- Earnings call transcript Q3 2022

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Operator

Good morning. Thank you for joining us for Stereotaxis' Third Quarter 2022 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

perspective, Thank From activity, of the by Financial for customers. Peery, construction contracts overall already today we've past: with our Continued I'm we've orders the and and demand more Kim the and macro challenging X since and start reflecting a received received, a environment, you, last the with our and made backdrop technological consistent during with quarter global similar the order to good commercial engagement had signed third operator, remains interest Against everyone. to joined in fourth and quarter, morning, hospital described Officer. commercial robotic a Chief have call. X I'm our positive dynamic pleased purchase progress system continued the delays technology. We strong what the

quarter U.S. included Genesis China. States in system the Genesis purchase and orders and a in system United recent Europe the are in the for Niobe systems signed orders replacement The third The

infrastructure pipeline be and more which We've a million Over has backlog improvements now and slow, further have meet of sales internal quarters encouraging. pending greenfield consistent Hospital pace struggling consistently if multiple our in improve worth time we order have with recent X leadership geographies. our the orders purchase revenue, to sales to this replacement processes. been and greater shipment not healthy capital the $XX have million hospital pipeline focused believe The contracts, commercial yet in and our their of of several year, more cycle ordered maturity construction consistency a to seen capital the robotic lines demonstrates are systems with across installation. X expanded row This signed or and and continue is and course growth. orders, our customers we prospects that over $XX capital each expected include to system execution reliability I activity and of seen in but over own -- of It recognized in as expectations. our

is this recognition, with impacts our guaranteed backlog in significant essentially providing of While nonrefundable confidence payments, down outside realization. control the revenue and are in orders our

are for pediatric be how positive the successful carry on detailed generating in On efficacy field, Other ability a in in month, statements. robotics meeting. the and join our many including alongside positively be innovation commercial data patients. to our vibe showcased passionate ensuring positive the of strong ablation and focus from and clinical front, technologies, That mapping used showing in procedures pipeline with can arrhythmias, with through we progress The is Conference well robotics are had community vocal of superior demonstrated was of benefit range of will Cardiac I broad advance fundamental experiences ultimately control, have presentations attended to the Last financial enable Robotic recent and a to imaging on arm There physicians than very technology. growth safety of at for it will we a to that Budapest. the opportunity our Navigation of what can users robotics. the optics more access value that Annual and Society our Qualitatively, was present spectrum Several orders trajectory to rather continue our most practices performed across fortunate the the groin. increasingly itself an conference XXX robotic over technology we our participants. and to existing highlighted through of the prominent presentations the

Warsaw conference, the Institute are had to Following the the in in of Cardiology the the National the physicians opportunity recent visit celebrate Poland. launch to institute The of the I to at was SCRN to of of this community advocates. Genesis electrophysiology how been program. have a commercial pleased vocal and they encouraging additions clinical It establishing robotic newest among with value hear

otherwise During our treat disease, no alternative positive good my would woman now them treatment options. robotic opportunity patients congenital to Shifting successfully technology the innovation to young complex the heart plan. visit, has I impact strategic our made reinforced watch had the which a on with that progress on have

multiple MicroPort as a includes range to and are innovation guidewires as color details in broad and for our and robotics. strategy generally product on our ecosystem with the several serve and substantial individually As with transform of things growth testing of reminder, surgery drivers with line I'll a a neurosurgeons. endovascular happening in additional foundational and parallel, specifically time here MAGiC shared key lines. guide with share advancing efforts progress There's previously that catheter, serve our the recent Stereotaxis' robot, truly collectively some mobile mission catheters collaboration the

completeness provided catheter's check the they remains last remains is technical submission a thoroughness formally completing pleased successfully. work the and a that our on IDE successfully The announced But rapidly completeness enabling GLP that new to shortly. an backlog to of us quality notified studies official start review was its performed program data. I'm has use and Last recently, start their MDR undertaking and IACUC of how to major July CE submission the our bodies, the care regulations. As to milestone institutional notified significant body a review. concluded they they during those will program stringent difficult more quarter, Committee created their made pleased studies. perform launched few that, of EU U.S., the in all under so month, preclinical Establishing preclinical studies. check estimate level completeness survival the Mark with technical animal dependent we were the And the the check. In was overall engagement MDR necessary subsequent MAGiC EU Ablation with of began the it submission.

