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Stereotaxis Reports Record Results for Second Quarter 2010

Giancarlo Nicoli — Thu, 12 Aug 2010 07:55:27 +0000

From the press release

Revenue Increases 19% to Record $15.0 Million
Recurring Revenue Sets Record at $5.6 Million, an Increase of 24%
Record Gross Margin Dollars of $10.1 Million
Operating Loss Decreases 14% to $5.7 Million
Net Loss Declines 48% to $3.9 Million
Company Reiterates 2010 Outlook

ST. LOUIS, Aug 02, 2010 /PRNewswire via COMTEX/ –

Stereotaxis, Inc. (Nasdaq: STXS) today reported record results for the second quarter ended June 30, 2010. Results included record recurring revenue, record gross margin dollars, a decline in the operating loss and a significant reduction in the net loss. In addition, new capital orders more than doubled from the level in the second quarter of 2009 to $10.2 million.

Revenue for the recent second quarter totaled $15.0 million, 19% above $12.6 million in revenue in the second quarter of 2009. The growth was driven by a 16% increase in revenue from capital equipment and higher recurring revenue. The Company recognized revenue on seven Niobe(R) Magnetic Navigation Systems and $2.5 million in Odyssey(TM) systems. Disposables, services and accessories revenue set another record at $5.6 million, 24% above recurring revenue in the second quarter last year, reflecting continued growth in clinical procedures.

For the first six months of 2010, revenue increased 8% to $25.6 million compared with $23.8 million in the first half of 2009. Gross margin grew 14% to $17.8 million, or 69.4% of revenue, compared with $15.7 million, or 65.8% of revenue in the first half of the prior year. Operating expenses were $29.7 million for the first six months of 2010 compared with $29.4 million in the same period of 2009. The operating loss decreased to $11.9 million for the first six months of 2010 compared with $13.8 million for the comparable period of 2009.

Michael P. Kaminski, President and Chief Executive Officer, said, “This was a strong quarter for the Company and our results demonstrate that we are on track to hit our plan for 2010. The success of our focus on driving adoption in the installed base, especially in the U.S., was reflected in our financial results, characterized by higher utilization, growing recurring revenue, and increased capital orders. Of the $10.2 million in new orders, $5.1 million were generated in North America. New orders were comprised of seven Niobe systems, including three in the U.S., two in Europe and two for the rest of the world, as well as $2.6 million in orders related to Odyssey.

“We remain focused on this key initiative, working closely with hospitals and clinicians to reinforce the safety and efficacy of our systems for complex EP procedures and to demonstrate the value that our technologies bring to patient care. We have begun to see progress in driving adoption; we are at the beginning of this effort and there is much opportunity ahead in both the U.S. and internationally.

“The $10.1 million gross margin set another record and was a milestone for the company. It is an example of the leveragability of our model as we continue to drive revenue growth. We are committed to containing operating expenses and driving our bottom-line performance. We are excited about the momentum and reiterate our outlook for revenue and key financial metrics for 2010,” concluded Mr. Kaminski.

Second Quarter 2010 Financial Performance

Gross margin for the quarter increased 26% to $10.1 million from $8.0 million in the second quarter of 2009. This represented 67.2% of total revenue compared with 63.1% a year ago. Second quarter operating expenses totaled $15.8 million, an increase of 8% compared with $14.6 million in the second quarter of 2009. Included in the recent operating expenses were increased severance costs and foreign exchange totaling $0.7 million.

The operating loss in the second quarter was $5.7 million compared with $6.7 million in the same quarter of the prior year. The Company reported a net loss for the 2010 second quarter of $3.9 million, or $0.08 per share. The net loss includes a positive adjustment in value for warrants issued in 2008 of $0.05 per share as a result of the decline in the Company’s stock price at June 30, 2010 versus March 31, 2010. This compares with a net loss for the second quarter of 2009 of $7.4 million, or $0.18 per share. Excluding the effect of the repricing of the warrants in the recent second quarter, the net loss was $6.4 million, or $0.13 per share. The weighted average shares for the second quarter of 2010 totaled 49.9 million compared with 41.7 million in the second quarter of last year. The increase was due in large part to the issuance of 7.5 million shares as part of the stock offering completed in October 2009.

