STXS - Earnings call transcript Q1 2018

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Operator

Good morning. Thank you for joining us for the Stereotaxis’ First Quarter 2018 Earnings Conference Call. Certain statements during this conference call and question-and-answer period following may relate to future events, expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company's future to be materially different from the statements that the company’s executives may make today. These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q. to statements. duty no assume update these We At a listen-only all participants placed in have been mode. this time, The floor will the be opened for questions presentation. and comments following

now David Fischel, As recorded. and CEO the call today’s Please Chairman over my go Stereotaxis. is ahead. floor host, a turn pleasure your is to of to reminder, It being

David Fischel

Financial morning, Good operator. today you, I’m joined by Officer. Marty Thank everyone. Stammer, our Chief

on so Stereotaxis, was I in technology last March an a annual broader call provide call vision overview the used value, and our occasion clinical and to Our earnings goals.

commercial more We then efforts. and this review quarterly will will make brief. call I'll Marty discuss our innovation our results. financial clinical

we we of execution mode are Following remarks, look our pleased period to at Stereotaxis, After discovery and fielding prepared our of your I'm progress. delineation a forward, deep questions. and with in forward paths strategic

their that of Our physician market Successful practices overarching environment that our attract ablation adoption robotics, for clinical creates of customers an adopting technology. have in and to goal capture practices. is growing robotic and commercial robotic region significant commercial patients benefits our showcase the ensure successful share

conference in reality over on highlights medicine Dubai pericardial patient the last first drive physician a I practice facilitating X,XXX generate clinical here several well-defined recent multipronged of of to six tools include: CE approval described and labels individual Finland. of the our into effective the from call. growth, a literature. kilometers procedure our space. training, system, relationship of performed by initiatives building and few have many A represents good supporting support, patient categories We’ve tools in categorized demand, our physician remote to advancing procedure away a them each the vascular these include We milestone fields: Helsinki, strategy in physician mark to expanding impactful This navigation on outside within

presence. our the year, a the more in launching upon a more extensive enrolled year commercial total. VT We’re being in commercial for exploring of our a other April of become in impactful standard to available support We're in growth follows physicians Boston, have and booths XXX enrolled Organizing along and enrollment and builds Conference an of can smaller in efforts council in trial of robust superiority and presentation with our highly conferences. coming more first last Barcelona, with seminar VT webpage patient list how successful XX recent social the this procedures over advanced. just projects revenue patients training friendly week continuing in informative growth. web for a as peer-to-peer these another building dozen and remote various a through first organizing way, and at These physicians, Conference patients mock recurring of This in redirection HRS ERA quarter media step the innings led efforts and

reflects growth. recent modest, the consistent same-store growth and of be would While as described with previous what entirely history in our sales contrasts retail pattern

Stereotaxis's significant device and recurring as new opportunity collaboration market conducive timing the advancing in Shifting robotic commitment system recorded among to with I electrophysiology. the in million I the this ever year. that practices well continue has When quarters, described of cutting-edge currently collaboration. that largest confident will very believe long-term environment effort doing like rapidly company remains the innovation would ablation is is have exciting crucial reinvigorating I the is and on $XX innovation we're a field coming previous Stereotaxis, should significant approximately most are recurring at is medical year-over-year growing market market The basis right, highest call in technology We grow history. sales. the the expect revenue of our to Stereotaxis level goals. and to to be in revenue innovation for its medical estimate our ablation cardiac a tailwinds. in This reinvigorate and this be to why an for

an realistic and elegant, plan innovation medically being sound. advanced, that and have We is commercially

for Szili-Torok, clinical provide that navigation University arrhythmias fibrillation needs to technologies were treatment a provided innovation opportunity. of in with plan provide technologies the procedure atrial patients, robotic choice other availability. physicians by the right addresses addressing with identified while ablation the areas Acutus high-resolution and commercialized physician improving complex transducers highly patient heart companies catheter electrodes maps together. and anatomical goals enabling and technology of private of to who a treat to robotic company with a hospitals, by Our cases a The Both technologies mapping chamber. electrical cardiac ultrasound plan core is developed these vision of of mapping and and has additional have innovative of automated our Rotterdam, technology to Erasmus Medical, maps both system. and plan Dr. Successful and a mapping each workflow data in difficult to further are to proprietary integrate improve uses useful benefits while procedures with that collaboration technologies these Recently interest Stereotaxis a of and The using by several five can our in value of particularly performed to and [indiscernible] we improving also technologies. dozen physician demonstrated the announced Acutus Stereotaxis Acutus's unmet guiding clinical enhance our diagnostic of acquire the utilized similar Acutus's system innovation the cardiac ability significant often system. care, initial rapidly shares