electronics Supply time the progress and held mobile pose well behind coming nicely. should previously FDA approval continue robot excitement of physicians X next-generation challenges, as catheter, of line. to our seem which Development a commercial clinical, system the the with MAGiC own had see after longer has hardware, with reasonable We reinforces MAGiC catheter SCRN the up advanced us time line. to of together software which strategic MAGiC years the our approximately provide. at no will conference The aspects chain the risk a excitement for U.S. and view and benefits

for opportunity envision the transition next and construction of project the We launch accessibility deployable initial in the is summer. our a technology to robotics continue from an technology broadly The system of transformational of for field. our to

all Our submission, collaboration commercial regulatory mapping development with preparation, the MicroPort Genesis catheter in China seen in progress integration, and has tandem. happening on

was regulatory During quarter, completed testing at the in was third showroom MicroPort's all successfully. Genesis required installed local Shanghai and

submission up CE the part Development as the catheter catheter expect Exchange, in team. for China They is commercial for integration has to sets ecosystem in with of already a to and Genesis next Chinese of nicely the place play XXX activities. launch, the recently hired latter having a filing team now drive to progress preparatory That alongside EP invest We after and in valued at completed. members for started regulatory MAGiC MicroPort MicroPort's soon own has commercialization MicroPort up the capital raising of to in has $XXX end and over mapping a been EP before work China, X.X electrophysiology China's receipt this In largely to MicroPort's million ready advanced IPO ablation just system as a product division also on clinical adoption team sales which completed NMPA All of part of Chinese well, to the Columbus in year. very role the date the MAGiC's for poised markets. Shanghai of us by USD robotic Mark. robotics core will has China this expected the complete, integrated this its billion. take market sales X individuals of is having preparation year. in EP significant Stock over dedicated Mapping

electrophysiology them We strength shines their becomes on of around to clinical available. beyond on Last commercial partnered innovation with new our opportunity light navigation wanted to color provide magnetic indications. product and are into benefits robotics on ahead and robotic believe the strategic expand I efforts the alignment the be of side, multiple us ecosystem pleased as to little a the

on neuro is mind, our intervention. pun Foremost intended,

access prestigious hospitals phantoms. valuable weeks evaluate therapy hosted been software our could As the develop to our States for we United previously neurosurgeons that interventional tested in shared, working Three and neurovascular from for user tools X It neurosurgeons X interface have devices ago, be and complex endovascular brain deliver and performing catheters magnetic we stroke. to the in the to with in they've same guide establishing tortuous guidewires coils in magnetic many to the gaining manual years. overcome activity the for daily standard challenges proximal reach then device deeper and brain, used navigate They to tried vessels to smaller clots. our in practice

an was spend right handfuls are Experiences real done made in provided of improvement get thousands to that they give target. with the will reach And what are your otherwise play to areas like daily and share value medicine. it of to role catheter, now an "I've finally been and the is my procedures able is reach ability impossible that unbelievable. on important our I we these while were This effortless. Let unprecedented us with just right benefits some confidence hour huge." few This we an have practice. would to forced financial that technology. of the this The a me of clinical robot procedures, we work similar the using quotes to. do exchanging doing rapidly to have and path in In devices are this

guidewires some will comments other like call before We our results, make and physicians approach and with scalable how arrange can they an guide and accomplished and their are Kim and expanding working then patients financial as and financial to reducing establish those it our submissions we I'll Innovation to provide them the cost. launch, and regulatory access consistent technology make is experience manufacturing now opening outcomes on Day, that catheters the few commentary to clinical commercial well we will as Q&A. of a time still see share and neurosurgeons procedure improving where

Kimberly Peery

third Gross good system fixed revenue revenue. in third into in overhead Revenue quarter onetime David, Operating you, quarter margin morning, of $X.X due delays for dollar. to by and the impacted noncash for significant from the with $X.X $X.X the quarter with to the Thank gross the quarter quarter reported margin prior the consistent third gross of Recurring gross million. margin down the in of of quarter. prior million, strength for impacted and the System for our $X.X in million of XX% system $X.X by was year expense. $X.X quarter slightly margin recurring totaled revenue, expense. million, third million XXXX everyone. backlog revenue remains was of slow allocation $X.X production hospital write-off Recurring XX%. System year included the margins continue a revenue and stock volume the in low were XX% construction was million gross that million and compensation expenses conversion the of

$XX.X significantly third loss million operating the manufacturing excluding free quarter both for new At prior $X.X to impacted no facility, Operating loss, adjusted the compared for both million this expenses expense, million million third the in $X.X now by million, million $X.X were adjusted and the as year in $X.X as cash prior well year. quarter. and the the $X.X net back $X.X and over and noncash compensation and XX, year. expenses were call quarter. year $X.X operating $X.X September headquarters previous quarter Adjusted which will was has $X.X quarter were year $X.X to loss in million million $X stock on year $X stock in $X to loss for million second onetime year for the expense, the had current consistent compensation is flow and investment million the of of hand net and prior third David. of in Excluding compared cash compared this I we over flow million for quarter quarter XXXX Negative million to million equivalents cash debt. and our in been Negative in million the inventory. an third cash with

