STXS - Earnings call transcript Q2 2022

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Operator

Good morning! Thank you for joining us for Stereotaxis’ Second Quarter 2022 Earnings Conference Call. Certain statements during the conference call and question-and-answer session 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. We assume no duty to update these statements. participants placed all a time this have on been listen-only-mode. At questions will following be floor and open The for comments the presentation.

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

David Fischel

Thank and everyone. good I'm Kim today by you, our Chief operator Peery Financial morning joined Officer.

both of inflationary on supply in construction of and optics exciting year's last procedure am that disruptions. what progress I hospital We making We reliability, pressures these quarter. the for delays reduced volumes our us. in to where projects, recognized technologically. The observed call May. macro and confident an is the negligible quarter results have construction, related the hospital and last in are supply to saw in remains optics second results, China similar financial with our to contributing system pressures ahead these in operating second and particularly the financial business pleased revenue and to and remains Stereotaxis significant poor path quarter, the and littered revenue to host Despite in very in commercially a It continued our Stereotaxis. progress of I seen with reflect not The challenges, with quarter, stand yet is reduction the various we compared expenses. regulatory, an chain, period of in during see improvement on our personnel challenging and nearly chain decisions, environment economic environment described pandemic delays XX% purchasing a

innovation we for transformative a have technology; our pipeline. demand are We advancing continued

while all-star we're We commercial maintaining team this and are stability and assembling strength. financial all doing an

performance. commercial first return me touch upon our Let

are we United since the replacement we three order All orders from States. During orders came the of last Niobes quarter the four replace at Genesis where Genesis of systems, will received hospitals. two Two second aged for cycle call. systems received which three existing

and a program, An robotic lab hospital U.S. leader the a a be the unique the The hospital. operates second third field, existing by robotic key who EP is led same the opinion hospital a already EP is customer in order This at first exciting. prestigious program our decided with and to robotic two of will establish systems. successful in

into Our waiting system $XX orders continued over of bodes financial for as backlog shipped, million Genesis of well to future orders results, we now revenue. in and converted be pace installed have

often rate realization. their construction, down-payments, guaranteed outside While over significant of control our our an XX% backlog on and and revenue timing recognition is hospital providing confidence non-refundable essentially dependent of orders conversion in with are in

in practices the the holistic efforts of the robotic Atrial. additional that the graduation highlights of the our to fellows Fellows Fellows Journal second from grow XX quarter past in and of Issue are quarter. infrastructure performed commitment to existing Our Special Electrophysiology the graduated an alongside of such program success drives the commercial development continued in capital Robotic Fellows a sales and of publication Two include Program the EP of our Robotics from cohort success.

without also and confidence was and pre-operative of forward. enter Fellows XX across topics, and bodes imaging broad the The of for of novel since field, in way several technology, XX Peer-Reviewed publications appreciation including well in of XX distances. Publications the with increased X-Ray of EP the use long The the technology our Fellows our clinical more supporting and special arrhythmias and us mapping remotely globally to literature total of issue in the which year launched. from use future our expect over have range graduated going The robotics technology, of the program the a Journal this alongside We included in June. clinical Atrial of represent substantially of it value with and graduate and body covered interoptive These spectrum

and technology future quantity adoption. the as term Stereotaxis clinical of view foundation to to and on plan. for commercial remains strong our the quality a data Most mid innovation our continue strategic realization performance of We long impactful

of effort, robotics. testing very endovascular transform reflects were our of extensive for manufacturing new provided robotically with a individuals portfolio; are a development, surgery robotics; but connectivity. that proprietary congratulate to catheter to many China stringent with business, a submission dwarf Regulations in MAGiC. product month of ablation MDR the specific Each of synergetic endovascular ago will drivers Mark’s submission product to and that five culmination as announcer start consists effort. ecosystem; growth We Submission pleased collectively more and broad devices reminder, as room the schedule technology accessibility and As platform a of operating design, MAGiC pillars; that ablation the want was mission who independent and recent system timeline ecosystem digital broad foundational efforts also instrumental CE of I the in the the our with substantial existing of were expand key catheter in own at innovation five strategy our we on year, our this mobile our these enables that individually to made The the Europe. and serve service complies navigated indications; our

