Stereotaxis(US:STXS)2020-03-10 18:15Financial Data and Key Metrics Changes - Revenue for Q4 2019 totaled $6.9 million, with full-year revenue of $28.9 million, reflecting a decline in recurring revenue by 7% primarily due to reduced service revenue [37][39] - System revenue for the full year increased to $2.1 million from $1.6 million, indicating growth in new robotic programs [37] - Gross margin for Q4 and full year 2019 were approximately 75% and 79% respectively, while operating expenses for the full year increased to $27.6 million from $26.1 million in 2018 [38][39] - The company ended 2019 with $30 million in cash and no debt, positioning itself for long-term growth [18][39] Business Line Data and Key Metrics Changes - Recurring revenue for the full year 2019 was $25.8 million, down from the previous year, primarily due to aging inactive accounts [37] - The company has established a new robotic program contributing to system revenue growth, although overall recurring revenue has declined [37] Market Data and Key Metrics Changes - The company has less than 1% market share in the cardiac ablation market, indicating significant room for growth [16] - Approximately 5% of recurring revenue comes from China, with a noted decline in cardiac ablation procedures during the early stages of the COVID-19 outbreak [44][45] Company Strategy and Development Direction - The company aims to transform endovascular surgery with robotics, focusing initially on cardiac ablation as a primary application [16] - Stereotaxis is investing in commercial infrastructure, including clinical field teams and training programs, to support robotic practices [19][21] - The Genesis Robotic system represents a significant advancement in technology, with FDA clearance received, and is expected to drive future sales [26][41] Management's Comments on Operating Environment and Future Outlook - Management anticipates robust double-digit revenue growth in 2020 driven by the commercialization of the Genesis system [41] - The company is cautiously optimistic about the impact of COVID-19, noting that most cardiac ablation procedures are not discretionary and can only be delayed [44][45] Other Important Information - The company has made significant progress in innovation and collaboration, including partnerships for mapping technologies and the development of a next-generation magnetic ablation catheter [30][33] - The OpenMapping software architecture is part of a broader strategy to create a competitive ecosystem around robotics [61] Q&A Session Summary Question: Sales funnel and demand for Genesis - Management confirmed two orders received, one from a new customer and one replacement, with a focus on ensuring the replacement cycle becomes real [48] Question: Osypka collaboration and regulatory pathway - The company is refining the catheter design and expects to conduct additional animal studies, with plans for initial clinical trials in 2020 [51][52] Question: Focus beyond cardiac applications - Management indicated that neurovascular applications are a high priority, alongside other interventional medicine areas [56] Question: Announcement of new system orders - The company aims to shift towards quarterly announcements rather than individual system orders, allowing hospitals to showcase their leadership [58] Question: OpenMapping API and strategic initiative - The OpenMapping API is part of a broader strategy to create an open ecosystem, with several physicians already using the integrated systems [60][62] Question: Upgrade plans for existing systems - Existing customers are expected to upgrade to the Genesis system as they approach standard lab replacements, with a focus on maintaining customer engagement [71] Question: Sales strategy for existing and new customers - The company is building capabilities for both existing customer upgrades and new system sales, with a clinical team already in place to address customer needs [74]