STXS - Earnings call 2 2023 | Stereotaxis, Inc.

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Operator

Good morning. Thank you for joining us for Stereotaxis' Second Quarter 2023 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 At a listen-only all participants placed on have been mode. this time, The floor will the be opened for questions presentation. and comments following

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

David Fischel

everyone. and you, operator, Thank good morning,

Genesis with for pleased increase X in year-over-year to double-digit both the We recognition XX% reflects systems, to are revenue growth in and are this System revenue which a robust return the quarter partial in Europe. second being quarter at summer of revenue. the on installed U.S. hospitals

AOB quarter, second to U.S. the net in the slight one, and recognized Genesis from effect for new The orders system we a quarter to of we revenue During $XX increase an end X which the Europe Genesis in an systems, received backlog, million. system received stands orders of at led as and the in hospital greenfield second the a of as upgrade

expect of as increased in into converted revenue levels revenue. system or backlog is quarters our upcoming the We similar

towards expected also continue backlog to in We work remain the year-over-year pipeline our as hospitals advancing is of interested contribute growth commercialization. a strategy of to in revenue we continue towards our healthy Genesis and which technology, robust provide and Systems sales cycle to robotic replacement see confidence growth. greenfield sustained to innovation primary driver a

paired which insight procedures year the of Marine in in our an volumes. sites J&J pressured our showcase on These to at process. shortages, booth at other and integrated do the integrated third we commercial sites in quarter House Abbot's The conference hinted a Medical the the the to robotics for to It catheter Society St. at have Erasmus call, a as patients & individually rebound announcement. Center will at revenue technology mapping of significantly with last can moving which attractive enhances normal experience, planned the well celebrated been pressured From broad electrophysiologists X rapid is the our special integration impacted an our Rhythm treatment Johnson a the announcement that through technologies in expect more Johnson to the July, The procedure option launch continue ablation the of robotic supports robots. last shortages, was procedural production to collaboration. There a support use in excitement single-digit of this Abbott therapeutic a educate software Germany. Elizabeth procedures next-generation volumes leading benefits Abbott EnSight the community and perspective, a have no who first catheter improved adoption be throughout their to desired high A Abbott's levels space diagnostic We the headwind global makes month, with to our opportunity mapping. the was our also mapping we HRS in Each recurring more our that of who proprietary latest range we the first resolved Abbott's and to the Heart of to and recurring currently significant Our around announcement system with broader revenue. ecosystem Abbott Hospital an technologies. open the was from MAGIC. have half build had seem payments forward On in and dedicated quarter. was leadership where procedure It and and catheter streamlines of overall Conference. the production of presented strategic effort increased this and integrate collaboration workflow major for we J&J Stereotaxis' of receive by loss quarter long longer released royalty last we integration strategic are have Netherlands team leap come flexarydias. as adoption in Europe, physician procedures of choice in system robotic highlight of

and Insight to U.S. Mark shift Europe place CE We We be concurrent significant U.S. in integration take system we will then. drive launch, cable MAGIC summer. a with to the MAGIC the approved Abbot's this receive until available year anticipate in had Catheter this for Abbott, connectivity our are of technologies software the adoption so and diversification expected joint continued towards the expect in launched as late and main the The

single clinical trial the of authorities. to spin on designing While at patients needed trial to sufficient. submission documentation which were any site, putting and individual relevant from risk received data national ethics together and a direct regulations submission new and from have interpretation the committees line body, be had data should verbal reduce them feedback delays documentation have of dozen multiple with in the we We surprised of to was To the our MDR engaged protocol all of first-in-human rapidly we center one multiple body's sites, regulatory approval. or responded hospital in historical prior notified but led and begun the several experience. first-in-human clinical Acute notified couple have request a for to decision European precedents by dependency