David Fischel

any job in community quarter we quarters. guiding Kim. have the system that several good over the predict and has given you, in We been recognize revenue Thank last financial done to that not difficult a

that prudent ability. seen and activity guidance opportunities until system over our that we've coming $XX are to experience, we've with forward. it's better in existing revenue going supports activity pipeline, faith of capital year-over-year specific We our forecasting backlog million, over order to believe that we revenue grow growth determined avoid Given more that along providing the we have our pleased quarters. Fundamentally, with the

launches New an will substantial over and the growth technology commercial years. support revenue enhanced coming organization more

the support by believe, this challenging investments, As both and, of conscious robot facility mentioned, our years use year the impacted Kim to investment supply in new our are and many been our former given environment. and cash in we growth inventory. has chain significantly the latter Those prudent

those $X for items quarter. smooth rate, a Our and remains core excluding million variability burn approximately quarterly operating

macro financially the ability to drive open prudent of disciplined. remain the cognizant with the are to to strategy, profitability can We of We Q&A. questions. your We you being reach please and the resources. taking in advance our organic importance our growth environment Operator, look now forward current and financial confident line and

Operator

Instructions]. [Operator

line first Adam come with Maeder Sandler. Piper of from question Our the will

Adam Maeder

I the just to to starting about backlog, of on the with here. on is build Maybe progress. models I'm ascribe kind David, Congrats to start trying to and wanted start which to how revenue. are just think

there. about then any I quarters, color around of how visibility a next of drawdown think couple you the just recognition revenue the follow-up two. And kind backlog, or have of do So and over

David Fischel

Sure.

a I described we have as them. call, So of the backlog in

As end over it quarter, of was the the of $XX million.

include own of how you that community we knowing that really job recent million. X Overall, we were think orders over that financial and have and where shipments. done And a quickly, received rest orders we the the guiding revenue not we very that case the have turning has ability year guide up backlog into If that to of vast that, that contracts of some purchase general should signed, poor the within it's revenue. taken ready, realize the at you very while we year a our these few obviously in examples and I $XX time a those in before thought in in kind vast, improve into successfully we end on over of cases. and majority kind have I changed need turn think being that a -- quarters have nothing I hospital revenue is received us to after that are a of recognize makes were installs but There's forecasting that sense think shipped quickly point, some able and

are over and where few things There much that would that should also within a I be show revenue even quarter. we quickly examples same the convert received bit to take might be generally so the think And backlog definitely little the next year. over and will takes examples a more but that where there a place doesn't convert year, it

we'll I Obviously, that's general of how its of to order kind on -- a any that's shipment given think conversion and so in quarter, into backlog or one our about system statement think there. revenue. a And system through. statement installation lot and quarter volatility so of between not make being general of there's think, in or that the almost I a a that's, one million, $X But can that difference

Adam Maeder

the participants, things process challenging Really, Certainly ask next MAGiC are the about it seems That's you question, And for into Mark catheter I and just really recognize Okay. visibility helpful for all CE of has but like RF well then going the to perfect. been color. guys. level MDR medtech for wanted approval.

additional in this if share see time to there's lines. terms at or those can any of Just color discussions you time wanted

David Fischel

Yes.

of in So obviously, the a get outside when submission, you're you it you of question. of put is kind asked your regulatory a lot in dark you're control, until --

that was did completeness last you going. very so it nice And a What thorough they their get was was completeness check. are how things great color really don't check, month when into

was on they small overall, the all that a to a answer they some asked, review. of able smaller very check based clear to questions detailed it very to detailed we finalized they questions we submission based adjustments technical moved on did made some and the and of a on were able kind they to were and So make then the do of have their the rapidly, observations certain And the observations and -- completeness to review.

the of kind engagement, -- that they and with live pleased were the made we to standards. clearly, up of that terms the application the for overall, So in ability our rigorous effort to both

review, the with I the of and device. midst with back the feel the we of the what in quality of So generally obviously submitted and technical quality with we submission are good the

that also prior think benefited submission, MAGiC some I from we that the so to experience. had with MDR submissions just experience

it's for So notified a are And body, with as overall, feel possible. to respond good an are approval any fingers our questions. I obviously, we otherwise, of crossing we in and things. as soon get primed if But we the hands

Adam Maeder

Okay. Perfect. more, one okay. And sneak I'm in if going that's to

I clarify robotics European clarification to those the Just tracking or FDA it Have and like less quick of that. submissions heard Just question. or a made Hopefully, summer frame system notified to mobile approval the launch. you sounds body? things kind that for The time correctly. more to wanted are

David Fischel

Sure. Adam. Thanks,

So we next -- confident launch that in an initial We is feel tracking summer. well. yes, still

confident very submissions also Europe engagement any fairly fairly but submissions of made recent that on U.S., regulatory months, Genesis. in with given our what We clear feel view the and We at have would experience a have and don't we bodies our with have both our be we regulatory not few strategy the given make to another date. for to any least expect clarity good

feel we where We good that. very about we're good stand. So

Operator

of Riley. the from line come will Chatterji question with Neil Next B.