MAGiC of the is preparing CE learning developed Catheter While of this benefits strategic Magnetic knowable very are for the and catheter was as for upon commercialization the Biosense since clinical, timeline stage, commercial experience XX-years and we will approval year-end. receipt and The excited build at design existing catheter the as for early nearly we're Mark not of provide. upon

still advancing nicely. progress testing the gone start than slower during comprehensive up year. wires our together the regulatory year, realistic XXXX, to time the The and view product and other we guide strategy. pillars These and of we Beyond rather the Despite view second methodically and now in quarantine electronics and disruption the of the has coming COVID are XXXX. personnel the in well supply than those, are of half are significant headwinds chain innovation projected hardware Europe. MicroPort production initial ecosystem we system with the an milestone approvals at Stereotaxis' of MAGiC, a required in regulatory half of advancing the launch the at software robot this we mobile advancing our contract of distractions Ramping expect the caused to for and initial China, against collaboration as the regulatory in of next technological aspect of by launch around continues China, challenges, manufacturer, MDR an first and

on Finally, animal in initiate complete submission catheter trial to IDE trail nonlinear, year we expect a to Development for that the of application particularly an MAGiC currently end. progress inherently FDA waiting the is by to of pleased break is certain this to by us long progress and quality impactful out and fronts term innovation breadth multiple strategy across the developments but revenue The a brings we advanced. environment, are growth. methodical commercial consistent closer being on prospective our

are have feel geographical to to these are placing That like successful Glynn enthusiastically larger, I two and this to place focus able and relevant are As our businesses sets to leadership ensuring we the are be partners fact approaches the leaders pieces will complementary to together commercial by highly commercial puzzle able commercial complexity in decades our our in in of technological Tim Van testament commercial significant experience. technology bring join to building. experienced and to new encouraged pioneering activities. and Tropea come to commercial leaders and commercial additive Stereotaxis Their find leaders that were order becomes pace leaders I are through on to journey, was of complementary markets. and and lived and Casey have The joining week organizations. are Stereotaxis. of on us infrastructure Payne. right pipeline revenue is company drive caliber the their Michael Hyfte starting as the in the increased growth. front market, announce last and both the opportunity other and we rapid and substantial personally scaled excited focuses us ours processes They highly that our team, to very Frank and and ecosystem each of the and magnitude derisked to guide grateful a are we skill of

I'll Our endovascular both in Q&A. substantial growth these term opening progress interaction. Kim few on well then some before the comments a commentary broadly supports to financial provide make in fronts long financial Electric call and more results, and now on our as will Physiology

Kim Peery

operating cash with the consistent revenue, revenue year negative million prior the $X.X systems totaled of the and flow and second on to was $X.X of Thank compared million call million, $X.X prior were Recurring this we non-cash the to morning to At second you, quarter, quarter. quarter loss last Negative the the and quarter, no million Revenue for stock in prior the and year quarter expense. prior XX% second in gross a quarter both year. quarter the to equivalents to million second million $X.X for stock XXXX the second in David. to David compensation from million. for two million year compared $X.X expenses robotic back of cash current excluding the primarily due Operating prior quarter expenses net headwinds debt. quarter year. loss now approach XX% million second of $X.X in procedure in quarter, Adjusted of $X.X million second had $X.X of quarter quarter. reflecting cash for gross margin operating adjusted million a reduction $X.X $X.X Operating million expense, the $X.X quarter service system in and in the Adjusted million cycles. revenue and of non-cash XX%. million compensation margin as revenue excluding replacement $X.X of quarter XX some positive margin partial the everyone. recognizing compared revenue in and compared was compared with $X.X XXXX Gross This were the expense free and system will and XXXX in net were million was compensation hospitals loss $XX.X $X.X year $X.X second second previous June was in and volumes $X.X and year I just loss included million down of stock hand the good XXXX. million for recurring

David Fischel

revenue wanted stability. Kim. topics, on comments of I and our to balance financial remainder you, few two and add a additional key expectations for sheet the Thank year this

topic, quarter as our performance. On the view in the we reported naviar a first revenue this

systems the backlog orders growth expect and we revenue approximately our for order year. Our it system and would of able of sales an guidance is in we to system prior install $XX of robot system all If shipped overall our current or system when Typically installed the supports XX in over pace revenue three this we revenue million timeline for between backlog, year. discussed when months have approximate for in $XX million to were recognition. a to

these various recognized have delayed customers with in guidance. introducing hospital originally year, Those be what We portion hospital timelines, instead caution to backlog beyond construction that our and introduced sufficient significant that projects a expected. not seen this risk year next variability long of may delays

acceptable to all such coming backlog construction hospital capital generate make the with The our construction year. delivered bypassing reinforce revenue broadly importance the in associated As the strategy and in would eventually, timelines will complexities. robotics delays orders of logistic significant and purchases of be growth by our any

