Stereotaxis, a leading provider of robotic technologies for the treatment of cardiac arrhythmias, announced a 2% increase in revenue to $7.8 million in the third quarter of 2023. The growth was primarily attributed to the adoption of their Genesis robotic system. Despite experiencing delays in Chinese projects and a loss of royalty revenue, Stereotaxis remains optimistic about future growth.
One of the key takeaways from the earnings call was that Stereotaxis recognized revenue on two Genesis systems in Q3, contributing to the overall revenue growth. The company’s system backlog currently stands at $13 million, and they anticipate ending the year with multiple additional orders. Stereotaxis is witnessing strong capital activity in Europe, although projects in China have been delayed due to an anti-corruption drive.
Although there was a loss of royalty revenue, Stereotaxis still reported revenue growth. However, the company faced challenges due to a catheter shortage, which put residual pressure on procedures. Despite these obstacles, Stereotaxis maintained a gross margin of 52% for Q3, with recurring revenue gross margin at 80% and system gross margin at 18%. Operating expenses for the quarter were $9.7 million.
Looking ahead, Stereotaxis plans to submit a PMA supplement submission for its MAGiC ablation catheter to the FDA before year-end. They also anticipate a 510k submission for their endovascular procedures in the second quarter of 2024. The company emphasized the anticipation among physicians for the approval of MAGiC and mentioned the availability of a new X-Ray solution in Europe.
1. What drove Stereotaxis’ revenue growth in Q3 2023?
– Stereotaxis experienced a 2% increase in revenue in Q3, primarily due to the adoption of their Genesis robotic system.
2. How is Stereotaxis addressing challenges in China?
– Stereotaxis projects in China have been delayed due to an anti-corruption drive, but they are still seeing strong capital activity in Europe.
3. What is Stereotaxis’ plan for future growth?
– Stereotaxis plans to submit a PMA supplement submission for their MAGiC ablation catheter to the FDA and anticipates a 510k submission for their endovascular procedures in 2024.
4. What is Stereotaxis’ gross margin for Q3?
– Stereotaxis maintained a gross margin of 52% for Q3, with recurring revenue gross margin at 80% and system gross margin at 18%.
5. How does Stereotaxis expect to end the year financially?
– Stereotaxis expects to end the year with $22 million in cash and no debt, and they are confident in their ability to reach profitability without additional financings.