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Stereotaxis(STXS) - 2023 Q4 - Earnings Call Transcript
STXSStereotaxis(STXS)2024-03-04 23:57
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Financial Data and Key Metrics Changes - Revenue for the full year 2023 totaled 26.8million,adecreasefrom26.8 million, a decrease from 28.1 million in 2022 [36] - Gross margin for the fourth quarter and full year 2023 were approximately 60% and 56% of revenue, with full year gross margins of 79% on recurring revenue and 8% for system revenue [15][36] - Operating loss for the fourth quarter of 2023 was 5.3millioncomparedto5.3 million compared to 4.5 million in the previous year [37] - Adjusted operating loss for the full year 2023 was 11.3millioncomparedto11.3 million compared to 8.3 million in the prior year [133] Business Line Data and Key Metrics Changes - System revenue for the full year was 8.7millioncomparedto8.7 million compared to 6.8 million in the prior year, reflecting increased system deliveries and installations [132] - Recurring revenue for the full year was 18millioncomparedto18 million compared to 21.3 million, impacted by the absence of J&J royalties and periodic catheter shortages [132][130] Market Data and Key Metrics Changes - The company began 2024 with a backlog of 14.7millionfromordersthatwerereceivedbutnotyetshippedorinstalled[12]−ThecompanyexpectsrecurringrevenuetoremainstableuntiltheMAGiCcathetercancontributetodisposablerevenuegrowth[17]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonaddressingstructuralweaknessesinitsproductecosystemandhasdevelopedaproprietaryablationcatheter,theMAGiCcatheter,toenhanceitsofferings[6][27]−ThecompanyplanstoleverageitscollaborationwithMicroPorttoestablishaChina−specificEPproductecosystemandexpectsregulatoryapprovalfortheGenesisrobotinChinamidyear[127]−Thecompanyaimsforafulllaunchofitsdigitalsurgeryplatform,Sync,toenhanceoperatingroomconnectivity[10][32]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementacknowledgesthatprogresshastakenlongerthanexpectedbutseeskeyregulatorysubmissionsandtechnologydevelopmentsaligningthisyear[11]−Thecompanyexpectsoveralldouble−digitrevenuegrowthfor2024drivenbysystemrevenuegrowthfromitsbacklogandneworders[17]−ManagementexpressedconfidenceintheregulatorysubmissionsfortheMAGiCcatheterandanticipatesacollaborativereviewprocesswiththeFDA[64][90]OtherImportantInformation−Thecompanyhasastrongbalancesheetwithapproximately14.7 million from orders that were received but not yet shipped or installed [12] - The company expects recurring revenue to remain stable until the MAGiC catheter can contribute to disposable revenue growth [17] Company Strategy and Development Direction - The company is focused on addressing structural weaknesses in its product ecosystem and has developed a proprietary ablation catheter, the MAGiC catheter, to enhance its offerings [6][27] - The company plans to leverage its collaboration with MicroPort to establish a China-specific EP product ecosystem and expects regulatory approval for the Genesis robot in China midyear [127] - The company aims for a full launch of its digital surgery platform, Sync, to enhance operating room connectivity [10][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that progress has taken longer than expected but sees key regulatory submissions and technology developments aligning this year [11] - The company expects overall double-digit revenue growth for 2024 driven by system revenue growth from its backlog and new orders [17] - Management expressed confidence in the regulatory submissions for the MAGiC catheter and anticipates a collaborative review process with the FDA [64][90] Other Important Information - The company has a strong balance sheet with approximately 20 million in cash and no debt, allowing it to advance its product ecosystem to market [13][16] - The company has invested in significant inventory and has direct commercial teams globally to launch new products as they become available [105] Q&A Session All Questions and Answers Question: What is the outlook for MAGiC catheter submissions? - The EU submission is a resubmission with additional clinical data, and the company expects a more efficient review process [19][110] Question: How quickly can the company ramp up manufacturing for MAGiC? - The company has demonstrated capability to scale manufacturing and produced nearly 1,000 units during regulatory testing [73] Question: What is the plan for the sales force with the MAGiC launch? - The existing sales teams will be utilized for the MAGiC launch, with incremental hiring planned as revenue grows [82][150] Question: What is the expected revenue for the first quarter of 2024? - The company expects revenue of approximately $7 million for the first quarter of 2024 [134]