As we commercial the expect our robot middle availability next current of our by earlier, based mobile year. mentioned progress, on of

of and On economic cognizant extended obviously the financial we macro stability, for periods capital evolving are and of potential of the market concerns pressure. topic

financially and managing services commitment for Our that fashion, well transportation. costs started prudent Stereotaxis us pressures in have Recent impact environment. to inflationary disciplined served to various a in and supply,

for We are our overall the as with increase remain a cost mitigate we manage confident ability and financial to growth. modest in invest business and to burn position working controlled

cost on spending in had first headquarter. much the utilization this and higher normal we establish one-time of was year, new our to due this to than of inventory half increased cash While

debt. significant without sheet the balance a position in additional in million and financial in comfortable with burn half us our year, no investment as a $XX the financing. poor back strong combined is inventory view alongside prudence proximately to optics view fashion expect a strategy fundamental per That business million rate to I quarter. continue of results, approximately the the having our continued advancing for and strong. is our our $X operating but the recognized financial of self-sufficient but leaves in confidence end in our progress year cash position need that this I normalized expect with We of cash

have demand We for our technology. continued

for XXXX pipeline and a multiple We beyond. launches impact innovation transformative with are advancing in

do strength. team, We now Q&A. commercial forward while your we can are this an please We financial assembling all-star to to line look to question. maintaining the able and you are taking Operator, stability and open

Operator

Certainly. question with [Operator first And from our Instructions]. we Josh now go Cowen. ahead. will take Please Jennings

Josh Jennings

Hi! was suggest to come taking great system Good see new questions our that morning! quarter for this orders David. demand is building. navigation checks robotic in Thanks for It the and some

wondering help Just channel relative as if and year. the us channel could Greenfield to we about earlier the replacement here in sit sales you today just about think the the funnel, and

David Fischel

progress for on morning! Hi the a infrastructure pipeline. sales Josh! Good And to managing continued we’ve so make

the been relatively don't the sales there's was the good a been in still and systems capital away now talked cycle of differences a outside of we infrastructure, more in the operationalized and fully where being United of that sales improved of dramatic the the year, of replacement more commentary think I States that then funnel kind that I the of have see pipeline infrastructure them. there that couple at said little the Overall information Greenfield fairly and last overall more quality both have type systems bit United dozen, pipeline on we a better we and globally is we new at from good. we now than operationalized has couple being built about few a pipeline. we States. process dozen, we’ve – a beginning But that in of dozen had of call the we think and gave in looks range that grinding

I some years, growth increase that consistent that pace that of pace drive guidance think in year like hopefully with overall future and is will we a drive you had at we growth this say, orders that but also would can the point.

Josh Jennings

attacking thinking before, Thank customers your I well, of know the talked a big a lab just And one center. mean we’ve network. you. to I is about – details by decision call center lab within attached earning the robotic little about how robotics of remind and IBM's your as team out can just, any lab. But share of on could the second orders this build last hospital sense that about well. sale, second and are you other out you our positioned us is to you And at bit your EP commercial the a is this

David Fischel

Sure.

an our and both of perspective, and from service good that and perspective from with really And experience not hospital the timelines robotics that adopted more line complex so that was in experience they economic of robot. we the is the having the procedures, system they that, hospital again technology IDNs; just able that was so of relationship perspective are how treat, meaningful we it’s to to those those why So data broadly across guess overall do goal across the they a idea system. field, experience of of from there. also and down conversations difficult very have variability clinical the spreads our a how, and value you from cardiovascular That economic have but strategic the to larger, talking of the IDM second them administrators good system larger U.S. in robotics It’s in the a system. clinician, discussions a think treat the more that driving evolve. the we an based hospital to correct. when are to sufficient otherwise for enter a with obviously technology, bottom have some from and I’d large year wouldn’t all IDN was Those buy a because to top value point reduced say head our decided those efficiencies earlier this that have it also our From confidence, so visiting has highly vote think sense for just kind the value But was with far second that off a allowing across those part a up when when and or about be has the not patients from historical but an and both is is hospital for value that IDN the adopted and how and the proves of perspective. definitely discussions discussions with at sell and they obviously perspective, makes lot with into. a data nice to and and always experience know that of It reason efficient the review of clinical will that oblations made the there's

update So we’ll hopefully some point at to you be able more.

