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Stereotaxis(STXS) - 2024 Q2 - Earnings Call Transcript
STXSStereotaxis(STXS)2024-08-13 03:33
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Financial Data and Key Metrics Changes - Revenue for Q2 2024 totaled 4.5million,downfrom4.5 million, down from 7.9 million in Q2 2023, primarily due to delayed system deliveries [30] - System revenue was 0.2million,whilerecurringrevenuewas0.2 million, while recurring revenue was 4.3 million compared to 3.3millionand3.3 million and 4.6 million in the prior year [30] - Gross margin for Q2 2024 was 74%, with recurring revenue gross margin at 76% and system gross margin at 22% [31] - Operating loss for Q2 2024 was 6million,comparedto6 million, compared to 5.3 million in the previous year [32] - Cash and cash equivalents at June 30 were 15.2millionwithnodebt[32]BusinessLineDataandKeyMetricsChanges−Thecompanymaintainsasystembacklogof15.2 million with no debt [32] Business Line Data and Key Metrics Changes - The company maintains a system backlog of 15.3 million as of the end of Q2 2024, indicating potential future revenue recognition [30] - The company expects to end the year with approximately 13millionincashandnodebt,reflectingconfidenceinupcomingrevenuemilestones[6][34]MarketDataandKeyMetricsChanges−Thecompanyhasanactivelate−stagesalespipelineinallthreekeygeographies,indicatingstrongmarketinterest[6]−TherearecurrentlytwoGenesissystemsintransittoEuropeancustomers,withrevenuerecognitionexpectedupondelivery[4]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonstrategictransformation,includingtheintroductionofGenesisXandMAGiC,whichareexpectedtoenhancemarketpresenceandrevenuepotential[7][15]−TheacquisitionofAccessPointTechnologies(APT)isaimedatenhancingin−housecatheterdevelopmentandmanufacturingcapabilities,whichwillsupportfutureinnovation[20][23]−ThecompanyplanstotransitionfromaconstructionmodeltoaplacementmodelwithGenesisX,simplifyinginstallationandincreasingaccessibilityforcustomers[11][13]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementacknowledgeddisappointingquarterlyresultsbutexpressedconfidenceinasignificantlystrongersecondhalfoftheyear,expectingover13 million in cash and no debt, reflecting confidence in upcoming revenue milestones [6][34] Market Data and Key Metrics Changes - The company has an active late-stage sales pipeline in all three key geographies, indicating strong market interest [6] - There are currently two Genesis systems in transit to European customers, with revenue recognition expected upon delivery [4] Company Strategy and Development Direction - The company is focused on strategic transformation, including the introduction of GenesisX and MAGiC, which are expected to enhance market presence and revenue potential [7][15] - The acquisition of Access Point Technologies (APT) is aimed at enhancing in-house catheter development and manufacturing capabilities, which will support future innovation [20][23] - The company plans to transition from a construction model to a placement model with GenesisX, simplifying installation and increasing accessibility for customers [11][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing quarterly results but expressed confidence in a significantly stronger second half of the year, expecting over 14 million in revenue [33][34] - The company is aware of macroeconomic challenges but believes it can navigate these through its existing pipeline and strategic initiatives [62] Other Important Information - The company has made significant progress in regulatory approvals for both GenesisX and MAGiC, with expectations for commercial launches in 2025 [14][15] - The company is advancing towards regulatory approval for the MAGiC catheter, which is crucial for its commercialization strategy [16][18] Q&A Session Summary Question: Can you provide an update on the MAGiC catheter and its CE mark status? - Management confirmed that two out of three areas of review for the CE mark have been passed, and they are awaiting microbiology questions [36][38] Question: What is the pricing strategy for GenesisX and its launch timeline? - Management indicated that GenesisX will command a premium over Genesis, with various sales models including outright purchase, leasing, and placement with disposable commitments [40][42] Question: Can you elaborate on the MAGiC-FEST study results? - Management stated that the MAGiC-FEST study is ongoing, with positive performance noted, and additional data is being prepared for publication [49][50] Question: How does the company plan to scale manufacturing for GenesisX? - Management expressed confidence in scaling manufacturing efficiently, with expectations to produce more systems than with previous models [58] Question: Are macroeconomic factors affecting capital equipment purchasing patterns? - Management acknowledged some macro headwinds but emphasized that they have a solid pipeline of engaged customers across key markets [62]