Cash burn for the first six months of 2010, including payments against the Biosense Webster advance, was $14.2 million compared with $17.3 million in the first six months of 2009. Cash and equivalents at June 30, 2010 totaled $22.0 million, compared with $30.5 million at December 31, 2009. Total debt was $26.7 million, including $15.5 million drawn against the Company’s $30 million line of credit.

2010 Financial Outlook

The Company reaffirmed its outlook for 2010 as follows:

New capital order growth in excess of 40%
Total revenue growth in the mid-20% range
Gross margins above 65%
Operating expenses between $60 and $65 million

Conference Call Information

The Company has scheduled a conference call for 4:30 p.m. Eastern Time today to discuss its financial results for the second quarter. To access the conference call, please dial (877) 941-9205. International participants can call (480) 629-9835. An audio replay of the call will be available for seven days following the call at (800) 406-7325 for U.S. callers or (303) 590-3030 for those calling outside the U.S. The password required to access the replay is 4329312#. The call will also be available on the Internet live and for 90 days thereafter at the following URL:

http://www.videonewswire.com/event.asp?id=70601

About Stereotaxis

Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital’s interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias. The Stereotaxis System is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. Stereotaxis’ Odyssey solutions integrate and manage information from disparate information sources, eliminating the challenge of interacting simultaneously with many separate diagnostic systems, driving optimized workflow and improved productivity. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe and Canada.

This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance for the Company’s products in the marketplace, the effect of global credit and economic conditions on the ability and willingness of customers to purchase our systems, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, timing of regulatory approval and return of the irrigated catheter to the market, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company’s control. In addition, these orders and commitments may be revised, modified or canceled, either by their express terms, as a result of negotiations, or by project changes or delays.

                          STEREOTAXIS, INC.
                           BALANCE SHEETS

                                                            December
                                              June 30,         31,
                                                     2010          2009
                                                      ---           ---
                                             (Unaudited)
    Assets
    Current Assets:
      Cash and cash equivalents               $22,014,249   $30,546,550
      Accounts receivable, net of allowance
       of $294,368 and $322,463 in 2010 and
       2009, respectively                      14,147,775    11,152,648
      Current portion of long-term
       receivables                                 63,800        66,800
      Inventories                               4,272,702     4,403,675
      Prepaid expenses and other current
       assets                                   3,024,675     3,872,535
                                                ---------     ---------
    Total current assets                       43,523,201    50,042,208
    Property and equipment, net                 4,445,477     4,790,310
    Intangible assets                           2,742,778     1,144,445
    Long-term Receivables                         146,425       138,441
    Other assets                                    5,112         5,112
                                                    -----         -----
    Total assets                              $50,862,993   $56,120,516
                                              ===========   ===========

    Liabilities and stockholders' equity
    Current liabilities:
       Current maturities of long-term debt   $19,499,999    $3,333,333
       Accounts payable                         5,766,991     3,881,205
       Accrued liabilities                      7,698,627     8,615,287
       Deferred contract revenue                7,606,228     7,191,492
       Warrants                                 3,172,562     4,142,614
                                                ---------     ---------
    Total current liabilities                  43,744,407    27,163,931

    Long term debt, less current
     maturities                                 7,154,045    20,346,655
    Long term deferred contract revenue           789,381       948,574
    Other liabilities                              14,134        20,013