The rapidly, data quarter complete couple to robust patient patecollection support the this MAGIC in a in a review acute fourth of as support patients. progressing MAGIC and Mark on the of the to of parallel, experience, ultimately enrollment patients an of gain the use expect to In accelerate the the alternative the we the FDA to physicians dozen would for next U.S. MAGIC submission launch our path more bring to Europe start launch. application. exploring CE We will and a we data restart possibility in of plan clinical the allowing materials route, trial year. availability and trial IDE our to we the are are regulatory In with U.S., with which early

at us into to smaller predicated, built enough for completion. guidewires. of at submitted therefore early, launching in expects Heart be the gains new comprehensive lose availability Hong together. the the for gone bringing either an XXX(k) for Development endovascular MAGIC integration to regulatory commercial to ability in and of approval hardware should is MAGIC for with market. market, a MAGIC robots we on NMPA a MicroPort but approval ecosystem want offering, to an is MicroPort that Stereotaxis which in self-shielding ecosystem its robot That interventional for CE a telerobotic the as this for X extensive complete be robot. our received indications MicroPort to of family derisk progress as smaller robotics, Availability digital meaningfully robust and product XXXX, and believe performed full well Society regulatory similar what or surgery, for occur build that that guide catheter the prominently mapping mid-XXXX.In soon waiting clearance for availability such first pursuing new regulatory to Pacific of continue available robotic year magnetic extensive be and from procedures innovation devices robot launch those adopt robot for room submit indications, collaboration Asia and before early September come necessary Guidewire Guidewire to new with catheter, robot operating not our launch Robotic however, The the approval and we showcased robot technology awareness approval, in product will and the MicroPort will balance with for year-end expect is will when achieving of this a we to at too together which allow software a hospitals insured a preparing efforts taking a and including MAGIC, being making our significant is Society is continues guidewires conference China, Rhythm the the place will session we and showcased such during our innovation and is vascular expand approval regulatory early in which magnetic in robotic expect Mark the the the and to magnetic possible Columbus benefits technology plan to time of create interventional with refinement miles we of regulatory our clearance. We robot launch. Commercial mapping excitement to in has be podium Genesis the XXXX. strategy. and our We catheters Navigation in at when early exciting Chinese Cardiac from mid-XXXX for should submit away. robot hundreds our joint currently ablation frees connectivity include and now we conference. and the product of live of approval self-shielding planning Beyond the construction long-distance Conference for multipronged launch The that system broad streamed ecosystem advance near be These cases, year-end. thousands paired enabling electrophysiology in will Kong. starting

including us personnel than we interventional the industry have that strong also magnetic activity organization, challenges the efforts various catheter anticipated. system. contract its During manufacturing new and to innovation serving on easy been headwinds, impact with difficulties disposable next launch year. things as goal as doing bodes Genesis first for across integrated for regulatory navigated has been the chain hasn't a strategic in MicroPort new showcase the been we and our slower its Internally, supply partners. will recognize external posts, being been conference, an There as the mapping progress are on such by time ablation and our devices. that also This have path well market excitement originally focusing see that factors I changing growing

for cusp I a on advancing and a expectations. that innovative surgery. transformation excitement teams. multiple see we for are foundational has makes building That projects not the impactful as optimistic we broadly strategic waned. new product I are robotics very with and advance lean being said, endovascular my take across significant We ecosystem ourselves responsibility as what of providing accessible

on multi-indication line Q&A. independence, to model, will financial strategic before now then provide clear attractive near-term broad opening I'll a sight well commentary future to with comments financial of as have our make and and the Kim an We robot few a results, accessibility opportunity. call revenue

Kimberly Peery

revenue the $X.X recent of Thank remains expenses pressured million second of gross quarter morning, the quarter Revenue volumes. due you, the third XXXX System Recurring gross gross predominantly of $X.X quarter. million expenses & $X.X system for year the compensation higher million continues procedures the by procedure to revenue largely X stock J&J revenue XX% include of revenue revenue in been good over of Johnson Genesis quarter quarters catheter absence million, of which growth This margin J&J and XX%. resolved, primarily Systems. prior margin The the Johnson. was Gross quarter. of sales everyone. revenue margin revenue from second catheter of of shortage gross has margin $X.X to production $X.X allocation was reflects in on growth significant system the of in quarter $X.X robotic low expense. on shortages, normal totaled to David, to with consistent from with delivery both XX% recognition offset manufacturing second royalties and partially noncash XXXX the and for rebound was Genesis we overhead by of the million royalty reflect J&J discontinued of in impacted million recurring system Recurring recognition and expect XX% margin levels volume. Operating for and