Josh Jennings

Thanks it. a appreciate lot David. I

David Fischel

Josh. you, Thank

Operator

Sandler. next question with from the And Maeder comes Please Adam ahead. go Piper

Adam Maeder

Hi Kim! questions. on taking clarification question start, Maybe mobile just thanks one David! RMN the and the Good to Hi morning for System.

launch you maybe I that. OUS, think And about just talk I standpoint. expect heard just clarify both a are from design to we wanted U.S. kind then of by and where

then just have and We of follow-up timelines, hitting a in designed these or lock I and Thanks. two. have confidence level

David Fischel

And Adam! you during bit question. little Hi Good came so out a your Sure. morning!

in So case I I'm it think I understood correct wrong me. but fully, please

process, months, so other, or geography, at of and major assume to electronic relatively But particularly months together. geographies side and the launch both one should the chain of would U.S. a a year. soon that come we interface that challenges now so launch confident that So those right path, together. mid that There other, in should have that we next user supply a few coming say the also the all software, And on has but given this either able by in the the I’d of year. have the aspects, feeling electrical mechanical control the be those in Europe we are time about be are sorts next the one each a the of along have the again, talked be from various I perspective, of each least, overall within where at mechanical parts overall side, two there's development couple software, least on to we by parts side. would after on there's development a been aspect, hardware would so

to the yet feel we’ve not and system, overall the started and of amounts testing start have the to year but We regulatory we large suggested good able timeline that prior a we’ll to and be will of midyear. a stand of by will that around approval that kind and done be that development [ph] launch end of where testing submit VNV the very have – for will time, we

Adam Maeder

that. question, catheter. for then the ablation That's helpful maybe just RF for And David, you MAGiC on color very the thank next

I You on think wanted – when approval Thanks. we that do about ask know U.S. in potentially point the going? the you and on maybe place can to on how at Europe just for U.S. for question in you think message heard that how do a design know I U.S. market IDE technology? launch the expected ultimately trial and there, this far trial can timelines share get Anything but you time

David Fischel

Sure.

studies period those dozens body of IDE animal the required the not majority will same Mark [ph] lab studies kind in studies that’s and beyond dozen a require additional – European been and we and really, study nearly whole set relatively were bench require approval short, submission few requested did submission building a related study or IDE of and identical animal in require period, identical order I all have EU. testing, submission testing, factor submit mean out has follow-up the capability those the so and submitted study. We and that our by the a follow-up of and being post of developing the studies of for kind those we've – gating the have about complete to of required been a the a testing of a a to huge to So that animal dozen few, human but that animal one requirements European a we've still It for able U.S. so U.S. the been studies own we dorcei all be a In vast kind FDA. the CE and ready. that’s the that studies run though do to will a those and FDA range all

patient expect of far, have submit that. year to we studies so kind of and month up. in to immediately understanding had what say a so I of let’s the up, upon And the so study able with IDE trial We a type expect clear one be end clinical specific maximum complete specific design should multiple we short or fairly to follow discussions before would be relatively FDA with and indication, follow arrhythmia three a one around, those XXX so

of And have be installed either users be installed would catheter to able Genesis so a so base we our given from the given or system, fully the an with Niobes really base common used that benefit the it’s can there. and that arrhythmia, very we

can both that quickly. the enrollment actually and I once fairly that follow-up quickly trial start we enroll IDE should be approval done we study, and a think gain the very that’s should

Adam Maeder

you I'm Okay, to going and try one very don't if great, more color, sneak in. that's mind and helpful

are you past provide again some the infrastructure know made launch I kind talked much commentary building kind of You can on progress for and more what you additional the about teams. know the there David. you would you appreciated. very in laying yet, not and the was – the infrastructure being go I there wondering judicious I historically impetus know you the noticed know being Any also and know the was of been think just for of MAGiC in with release, commercial commercial think Thanks we're in press ahead color there ‘don't about and catheter spend. but out in and foundation conservative But the know you quite kind I plans it the be the offensive,’ looking and

David Fischel

Sure.