    Stockholders' equity:
      Preferred stock, par value $0.001;
       10,000,000 shares authorized at 2010
       and 2009; none outstanding at 2010
       and 2009                                         -             -
      Common stock, par value $0.001;
       100,000,000 shares authorized at 2010
       and 2009; 50,356,233 and 50,208,171
       issued at 2010 and 2009, respectively       50,356        50,208
       Additional paid-in capital             335,058,197   331,249,918
       Treasury stock, 40,151 shares at 2010
        and 2009                                 (205,999)     (205,999)
       Accumulated deficit                   (335,741,528) (323,452,784)
                                             ------------  ------------
    Total stockholders' equity                   (838,974)    7,641,343
                                                 --------     ---------
    Total liabilities and stockholders'
     equity                                   $50,862,993   $56,120,516
                                              ===========   ===========

                               STEREOTAXIS, INC.
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)

                                       Three Months Ended
                                            June 30,
                                            --------
                                          2010             2009
                                          ----             ----

    Revenue
       System                       $9,439,857       $8,162,504
       Disposables, service and
        accessories                  5,578,221        4,481,833
                                     ---------        ---------
    Total revenue                   15,018,078       12,644,337

    Cost of revenue
       System                        4,313,774        3,212,031
       Disposables, service and
        accessories                    612,379        1,453,854
                                       -------        ---------
    Total cost of revenue            4,926,153        4,665,885

    Gross margin                    10,091,925        7,978,452

    Operating expenses:
      Research and development       3,358,008        3,636,007
      Sales and marketing            8,446,612        7,680,549
      General and administration     3,976,057        3,314,678
    Total operating expenses        15,780,677       14,631,234
                                    ----------       ----------
    Operating loss                  (5,688,752)      (6,652,782)
    Other income/(expense)           2,507,221          304,709
    Interest income                      2,148            4,376
    Interest expense                  (682,804)      (1,096,080)
                                      --------       ----------
    Net loss                       $(3,862,187)     $(7,439,777)
                                   ===========      ===========

      Net loss per common share:
         Basic and diluted              $(0.08)          $(0.18)

    Weighted average shares
     used in computing net
    loss per common share:
       Basic and diluted            49,885,589       41,670,130
                                    ==========       ==========

                                         Six Months Ended
                                             June 30,
                                             --------
                                           2010               2009
                                           ----               ----

    Revenue
       System                       $14,673,611        $15,023,312
       Disposables, service and
        accessories                  10,961,076          8,754,162
                                     ----------          ---------
    Total revenue                    25,634,687         23,777,474

    Cost of revenue
       System                         6,390,490          5,775,513
       Disposables, service and
        accessories                   1,456,332          2,351,052
                                      ---------          ---------
    Total cost of revenue             7,846,822          8,126,565

    Gross margin                     17,787,865         15,650,909

    Operating expenses:
      Research and development        6,727,546          6,945,870
      Sales and marketing            15,141,730         15,133,984
      General and administration      7,866,394          7,352,843
    Total operating expenses         29,735,670         29,432,697
                                     ----------         ----------
    Operating loss                  (11,947,805)       (13,781,788)
    Other income/(expense)              970,052            555,646
    Interest income                       4,930             31,349
    Interest expense                 (1,315,921)        (1,775,071)
                                     ----------         ----------
    Net loss                       $(12,288,744)      $(14,969,864)
                                   ============       ============

      Net loss per common share:
         Basic and diluted               $(0.25)            $(0.36)

    Weighted average shares
     used in computing net
    loss per common share:
       Basic and diluted             49,753,046         41,476,704
                                     ==========         ==========

SOURCE: Stereotaxis, Inc.

Stereotaxis Announces Strong Increase in New Capital Orders in Second Quarter 2010

Giancarlo Nicoli — Sun, 18 Jul 2010 08:19:26 +0000

From the press release

Stereotaxis Announces Strong Increase in New Capital Orders in Second Quarter 2010
Capital Orders Double from Second Quarter 2009; 42% Sequential Growth
North America Rebounds to Represent 50% of Total Orders

ST. LOUIS, July 13, 2010 /PRNewswire via COMTEX/ –

Stereotaxis, Inc. (Nasdaq: STXS) announced today that its new capital order momentum continued to build in the second quarter of 2010. The Company generated new capital orders of $10.2 million, more than doubling new capital orders from the 2009 second quarter and representing a 42% sequential increase over orders in the first quarter of 2010. New orders from North America totaled $5.1 million of the total orders in the quarter.