Neil Chatterji

Yes. shaping just you Maybe the what maybe is how if sales up. funnel -- characterize could the

I of kind the a update on past, of just think kind you've in curious dozen having that? talked of about there's any couple if

David Fischel

Yes.

So a color we to give kind -- of let little of sure, bit kind of me try there. Neil,

any was, and the sales So on and is disciplined starting probably track -- spring in work for responsive and as we reporting potential flags that red the we less described, possible. more way we, think pipeline pipeline kind and and or quickly out really, of in I team, it for as good making as this funnel that are sure to risks advancing as a the purposes, to the organized more were a or opportunities time to are to

And so process of kind in a helps visibility that us on has been of process does and nice the create a that it. pipeline better understand it lot

are there trying be will on we do Now are do, way, would the that what of would really that able statistical over over certain organized to these in do an analyses. come as what projects types -- to start time, that insights we of tracking only time, we're like what you because pipeline to we now is period to

statistical that in we there very on things that things activity customers the they across a very, so And as off very of knowing and as that do it's expect. a the the things any in future, to terms analysis pipeline, relevant. are with point, many in clarity hopefully, activities, last tangible very that there, very are I completed -- is little in at to also many ascribe that kind can progress doesn't or of a be go able the include be of we point get how looks range I pipeline -- activities, Right have how any over late activities, that activities, been what that project-related orders hope are give we of having a about from given we'll we very, how construction along can at And given able board. be future, range time. early now, think to something can on of time, some administrative I are how clinical more based of specific are pipeline to greater -- we where are off with green as So based guidance at we our feel data, confident

kind sometimes would understanding that and a of higher the starting of kind more we of transactional understanding opportunity the amount of the little look its but lot of are or then in forward. dozen bit confidence as I'd a I capability. you on a say U.S. negotiating nearer-term that. of also contracts less things marks, realistic say have that and and than that, growing have You about move them you over really green phase build working projects, a nice of potential commercial the in is kind at those even in to the geographies still to each Europe, when we in check of in China kind China and remain

future And time into about a quantitative kind as take, of of the generally right the to as database we that And that line late, I mid- We're of mid sense hope and lines I again, so or -- early-stage describe of and late-stage things converting early time that a how able data of quarters be enough of on measurement we just like have thing how it. projects. versus few think of that's we'll that the what's well provide will now. things when now in then of until obviously, to probability make kind a a kind it kind to for building orders versus

Neil Chatterji

just HCA. you system to maybe relating in nice it. a of kind second it. then Got a order And Got with had for that, Overland

I progress the hear -- was of kind any to curious any around health strategy? just color around IDN further So system or your

David Fischel

for proponent robotics efficacy, many now. in ago, actually great efficiency a a and VT. Sure. and author on in been catheters demonstrated improvements the He years a Dr. which significant of years the primary for publication was Lakkireddy the few in is statistically he's versus field safety a physician robotics prominent manual

And has University. kind at of so and been And -- community prior broader and a the robotics both benefited that Overland at has experienced, at and that that, hospital. Park, so at the involvement IDN we've had had administrators data the publication he due experience obviously Kansas he in is the value of And kind within the really HCA. local of the users to experience the that SCRN. himself, the seen robotics he Overland also to local so of of and of prominent part and And Park of benefits seen within

few We other at that and our some have HCA them use very a hospitals robot well. of

to And multiple it we over that -- -- we evolves, IDN with. have it would can is couple that that IDNs either there time, sense other that or there's so make continue strategy be think larger and IDN it type that reasonable is installations broader with with a of a

try continue that. so to And to advance we

technology, We and have our range we our individuals of those with have getting use adopt increased in point both to different in things the there's which in from as that engagement as down. IDN, significantly top-down one as again, kind higher you the help an system. field, up to -- ways an And in from think driving the product and top I a acceptance ecosystem of clinical oftentimes IDN can both nice where of becomes offer the approach the

the up given already that bottom the there's think some relationships I we've benefits from built.

Operator

Markets. Street from will question next the Lake Frank line come Takkinen Capital Our of with

Frank Takkinen

for a issue? CapEx staffing a the line what is the time is into to bit it with variability. Or to with little more the call of required what fork out over greater clarity the you with construction is bit variability. a just is happening reluctant occurring construction detail? little more Is Can start time line maybe project? construction Just hospital it Maybe

David Fischel

I sure. of think it's more really former. Frank, the And

about construction. the or just and Oftentimes, think reason staffing, contractors that system it get also they're external And internal we they budget payment order way our down architects. to with is and entire the for also tech the system, same it's really before staffing. isn't for I time latter at the getting pay budget the staffing it's and the engagement to approval in usually for that normally sometimes approval on nurse talk staffing don't The the

are dollar They which that approval you isn't and for put having the once outlay anymore. And payment and a investment real now following is by system. try budget a you through you a question gain our outlay. multi-hundred to down approval. that They make in land motivated usually So constructed cash it to get really realization budget thousand a prepared. an the that order They think pay cash of actually