that right that lot and think ensures are of commitment and financially kind value range and discipline but more I have – commercial Stereotaxis now So ecosystem that mobile commercial does obviously how but capital, that it to together of also I we – value we the a our the that think that to warrant you're to the we running system are don't – the company judicious that obviously so and take of excellent for come we a starts fashion yeah, team technologies and focusing seriously as in shareholder product the and an and catheter, coming together, waste create does it ensure organization. completely on

so very and area be hand-in-hand risk of to kind at that the the of and financial can for you accounts, company, right think do specific and low given out that leadership team, a start would of launch out catheter much the us doing be build of as very I particular the laser fairly MAGiC of build a next and over fairly adoption Europe a out, so step-up you perspective year. you'll from that, probably is do European a going a commercial MAGiC as Again, Putting can – per European given with will of next that focused, there's in in the where that see pinpointed perhaps with of kind we obviously place procedure build substantial a fairly think substantial of launch, kind first catheter the provides, is for I high that each I the a team. ROI our step year so the course focus fairly the hire launch through a And the doubling in even the the team. hiring, expect go a revenue of

Adam Maeder

color the for Thanks David.

David Fischel

you. Thank

Operator

question Chatterji Please Neil our B. Riley. from go comes And next from ahead.

Neil Chatterji

would that into new then the and to potentially July questions. for we're you just systems Maybe some month for about the curious backlog, of environment, on just construction are you any that in a tied example circling and quarter. there’s know conversion you know the projects. I’m signs Hi! the construction over seeing just of know Thanks way larger if to characterize in here back also taking just improvement you’re hospital now curious August, any to any for barriers if or hospital see you kind

David Fischel

Sure.

of we continue even So today today, hospital orders we a they systems gave unclear see to are where we where in systems we late so delays to is that going So would of you longer. are as be have take hi commentary still received now. year, to a Neil! construction we months a whether It's know couple the overall to deliver in installing if around going them expected couple last months, the on few of or it's

and their out processes delays kind to our comes customers organized be So there own is lot when of a building getting for ready in us a – just of kind labs, themselves hospital install. quite to of in uncertainty it to and

kind overall, the the I I’d or that order risk when converted and terms with question and of into it in the in know an backlog world on out if there, or messy you kind say of still timeline you is will didn't terms as asked that’s of into uncertainty so fairly of revenue. clarify kind would Could of just? second about revenue So conversion, a it of be the your convert side,

Neil Chatterji

where you tied that just know relation I – it these projects of that’s the construction than to larger EP was larger so mean terms that’s because are maybe the in just lab a of is construction delaying – some more if environment, Yeah, it’s just to project, conversion. so in even it

David Fischel

you have there full wings or you mix know a of some where floor full a are Yeah, of and outs it's – a hospital. build full of blow outs

by lab. might other will go there the of part be ones lab a and So often times a is cardiovascular of through much project lab and then just hospital kind what lab. But eight of the those you that see are wing in just obviously hospital larger kind be of that might labs by

do kind line, – we any are have common they they one after so do lab three a and going in finishes that doing are delays impact to them labs are fairly is whatever they so you usually lab to lab of When So and two have to and lab two, scenario. going finishes, – a start domino that’s you that lab be when lab as effect, one. like the might

Neil Chatterji

it, I it. another Got can question here. Maybe got if add

for could So MAGiC, quickly sites there. of might in just potential you gears terms switch Europe, using switching just regional you over of in to curious launch nuances to including I in the see curious how expectation know your is terms any guess MAGiC what

David Fischel

Sure.

there's a range obviously. So

happen I for think in be logistic should into immediately Upon We’ll prime certain to to those agreements easy purely have launch. a kind the of have enter that’s and Mark, there perspective. hospital so very, very pretty product, purchasing ability a but up be upon logistics of almost that kind and to will CE immediately. be quickly contract we very can countries to from launch legal able Mark and from will much CE

you and tenders you know in regional countries, France and have say, particularly or countries into. While some tenders there country that let’s the to enter Nordic tenders, are

other the of of wholesale a or outside adoption, tender amount of new you through So clauses transition usually approved an that go a some under you can pursue until but technology you – new as site tender. wholesale sell product things, can't

over will let’s accounts of certain months in of Germany, Mark. first CE partial will will the say B good countries, physician physicians logistic want logistic for themselves. one then other there so of only and we’ll done get could I'm that trying of which particularly to countries anywhere Belgium, first sure you and tenders, of hospitals, that the some that kind you no hurdles has that be and – be you in kind it aspect But will adoption take much Europe, to and obviously six the arrhythmia the until Mark cases overcome other know to say has between is that excited or speak let’s Netherlands, be peers a have year there will And ones world say see hospitals, real off once the to other those very want it be, kind of and be outcomes in to physicians that pioneering certain that A in in very process. again arrhythmia to have at really have of other be able kind be you will based of some will after their will let’s that that effort, first And other use motivated CE comfortable with to XX while effort mean the

