Stereotaxis (STXS) Stock: Why The Price Surged Today

By Amit Chowdhry ● Nov 11, 2021
  • The stock price of Stereotaxis Inc (NYSEAMERICAN: STXS) increased by 20.5% today. This is why it happened.

The stock price of Stereotaxis Inc (NYSEAMERICAN: STXS) – the global leader in innovative robotic technologies for the treatment of cardiac arrhythmias – increased by 20.5% today. Investors responded positively to the company’s financial results for the third quarter ended September 30, 2021.

Q3 2021 Financial Results 

— Revenue for the third quarter of 2021 totaled $9.1 million, up 5% from $8.7 million in the prior year third quarter. And system revenue was $3.5 million and recurring revenue was $5.3 million, compared to $3.0 million and $5.5 million respectively in the prior year third quarter.

— Gross margin for the third quarter of 2021 was 52% of revenue, with system gross margin of 5% and recurring revenue gross margin of 86%. And operating expenses in the quarter of $9.4 million include $2.6 million in non-cash stock compensation expense. Excluding stock compensation expense, adjusted operating expenses in the current quarter were $6.8 million, compared to the prior year adjusted operating expenses of $5.5 million. Operating expenses in the current year primarily reflect increased R&D spending and measured investment and hiring across key business functions.

— Operating loss and net loss for the third quarter of 2021 were both ($4.6) million, compared to ($1.6) million for both in the previous year. Adjusted operating loss and adjusted net loss for the quarter, excluding non-cash stock compensation expense, were ($2.0) million, compared to ($0.8) million for both in the previous year. Negative free cash flow for the third quarter was ($1.5) million, compared to ($0.2) million in the prior year third quarter. Negative free cash flow for the first nine months of 2021 totaled ($1.9) million, compared to ($3.9) million during the same period the previous year.

— As of September 30, 2021, Stereotaxis had cash and cash equivalents, including restricted cash and compensating balances, of $42.8 compared to $44.2 million as of December 31, 2020.

KEY QUOTES:

“We are proud of the progress made on multiple fronts in the third quarter. We continue to demonstrate year-over-year and sequential revenue growth while improving commercial execution, establishing key strategic collaborations, advancing a wave of upcoming innovations, and enhancing our infrastructure and team.”

“Renewed global adoption of robotic systems drove revenue growth in the quarter. We received orders for two Genesis systems in the United States and Europe since our last call. Progress on multiple other capital opportunities supports our confidence in additional near-term orders and an approximate doubling of robotic system revenue next year.”

“China emerged as a third geographic pillar for Stereotaxis with our announcement of a strategic collaboration with MicroPort EP. Our collaboration provides for a robust product ecosystem and commercial infrastructure, and we have initiated early development, regulatory and commercial activities with the goal of significant long-term value creation.”

“Our proprietary robotically-navigated magnetic ablation catheter overcame initial supply chain disruptions, and we remain on track for completion of the required testing needed for a European regulatory submission and US pivotal trial early next year. An additional set of innovations will be showcased next month at Stereotaxis’ Innovation Day. We are confident in the transformative impact these innovations will have on patients, physicians, providers, and on Stereotaxis’ strategic and financial future.”

“This progress takes place while we are enhancing our infrastructure and growing our team. We are set to move into an enhanced and enlarged new headquarters at year end. We are pleased to welcome 14 incremental new team members year-to-date. All this takes place with continued financial discipline with total cash use year-to-date of less than two million dollars.”

— David Fischel, Chairman and CEO

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.