-- have most time a year that order construction have than have taken cases, expected. over were seen we We on, revenue we egregious in been the seen still almost And a of partial but and did paid after they lines what initial had we one have ship payment. and the made that the not recognize that order installed years X they down longer initial

and but we dealing very, seen to of a chaotic staff issues depending so environment, projects. have have are internal we contractors. either And regions seem some hospitals struggle their And it turnover advancing have seems seen, and/or -- obviously, hospitals construction in of very be some more construction organized architects much some and to less with

Frank Takkinen

out little number I quarter-over-quarter. then down to more on item? a expected Got it. That's that bit that side, call specific the than helpful. Anything in maybe DSA was And saw line

David Fischel

on the the Sorry, side? the... DSA question you On can repeat

Frank Takkinen

The disposable services line. and accessories

David Fischel

disposables. Oh,

then of one then. replacement as say system Genesis dare some the since or X waiting less revenue but they in So there, years to service orders, started continue procedures and kind generally hospitals I'd side, it's have, more the some service also. give your that, And warranty the They roughly line. that's on remained until because volatility us year doing We've had of after are the we COVID project kind of stable significantly, replacement then generally, not install ago. level and pressure you kind lose have a of a usually drop remain state and did in about

service of that's the pressure so kind of side of on things. a And bit little

let's of obviously our my And bit of FX. don't place a a procedure see volume, our of so of the would little hit also of from and We're comes about bit little strengthening taking U.S. There's And that business or impact the -- a be general any Asia. half with kind of revenue. probably to the say, dollar, year-over-year, half so more about FX an there. almost probably of that dollar take. than I anything Europe substantial XX%

Frank Takkinen

helpful. one related documentation Adam's follow of robot. to one documentation last question submission last Okay. mobile clearance or And maybe for to approval on That's up the the quick

I when a said clearances? likely another could is event you by think think QX you more Or submit. until few months Do 'XX mobile year-end? occur we submit you that that for

David Fischel

about off the talked next year, in us in initial of quarter half allow of next the year. an our to launch. would and initial of summer strategy, place in a submission, have an that take that's launch third would first we that something So the Based

we is a both discussions again, have and We recent feel we that. given have clarity, experience had good feel -- submission. on about given needed a we what lot of So for regulatory

do first with And path, think into competitive that comfortable our have so too there. a And color some secrets of our not given initial reasons in we'll kind go of too I of keeping to views submission point much trade much give from ourselves. nicely the sets There half to I regulatory to next of some of launch summer. our those up to again, us don't why there But and year, want in ability kind that discussions. -- even we're of in an color are just

Operator

line Alex of Craig-Hallum. question Nowak with come from next the will Your

Alexander Nowak

disposable the commercial of how system a robot the preparing And once just purchase Niobe. fair different a make help organization would hoping for from to a sell just it Genesis bit that some centers. to imagine I financing be on agreements, just you're was can lease be or value system, bit it's sell whether then easier anything agreements, done little I mobile that launched. it's to just than discuss little that

David Fischel

Sure. Thanks the there, for Alex. question

So you're of first. second part on right. I'll kind the talk

the technology You're of from benefits big to from right technology that way. our kind of that benefits there's big one commercial ability the in that of couple of a and -- kind evolve

in robot accelerate burden, the them is that. time construction site. the and able the everything gaining lines for The associated obviously of One a being burden, reducing site, to with

to the financially. The the is offer other one ways start access technology to to customers ability different

of robot a would million that, can value same structure that kind lines other robots moving Stereotaxis because way that, driving can is chooses. mechanisms the that accelerating reduction to $X.X technology to financial so would a for of burden to become will X that perspective, reduction that day, a kind to fields, time. those to to choice at that purchase and ways a the system. clinical access the value the And the would for I an robot, end of some And we ability of start offer different deals lease I obviously very of technology, then system has by the that And the the them in to offer with think same such think with financially And substantial the offer we of seen at continue that retain the We through retain customer and offering value helpful the same kind customer capture be to we the a And From the and let's in and I kind both adoption X or valuable forward. payment. excluding chooses. And that will gives is the construction we agnostic to of other you -- and would customers a burden which X-ray, that value and a approximately, place you think agnostic financial be in will will just some in purchase extent, we you extent, we've a all company ability one commitments. rent offer ability to system. as say, a which disposable the time

for allow I are, and X the choose them And options whatever them choose, offering think to advance politics can you for the customer, really a to the those so them to of they to yourself whatever deal. the on the forward move hospital best internally, depending way internal the is best to by to dynamics, kind give let bureaucracy

Alexander Nowak

helpful... That's great, very and that's

Sorry, go ahead, David.