$X.X year's Excluding to operating million. expenses noncash prior adjusted stock operating expense, compensation adjusted the of expenses were $X.X million compared

no a and $X.X compared in loss million of net and $XX.X million. million free excluding quarter, progress. million approximately spend expenses, second net so million loss for We the both and second previous was had our efforts the second continue noncash and stock Operating operating second in compensation million. $X.X At $X.X reduce quarter, year. $X quarter operating and $X.X won't amounts cash significant to quarter focused $X.X million we fashion of expense, equivalents development compete loss were and for our and research flow for where cash to were the doing end on loss Adjusted the are and to debt. the cash the Negative working in

We the expect year, in half reduction cash second slow investment significant as of particularly this a used in we in inventory.

back debt. to end $XX expect the with year We to million now $XX call no hand cash the between David. in I million with will and

David Fischel

Thank you, Kim.

Genesis We are advancing and aware our significantly invested several Those with innovations of and to financial is We've of our drivers funding their the over investment overall next-generation of technological of growth. last and behind headquarters sheet existing the an our for key on revenue balancing importance largely strength robot. and the commercialization. We're both inventory market ensuring progress continued of investments in capable financial us. in cost maintaining are discipline the new and quarters balance

Our in sustained activity us year give confidence momentum strong double-digit position. and a backlog in and continued annual sales revenue the capital ending growth and with cash

the As we please from expect those your look pipeline to market, We questions. open growth our to can accelerate you taking forward innovation comes to launches. to Operator, now that Q&A? line

Operator

Frank Street from [Operator Takkinen question from instructions] Our Markets. Capital Lake first comes

Frank Takkinen

expectations. I wanted with one to start second half placement on

QX that? QX a up? you of speak in have What hold little to a kind forward. should where just Is second similar any trying half. mentioned into be the bit for going planned? could there we system models more could for and understand of you do this that you Is construction hoping revenues you system setting revenues I'm David, the around think, I it visibility that. level was I expect

David Fischel

into we've type or hard being to exactly pace would I a bound lot are it And kind any it's X or in of the a where control driving of that that. how as individual There X as in makes many quarter difference between outside volatility very will very expect that. systems with of our the we quarter. is units revenue lower feel what go of though of is we estimate think got a kind So given any of comfortable still obviously, recorded even X through. And in big of a numbers, on all kind

bound now. where think we quarters looking things we above is lower same at modeling kind that but we're thing, as of so obviously that's kind will right a that, we're and And the to how have of

Frank Takkinen

much And then in integration immediate seeing the adoption can color impactful How Abbott was partnership? you just more quantification for can Abbott new exemplify this the Abbott the has up help anything And get be, Any on there's partnership. on could how any the maybe color to little my hoping for in provide a how you you're frequently follow-up, brought users? market? process really the Abbott with I field? was impact other share And throughout if to

David Fischel

And Johnson have system, Johnson & system, Scientific more We other It working MicroPort a the U.S. making. electrophysiology strategic there. Europe, between with are There obviously the still perspective, & from and it like and mapping highly integration, mapping But a mapping for delighted systems. Abbott. in obviously partnership been one Abbott have were and out and bottom many able Acute, So you up you of to them mapping -- less we're a software. because been the was the this system historically, a you with a Johnson -- they choice use Generally, that collaboration for. has physicians more we latest less Johnson us, the is as also a been a lack is majority the a Johnson of where look that or Medtronic has systems, integration to implications is We're other would and to things the in duopoly choice many announce physicians, companies the mapping if as at Johnson's give internationally the years have it. system. Abbott's on field for version have other of has robot with of duopoly when allow market they've on And have provide integrated of a to mapping they integrated with mapping clinical the Stereotaxis less of preferred Abbott Abbott share. limited viewed system obviously was who of with kind & use looking the to only

