AP NEWS
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Stereotaxis Reports 2019 Third Quarter Financial Results

November 14, 2019 GMT

ST. LOUIS, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Stereotaxis (NYSE: STXS), the global leader in innovative robotic technologies for the treatment of cardiac arrhythmias, today reported financial results for the third quarter ended September 30, 2019.

“The third quarter was highlighted by successful reengagement with the capital markets, meaningful progress in our commercial growth strategy, and continued innovation and industry collaboration,” said David Fischel, Chairman and CEO. “We are pleased with the methodical progress across all aspects of Stereotaxis.”

“In the quarter, we listed on the NYSE American exchange and closed a $25 million equity financing. These reflect increasing awareness and confidence in Stereotaxis’ significant clinical value and growth opportunity. Stereotaxis is in the strongest financial position in its history, and will use this strength to accelerate the development and commercial introduction of innovations in electrophysiology and beyond.”

“Our revenue growth and net income in the quarter is reflective of the positive impact a resurgence of robotic system sales can have on our financial performance. Stereotaxis continues to make tangible progress in the regulatory process, supply-chain optimization, and commercial discussions necessary for a broad launch of the Genesis RMN® System. As we plan towards 2020 and the broad commercialization of Genesis, we expect an exciting year of significant growth.”

“Development of Stereotaxis’ proprietary catheter continues to advance well in accordance with previously disclosed timelines. The multiple, recently announced collaborations to integrate advanced preoperative mapping information enhance the robotic ecosystem and will increasingly drive personalized patient-specific therapy in electrophysiology.”

Third Quarter 2019 Financial ResultsRevenue for the third quarter of 2019 totaled $8.2 million, up 9% from $7.6 million in the prior year third quarter. Recurring revenue for the quarter was $6.3 million and system revenue for the quarter was $1.7 million. System revenue primarily reflects the establishment of a new robotic electrophysiology program.

Gross margin in the quarter was $6.4 million or 78% of revenue, consistent with the 78% reported in the third quarter of 2018. Gross margin on recurring revenue and system revenue were 85% and 61%, respectively. Operating expenses in the third quarter of $6.4 million increased from $6.0 million in the prior year quarter.

Operating and net income for the quarter were both near breakeven, with an operating loss of ($41,000) and net income of $44,000, compared to an operating loss and net loss of ($0.1) million in the third quarter of 2018. Negative free cash flow for the quarter was ($0.4) million.

Cash Balance and LiquidityAt September 30, 2019, Stereotaxis had cash and cash equivalents of $31.7 million and no debt.

Forward Looking ExpectationsStereotaxis’ innovation accomplishments support an expectation of robust revenue growth in 2020, accelerating throughout the year.

Conference Call and WebcastStereotaxis will host a conference call and webcast today, November 14, 2019, at 9:00 a.m. Eastern Time. To access the conference call, dial 1-800-367-2403 (US and Canada) or 1-334-777-6978 (International) and give the participant pass code 4492256. Participants are asked to call 5-10 minutes prior to the start time. To access the live and replay webcast, please visit the investor relations section of the Stereotaxis website at www.stereotaxis.com.

About Stereotaxis Stereotaxis is the global leader in innovative robotic technologies designed to enhance the treatment of arrhythmias and perform endovascular procedures. Its mission is the discovery, development and delivery of robotic systems, instruments, and information solutions for the interventional laboratory. These innovations help physicians provide unsurpassed patient care with robotic precision and safety, improved lab efficiency and productivity, and enhanced integration of procedural information. Stereotaxis’ robotic technology has received various regulatory clearances in the United States, European Union, Japan, Canada, China, and elsewhere. The Stereotaxis Genesis RMN System is CE marked and will become available in other global geographies subject to regulatory approvals. Stereotaxis Imaging Model S is CE marked and FDA cleared. For more information, please visit www.stereotaxis.com.

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, the Company’s ability to raise additional capital on a timely basis and on terms that are acceptable, its ability to continue to manage expenses and cash burn rate at sustainable levels, its ability to continue to work with lenders to extend, repay or refinance indebtedness, or to obtain additional financing, in either case on acceptable terms, continued acceptance of the Company’s products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase its systems and the timing of such purchases, competitive factors, changes resulting from healthcare reform in the United States, including changes in government reimbursement procedures, dependence upon third-party vendors, timing of regulatory approvals, 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 the Company will recognize revenue related to its 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 the Company’s control. In addition, these orders and commitments may be revised, modified, delayed or canceled, either by their express terms, as a result of negotiations, or by overall project changes or delays.