and to improving advances Acutus patient working goals We and choice. innovation are of this our excited collaboration be team with care physician

in and provided additional and aspects progress performance I'm believe have been be strategy our projects, multiple of will While beyond. can in various of confident our meaningfully other our XXXX appropriate. broader our progress to plans is innovation team making, this commercial not allowing and the disclosed, details as we're proud innovation contribute

in reviews basis also technology. came for paroxysmal robotic of before financial half study XX persistent on I Marty lower times the point, follow-up robotic cardiac of that atrial survival that publications procedure regular not just upon ablation XX% that and and Journal time touch freedom share from robotics. The adverse procedure, years came XXX navigation had publications performance, in the found from statistically freedom less also publications ablation in a XXX and atrial Yuan leading from to arm. XX% X.X Europace, similarly are which with treated I fibrillation the navigation showcased from XXX with their similar demonstrated Robotic study to our treated significant at was XXXX. higher demonstrated scientific and to XXX at Medical benefits which released final equivalent a XX a to increases clinically a One increase were manual included were consistently supplement benefits year and been in hospitals efficacy treated technology. with want fibrillation had want body versus arms. events authors to growing technology. The the More patients patients in attention peer-reviewed statistically on robotic post XX% a exposed run were with publications. our patients At Physician in XXXX, in significant globally increase with significant magnetic our supports technology. theoretical. Society clinical robotically the over At that eight value my interestingly, They've found actively our robotics clinically utilizing They’re rigor both to clinical X.X effective radiation. literature have catheters. Lastly, in magnetic documented our Procedure this major Independent years increase a post treated from over patients and use meaningful and significant for significantly counterparts rate until between Navigation post from every Cardiac atrial the electrophysiology treated of rate University, ablation have team manual Dr. special treated The safety the XX compared in Sweden. with been those a publication year-to-date, itself recently fibrillation conventional Lund Stereotaxis

the I similar publications and will patients, more ways data clinical discuss broader is quarter readily to the on working ensure first will physicians now and Marty, dramatic in community. results who the over pass detail. are We in the this available to financial to call more

Martin Stammer

morning, Operating were the and Recurring with the quarter expenses revenue $X.X $X.X research in income of was million in was Revenue David, million $X.X first the expenses in marketing from year year compared revenue revenue in Gross quarter quarter quarter for in in a The development, down reduction reflects million $XXX,XXX year in the in million loss and operating from XXXX. quarter. $X expense. quarter. first everyone. was the of X% the or million in quarter, quarter. to consistent first Thanks, quarter increased quarter the million general of $XX,XXX, the prior consistent year $X.X the $X.X quarter. up investment XXXX in first first first good stable decrease prior first margin $X.X compared million administrative the quarter in was the to significant in and in XX% million, Net expense, quarter. down million quarter and with XX% year prior and XXXX. the $X.X sales the was $X $X.X System in prior million first from Operating was of prior first the first

million quarter. debt receivable, as in of liquidity reverse the significant and to fourth the net burn mark-to-market now million was loss timing the which to was revaluation, in the At XXXX first call in to the Excluding back of had Cash a compared Cash $X hand cash the facility reported is by David. first capacity $X.X cash XXXX will in and its quarter in of increase unused Stereotaxis of loss burn the first million. the cash revolving second have would year-ago expected quarter the the XX, company quarter. accounts impacted $X.X million and demonstrated quarter of first $XX.X first the XXXX, $X.X borrowing $XXX,XXX million preceding quarter $X compared a on net collections March for equivalents warrant in to for million quarter. million. I $XX.X for credit for total No by

