Stereotaxis(US:STXS)2024-05-13 23:52Financial Data and Key Metrics Changes - Revenue for Q1 2024 totaled $6.9 million, a growth of 5% from $6.5 million in Q1 2023 [17] - Operating loss for Q1 2024 was $4.7 million, compared to $5.6 million in the previous year [18] - Adjusted operating loss for the quarter was $2.2 million, down from $3 million in the prior year [18] - Gross margin for Q1 2024 was 58% of revenue, with recurring revenue gross margin at 76% and system gross margin at 27% [37] Business Line Data and Key Metrics Changes - System revenue for Q1 2024 was $2.6 million, while recurring revenue was $4.3 million, compared to $1.8 million and $4.7 million in the prior year [17][61] - The company experienced a backlog increase to $16 million due to two additional orders for Genesis robots from existing customers in Europe [23] Market Data and Key Metrics Changes - Recurring revenue remains impacted by Johnson & Johnson catheter shortages, affecting procedure volumes [24] - In Europe, the company received a completeness check shortly after submitting its CE application, indicating progress in regulatory processes [25] Company Strategy and Development Direction - The company aims to maintain sales momentum and financial strength while preparing for a breakout through a comprehensive innovation strategy [4] - The acquisition of APT is seen as strategic, enhancing in-house capabilities for catheter development and manufacturing [14][16] - The company plans to demonstrate the new robot's real-world use and enhance compatibility with various X-ray systems in 2024, with a full launch expected in 2025 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing regulatory processes and the potential for significant growth in 2025 and beyond [13][39] - The company anticipates modest double-digit revenue growth for the full year, driven by system backlog and new orders [39] Other Important Information - The company has a healthy active pipeline of customers across key geographies, despite challenges from the existing product ecosystem [5] - The digital surgery platform, Sync, is in limited release, with additional features being incorporated [12] Q&A Session Summary Question: Synergies from APT acquisition - Management indicated that the acquisition is not expected to impact current catheter developments but will focus on future innovations [42] Question: PMA conversion impact - The conversion from PMA supplement to traditional PMA is not expected to significantly alter timelines, with ongoing collaborative discussions with the FDA [43] Question: Capital equipment environment - Management noted ongoing challenges in the macro environment but highlighted interest in their technology and innovation strategy [44] Question: APT's catheter integration - APT's catheters are compatible with existing mapping systems, and there are plans to develop robotically steered versions [90] Question: Pipeline development - The company is pleased with the progress of its robot development and anticipates regulatory submissions in the near future [91]