Stereotaxis(US:STXS)2022-03-03 21:37Financial Data and Key Metrics Changes - Revenue for Q4 2021 totaled $8.2 million, a 21% increase from the prior year, while full-year revenue reached $35 million, growing 32% from $26.6 million in 2020 [49] - Recurring revenue for Q4 was $5.7 million, and system revenue was $2.3 million; full-year recurring revenue was $22.9 million, a 4% increase from the previous year [49] - Gross margin for Q4 was 72%, and for the full year, it was 66%, with recurring revenue gross margins at 86% and system revenue at 33% [50] - Operating loss for Q4 was $3.4 million, compared to $1.2 million in the previous year; adjusted operating loss for the full year was $3.6 million [53][54] - Cash and cash equivalents at year-end were $40.1 million, with no debt [55] Business Line Data and Key Metrics Changes - In 2021, Stereotaxis sold seven systems globally, with three in the U.S., two in Europe, and two in China, marking a restart in capital sales [23][25] - The company expects a similar level of greenfield capital sales as last year and some growth in replacement capital, but still below normalized levels [58] Market Data and Key Metrics Changes - The company noted a pipeline of over a couple dozen high-likelihood capital projects globally, reflecting a good mix of both greenfield and replacement projects [28] - The impact of COVID-19 and supply chain issues has delayed some orders, particularly in the replacement market [70][98] Company Strategy and Development Direction - Stereotaxis aims to transform endovascular surgery with robotics, focusing on building a product ecosystem that includes a mobile robotic navigation system, an independent ablation catheter portfolio, and a digital platform for operating room connectivity [32][34] - The company is investing in R&D, with 30% of revenue allocated to it in 2021, and expects this to increase to around 35% in 2022 [16][137] Management's Comments on Operating Environment and Future Outlook - Management anticipates revenue growth in 2022 driven by continued adoption of the Genesis RMN system and stable recurring revenue [57] - The company is facing macro headwinds that affect the timing of orders and hospital construction schedules, impacting revenue recognition [70][96] Other Important Information - The company has launched a new generation simulator for training physicians, enhancing engagement and clinical knowledge in the field [20] - Stereotaxis has a collaboration with MicroPort EP to develop a product ecosystem for cardiac ablation in China, which is expected to contribute to growth [44][109] Q&A Session Summary Question: What is the outlook for system revenue in 2022? - Management indicated that the expectation of doubling system revenue has been adjusted due to delays in replacement orders, with guidance now reflecting similar greenfield numbers and more replacement than last year, but not at normalized levels [67][72] Question: What are the expectations for disposable revenue in 2022? - Management expects disposable revenue to remain stable relative to 2021 levels, with potential contributions from new disposable devices later in the year [75][79] Question: Can you provide updates on the four orders in backlog? - Management stated that at least half of the four orders in backlog are expected to contribute to revenue in the second half of the year, based on hospital delivery schedules [105] Question: What is the status of the collaboration with MicroPort in China? - The collaboration is focused on developing a product ecosystem, with commercial engagements ongoing, but full commercialization will depend on the completion of regulatory approvals and product integration [109][112] Question: How is the company managing supply chain challenges? - Management reported constant disturbances in the supply chain but noted that there has not been a material impact on production for revenue [121]