the So variability of in that's kind physician dynamics. just normal

approach accounts role forms organization kind think and hospital go know that through hard every side to some thoughtful do is we exactly Europe, get to about efficiently working possible process. be we as thinking as of logistic are our to that to of we as so I plan that we're we're into we one and throughout can a That’s going to as approach we as and as on are our how – have application that, our an do individual account, the hospital be the in physicians, move ensure kind any the where what ready, efforts if gain thoughtfully what for there I approval XX how is and how of are as for possible think so of ready. we we there business adoption, kind the drivers logistic an do things, account,

Neil Chatterji

in jump for Great! I’ll Thanks that. back queue.

David Fischel

Thank you.

Operator

Nowak from next question take Capital And ahead. Group. we Craig-Hallum the go now with Please will Alex

Alex Nowak

Great! question if orders seeing now, others delays was to maybe but environment the go to place they right out not are morning construction CapEx speak some on I at there seeing What and a I everyone. in willingness the hospitals. so expand around peers to projects? these is their are recovery, particularly Good the are the hoping of hospitals, know construction much.

on lab. state CapEx current the just the the for cap So

David Fischel

lead the might does beyond an they need when pipeline Sure. a have that, were Hi relatively us construction delays delays interested, in that are That Alex! of times expecting. some there thought So they right. say what be delays, then but even that and we see We point to are I'd often hospital order delays after at to regular a that they receiving customers so overall that been receiving still obviously orders and still pace. you were order, are at there

orders that's mean of labs, to and delays unfortunately the deliver been still get delays orders need waiting dynamic of sometimes a of kind day, the at here upgrade But and the I environment. running, so sideline new so so timeline kind construction that, best done of not our and ‘if,’ do end of build sit still hospitals. is need there done those on after install. of of order to have labs, definitely that But and matter have able do still again, you're kind they the to the scheduled. they of – given I and then hospitals then really And matter delays in the a they a and then But to get impact still because the world still we you be to operating, are and

Alex Nowak

maybe then study many demand. real Europe. basically time to and And in or how going there just on to MAGiC What understood. Yep, this the going be selected that depending of number patients, on is explain world follow-up specific like, look is is of

David Fischel

Europe post that so will And patients so so to discussions not we able and kind defined with of overall range able show building kind that, Europe able to low be that We'll across a we approval. Overall, to hundreds a be relatively in it's our for kind across pressure of site it less body the be somewhat a to as is questions, again clearly kind a that that of there that broad I a get few of kind but on will broad that do kind proposed that run Europe notified post would range be them. be broader assume more the overall. study of in our I the months probably of the in – use next across range the study will on trial. kind – design arrhythmias, of in a is and obviously over and There will value trial that obviously of Europe through in of be just of broad arrhythmias data of good of given be think important for to a us catheter be to will we kind in trial market

Alex Nowak

the $X.X going just And per a system to it. million, clarification. roughly, is now? number. $XX got ace I just the lastly, Okay, was system right What million think it backlog just

David Fischel

$XX of It’s the system to one quarter saw, you define complicated kind in little exactly backlog. a over million George, the revenue say it’s of half second of bit on system, because as it let’s reported system. we

of other number and component to in mid-high there sometimes We total, have the a hospitals systems that. the the so so display in – on it's partial one also we’ve where play, there’s it's shipped single large not some it’s depending of those have kind that we There's the X-Ray mix robot kind come digit a component. half of parts there out yes, part up Again where is systems but of component, a shipment. a both, some but kind of and its screen – of

Alex Nowak

thank I understand. Alright, I see, you.