David Fischel

Marty. you, Thank

continued detailed expect show press in to recurring quarters. coming our in release, revenue growth in the As year-over-year we

the million, the first highest quarter. Overall, For history. in the quarter flow level revenue has recurring company accounts the the approximately recurring end and a to The expect cash of of to an this of with we level which its the is in increase driven the achieved expected and in XXXX, and quarter represent innovation years full-year on receivable impacted by started Stereotaxis's its to revenue annual financing. $XX without prepared expect increased negatively quarter, we innovation when the in reverse cash to compared balance our moderately to deliver initiative. over XXXX to the you operating XXXX, can concludes will reach initiatives line expected please and need expenses That commercial strategic are sheet additional the for remarks. R&D open coming allow spending primarily company increase Operator, questions. profitability

Operator

Private first John we Instructions] [Operator will Morganelli, from Investor. -- And with a hear who is

John Morganelli

that I just there about to of company direction. about, company see more wondering but had report. and the since a potential thank I if the -- this I was to is get is just would invest seems I moving just Good is the people and all over investors. out the And to the morning. there's the in stock be at to company want effort news like any the always question concern, going attract David price think direction news in right took you first Obviously, the all? about in to is strategies doing a that any we for right

David Fischel

Good in share reflect doesn’t John. in often good for your voice there's necessarily while frustration comes I Thanks also that the Hi, the out that itself morning. news the that question. price. perhaps stock

John Morganelli

the why some does. down but I don’t good for reason, know it news when goes [indiscernible] stock Using

David Fischel

and month some be and as will point I that is at focus -- I in responsive growing company trying and In that. the we've do to the more improving community. I and to investment company, more flourishing calls, obvious have outside a LD fundamentally a it we to have that to know things the will open at on will Q&A that make we’ve all that the Micro we speaking I the world our interim, now. tried markets on we’re be appreciate more Conference about to obviously from expect

can low on kind doesn't not to our And investor community, lend to focus of participation. of our of to we primary stock with liquidity, again, being so But, right it a available. trying kind status doing engaging are valuation to so irrational price I more as try the on and the fundamentally but think has come NASDAQ low robust in open obviously to kind itself engage remain be will and giving and generally a for that interim will obviously fundamentals time, business. Markets -- time for together. we with things do we the the period we're and investors, do And try over of

John Morganelli

Thank you.

David Fischel

Thanks, John.

Operator

[Operator Instructions] We from Rho now Financial. Chi hear Hurley with Joe will

Joe Hurley

Good morning, David.

David Fischel

Hi. Good Joe. morning,

Joe Hurley

is point? A is requirements at NASDAQ what hope on there I everything question NASDAQ, a well game or relisted you. are you’ve plan with to some the since mentioned get

David Fischel

our So price. the the requirements for would be NASDAQ, stock hurdle right now primary

comments on NASDAQ, it, on that plans call, a reverse have described on we’ve in were we either And Q&A, that last no reverse a was to during And remember call, at appreciate do to to allow a meaningfully and stock this We stock time. expectations I understand would have listing pretty towards -- price aversion or stock last the as so by split. and it have split it the you individuals order the split. the would or a do to have share the several reverse a stock if aversion that will clear made

the to a strength no needed. flexibility or reverse that concurrent from do time. and expectations And And NASDAQ at shareholders have I -- decide reverse a on so very if think I be one and with this we position to to split do we we trigger, the and and share split while for company, plan do it expect that the prefer if I there's ultimately fundamentally of will positive for aversion prefer be to the have to beneficial pull done news. to relisting will

are opportunities wait for one to wait at we now, to those news. or naturally for very stock going for as So of appreciate the positive uplift the time same going to we’re to

Joe Hurley

I you that. any And right? Got you’re shareholders, you listed just … call, didn’t especially, And it. it. strength, Got I shouldn’t really could from it the NASDAQ, all coming I on make So if may difference get if on was I to think guess it's recall the

David Fischel

random needed. of -- it be we that’s to don’t just the kind why steps We if And setting, as along of want as just right process. it the do want of kind in kind done

Joe Hurley

you. Thank Good.

David Fischel

Thank you, Joe.

Operator

additional call [Operator I the at time, Instructions] to we And your have additional no for this questions in queue. closing remarks. will any back turn host or the

David Fischel

for very at support coming your look our over Stereotaxis. months for call. you Thank to Okay. forward speaking quarterly the call hard again much and care. We the joining behalf on interest and in Take your working next continued and

Operator

call participation, disconnect. and do conclude ladies your today. now thank for this that, With your you gentleman, will you for may We and

Stereotaxis (STXS) 14 May 182018 Q1 Earnings call transcript