a robotic which enter system, the of market to obviously, allows, for beneficial magic that will functionality highly latest the positive. allow innovation. of does mapping a because the with catheter be it from MAGIC the making the strategic tied catheter the And perspective, is the launch So latest with this versions

that numbers are MAGIC's right significant a quantitative that there I announcement shift supports would dramatic financial adoption a see mapping that the that we'll way hospitals environment, that thinking to do the integration. art that that changes significantly the overall think -- you And in dramatically into of that there think we a had physicians adopting robotics. adoption the of more be a benefit to it is it is shift you'll that I which purely see catheter, And in prefer And support this about short now, so not in will and as also procedures that I kind impact from where accelerated fashion. by in to term, think perspective say MAGIC will I'd in we'll there that available, there environment. psychological will of in some that integration are the the most start is a adoption

Operator

Our Adam Sandler. next from comes Maeder Piper from question

Adam Maeder

catheter start to understand I trying in wanted on lines I and Europe. MAGIC guess, to the time better

for from in to reasonable. the So in the 'XX, like Is next going you're year. it start just review human kind restarts midyear QX regulatory of approval or sounds study early the and A QX process reasonable body launch. assumption enrollment

out when pathway? had that's regulatory maybe we're question alternative just you that MAGIC I one. then about referenced the And talking question route the So you be U.S. can And follow-up. two flesh for would one

David Fischel

with to committee to in a are from what that done of protocol feedback be protocol, needed was body done the support of to in there and the described there very would there and kind ethics sure that to of done Europe, we received in remarks, the lot in clinical after those see organize setting. make we fitting enroll could a could and notified was trial terms in clinical documentations trial work of be to national both prepared terms hospital just many gain that to as notified a want be work processes. of were was after lot reasonable that in you fashion Europe, scrambled to physicians So what in we efficient data an we very learned And approvals body need

site data for fashion in notified body, nice ourselves a that confident while submit And from on to here Obviously, to organize and engaging a single of kind started We Europe. be dependent team be sufficient hospitals side. to worked we so kind are documentation be entire trial. would able the is run to of very preapproval in to a didn't to the we new one us want this and

kind we any of And on dependent to site. so individual be didn't want

what several at very, and of rapid. that fairly and ballpark talking all trial It's of And review process do type enrollment in many We've experience in in have them started should users. consistent arrhythmias, comer our Europe is like very documentation feedback enthusiastic we're submitting this of have engaged many so these to couple in centers, a were in data. a our with first-in-human X of we doing we cardiac at Europe got so about we've several and fortunately, of months, And from this. ablation kind who and excited trial sites it's heard, a of users be acute months oftentimes from of studies very

less span that should get than a to do definitely month enrollment of enroll and is this full time So in data. something that

authorities reasonable that obviously data quarter. is and acute body committees them restart that same individual to the the receiving patients so of hospitals having in enrolling the the that the would from our data CE fourth Europe ethics that we submit quarter, kind in very we the in having fourth think very that also in in we And is quickly data approval the countries competent review notified so Mark. can then of quarter, from And of reasonable from

I was the We relatively believe But that, to regulatory clinical they is the CE review went that the process us they shorter of and outside necessary got before. all questions is of through control. questions of Mark of time that data that with our review extensive telling streamlined. the be how review Given obviously, should point rounds line until rounds believe of

can of So for very I control, than hopefully, our even path that. of think next that earlier tough year MAGIC a that answer have say so It's obviously the outside for reasonable. Does certain. sounds can't we kind summertime European And we well?