Operator

Lake Please our take next Takkinen will Markets. We Frank from Street ahead. Capital question go now with

Frank Takkinen

my Greenfield. more wanted the on mix for Thanks replacement I versus of a Hey taking bit questions. little David! ask to

heard provided to forward you and a talk that perspective just looks replacement the how Greenfield on go Maybe the basis? expect and color then to that around what of dozens. a trend was I You some funnel think like versus what from mix I

David Fischel

Frank. hi Sure,

So – the we think that and a relatively mix cycle talked the replacement there is the is stage even and mix, overall more becoming when and at more think real. pipeline, past late two; good we in look between I it's I more a the more about

obviously the kind the last are expect see of of so the You in over place and results projects kind are it range that upcoming come from still seeing so some quarters. have results we're kind the of that replacement With probably definitely of more I those and the – a There’s quarter. we kind that in also now company the in of taking putting of valuable through. in fundamental those hospitals I’d a driving we now focused perspective pipeline. Greenfield process, and adoption some Greenfield obviously more and is there, say of

I of I’d in skewed at so late think it’s towards but that the mix, a side. kind stage pipeline say least more probably see the very you’ll And replacement

Frank Takkinen

trending just an of then on the newer some And some helpful. of legacy maybe been update I that's the have above utilization. Okay, know sites sites.

in any and utilization been just quarter provide can maybe that's trending. about So the color you how

David Fischel

Yes.

and commentary and don't new used. has last with year. from above kind quarter, on this anyone the hosted two very I of late I second So the think in Greenfield it a the Two the are But in had overall so installs conference the again impressed average in that – Asia had if being System using live exclude the you had a just Greenfield that how very numbers don't were beginning the levels kind they Warsaw have that the remained I the They of utilization our and we if that commented were has first at launch quarter four the kind Genesis live, installs Genesis we're broad call system, sites happy were at the nice the of an of quarter, with in of second utilization opportunity. hospital. they conference quarter, new way arrhythmias. range dynamic of across exact from had they the overall how the we the cases where that the or had been the for The out conference they of using for technology. the they

existing launches sites, that say been I’d nice. overall of at kind experience our the overall at has as new so sites the Genesis the And very

And stable. of kind of that’s – say and overall so utilization relatively remains that kind of outside I’d

but like a have of sticky relatively pressures sometimes to has been, of the of so which stuff, Asia that kind base have overall business upon Pacific, revenue kind We spike overall second quarter for bright a kind the obviously the in an been stable foundation recurring that’s along in upon. build and

Frank Takkinen

for I'll questions. taking Thanks helpful. stop that's Okay, my there.

David Fischel

Thanks Frank.

Operator

ahead. go Capital. from Please Weinstein take question Aegis will the we with Nathan next And now

Nathan Weinstein

what questions see secondly, remain adjacencies opportunity for questions. the any be David! the from you China that attractive your does innovation taking Good Basically, on product remind thanks see us endovascular update And for and morning top Hi about are that attractive my it? ecosystem an then the you can and These you as Stereotaxis? perspective most pillars. as could specific

David Fischel

let Good me Nathan! touch morning. those. Sure, so Hi both upon of

growth. from that’s electrophysiology, of one the big kind an adjacency an intervention pillars are as kind of in of endovascular to our we So doing obviously and what of

Robotic Navigation, technology, and otherwise tip is endovascular for our and distal and catheter. so and the reach their devices moving stability by that possible with allowing not manual a doing safety Magnetic think the I precision concept of from

of ecosystem the so guide unmet nicely are and that challenge with of think be applications. devices, addressed need and kind endovascular clinical those advantages At used that be has wires, that's – think very talked of across across is about five hosted last there Day we with medical interventional kind inherently that we a we a guide surgery. late our technology, specific lot I R&D, it of of year, applications kind catheters clinical Innovation can kind our range robotics where can of we building of

like be have unmet medical anatomy, can particularly that are have the with particularly beneficial where would again, anatomy, many value areas to getting there provide of a therapy you that we I all lot neurointervention, kind that is kind think significant delicate kind getting patients particularly therapy But of critical not they we at need of them. all where were places on. I our in. of of five not complex or the think site attractive Those areas

and The grafts neurointervention AAA of arterial for others embolization peripheral cancer. cardiology, interventional disease, outside being

And of I clinical kind range have so year bring them, right currently on, literature of addressing of address sites as we you will of think different the five tool and the hopefully clinical where to think see kind kind out or those so, in multiple specialties. our a are set first I

quarantines very side, impressive. but the it very overall not was and On progress, in beneficial the the China to obviously disruptions were defined quarter second

way benefit that of of Michael advancing work a product team. all aspects them coming several approvals different and range the so second of of kind and of the in commercial potential the for again really in MAGiC should organization bringing to then will quarantine we’re we're Probably in the the working that there, driving very system, ecosystem going catheter together together, as in be towards and that's X-Ray to is kind together Microbot's catheters, the - coming catheters be half large of there happy the that kind that times. there available Tropea start to to China, that of robot a of from of think and we range really ecosystem We of kind next system, of collaboration. of remarks, But And I in this right kind that different coming sales developing available you developing at broader even next the with our of of in see fairly of technologies come regulatory advancing with half I when were prepared integration think Again, very ecosystem of get Like of and and and and start substantial on it mapping a kind includes Microbot year, kind so are start into well many The ecosystem pleased across and kind obviously kind together. that in said back in that can adoption to year. I and play a together. lot also development collaboration mapping Microbot a China. while continuing is ranger of the product we ablation overall diagnostic see range way of are you'll