David Fischel

Alex. continue, No,

Sorry.

Alexander Nowak

around No, changes to if structure made? I there, the commercial going organization, just just any maybe the to was say on need sales be

David Fischel

Yes, exactly.

the that. So wasn't trying avoid your that question. of first I was to part

robot lot and lot with a customers. now in capability approach available a on catheter benefits provide will say improved mobile So the that of sales is primary how a the where capital the substantial right focus of opportunity on having a flexibility Europe, lot building and I'd in we MAGiC that and of side, obviously

expand Europe, adoption focus, team that's to a But of team, of impact it to capability, terms about discussions how it had can where on lead new kind thinking think joined way you primary that be. really, capital robot will that. In the launch how as something applications. clinical the does so sales robust And drive about Frank you in about mobile how how your mobile the has in and robot U.S., vascular build also many the in the think like we we've obviously

we're in stages. that overall planning learning and so of And kind

host due our We customers construction able have challenges technology administrative have, interested been their hospital. who been over to move and have whole a but the not of in forward physicians years, accumulated to at

fundamental we knowledgeable a before a desire had physicians ones have already so who would some of be being it technology, ways first pipeline. have with of many obviously in kind innovation have and some access not that been already approached, are and have And the made about in interest our and list our

we So can that forward. the available, when technology move comes

Alexander Nowak

the there talking But this helpful. of general hospitals in Very pipeline, what we're the are out seeing. comment season CapEx the earnings maybe about it just there. what know environment mixed orders and A signals And the looks of like about lot I hospitals. on

Just you're curious hearing. better? what getting Are things

David Fischel

where to whether right? still hospitals comes and it great they're It's So there's overall me to we the very environment. a in a a all small give We're it's we CapEx. a it's time space people live to pressures, for tailwind a macro just to very ocean, easy I they're probably things, to is of color and differences running players report have to capital said, try easily where environment, the because opinion. kind some budgets. have of that over world and With not it's I or medical made big of have So in hard that you Definitely, buy larger overflows see same very type an quarter. this you you not try money environment pressures, read on of staffing headwinds, fish the pressures to device when hard. financial there commentary spend same the in the that hear equipment

I general So also generally, that they macro pressure. think, there's say

or question worse. And becoming easier so slightly really it it's just of a is slight

in we remarks, our the in pipeline. release from of overall conveyed prepared quarter. in overall, hopefully quarter, like our and bolus I activity we're in nice both start with think the the and press was think kind Obviously, had we've pleased I the the the activity perspective, of fourth order seen, a of third in

pleased with how large we're But shaping to our small And seems overall, be so fish a in pipeline of ocean. very a up. again, kind we're

So is activity I'm representative our should not kind of sure world. of the broader necessarily that -- be

Alexander Nowak

intervention Understood. That then launch watch to some of the around then side. the Yes. for sense. maybe neuro makes commercial eventually validation goalpost And and the here in

David Fischel

quoted Those We'll an Innovation start obviously, that mentioned written to where going I've neurosurgical made were they nice hear little obviously bit approval some allow while think But they quotes before, remarks in -- us catheters community you see experience that that a firsthand. of Day there. of still quotes for for the we're we're it early and nearing prepared guide I approval kind promise a the of their the would to to to do to financial were of So approved some my want were regulatory be I and launch, by community will physicians. that we the kind and I guidewires are to I -- as like also here.

now year feedback we've innovation of manufacturing that it can why Elon the launch Overall, practices. again, beneficial consistent manufacturing and -- I to said actually next that you on kind try an and fashion. where we'll to we And much more for and get try think in patients say what there Musk, as I'd health you day a things on to are well accomplished build kind in prior of scale so arrange it's once

very work submission. get designed and know to that can doing been provide we that where we now and prior scalably consistently regulatory them manufacture can developed, So devices that the to value. a And that well, have we have we to clinical have point

updates so us. that have few within hopefully, -- so our front within now And we'll be to meaningful that much color in a you'll again, a launch. right able quarters, And provide of couple that's effort on quarters of more

Operator

line from Josh will question Jennings the of Cowen. come with next Your

Joshua Jennings

in they just Niobe China I front understand, Do in. still starting in to Niobe just approval. I next great market see the help approval? the Genesis thrust have own think to another Is the we wanted I order China. ask to into for to your field? to to in approval It's But of months see Genesis. front the how before wanted Microport wanted XX better Genesis Stereotaxis Just out you team -- guess, capital China are come the on about team about of