Adam Maeder

forward does, That's the David. additional would in And U.S. love path great It for color. thoughts MAGIC the on

to think, an pathway. regulatory You, I referred alternative

So would I a bit more hear then And little one follow-up. love that. have about to

David Fischel

some had, the be we've and path, is likelihood early that given a the is reasonable they an for and done robotics to the available running and the the physicians filing of as a obviously, to are for we treat we alternative would a possible. that that patients is an what mission we given U.S. So we Europe submission. path community And be ready in gain for discussions very IDE of MAGIC to pivotal doing we which application And the have for a of patients PMA traditional U.S. important study U.S. FDA. and for do in on and us that trial that the for -- attractive. work as be relies and obviously physician most believe there might It

of path we I this opportunity -- believe And had definitely And to cognizant should U.S. that that but quarterly to have with I the that the I'll earnings importance. we've guidance more at there's able call, grateful our are clearer on be forward should point, in say, that the meaningful discussions provide FDA. next so at We're much much I not

Adam Maeder

And system. genesis the just guess to follow-up, the better understand the the question of and over for here. trying to the strategy is to robotics timing wanted then And I I pivot mobile

the now for say year-end. and submit heard is Mark CE I at think plan XXX(k) to I you

not submit catheter launch approval the a have in goal just push little a hand. earlier MAGIC it there. question across until line, the bit not you regulatory is, for for get of I So but out guess why approval, my

there. So And love color would makes hopefully, that any sense.

David Fischel

feel post pun right? the the next-generation No how been the question, act is we pursue the we an continue of continued on some for do And like modifications comment testing a first than intended device. we've something to even improve system balancing we've where you some different process interventional Genesis approval the approval, There to over system, with So good a there, system. in oftentimes, system. robotic in as improvement, Genesis time. developing It's

to on do when And so act there's balancing refinement regulatory lever that a pursuing do pull the you level. between and want the approval to regulatory versus continuing pulling then

has laser-focused there process market. value the either MAGIC been MAGIC gaining last robot isn't approval weeks. or the for these team Our Guidewire prior several on being to on And regulatory in the

think to to sure like is And very to the devices gain dependency being the available. you where so we balanced that want just approach it for in say, on a I taking make the and order interventional -- a definitely prior derisk robot to approval we're market

the given feel very that regulators for the we other path that regions again. that recently robot the the regulatory with hand, we and in confident both did the had regulatory discussions with we've given very that On path exists recently on Genesis

and anything feel also balance not path that we in make and there for And a want months continuing iterative X, robot can X in regulatory the approval do we to with meantime. it improvements before so actually to we then getting confident

And of really on. going so that's calculus kind the

program, a the and flexible we'll anywhere be in we then have this is go reasonable acceleration we the of that kind else we'll I trigger sense balance quicker. think that if

Operator

from from Capital. comes Alex question next Craig-Hallum Our Nowak

Alexander Nowak

little European plan sounds if I'm I the I a hearing PMA push more doing U.S. but some in in want much you the the like want and needed you know were bypass the until of bit is just around maybe to submission the game it alternative you the solely to and correctly, it could could potentially data path, a PMA if stuff, reveal you just don't use too that workflow for

David Fischel

that detail think go to It to into an question. appropriate of topic is want obviously I important great and don't now. don't I important do an it's so.

of terms that to it important MAGIC the access think our patients catheter is, physicians -- highly of device. kind have they importance. robotics MAGIC I'm of data to fashion that kind about of the in an efficacious that we're the clearly I how the understand thinking in that grateful is that and obviously, the safe use possible. that creative ensuring robotics kind ensure we that in and technology regulators of And treat and are latest is generation best product being collecting

And so and more the weeks. various coming to to collaborative a we've know fortunate explore opportunity have in will been ideas the I fashion in

path. U.S. position IDE call, may And able improved patients an believe the share physicians an be but next in for to in application to there which submitting the we there near again, baseline we'll so accelerated be committed term, is magic by are of opportunities an time line I that and provide our be in would a path, to more, much kind and advancing to

Alexander Nowak

next if not is I onetime to utilization some Niobe but catheter royalty, how Well, underlying items that sounds here of the the there update Genesis Maybe with maybe this to, shortages, forward on onetime, and interesting. the you back utilization, going quarter usage out regards and look very with quarter? guess,