“Our new capital order momentum in the quarter validates our view that driving clinical adoption builds both procedure revenue and market interest,” said Michael P. Kaminski, President and Chief Executive Officer of Stereotaxis. “The largest increase was in North America where we have focused on clinical adoption. As a result, procedures in the U.S. are steadily increasing, resulting in higher utilization and stronger reference sites. In addition, we continue to generate a strong and balanced performance from Europe and the rest of the world.”

About Stereotaxis

Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital’s interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias. The Stereotaxis System is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. Stereotaxis’ Odyssey(TM) solutions integrate and manage information from disparate information sources, eliminating the challenge of interacting simultaneously with many separate diagnostic systems, driving optimized workflow and improved productivity. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe and Canada.

SOURCE Stereotaxis, Inc.

New Data Demonstrate Safety, Efficacy of Stereotaxis for Patients with AFIB, VT and Congenital Defects

Giancarlo Nicoli — Thu, 13 May 2010 11:18:56 +0000

From the press release

INNOVATIVE ODYSSEY NETWORK CONNECTS INDUSTRY LEADERS THROUGHOUT HRS EXHIBITS
Data Underscores Stereotaxis’ Clinical Leadership in EP, Evident at Heart Rhythm 2010

ST. LOUIS, May 13, 2010 /PRNewswire via COMTEX/ –Stereotaxis’ (Nasdaq: STXS) safety and efficacy in the treatment of patients with complex arrhythmias such as atrial fibrillation, ventricular tachycardia, and congenital heart defects will be featured prominently in the scientific program of the 31st Annual Heart Rhythm Scientific Sessions in Denver, Colorado. Eight podium presentations and eight posters will underscore the broad clinical leadership that Stereotaxis has achieved in the treatment of patients with complex cardiac arrhythmias. Stereotaxis will display its advanced tools for the electrophysiology lab in booth # 1103.

In addition, Dr. J. Peter Weiss and his colleagues from Intermountain Medical Center in Salt Lake City, Utah will present a live case using a non-localized magnetic catheter in a patient with left-sided atrial flutter remotely from the control room of their fully integrated Odyssey lab in Salt Lake City. The case will be presented on Thursday, May 13th at 10:30 am in the Four Seasons Ballroom 3-4.

ATRIAL FIBRILLATION

Catheter ablation for atrial fibrillation is in high demand, with some studies indicating that the procedure is significantly growing each year. Dr. Arash Arya and colleagues from the Heart Center, University of Leipzig in Leipzig, Germany, will present the poster, “Catheter Ablation of Atrial Fibrillation Using Remote Magnetic Catheter Navigation: A Case-Control Study” during Poster Session 6 on Saturday, May 15th at 9 a.m. in the main exhibit hall.

Additional data will be presented by Dr. David Burkhardt and colleagues at St. David’s Medical Center in Austin, Texas during Poster Session 4 on Friday, May 14th at 9 a.m. and by Dr. Shinsuke Miyazaki and physicians from Hopital Cardiologique du Haut-Leveque in Bordeaux, France during Poster Session 5 on Friday, May 14th at 2:00 p.m., both in the main exhibit hall.

CONGENITAL DEFECTS

The congenital heart defect patient group is one of the most challenging populations facing the electrophysiologist and particularly attractive for treatment with the advanced tools offered by Stereotaxis. Dr. Thomas Baurnfeind from the Thoraxcenter at Erasmus Medical Center in Rotterdam, The Netherlands will present the paper, “The Usefulness of Ablation Guided by Remote Navigation in Patients with Complex Congenital Heart Disease.” This paper will be presented on Thursday, 5/13 at 2:15 pm in Room 102.

