webster agreed to pay to the Company $10.0 million as an advance on royalty amounts that were owed at the time the amendment was executed or would be owed in the future by Biosense Webster to the Company pursuant to the royalty provisions of one of the existing agreements. The Company and Biosense Webster also agreed that an aggregate of up to $8.0 million of certain agreed upon research and development expenses that were owed at the time the amendment was executed or may be owed in the future by the Company to Biosense Webster pursuant to the existing agreement would be deferred and will be due, together with any unrecouped portion of the $10.0 million royalty advance, on the Final Payment Date (as defined below). Interest on the outstanding and unrecouped amounts of the royalty advance and deferred research and development expenses will accrue at an interest rate of the prime rate plus 0.75%. Outstanding royalty advances and deferred research and development expenses and accrued interest thereon will be recouped by Biosense Webster by deductions from royalty amounts otherwise owed to the Company from Biosense Webster pursuant to the existing agreement. The Company has the right to prepay any amounts due pursuant to the Amendment at any time without penalty. Approximately $18.0 million had been advanced by Biosense Webster to the Company pursuant to the amendment. As of September 30, 2011, $12.4 million of royalty payments owed by Biosense and $4.5 million in supplemental payments had been used to reduce the advances together with the accrued interest thereon and the remaining approximately $3.1 million of amounts owed to Biosense Webster has been classified as short-term debt in the accompanying balance sheet. The Company recorded interest expense of $0.1 million and $0.2 million and disposables, service and accessories revenue of $0.8 million and $2.6 million for the three and nine months ended September 30, 2011, related to this agreement.
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Stereotaxis Inc. has a market cap of $69.3 million; its shares were traded at around $1.25 with and P/S ratio of 1.3.
Highlight of Business Operations:
Revenue. Revenue decreased from $13.9 million for the three months ended September 30, 2010 to $8.5 million for the three months ended September 30, 2011, a decrease of approximately 38%. Revenue from the sale of systems decreased from $8.2 million to $2.0 million, a decrease of approximately 75%, primarily due to a decrease in the number of NIOBE systems sold. We recognized revenue on one NIOBE system and a total of $1.0 million for ODYSSEY and CINEMA systems during the 2011 period, versus five NIOBE systems and a total of $2.6 million for ODYSSEY and CINEMA systems during the 2010 period. Revenue from sales of disposable interventional devices, service and accessories increased to $6.5 million for the three months ended September 30, 2011 from $5.7 million for the three months ended September 30, 2010, an increase of approximately 14%. The increase was attributable to the increased base of installed systems, the resulting disposable sales and service contracts, as well as favorable pricing.Cost of Revenue. Cost of revenue decreased from $3.9 million for the three months ended September 30, 2010 to $2.7 million for the three months ended September 30, 2011, a decrease of approximately 31%. Cost of revenue for systems sold decreased from $3.1 million for the three months ended September 30, 2010 to $1.7 million for the three months ended September 30, 2011, a decrease of approximately 44%. This decrease was primarily due to a decrease in the number of NIOBE and ODYSSEY systems sold. Cost of revenue for disposables, service and accessories increased from $0.8 million for the three months ended September 30, 2010 to $0.9 million for the three months ended September 30, 2011, an increase of approximately 22%. As a percentage of our total revenue, overall gross margin decreased to 69% for the three months ended September 30, 2011 from 72% for the three months ended September 30, 2010. This decrease is primarily related to a charge related to the absorption of overhead costs based on normal production levels during the quarter. Gross margin for systems was 15% for the three months ended September 30, 2011 compared to 62% for the three months ended September 30, 2010. The decrease was related to the charge related to the absorption of overhead costs as well as a change in product mix from NIOBE to ODYSSEY systems. Gross margin for disposables, service and accessories was 86% for the current quarter compared to 87% for the three months ended September 30, 2010 due to higher costs associated with software upgrades in 2011 compared to 2010.
Revenue. Revenue decreased from $39.5 million for the nine months ended September 30, 2010 to $30.4 million for the nine months ended September 30, 2011, a decrease of approximately 23%. Revenue from the sale of systems decreased from $22.8 million to $11.4 million, a decrease of approximately 50%, primarily due to a decrease in the number of NIOBE systems sold. We recognized revenue on five NIOBE systems and a total of $5.3 million for ODYSSEY systems during the 2011 period, versus sixteen NIOBE systems and a total of $6.0 million for ODYSSEY systems during the 2010 period. Revenue from sales of disposable interventional devices, service and accessories increased to $19.0 million for the nine months ended September 30, 2011 from $16.7 million for the nine months ended September 30, 2010, an increase of approximately 14%. The increase was attributable to the increased base of installed systems, the resulting disposable sales and service contracts, as well as favorable pricing.
Cost of Revenue. Cost of revenue decreased from $11.7 million for the nine months ended September 30, 2010 to $9.2 million for the nine months ended September 30, 2011, a decrease of approximately 22%. As a percentage of our total revenue, overall gross margin remained consistent at 70% for the nine months ended September 30, 2010 and 2011. Cost of revenue for systems sold decreased from $9.5 million for the nine months ended September 30, 2010 to $6.4 million for the nine months ended September 30, 2011, a decrease of approximately 32%, primarily due to the decrease in the number of NIOBE systems sold. Gross margin for systems was 43% for the nine months ended September 30, 2011 compared to 58% for the nine months ended September 30, 2010. The decrease was primarily related to a charge related to the absorption of overhead costs based on normal production levels during the quarter ended September 30, 2011. Cost of revenue for disposables, service and accessories increased to $2.7 million during the 2011 period from $2.2 million during the 2010 period, resulting in a decrease in gross margin to 86% from 87% between these periods. This decrease in cost of revenue was primarily due to higher costs associated with software upgrades in 2011 compared to 2010.
In July 2008, the Company and Biosense Webster entered into an amendment to their existing agreements relating to the development and sale of catheters. Pursuant to the amendment, Biosense Webster agreed to pay to the Company $10.0 million as an advance on royalty amounts that were owed at the time the amendment was executed or would be owed in the future by Biosense Webster to the Company pursuant to the royalty provisions of one of the existing agreements. The Company and Biosense Webster also agreed that an aggregate of up to $8.0 million of certain agreed upon research and development expenses that were owed at the time the amendment was executed or may be owed in the future by the Company to Biosense Webster pursuant to the existing agreement would be deferred and will be due, together with any unrecouped portion of the $10.0 million royalty advance, on the Final Payment Date (as defined below). Interest on the outstanding and unrecouped amounts of the royalty advance and deferred research and development expenses will accrue at an interest rate of the prime rate plus 0.75%. Outstanding royalty advances and deferred research and development expenses and accrued interest thereon will be recouped by Biosense Webster by deductions from royalty amounts otherwise owed to the Company from Biosense Webster pursuant to the existing agreement. The Company has the right to prepay any amounts due pursuant to the Amendment at any time without penalty. Approximately $18.0 million had been advanced by Biosense Webster to the Company pursuant to the amendment. As of September 30, 2011, $12.4 million of royalty payments owed by Biosense and $4.5 million in supplemental payments had been used to reduce the advances together with the accrued interest thereon and the remaining approximately $3.1 million of amounts owed to Biosense Webster has been classified as short-term debt in the accompanying balance sheet. The Company recorded interest expense of $0.1 million and $0.2 million and disposables, service and accessories revenue of $0.8 million and $2.6 million for the three and nine months ended September 30, 2011, related to this agreement.
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