David Fischel

we seems on before the of we've we've high I'd perspective, first revenue, see the the second side, utilization. purely impact kind the did from you given catheter with a also what on obviously, overall, seen largely quarter that the utilization. of the utilization dollar shortages that. by nothing the hamstrung royalty are That's recurring And J&J were of on given a the commentary in hit And expect, the in which like So that catheters, quarter. in shortage catheters because shortages volumes recurring procedure. the to hit per single-digit over. impact a impact did impact revenue to of loss They and supply of say has and do received, the we it

we'd to accounts. quarter. more utilization Niobe than back So volumes accounts see And expect normal in Genesis higher still at to being we a bounce the third overall,

the to of and kind of we marketplace. the so benefit And what new brings technology technology see new

that has good see. so to And kind been of

Alexander Nowak

then based recent a seem is months? things maybe just on It to might are bit. environment lastly, hospital how little And in overall the break free like commentary, the just starting

new orders starting flow has maybe to the bit in, are little and a placements been pandemic. New than during easier it

David Fischel

it's are say Where in that comment sometimes still the the think I'd I've past I player mix. we field. So a the relatively smaller again, made in

that trends And experience. hospitals kind is Europe do tenders described projects hard so are of Generally, -- you move place. engaging take that of definitely what see on There that us. We to send from hospitals kind true. it's And are able are are in that macro with moving that take are to forward. we multiple our forward

And so are good. -- the being that projects. there There very and on any pressured it overall are that definitely financially spendings tight that counter any of are hospitals where very or kind examples are feels

of at least things And engage so experiences gradually world. our many customers. spectrum this across in their for of and commercial we our team think a there us, see ability the I is in sites maturization hospital snowball and of But to kind with

of see the sites in we efforts think couple commercial I some done engage we've so capabilities. last an improve of to of to to years start have to the starts more and more repeatability team's the that And impact with over and

completely open make but progress to think able world And those more kind of of the despite not headwinds still a kind -- macro headwinds. a easy we environment. I think I it's is so overall tailwinds it's of and are world still and

Operator

TB comes Jennings next from from Cowen. Our question Josh

Joshua Jennings

sales is sales the to And of teams. a And plan? what get build out expansion the and see be one U.S. a just or I of capital status of demand the to triggers? strategy any the on and follow-up and just refresher on other would need to them Then funnel increasing any plans have just wanted levels you would I it that to change China. stability near-term Europe

David Fischel

overall, capable I So the talked sales past. good the Asia right strategy of the European and and we bit And in of a think kind Europe U.S., We kind a our our we've have people size. about little with people. with think team smart teams in and commercial team as the there

for existing anticipation that's that, would can confident in very launch that our that And a can overall we Europe catheter successful be team waiting we of the incrementally and at are but MAGIC gradually launched We say been launch. successfully our Europe MAGIC that in have very the in sites I -- are be strengthened gradual. with team

and We easier. has have some doing bandwidth, to also we been robot side existing just much new that our the the the capital team extent, launch obviously, think makes the that that, work on to

to And a we the bring team a successfully existing revenue market I technologies attractive improved as to per significant. the we launched opportunity higher our when can have have.Now that and an you is significantly so and model with them that revenue teams grow think very procedure disposable be

towards you companies much And from profit move dedicated a competition. a commercial that can MAGIC we revenue disadvantage X in much in sustainable receive field our incremental launch, And and kind very team more of new financially have similar that salesperson do as we more into have catheter hospitals We for gross available, fashion and model prudent one MAGIC channel expect MAGIC we growth will to in or doing currently per that have we each other a is the versus towards there catheter shift to so from the competition. have hospital these the like person one, And company. that plan of we the back X our the from customer. will where I'd back we're a one technologies, into the model

be we we something as of MAGIC that that's kind launch. And do so doing would the

self-funded can sustainable technology. being in the that by I fashion financially new that think launch of we do a

do or of launch. so months the XX year so that's we'll gradually first the over first something or of probably kind And

