ST. LOUIS, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Stereotaxis, Inc. (OTCQX:STXS), a global leader in innovative robotic technologies for the treatment of cardiac arrhythmias, today reported financial results for the second quarter ended June 30, 2017.
David Fischel, Chairman and Acting CEO, commented, “I am pleased with our progress in the quarter from a financial, operational and strategic perspective. Our focus remains on supporting electrophysiologists build successful robotic ablation practices and identifying and initiating the strategic innovation paths that improve patient care, physician choice and our technology availability. The combination of these should enable a future where robotic ablation is standard of care across a broad spectrum of cardiac arrhythmias.”
“During the quarter, we launched the e-Contact™ module in Europe, an important capability on the path to robust automation software. Increased customer engagement led to annual growth in global procedure volumes. Improved expense management led to a meaningful reduction in operating loss. We are working on establishing additional capabilities, relationships and innovation programs that will be announced when appropriate.”
Second Quarter and First Half 2017 Financial Results
Revenue for the second quarter of 2017 totaled $8.5 million, up from $7.9 million in the prior year second quarter and up sequentially from $7.0 million in the 2017 first quarter. Recurring revenue was $6.6 million in the second quarter, down from $6.9 million in the prior year quarter and $6.8 million in the first quarter. Recurring revenue for the first half of 2017 of $13.4 million was essentially flat with the first half of 2016. Recurring revenue fluctuates with the timing of disposable shipments and field service projects, but benefited from 2% year-over-year growth in global procedures. System revenue in the second quarter was $1.8 million, up from $0.9 million in the prior year quarter and $0.2 million in the first quarter. System revenue reflected the sale of a Niobe® system to an international distributor in the second quarter as well as the sale of Odyssey® systems. System revenue of $2.0 million for the first half of 2017 was down from $3.0 million in the first half of 2016, primarily reflecting the expiration of an Odyssey distribution agreement and the timing of Niobe system installations in 2016. Ending capital backlog for the 2017 second quarter was $3.2 million.
Gross margin in the quarter was $6.3 million, or 74% of revenue, versus $6.8 million, or 86% of revenue, in the second quarter of 2016 and $5.7 million, or 82% of revenue, in the first quarter of 2017. The reduction in gross margin percentage does not reflect any fundamental changes in product pricing or costs but is primarily the result of higher system sales in the second quarter of 2017 as well as the launch and installation of e-Contact technology at European hospitals. Gross margin of 78% for the first half of 2017 was essentially equivalent to the gross margin recorded for the full year 2016.
Operating expenses in the second quarter were $6.7 million, down from $8.4 million in the prior year quarter and $7.6 million in the first quarter. The reduction in operating expenses reflects lower executive compensation and more efficient management of expenses across the organization, but does not represent any material changes in the organization’s personnel, infrastructure or capabilities. Operating loss in the second quarter was $(0.4) million, a significant reduction compared to $(1.6) million in the prior year second quarter and $(1.9) million in the first quarter. Net loss for the second quarter was $(0.2) million, compared to a net loss of $(2.3) million in the second quarter of 2016. Excluding mark-to-market warrant revaluation, the Company would have reported a net loss of $(0.5) million for the quarter. Cash utilization for the second quarter was $(0.7) million. Cash utilization in the quarter does not reflect the receipt of cash from the sale of the Niobe system, with which the Company would have had recorded positive free cash flow.
Cash Balance and Liquidity
At June 30, 2017, Stereotaxis had cash and cash equivalents of $5.0 million, no debt, and $3.9 million in unused borrowing capacity on its revolving credit facility, for total liquidity of $8.9 million.
Full Year 2017 Expectations
The Company is reaffirming each of the expectations for 2017 that were initially provided in May:
- Full year 2017 expected revenue to exceed $30 million
- Approximately cash flow neutral for the last three quarters of 2017
- Development and initiation of long term product innovation plan