Stereotaxis(US:STXS)2023-03-03 18:37Financial Data and Key Metrics Changes - Revenue for the fourth quarter of 2022 totaled $7.3 million, down from $8.2 million in the prior year fourth quarter. Full year revenue was $28.1 million compared to $35 million in 2021 [45][47] - System revenue for the full year 2022 was $6.8 million, compared to $11.2 million in the prior year, impacted by hospital construction delays [45][47] - Recurring revenue for the full year was $21.3 million, down from $22.9 million, reflecting procedure volatility and service renewal timing [20][47] - Operating loss for the fourth quarter was $4.5 million, compared to approximately $3.4 million for the previous year [21][47] - Adjusted operating loss for the full year 2022 was $8.3 million, compared to $3.6 million in the prior year [47] Business Line Data and Key Metrics Changes - The company reported a system backlog of $14.8 million at the start of 2023, indicating potential revenue recognition from this backlog [18][43] - Gross margin for the fourth quarter and full year 2022 were approximately 59% and 66% of revenue, respectively [20][45] - System gross margins reflect significant allocations of fixed overhead expenses, with full year gross margins of 82% on recurring revenue and 15% for system revenue [20][47] Market Data and Key Metrics Changes - Approximately 40% of procedure volume comes from Europe, with significant interest in the upcoming MAGiC catheter launch [30][34] - The company expects to see a recovery in procedures in China as COVID restrictions ease, which should positively impact recurring revenue [65] Company Strategy and Development Direction - The company aims to transform endovascular surgery with robotics, addressing limitations of manual handheld catheters [8][9] - Key innovations include the MAGiC catheter, a smaller self-shielding robot, and a family of interventional guidewires and catheters, which are expected to drive growth [13][40] - The company is focused on building a robust sales team and improving its capital sales strategy to enhance market penetration [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2023, driven by backlog revenue recognition and new system orders [18][23] - The company anticipates that the launch of new products will significantly accelerate both system and recurring revenue adoption in the coming years [23][88] - Management acknowledged the challenges posed by hospital construction delays and the need for improved customer urgency in the sales process [72][93] Other Important Information - The company moved into a new custom-built headquarters and manufacturing facility, which is expected to enhance operations and support future growth [42][44] - The company has approximately $30 million in cash and no debt, providing a strong balance sheet to support its strategic initiatives [44][49] Q&A Session Summary Question: What is the expected adoption of the MAGiC catheter in Europe? - Management noted strong excitement among physicians for the MAGiC catheter, with plans for a limited market release to ensure a smooth launch [26][53] Question: What are the expectations for system revenue growth in 2023? - Management expects system revenue to grow due to recognizing the majority of the backlog and increased orders compared to 2022 [71][78] Question: How does the company plan to address the sales cycle challenges? - Management highlighted the importance of building a robust capital sales team and improving customer engagement to drive urgency in the sales process [100][105]