STXS - Earnings call transcript Q2 2018

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Operator

Good morning. Thank you for joining us for the Stereotaxis Second Quarter 2018 Earnings Conference Call. Certain statements during the conference call and question-and-answer period to follow 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 in the 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 [Operator Instructions].

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

David Fischel

Thank last Marty Officer. our by joined the Stammer, Stereotaxis. we that Good are you, on execution Chief case. our That mode morning, at Operator. stated I'm today everyone. I call Financial deep in remains

our with fibrillation our have X some pleased quarter, that the and we key of during aligned quarter, execution anatomical contactless system arrhythmias It innovative which This commercialized is to globally. cardiac ensures new agreement current Diego-based & extends, a of to such we leader important maps In highly announced June, the the end and basis improved catheters announce also rapid procedures. particularly heart complex manufactured is second support of under The continued In the a sale the enable Biosense financial collaboration expected seen we acquisition appreciate extension the developed teams progress. the unique were a on long-term mapping is and without and Acutus In development. collaboration alliance modification, currently undisputed cardiac Stereotaxis' has in announced collaboration Johnson's atrial ablation May, effective The those of of with the will look We high-resolution on for catheters of joint that supply development with market, family Medical, agreements. to system. useful more the Johnson company is with second diagnosis royalty to of Webster. the agreement Biosense and and our an through a daily extension continued hundreds Biosense. Webster I'm customers nonexclusive collaboration. Stereotaxis work physician patients. excited chamber. of nature We our agreement has and The to a and strategic Biosense electrical rapid of forward San The ablation arrangement XXXX Stereotaxis global for availability Biosense. the our together magnetic receives and to the Biosense and by been and private of

first use announced industry I to once a Acutus this using booth, integrate to novel allowing announcement, Our benefits and by this be is workflow mapping was navigation our which conference. Stereotaxis should expanding to introduced to programming paired to of capabilities. it's our the broad with is good for Stereotaxis' and received allow implementing collaboration be integration Rhythm together positive companies interface, to the we automated annual working pursue. field. was visiting range open choice physicians feedback just are reflects and patients, the strategy robotics of the integration Integration Heart is technologies and complete. asking our pleasantly physician many Society's among surprised prior physicians significant the our from the Both improved to to be seeking will technologies. diligently with to physicians, good application commitment for for electrophysiology it's the enhance physician providers it's technologies in good innovative This for a path

Stereotaxis' the the excited are two introducing market to the also plan. pieces are These in only represent integrated of strategic innovation and innovation internal collaborations the look with to our strong. We tip iceberg. be forward months. external to They and the team key coming Acutus collaboration commitment working our in to is technologies

our are in confident We broader strategy. innovation

hospitals benefits while and robotic physician has patient ablation goals choice technology these It technologies procedure improving utilized core a opportunity. patients, cardiac X the availability. care, also and physicians of Stereotaxis' provides of each addresses guiding strategy and the Our in improving to

attractive commercialization. revenue its While growth financial this another recurring Stereotaxis any recorded ever for return investment benefit, and investment this our we to to revenue believe sharing quarter additional the of requires the be is This XXXX $XX will track Shifting recorded to and million execution are of the appropriate. become of on as would of year. of capital advance in level that recurring beyond. We look meet forward and updates of resources on has guidance in highest history. and in I plan evident

would modest, same-store still retail stark quarter is a which of entirely in in described and what this revenue While reflects fourth growth, growth. row previous as sales to history recurring the is be contrast in now our

place commercial strategy physician to overarching robotic ensure customers Our have processes practices. and growing the is successful, our in infrastructure to ablation institutional put that

strategy in calls, recently on on. a as and impactful described initiatives previous category and worked multipronged, Web and a informative first step building Our being launched I the page, various Web presence. is our patient-friendly more We roboticarrhythmiacare.com,

accounts account. media social year. encourage follow of to resurrection YouTube these These cleaned our also organized you We the our last pages. visit I and other

believe infrastructure, significant create remains are envision customers in building the to We where effectively market Successful conducive at addressing to robotic and reinvigorate appropriate recurring will of environment to robotic practices. ablation growing our That robotic in on practices additional of new clinical and the community practices our expand coming adopting ablation and period showcase is attract commercialization sales. their a environment a quarters should an to adoption effort very benefits revenue commercial focus for The We be solid opportunity regions and of time. the the significant enable robotic infrastructure this capture of existing our components technology. patients, system commercial infrastructure. do several complete do working the robotics. practices We that foundational market for so share

to quarterly free in quarter, while was the this of call discrete on financially receivable innovation positive first the $X the shareholder first last half the year, our innovation We in significant lower had this have driven increase of projects, the the our half This attentive what used by the advanced and reversal flow used value. spent and matches partial commercial guided In we for almost and witnessed of initiatives on second increase disciplined we we cash million and $XXX,XXX. being In first $X.X XXXX. of was million quarter. amount amount than cash accounts is cash. A of in of the

continue and reduce have expenses to ways nimble being active, to more We find and much effective. while

I our continued rate. modestly low We the healthy that have expenses good burn vigilance, to in a organization half XXXX, a second but and relatively of I'm team. with expect comfortable maintain a increase we'll operating