VENTRICULAR TACHYCARDIA

Due to complex anatomy, the sensitive nature of ventricular tissue, and potentially lethal outcomes, treating ventricular tachycardia is a major challenge for electrophysiologists, and requires the delivery of robust lesions for clinical success.

As previously announced, Hiroshi Nakagawa, MD, PhD, Co-Director of the Heart Rhythm Institute at the University of Oklahoma Health Sciences Center will deliver a podium presentation titled “Substrate Ablation of Scar Ventricular Tachycardia Using Magnetic Catheter Maneuvering System,” on Friday, May 14, at 2:45 pm, Korbel Ballroom 4F. Additionally, Petr Neuzil, MD, PhD, from Na Holmoce Hospital in Prague, will present a poster with early results from the “Stereotaxis Study to Obliterate Persistent Ventricular Tachycardia” or “STOP-VT” study during Poster Session 2 on Thursday, May 13th at 9:00 a.m. in the main exhibit hall.

“We are very excited to see the results from two important VT studies,” said Michael P. Kaminski, President and CEO of Stereotaxis. “VT is among the most challenging arrhythmias to treat. There are a growing number of patients with VT and a limited number of clinicians who perform the complex procedure, creating few options for patients. Based on what we’re seeing at several centers performing VT ablations routinely, we believe that catheter ablation with magnetic navigation can effectively terminate a high majority of documented ventricular tachycardias, particularly among patients who had previously suffered a heart attack.”

ODYSSEY BROADLY FEATURED AT HRS

An innovative Odyssey Network will be featured throughout the HRS exhibit floor including demonstrations in the Siemens Medical Solutions, Philips Medical Systems, and Biosense Webster booths. Odyssey will also support a live interactive demonstration of the Stereotaxis magnetic navigation system through a remote VPN connection between Denver and St. Louis. Customers will have an opportunity to receive a hands-on demonstration of the comprehensive Odyssey Enterprise Solution with its fully integrated, real-time information management platform to integrate, record, and network interventional lab data throughout hospitals and around the world.

“The broad showcase of Odyssey at this year’s HRS validates the level of interest building among customers and partners,” said Michael P. Kaminski. “We believe that the combination of our partner solutions coupled with the unique benefits of Odyssey provides customers with an innovative platform that addresses unmet customer needs from advanced treatment to referral outreach.”

About Heart Rhythm 2010

Heart Rhythm 2010, the Heart Rhythm Society’s 31st Annual Scientific Sessions, will be held at the Colorado Convention Center, May 12 — 15, 2010. For more information, visit www.hrsonline.org/sessions.

About Stereotaxis

Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital’s interventional surgical suite to enhance the treatment of coronary artery disease and arrhythmias. The Stereotaxis System is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. Stereotaxis’ Odyssey workstation integrates and standardizes data through a consolidated display of multiple systems, eliminating the challenge of interacting simultaneously with many separate diagnostic systems. The magnetic irrigated catheter is not approved for the treatment of atrial fibrillation in the US. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe and Canada. For more information visit www.stereotaxis.com.

About Odyssey

The Odyssey portfolio of products provides an innovative enterprise solution for integrating, recording and networking interventional lab information around the world. Odyssey Vision standardizes data integration for magnetic and standard interventional labs by enhancing the physician workflow through a consolidated display of multiple systems and eliminating the challenge of interacting simultaneously with many separate diagnostic systems. Odyssey Enterprise Cinema then captures a complete record of synchronized procedure data that can be viewed live or from a comprehensive archive of cases performed. Through its proprietary data compression technology, Cinema enables sharing of live and recorded procedure data via a laptop anywhere over a secure high speed Internet connection. Hospitals can also share procedures with other institutions using Odyssey Network Connect providing a global forum for defining clinical best practices across a broad spectrum of medical procedures. For more information visit www.odysseyexperience.com.