Joshua Jennings

Asia -- that. But I XX in front then a or to just And do And to Is converts dynamics front dozen here I mean, kind of Genesis of build-out that in in think China I those of follow-up China. any to of need just EP China better a in technology. then holding MicroPorts navigation before to just a described just there the of maybe full customers us wanted pipeline just months for through next help understand the period in build-out. see to there or a of that I contract? plus in customers, just see in you've Stereotaxis? other approval robotic up this kind we ecosystem is are think that sales And pipeline think and for countries Japan other countries Asia incorporating range Hong in Pac Pac, from Any HRS, new finalizing you opportunities Pac the the have other Kong. intriguing you Asia coming meeting in September potential

David Fischel

coming a the good I by for the some that's Cardiac pleasantly in collaboration technology. amazing very Asia-Pacific how they arranged of with Robotic PHS, are up capabilities in of the surprised conference some beginning was program September, Society and yes, APX-HRS, our was HRS procedures Navigation amazing of So by showcasing

pre-commercialization say the how I'd to of I prior new that, of next up a points of there's of share that take is work can to potentially think sure is full to visibility you of focus. not a year. that build ecosystem market. some in ecosystem which with in as the and make type that taking play significant technology available, like can there and partnership grow MicroPort have multiple this launch, successful is Overall percentage ways of existing real focus you to in opportunity But a place some very market is to our kind have you the So China, commercialize country robots together coming biggest The into there. -- is reflective interest that kind that

focus kind of kind And the big of that's really so the and that the there. focus, primary is way strategic out

last that and catheter later first and works MicroPort that in with the requests submission year, then in additional our of of the mapping at parts given we system the earlier I think for approval information expect had already ablation said year. next of taken Genesis this the place place before, year Columbus robot half and of as the submitting of year some kind their combined end the that right, we of took kind it's this be next-generation will

a of kind of great accounts us, in and for clear Pacific that that kind robotics region. at are outside accounts, with launch the see be with around that we users in But say year. line MicroPort a so And potential other we in to kind China procedures engaging Asia business of of very building other overall, we of be I'd we're perspective, nice substantial with China. those of will looking do Asia still sight countries next probably accounts from we'll this And in engaging I APA a region focus Pacific at the a do that time think of have kind

to corporate the so And that that's kind kind where change there. from really is kind see trajectory of I'd to strategic of focus biggest of biggest our overall expect -- and the

Operator

[Operator Instructions] from Neil B. question from Chatterji Our comes next Riley.

Neil Chatterji

questions answered, of -- studies just of but call, preclinical think have A kind PFA generators. with about maybe my lot the last you the I of been some on talked

you update Just curious development and/or any on for if any PA? MAGIC have there maybe

David Fischel

generators in think So from efficacious, that on be of catheters we've an beating variance require past, burst robotic MAGIC results in of energy, somewhat catheter can it a study and the of with using got lot very does manual contact with benefits we there's have less post also tissue with and field PFA magnetic navigation post-field kind of during say, I being the therapy the stable the the that. using but mechanistically, of discussed this short as to heart. are energy And rationale performed nice you animal it

why kind now, kind there's being PFA many, when provide combined are improved multiple technology. approach. with PFA generators of of There an many been we so companies overall lesion And we've rationale taking a with to and

-- with the engaging been kind that collaborations work we've have think doing, And those been of going them. some best various We we're to of technology from technology and to create of how work doing an human I product see and from some path do PSA path market. an bring preclinical how work and clinical to to viable shift first could could where actual with regulatory we actual actual we to to in work regulatory a create

catheter. the which for time, a we can kind think we of of on build ablation has because the MAGIC our I first catheter finally, us own given own developing from foundation

then in PFA of to of And can kind other and so own companies collaboration been their very environment being has in that with both use that that facilitating a us. able the with of to variants also variant steered in create helpful robotic to catheters be be able

we're different how to And market. of of that kind parties so on in could working with process kind the again, come of