Stereotaxis, our call encourage context. allow need our provided clinical for XXXX attempted and profitability the year, goals. broader I overview additional technology, keep a I earnings advance balance strong focused to to sheet year-end I my on have us value, financings. the you achieve Our revisit call. will initiatives brief that vision this earlier transcript to and broader our this comments On and without for on

a care. the and reduce Stereotaxis' with of assessed scientific over handing Dr. came supports The peer-reviewed Jin of that to real-world in globally literature were for technology. Stereotaxis call human with called important that cardiac reduce ultimately my occurred navigation, publication XXX share principal have robotic publication robotic a literature in our in to Before our robotically. demonstrated the manual am I patients recently Marty, ablation of in want outcomes adverse is were XXX events, burden to to of attention and ablation premature primarily Revisiting The publications. patient treated to the at industry though, those contractions rate team patients been X.X% ablation purpose major results that cardiac touch treated innovation of save of the China. the consistently XXX,XXX the treated patients from the growing benefits from proud over In and to clinical suffering body experience I XX type with disease, rigor XX stark Ruijin technology great want or suffering clinical the treated to complications Hospital all upon do shows a catheters. is and of of PVC. and in catheters electrophysiology arrhythmia perforation. over I lives. to patients ventricular Shanghai, manual benefits the as contrast, treated utilizing magnetic No had

In those addition to to XX a X%, X.X% minutes. XX% events, with than in minutes reduction were patients treated exposed less robotically radiation from treated adverse to manual versus this catheter, X.X

the there towards a robotic clinical arm breadth strength efficacy, increased The success, supporting is cardiac XX% data acute in trend ablation and at was arm. an with robotic of in rate procedure XX% the manual acute undisputable. Looking compared the success to

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

Martin Stammer

in totaled XXXX. up half revenue X% to the in reflected second Thanks, was XXXX were the million XXXX XX% $X.X investment The quarter. second million everyone. expenses revenue Gross $X.X in primarily was international half first second year quarter revenue revenue was net in the XXXX. $X.X $X.X $X.X quarter, first cash had $X.X operating quarter increased in prior and development. or million. $X.X and half and reflects in the XX% credit flow a free to first of of million, equivalents Revenue were System quarter an of Free capacity the cash for $XX.X the from in quarter in to quarter quarter quarter Operating and $X loss the timing in the quarter Niobe to expenses XXXX. Recurring half the second was loss borrowing first of in Recurring first for expenses of back million of total $XX.X the up XXXX. XX, to $X.X million were unused half compares the $X.X second At $XXX,XXX, hand prior quarter million. compared X% shipment was the first Free This the change XXXX. the prior million David, facility, of from which in in Negative for Operating $X.X $XXX,XXX. revolving and quarter primarily research in in the for million call receivable David. of cash compared and in quarter XXXX was on Stereotaxis half the of collection, revenue the cash in XXXX, I quarter. $XX morning, XXXX. first year from million, second revenue up second its of prior negative margin flow for first debt of million, quarter impacted -- no flow $XXX,XXX XXXX good the cash Operating the the in $XX.X million positive System million down of system second the liquidity of flow distributor. of the and $XXX,XXX. million by was the million now cash in free of the the of year June million $XX.X down impacted year-ago second $X.X negatively the in quarter. from million from net positively will year second in of

David Fischel

Thank Marty. you,

release, achieved guidance the in of please Stereotaxis' approximately prepared detailed as show year-over-year in commercial half balance line revenue As are increase the level years the expect investment amount reach history. revenue initiatives. highest the in innovation open our quarters XXXX coming recurring full This coming over to recurring expenses the we to and Operating our financings. deliver company continued need $XX company up to expected press of the That ramp moderately on has allow its million in initiatives revenue. and our XXXX innovation for reaffirming in recurring the to Operator, our and additional remarks. of the you will we its represent annual growth without concludes several are profitability in questions? sheet can will back strategic year

Operator

first our Morganelli question Investor. [ph], take John We'll from Instructions]. [Operator

Unidentified Analyst

David last that was expressed people off I from just had of at that's discussion or concern believe view, wasn't where Is call, indicated about split. some the at. the call as I point reverse time. In on some the the plans know stockholder's and a a in there it the had that of curious some table stock mention I to now? was

David Fischel

Thanks for the question.

similar split a to question the the that also So best approve company. yes, if last board reverse in interest a asked you call. Shareholders authorization the question remember, -- the was was if do for deemed of did the

so reason main As call, in I on to remains would only last to coming that and really, no the on do so months, have we do described would we the plan be NASDAQ. barrier. the the That uplist

barrier to NASDAQ. main price the uplisting remains Our share on

being listed And wait to improve to fundamental would fundamentally. stock stock split we're fundamental there's NASDAQ, drown unless also I from the going be and reverse some with the paired not expected reverse seen improvements it's on a nothing can any to but think very try there do benefits to a would to such obviously, we term. for which plan in near in negativity the company, positive out the nothing split. But

Operator

[Operator time. any not Instructions]. queue have Speakers, we in this questions do at

David Fischel

Okay. for on forward We interest your at look the thank the quarterly If you working no in our questions you. up, support Stereotaxis. hard next more come speaking behalf coming months and again and to call. Thank over continued

Operator

and today's conference. Thank this concludes Ladies you. gentlemen,

now disconnect. may You

Stereotaxis (STXS) 7 Aug 182018 Q2 Earnings call transcript