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Stereotaxis Inc. Reports Operating Results (10-Q)

August 09, 2012 | About:
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10qk

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Stereotaxis Inc. (STXS) filed Quarterly Report for the period ended 2012-06-30.

Stereotaxis Inc has a market cap of $14.9 million; its shares were traded at around $1.89 with and P/S ratio of 0.4.
This is the annual revenues and earnings per share of STXS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of STXS.


Highlight of Business Operations:

Revenue. Revenue decreased from $11.6 million for the three months ended June 30, 2011 to $10.5 million for the three months ended June 30, 2012, a decrease of approximately 9%. Revenue from the sale of systems decreased from $5.0 million to $3.9 million, a decrease of approximately 23%. We recognized revenue on two Niobe ES, a total of $0.7 million for Niobe ES upgrades, and a total of $1.1 million for Odyssey and Odyssey Cinema systems during the 2012 period, versus three Niobe systems and a total of $1.6 million for Odyssey and Odyssey Cinema systems during the 2011 period. Revenue from sales of disposable interventional devices, service and accessories was flat at $6.6 million for the three months ended June 30, 2012 and 2011 as higher disposable sales were offset by lower royalty and service revenue.

Cost of Revenue. Cost of revenue decreased from $3.5 million for the three months ended June 30, 2011 to $3.3 million for the three months ended June 30, 2012, a decrease of approximately 7%. Cost of revenue for systems sold decreased from $2.5 million for the three months ended June 30, 2011 to $2.2 million for the three months ended June 30, 2012, a decrease of approximately 14%. This decrease was primarily due to one less Niobe system and lower Odyssey and Odyssey Cinema system sales. Cost of revenue for disposables, service and accessories increased from $1.0 million for the three months ended June 30, 2011 to $1.1 million for the three months ended June 30, 2012, an increase of approximately 9%. The increase was primarily due to Niobe ES upgrades received in exchange for new or extended premium service contracts. As a percentage of our total revenue, overall gross margin decreased to 69% for the three months ended June 30, 2012 from 70% for the three months ended June 30, 2011. Gross margin for systems was 44% for the three months ended June 30, 2012 compared to 50% for the three months ended June 30, 2011. The decrease is attributable to lower production volumes and related cost absorption. Gross margin for disposables, service and accessories was 84% for the current quarter compared to 85% for the three months ended June 30, 2011. The decrease is due to lower royalties and a higher mix of lower margin disposable revenue.

Revenue. Revenue increased from $21.8 million for the six months ended June 30, 2011 to $22.8 million for the six months ended June 30, 2012, an increase of approximately 4%. Revenue from the sale of systems decreased from $9.3 million to $9.0 million, a decrease of approximately 3%. We recognized revenue on four Niobe ES, a total of $2.1 million for Niobe ES upgrades, and a total of $3.1 million for Odyssey systems during the 2012 period, versus four Niobe systems and a total of $4.3 million for Odyssey systems during the 2011 period. Revenue from sales of disposable interventional devices, service and accessories increased to $13.8 million for the six months ended June 30, 2012 from $12.5 million for the six months ended June 30, 2011, an increase of approximately 10%. The increase was attributable to improved utilization due to Niobe ES upgrades and to a lesser extent 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 $6.5 million for the six months ended June 30, 2011 to $7.0 million for the six months ended June 30, 2012, an increase of approximately 8%. As a percentage of our total revenue, overall gross margin decreased to 69% for the six months ended June 30, 2012 compared to 70% during the same six month period of the prior year, due to lower disposable, service and accessories margins. Cost of revenue for systems sold decreased from $4.7 million for the six months ended June 30, 2011 to $4.5 million for the six months ended June 30, 2012, a decrease of approximately 4%, primarily due to lower Odyssey system sales offset by Niobe ES upgrades. Gross margin for systems was 50% for the six months ended June 30, 2012 compared to 49% for the six months ended June 30, 2011. Cost of revenue for disposables, service and accessories increased to $2.5 million during the 2012 period from $1.8 million during the 2011 period, resulting in a decrease in gross margin to 82% from 85% between these periods. The decrease in gross margin is due to a higher mix of lower margin disposables revenue, lower royalties and providing Niobe ES upgrades in exchange for new or extended premium service contracts.

We expect to have negative cash flow from operations throughout 2012. We also expect to continue the development and commercialization of our existing products and, to a lesser extent, our research and development programs and the advancement of new products into clinical development. We expect that our sales and marketing, research and development, and general and administrative expenses will decrease throughout 2012. Although our operating expenses will be reduced in 2012, 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. We may be required to raise capital or pursue other financing strategies to continue our operations. Until we can generate significant cash flow from our operations, we expect to continue to fund our operations with cash resources primarily generated from the proceeds of our past and future public offerings, private sales of our equity securities and working capital and equipment financing loans. In the future, we may finance future cash needs through the sale of other equity securities, strategic collaboration agreements and debt financings. We cannot accurately predict the timing and amount of our utilization of capital, which will depend on a number of factors outside of our control. 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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