Neil Chatterji

of of I OpEx. the update and additionally, on And think in work, on kind on with 'XX. how connectivity. you the just plan follow-up ongoing R&D into of half and should kind of a work kind guess any kind kind just work maybe and development expense the the then in Maybe just of back the have about pipeline, your we

David Fischel

and or of terms there. R&D expect to that are I'd In be of less expense, flat. more kind gives There takes

clinical the expenses. of internal kind some needs like them kind that spending, through the external studies place now cleanup of to So little to work very of and take the to it's Others up with completion. have running projects very spending purchasing little come definitely for gone their kind more majority obviously of ramp of

takes more expensive. study more I kind of think be and different projects, spending gives I or when to kind IDE the expect look an flat, would so overall of we the of be And should at less

next it I'd year. we R&D so good there, year, first of from things level. increase And in expense. OpEx more how we less go see the relatively of, in I I'd expect or this depending kind to half generally, But say an equal of year, half on are back could at an this perspective, think, a And the

commercial impact focused our some doesn't or of that our technology making are We progress capability. expenses the reductions where in

vast the OpEx we earnings that cash over cash an as has and just the lagged it the the you a not inventory, behind in for and same over from Genesis for of And of seen have the quarters supply components expect also handful kind handful of robot, flow a robots. we and and bought investment the systems of to the last majority several for Genesis next-generation flow. for have our We would still GAAP is both given be, next-generation what there

inflows and of on And reduce kind reduce of chain of been so risk getting products, the money and much a a of a should will types that. level but cash of given think inflow. revenue cash from resources was lower the delays the of below done the lot that the those I to to Below risk be Genesis has both of drain we're and they of spend the and we kind at and cash supply the it'll continue be system, that kind on spending

fact to of of that the at obviously flow as Sorry, in I better What invest that your inventory. this is is the going cash of our kind I'd was to cash that to million second as million be $XX Neil. of it, forgot end to question? type guidance representative So that kind continue say much of have of of $XX year, don't much we

Neil Chatterji

the pipeline, Just like any with kind I or on there [indiscernible]. guess, is the connectivity, on update of --

David Fischel

the few IOF in So the with then where both app our the a software kind limited of ] to [ at environment stages and our just as we think internal internal doing a -- production be of market we're are product We'll doing team full connectivity, and a Android. an full a with peer-to-peer downloaded sure for both that going stores, it from release connection we making desired bugs and support also is are are of -- the our the do that remote working by it for for support. that features physicians clinical there existing as procedures kind kind all and our technical as well team no that well, conserve of customers that customers to of start and between remote can both be

going that a go as process, LMR And decide started launch. will public already phase formal take said We've limited that month then so. months. as And then with through probably we be as hospitals kind be -- release in of a do that of to we'll running to we're starting out now we kind so on process. there from market or actual already working are that few of an approval can Hopefully, kind when

to the a due working This of more us about groups us through that connectivity we We way it environment, very experience suited a required think, actually support you need entails. from do process our connectivity of way to months. a elegant data with to go cybersecurity few hospitals, but probably with in initial technologies process cybersecurity remote with and a allows started what lot still probably hospitals. that, is, and I lot review with have good sites, with in allows the and so sink the real-time all new through environment, and solution doing VPNs have XX% hospital through IT We've that connected way and kind a diligence much gain experience a hospital hospitals that will with for designed and That's robots. of scalable have and for of take individual the currently. a Those we of is well

kind through, started we've limited then a release -- the I sink in feedback, to able to what of get as we we're are kind some full we market the So are hospitals put play launch. few think release in And go kind limited of will of that market of able work.

Operator

in turn We to I for the back would have questions over David closing like to further no Fischel remarks. call queue.

David Fischel

speak very next support. much look in very you your Thank we'll continued for all to forward much. We again working behalf the appreciate your and coming months, on you We Thank quarter. hard questions. your

Operator

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

now disconnect. may You

Stereotaxis (STXS) 10 Aug 232023 Q2 Earnings call transcript