Stereotaxis, Inc. (Stereotaxis), a cardiovascular devices company, has reported total revenues of $40.4 million for the full year of 2008, compared with the revenues of $39.3 million in the previous year-end. It has reported a net loss of $43.9 million, or $1.20 loss per share, for the full year of 2008, compared with the net loss of $48.1 million or $1.34 loss per share, in the previous year-end.
Revenue from sales of the Niobe and Odyssey systems totaled $8.7 million. Recurring revenue from disposables, services and accessories was $3.4 million. New orders in the fourth quarter for both Niobe and Odyssey systems were $11 million and backlog at December 31, 2008 totaled $69 million. The company continued to drive cost efficiencies and lowered operating expenses to $14.6 million, down 23% from the prior year’s fourth quarter and a 9.5% decline from the third quarter of 2008.
Michael P. Kaminski, president and chief executive officer, commented, “Our fourth quarter results were in line with our preliminary announcement and reflected some very positive trends, including the increase in revenue, continued strength of gross margins and lower operating expenses. As a result, our operating loss declined by 48% compared to the fourth quarter of last year as we continuously move Stereotaxis toward breakeven.”
“The roll-out of the Thermocool irrigated catheter in Europe is proceeding well and the results have been very encouraging,” continued Mr. Kaminski. “The Thermocool catheter is currently in use at 29 sites in Europe and since its reintroduction in September, utilization in Europe has increased significantly. The procedures performed to date to treat complex arrhythmias have confirmed that the efficacy, efficiency and safety record of the irrigated catheter is unsurpassed in the industry and we believe its performance has the potential to set a new standard for EP labs. As we look to the year ahead, once the magnetic irrigated catheter is approved by the U.S. Food and Drug Administration, our goal is to generate market interest in the Niobe system and resulting order momentum matching what we have achieved in Europe.”
“Cash and cash equivalents totaled $30 million at the end of the year. Included in this total was $19 million in net proceeds from the additional equity that we raised in December 2008. We believe increased acceptance of our Niobe platform and Odyssey, along with our reduced expense structure and our balance sheet strength and flexibility, will position Stereotaxis to grow revenue and achieve much improved bottom-line results in 2009,” concluded Kaminski.
Fourth quarter and full year 2008 financial performance
Gross margin for the quarter was $8.2 million, or 68% of revenue, against $6.5 million, or 64% of revenue in the fourth quarter of 2007. Fourth quarter operating expenses decreased 23% to $14.6 million, compared to $18.9 million in the fourth quarter of 2007.
The company reported a net loss for the fourth quarter of 2008 of $7.5 million, or $(0.20) per share, against a net loss of $12.2 million, or $(0.34) per share, in the fourth quarter of 2007. The weighted average shares for the recent fourth quarter were 36.7 million compared with 36.3 million in the fourth quarter of last year.
Cash used in operations was $3.4 million for the fourth quarter of 2008, and cash and investments at December 31, 2008 totaled $30.4 million, against $23.7 million at December 31, 2007.