Company Contacts: David L. FischelChairman and Chief Executive Officer

Kimberly R. Peery Chief Financial Officer

314-678-6100investors@stereotaxis.com

STEREOTAXIS, INC. STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ ------------------------------ 2019 2018 2019 2018 - ---------- - - ---------- - - ---------- - - ---------- - Revenue: Systems $ 1,696,964 $ 715,484 $ 1,755,015 $ 1,043,510 Disposables, service and accessories 6,258,252 6,839,995 19,515,125 21,035,002 Sublease 246,532 - 739,593 - - ---------- - - ---------- - - ---------- - - ---------- - Total revenue 8,201,748 7,555,479 22,009,733 22,078,512 Cost of revenue: Systems 665,463 596,869 722,828 1,257,980 Disposables, service and accessories 919,599 1,036,589 2,928,718 3,029,875 Sublease 246,531 - 739,592 - - ---------- - - ---------- - - ---------- - - ---------- - Total cost of revenue 1,831,593 1,633,458 4,391,138 4,287,855 Gross margin 6,370,155 5,922,021 17,618,595 17,790,657 Operating expenses: Research and development 1,751,081 2,000,780 7,405,462 5,995,800 Sales and marketing 3,120,632 2,819,101 9,666,975 9,911,514 General and administrative 1,539,648 1,215,920 4,186,277 3,753,703 Total operating expenses 6,411,361 6,035,801 21,258,714 19,661,017 - ---------- - - ---------- - - ---------- - - ---------- - Operating loss (41,206 ) (113,780 ) (3,640,119 ) (1,870,360 ) Other income - - - 2,590,361 Interest income (expense) 84,954 (2,515 ) 133,329 (33,271 ) - ---------- - - ---------- - - ---------- - - ---------- - Net income (loss) $ 43,748 $ (116,295 ) $ (3,506,790 ) $ 686,730 Cumulative dividend on convertible preferred (360,647 ) (361,447 ) (1,071,351 ) (1,072,553 ) stock Net loss attributable to common stockholders $ (316,899 ) $ (477,742 ) $ (4,578,141 ) $ (385,823 ) - ---------- - - ---------- - - ---------- - - ---------- - Net loss per share attributed to common stockholder: Basic $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) Diluted $ (0.00 ) $ (0.01 ) $ (0.07 ) $ (0.01 ) Weighted average number of common shares and equivalents: Basic 64,294,153 59,008,219 61,405,083 49,733,553 Diluted 64,294,153 59,008,219 61,405,083 49,733,553

STEREOTAXIS, INC. BALANCE SHEETS September 30, December 31, 2019 2018 ---------------- ---------------- (Unaudited) Assets Current assets: Cash and cash equivalents $ 31,650,559 $ 10,796,072 Accounts receivable, net of allowance of $368,191 and $398,847 in 2019 and 3,830,395 5,021,111 2018, respectively Inventories, net 1,546,716 1,191,666 Prepaid expenses and other current assets 1,022,322 963,700 - ------------ - - ------------ - Total current assets 38,049,992 17,972,549 Property and equipment, net 270,751 343,693 Operating lease right-of-use assets 4,771,187 - Other assets 214,042 198,365 - ------------ - - ------------ - Total assets $ 43,305,972 $ 18,514,607 - ------------ - - ------------ - Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 1,031,975 $ 1,726,360 Accrued liabilities 2,641,254 2,642,481 Deferred revenue 5,283,783 5,825,536 Current portion of operating lease liabilities 2,235,465 - - ------------ - - ------------ - Total current liabilities 11,192,477 10,194,377 Long-term deferred revenue 560,508 407,151 Operating lease liabilities 2,574,469 - Other liabilities 260,947 641,461 - ------------ - - ------------ - Total liabilities 14,588,401 11,242,989 Series A - Convertible preferred stock: Convertible preferred stock, Series A, par value $0.001; 23,780 and 5,929,749 5,960,475 23,900 shares outstanding at 2019 and 2018 Stockholders’ equity: Convertible preferred stock, Series B, par value $0.001; 10,000,000 shares authorized, 5,610,000 and no shares outstanding at 2019 and 5,610 - 2018 Common stock, par value $0.001; 300,000,000 shares authorized, 66,677,111 and 59,058,297 shares issued at 2019 and 2018, 66,677 59,058 respectively Additional paid-in capital 503,149,814 478,179,574 Treasury stock, 4,015 shares at 2019 and 2018 (205,999 ) (205,999 ) Accumulated deficit (480,228,280 ) (476,721,490 ) - ------------ - - ------------ - Total stockholders’ equity 22,787,822 1,311,143 - ------------ - - ------------ - Total liabilities and stockholders’ equity $ 43,305,972 $ 18,514,607 - ------------ - - ------------ -