David Fischel

Josh, Sure. MicroPort working exciting team. the thanks really with I for question. been It's the -- has it mean, actually

our enter of to be last orders customers, of positive just if there, leg perspective, Overall, our They're do robot they several proponents a to don't extent, of is Stereotaxis work we've everything. into business it, the the based had entire about So with activity to in more do publishing. of a if work the increasingly from they the clinically. really so our that a commercial of of of using a that Niobe X.X seen a year, for Great great and that team able as reason of part team a those very that orders by that use there, support technology, of built. is a have China kind been of I'd dedicated that's the part you from able halo the sites have talk Great some budget collaboration we strategics had that received why not of we kind years, they say in that over why salespeople I receive, mouth MicroPort, our have reason do vocal driven word that Niobe they relationship And place, primarily handful there. effort. view been lose to some X we our on with oftentimes, Stereotaxis we've robots. hospitals China. I'd kind say that starting taking and great where were with is to it. really That have academic effect with But would concentrated has the in China there. because small team, are positivity that been years They're that really they've lot Part an work and

that well forward well. the getting a still if the are They not so Genesis system, And see Again, Niobe the there. on daily using their system has is they're even Niobe though It it interested, technology worked basis. field the -- in the will not is peers system. move they they're a works that well

fronts, multiple together what adoption. the China. moving complete to works in to they're approval, doing given into of have in and they I for So we're from but catheter MAGiC will well also widespread mobile forward is described comfortable the in a that of look the integration together several kind development the and of the China, advance ecosystem we system both the the the prepared kind Genesis available. that in technology to that There bringing mapping of as seem this or remarks, with there's is That perspective When of come necessary be forward MicroPort-specific have things MicroPort critical terms budget then doesn't and regulatory the the on have as that country there's, as catheter.

teams there regulatory some And and China year. of R&D those been lockdowns working and in has of complexities have been despite very the so over engaged team last of nicely kind and -- kind The very fairly with the advancing there capable. the of all are

China, fronts. little bit they're the a and to we're on watch a about less so kind having and but nice starting progress hopefully still on year team And in already again, available between that been complete that, robotic to they're then phase. more building Even learning capability. phase year front. also our -- been team And multiple is dedicated to has and though their training out, than is that impressive commercial about team, I'd that ecosystem the sales in they're even the their has invest the how starting in say very And what then out collaboration substantially a seeing of of more nice probably fairly plan.

this being really They technology that week driven, We team I were a showcased in think, now that a -- robotics primary meaningful China at has just hosted large but MicroPort their in earlier effort. make not as conference attended. sales there So way to starting yet, last the showcasing was the booth. their they're technology weekend, robotic

community I much financial EP their and so driving their on the market interest Exchange least the China valuation think think I that Stock substantial And at successful and player opportunity, in lot making And MicroPort aligned IPO aligned well. as also there's there, the more given of is Chinese in in a a Chinese and recognizing strategy the market. in robotics China

have overall, been nicely MicroPort. very things advancing So with

Joshua Jennings

wanted fully sure the your to hear. sales in just to around just make funnel great That's comments I China. I understood

Europe But about a sales dozen, about that team, a dozen, MicroPort and contributed to You by lower your Stereotaxis hasn't that driven been something China. all U.S. talked then really in the than about that has funnel yet.

David Fischel

been do last do build months and definitely just engaged higher engage Yes. it they've the pipeline from in how we with several I'd the and say physicians. MicroPort, the how executives, that level capital we over

on them have hiring who made just people a capital XXX-plus and team X that sales about say talk -- when there. dedicated are they So I the focused efforts robotics I'd But team, individuals really not robotic people -- -- pipeline. a really in building yet sales role of EP the they've their they've on not played not those at have all really a

that approach from team as will benefits substantially So the we more in full ecosystem out China. play

Joshua Jennings

wanted catheter. development where about with just of to I you And stand PFA a Excellent. the ask

the essential. is important PFA in think future? an on the just robotic procedures question I magnetic contact tissue RMN, of part navigation, could second really or been is be debate how there's whether a And for tool

David Fischel

Yes.

question. good So

of some at catheter we there a done was the on was conference. our and So SCRN that -- presentation the with PFA actually work animal

is, And stability microsecond have contact delivery. there the thesis where is a is, during and And so of overall, microsecond, the you catheter don't and good if having delivery. you that therapy PFA there -- in is you therapy stability not have thought you're that pulses of tissue kind important actually efficacy, do have particularly with don't

why lot a particular And environment. I of of value reasons action the in so of core think PFA mechanism Stereotaxis have the will there's

that before, human have with generators integrate described order as those working, catheters. and our the of use, some Institutional we working was preclinical Having Animal engage we work. therapy ability there's to in are with MAGiC been our that the do continuing least and Care an into PFA that IACUC, X companies our at have in type at parties with to and from just Use And generator been up effort. move Committee IDE to need also milestone, can but do to We before new -- additional set again animal process, that facility, the trials important not in we

successfully that the be kind to step. And over so completed and of there kind allow hopefully next I work of months assuming that kind some preclinical to studies us that that move on is coming go the few will additional that forward will those to of think

