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Stereotaxis Inc. Reports Operating Results (10-Q)

May 10, 2012 | About:
10qk

10qk

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Stereotaxis Inc. (STXS) filed Quarterly Report for the period ended 2012-03-31.

Stereotaxis Inc has a market cap of $24 million; its shares were traded at around $0.3499 with and P/S ratio of 0.6.

Highlight of Business Operations:

Revenue. Revenue increased from $10.2 million for the three months ended March 31, 2011 to $12.3 million for the three months ended March 31, 2012, an increase of approximately 20%. Revenue from the sale of systems increased from $4.3 million to $5.2 million, an increase of approximately 21%. We recognized revenue on two Niobe systems, a total of $1.4 million for Niobe ES upgrades, and a total of $2.0 million for Odyssey and Odyssey Cinema systems during the 2012 period, versus one Niobe system and a total of $2.7 million for Odyssey and Odyssey Cinema systems during the 2011 period. Revenue from sales of disposable interventional devices, service and accessories increased to $7.1 million for the three months ended March 31, 2012 from $5.9 million for the three months ended March 31, 2011, an increase of approximately 20%. 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 increased from $3.0 million for the three months ended March 31, 2011 to $3.8 million for the three months ended March 31, 2012, an increase of approximately 25%. Cost of revenue for systems sold increased from $2.2 million for the three months ended March 31, 2011 to $2.3 million for the three months ended March 31, 2012, an increase of approximately 7%. This increase was primarily due to Niobe ES upgrades. Cost of revenue for disposables, service and accessories increased from $0.8 million for the three months ended March 31, 2011 to $1.4 million for the three months ended March 31, 2012, an increase of approximately 73%. The increase was primarily due to Niobe ES upgrades received through premium service packages which include rights to new hardware. As a percentage of our total revenue, overall gross margin decreased to 69% for the three months ended March 31, 2012 from 71% for the three months ended March 31, 2011. Gross margin for systems was 55% for the three months ended March 31, 2012 compared to 49% for the three months ended March 31, 2011. The increase was related to higher product mix of Niobe systems. Gross margin for disposables, service and accessories was 80% for the current quarter compared to 86% for the three months ended March 31, 2011. The decrease is due to Niobe ES upgrades received through service contracts.

We cannot assure that our existing cash, cash equivalents and borrowing facilities will be sufficient to fund our operating expenses and capital equipment requirements through the next 12 months. In the event that the amendment of our existing debt facility as described above is not completed, it is probable that we will not meet all covenants of our bank loan agreement as of May 31, 2012. In the event that our covenants are not met, it is possible that our primary lender could call our outstanding debt. We also cannot assure that additional financing will be available on a timely basis on terms acceptable to us or at all. If adequate funds are not available to us, through the extension of our existing debt facility or otherwise, we may not be able to maintain customer and vendor relationships; hire, train and retain employees; maintain or expand our operations; or respond to competitive pressures. Further, we could be required to delay development or commercialization of new products, to license to third parties the rights to commercialize products or technologies that we would otherwise seek to commercialize ourselves or to reduce the sales, marketing, customer support or other resources devoted to our products, any of which could have a material adverse effect on our business, financial condition and results of operations.

Read the The complete Report

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