SOURCE: Stereotaxis, Inc.

Stereotaxis and Siemens Promote Integrated Odyssey(TM) Solutions

Giancarlo Nicoli — Thu, 13 May 2010 11:17:18 +0000

From the press release

Companies Collaborate to Showcase the Odyssey Network at Heart Rhythm 2010

ST. LOUIS, May 12, 2010 /PRNewswire via COMTEX/ –At the Heart Rhythm Society’s 31st Annual Scientific Sessions, Stereotaxis, Inc. (Nasdaq: STXS) will promote its Odyssey Enterprise Solution with a live network connection between the Stereotaxis and Siemens Healthcare exhibits. The demonstration will be remotely powered through the Stereotaxis Odyssey Enterprise Cinema platform connected to a customer viewing station in the Siemens booth to demonstrate the capability of remote viewing, recording and collaboration in Siemens large display for Artis zee(R) labs. Attendees will experience the innovative features of Odyssey Enterprise Cinema and Network Connect in combination with the Siemens consolidated display. The exhibits will be open from May 13 to 15 at the Colorado Convention Center in Denver, Colorado, with each company offering its components for sale at HRS.

“Siemens remains focused on delivering innovative solutions to our cardiology customers, such as the ability to acquire three-dimensional images of the heart’s structures utilizing syngo(R) DynaCT Cardiac and to distribute and display the information to the clinical team to support decision-making,” said Claus Grill, vice president, Cardiac, Interventional/Neuro, and X-ray Systems, Siemens Healthcare. “Odyssey Enterprise Cinema and Network Connect is clearly aligned with this initiative by delivering synchronized data from Siemens labs throughout hospital networks and around the world.”

“The integration of state-of-the-art Siemens labs with Odyssey Enterprise Solutions provides a great opportunity for Stereotaxis,” said Michael P. Kaminski, Stereotaxis President and CEO. “The combination of the large display solution from Siemens with Odyssey offers a powerful combination of products that will deliver real value to our joint customers.”

About Odyssey www.OdysseyExperience.com

The Odyssey portfolio of products provides an innovative enterprise solution for integrating, recording, and networking interventional lab information around the world. Odyssey Vision standardizes data integration for magnetic and standard interventional labs by enhancing the physician workflow through a consolidated display of multiple systems and eliminating the challenge of interacting simultaneously with many separate diagnostic systems. Odyssey Enterprise Cinema then captures a complete record of synchronized procedure data that can be viewed live or from a comprehensive archive of cases performed. Through its proprietary data compression technology, Cinema enables sharing of live and recorded procedure data via a laptop anywhere over a secure high speed Internet connection. Hospitals can also share procedures with other institutions using Odyssey Network Connect providing a global forum for defining clinical best practices across a broad spectrum of medical procedures.

About Stereotaxis www.Stereotaxis.com

SOURCE: Stereotaxis, Inc.

Stereotaxis Announces Vdrive(TM), a New Technology for Remote Navigation of Diagnostic Devices

Giancarlo Nicoli — Thu, 13 May 2010 11:15:36 +0000

From the press release

ST. LOUIS, May 11, 2010 /PRNewswire via COMTEX/ –Stereotaxis, Inc. (Nasdaq: STXS) today announces the introduction of its new Vdrive(TM), an expansion of its Magnetic Navigation platform that facilitates remote manipulation of diagnostic devices used during electrophysiology (EP) procedures. The company is planning to preview the Vdrive at the HRS meeting this week, and will be commercially available when regulatory processes are complete.

During complex ablation procedures, electrophysiologists commonly use multiple advanced diagnostic catheters and positioning sheaths. Navigation of these devices is a significant component of an electrophysiologist’s workflow. Vdrive is designed to significantly improve the efficiency of remote procedures.