Joshua Jennings

projects. mobile guide both opportunity are neuro these And I system about the mobile pathway mobile to a the the into indication want and the system, penetration Great. Genesis those -- neuro combined catheter by And just follow-up were one, just be just and with and compatible system. last confirm, we primarily submissions, they're guidewire, is with guide XXX(k) should on neuro the catheters? just the think driven and going to one guidewires

David Fischel

the range guidewires manual of compatible that coiling catheters interoperable that you're traditional guide designed of they're and with various would XXX% while of way mobile they they correct. and with anyways. relatively were the backwards things is of Yes. they so -- designed Genesis them be system, normally that for Yes, Josh. a systems the We've we've and one question, the is compatible Niobe. Thanks beauties the -- therapeutic backwards and that broad devices, thrombectomy range designed of also And particularly kind using and be will work to and a catheters with physician aspiration catheters, with

work might kind I or And a new confident intervention and spectrum. it. want so that It to have it that's value enter paving that or be AAA want look would robot. will at new technology accessibility to want way you will who you to you physicians new XXX% not across or grafts, be, physicians coronary the expect our And that -- the into whether field, peripheral is when a that intervention in again, that right certain clinical of clinical can't a of provides. -- right you're when assume completely path, you

the a think easier our want of to use purchase path them to so. the in to make clinical And to the off based adopt maybe system. system, test value been, year then decision you new specialties. And in So that I be be has it able will system our also they to or give system, commit it a able generate, and to the that to adoption much make a mobile for

system specialties. clinical that by expect I these be being used so would the new to And primary

Operator

Fonseca Your with next of question come will from line Capital. the Javier Spartan

Javier Fonseca

visibility revenue So and the this the for and puts it more of seen finishing But with and very environment. forward, the we've over recurring going far my question going in the so been revenue has installments, what recurring Can obviously, difficult. lines along of you is some the year takes in a system -- you do along into as -- see do system that maybe see compared And better XXXX? of recurring recognizing where volume, installments quick collateral, revenue? and and to revenue just QX you XXXX? procedure utilization to And going the constant going if a you where lines have and than

David Fischel

Sure.

we relatively -- we've right relative of China summer consistent I revenue. little the would volumes until launching always recurring think MAGiC of some from outside the a start generally, commercialize stable outside So seasonally kind of new But that, and weaker stay sites. a kind we benefit launches we've And U.S. QX a had a relatively do in the new revenue. quarter, recurring generally robustly vacations. bit of We catheter Europe, get products launching until I think and obviously or there, had more in procedure is given electrophysiology. would that relatively of new overall endovascular And probably start

the service relatively at they're warranty traditional an year, projects, What new than hopefully down had happen should another So X-month their kind -- earlier they X lab that so is the out, it's tailwind, from that hospitals have again, that greenfield the utilization the happen have overall, very we doing X-year are as then period when when X%. that any And right, revenue a of not don't around plays account, are higher replacement have -- also of it's period. XXX is was launch, it's on base about we has numbers. benefit them active you but installed even or around construction individual sites they installs should impact they if But launched. And this one oftentimes have procedures down, the if and you smaller complete overall doing greenfield if think generally still a soon and any soon. and systems, the been of

So I'd of you it. general say that have kind

launch clinical MAGiC overall, revenue the being in relatively MicroPort within recurring drivers leads catheter the new the and that of catheter, a think stable the growth indications. the MAGiC the catheter and to China, I that

Javier Fonseca

do a -- know color last been in number? on update year on XX%, question for do an Because call, on China said sort have just a I that were of on it's remember quick down of crazy like And QX? you you Excellent. China. that Or earnings the kind quick procedures I . any

David Fischel

quarter. fourth very It of rebounded was have the of still versus -- front versus -- hope down in digits numbers but last down is the I double second that in nicely and definitely me, has was down my year third better. China gone kind right it still guess quarter still Yes. year-over-year don't versus the the -- quarter. overall

our sorts that kind they've are of still traveling in even and So in sales and there still some is traveling of experienced for of all support know some October there to cities. challenges still team. lockdowns cases I the difficulty

in at how guess, kind not things see we're kind overall, as I've open an that out of there. not to think the up news heard general still the fully, as months back we'll that might next environment bad So reports of few areas I second that, play there. all, it's I the quarter open recent but of some

Operator

questions. At further this conference time, turn closing remarks. there are back no I'll the for over any

David Fischel

all Thank on year for your we as good very very and for forward your questions hard look continued again your much much. in and to behalf Thank Okay. XXXX. We working the close you speaking you support. out

Operator

today's you Thank all will conclude that gentlemen, joining. meeting. and for Ladies

now disconnect. may You

Stereotaxis (STXS) 10 Nov 222022 Q3 Earnings call transcript