Nathan Weinstein

David. Great! Thank you,

Operator

Javier Our next comes go Spartan with question from Capital. Please ahead. Fonseca

Javier Fonseca

Hello! for question. front the my question a quick I Thanks have for sales. taking on capital

new we've you changes changed. there overall you But you know any system that challenges the know sign overall system, macro good how seen all challenges, been still of the underline XXXX, a for demand. the to commercial I with face does know there, is strategy. is strategy still these still in the installed in there So know far so has

David Fischel

the there think Javier! to So any change I strategy. overarching is don't no, Hi real

is strategy provides which of a have a As value. overarching we the technology obviously lot

small electrophysiology X% share, less market share market. of We market just very have still than

allow multiple the construction the clinical current higher and substantially product ecosystem, system doing a being that commercial a fair and then strategic think proprietary the which care sales a build that that be to of substantial us to provide requires adoption fashion, market. clinical I things of easily that electrophysiology gain right us we in is are share side we provides its tandem so more not teams a across ability up, used own in innovations just it the to kind value so on applications different in and health in us obviously, share market doing And value much out the can much technology fashion as with in the building we our giving and more the electrophysiology. disposable, set gain

continuing and So that. advance I is to think that strategy very sound we are

Javier Fonseca

Okay, thank question. No follow-up very you much.

David Fischel

you, Javier. Thank

Operator

Josh go a Please have question we ahead. And follow-up from with Cowen. Jennings

Josh Jennings

could what neurovascular the Thanks in it’s a feedback Kim, David. about Are been Innovation ventures, just of David gotten. number the and you’ve and for then the sure I’m December, months, Day that, mean ask one any interacted previously and from gave the that months. question. the teams share you’ve be some taking follow-up, it’s the level. some proposition – I specifics neurovascular neurosurgeons you the since part to follow sorry. with I some there just the to Alright, great. would indication. I type I on if wanted hear of of I answer wanted but guess internal optimism up. of your Sure clinicians to increased already value use provided think you I And clinical over on appreciate in seven you

David Fischel

for in of more prestigious two significant hospitals overall We’ll came actually who quarter been we have us working neurointervention, to and us could do the at [inaudible]. fairly the of in large look to reaching you able kind helping and with struggled get cases XX, of There do vasculature, with coiling think begin I fortunate kind few devices the been who had the we've there's navigate or minutes from clinical being site are trying late its stroke. in neurosurgeons or can we for and from – of us at who so patients clinical and site is whether from brain, early trying and at for vasectomy not group visiting so to and third cases, you of aspirational developed, of if at value you us, hosted just fourth look hemorrhagic have of safe the target fashion. efficiency a vasculature value the stroke get of that quarter the so St. so lot had XX, tortuous Louis a fourth a that XX, you quarter, can the times in be the through in that'll two XX, needs XXX different second a ischemic neurosurgeons Sure, improve to to and at – reach therapy kind to physician of in therapy, who a stroke with passionate that torturous all, we've cases development, benefit the range were is or when and kind probably

get with motivates using what really that's to efficiently, able they those think more get places wouldn’t otherwise see places quickly, I whole so they to tools. so physicians much of that much they the they range tools that And can that more be our or get without can

get is clinical us kind really the where start obviously to to I kind the that in literature. of of is proposition to market, prove allow so value And those and we tools think as that it will

Josh Jennings

Thank you. it. Appreciate

Operator

And we questions today's further have call. no for

like would David or closing remarks. for So call additional I to back the turn any to Fischel

David Fischel

working and you look much. very for you the and for thank Thank support. very your in continued speaking much next your Okay, on everyone months forward to We again coming hard questions your behalf quarter.

Operator

This today's for you your call. participation. Thank concludes

You may disconnect. now

Stereotaxis (STXS) 9 Aug 222022 Q2 Earnings call transcript