Vdrive works with Stereotaxis’ Magnetic Platform and enables the electrophysiologist to fully and remotely control diagnostic catheters and accessories. The Vdrive module will be installed near the patient table and disposable components will be needed for each procedure. The disposable for circular mapping catheter control will be made available initially, to be followed shortly thereafter by disposables for sheath and intra-cardiac echocardiography (ICE) control.

Vdrive will join QuickCAS(TM), Stereotaxis’ catheter advancement system, as the fundamental elements of Stereotaxis’ disposable product portfolio. Vdrive uses mechanical and electronic controls for its remote operations and is expandable to work with major types of EP diagnostic catheters.

“Stereotaxis is committed to developing long-term solutions for our EP customers,” said Michael P. Kaminski, President and Chief Executive Officer of Stereotaxis, Inc. “By providing physicians with a helping hand to control diagnostic catheters and accessories, Vdrive has the potential to enable a much simplified and enhanced EP workflow and much improved efficiency. This significant product milestone is a direct outcome of our global collaboration with EP industry thought leaders, and an exciting result of our ongoing investment in strategic product innovations.”

About Stereotaxis

Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital’s interventional surgical suite to enhance the treatment of arrhythmias and coronary artery disease. The Stereotaxis system is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. The unparalleled clinical capability of Stereotaxis has driven more than 130 hospitals to adopt magnetic navigation for a growing number of complex ablation cases in all four chambers of the heart. Stereotaxis technology is now installed and used by 9 out of the Top 10 Best U.S. Heart Hospitals as ranked by U.S. News and World Report, and more than one third of the EP academic training centers in the United States have included Stereotaxis into their arrhythmia treatment laboratories. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe, Canada and elsewhere.

About Odyssey

SOURCE: Stereotaxis, Inc.

Stereotaxis Reports First Quarter 2010 Financial Results

Giancarlo Nicoli — Sun, 09 May 2010 07:53:34 +0000

from the press release

–Recurring Revenue Increases 26% to a Record $5.4 Million

–Record Gross Margin of 72.5%

–Operating Loss Decreases 12% to $6.3 Million

–Cash Burn Decreases 44% to $6.4 Million

–2010 Guidance Reiterated

ST. LOUIS, May 6, 2010 /PRNewswire via COMTEX/ –Stereotaxis, Inc. (Nasdaq: STXS) today reported financial results for the first quarter ended March 31, 2010 highlighted by recurring revenue and gross margin achieving record levels while operating losses continued to decline. In addition, the Company reported that its efforts to drive clinical adoption within the U.S. market are favorably impacting utilization rates.

Revenue for the recent first quarter was $10.6 million compared with $11.1 million in the same quarter a year ago. Deferred revenue of $8.1 million at March 31, 2010 increased by $0.9 million from December 31, 2009. The increase was principally due to the deferral of one Niobe system where title was transferred, however other revenue recognition criteria were not met by March 31, 2010. The Company recognized revenue on four Niobe(R) Magnetic Navigation Systems. Disposables, services and accessories revenue set another record at $5.4 million, 26% above recurring revenue in the first quarter of 2009, largely due to growth in clinical procedures. Recurring revenue comprised 51% of the total revenue in the quarter.

Michael P. Kaminski, President and Chief Executive Officer, said, “Our strategy to drive deeper penetration into the U.S. market is progressing as planned on all fronts. The organizational, clinical adoption and training elements of this strategy are all designed to drive utilization of Niobe for the treatment of complex cardiac arrhythmias. Growth in U.S. utilization is on plan, which is a direct result of our refocused approach. We are working closely with institutions and clinicians to provide continual learning, and realize full value of the magnetic navigation platform. The significant growth in clinical utilization demonstrates the success of this approach and we believe it will be the catalyst for driving market adoption of our technology.”

Mr. Kaminski continued. “During the quarter, we generated new orders totaling $7.3 million. $5.8 million of the new orders are related to five Niobe systems, one in the U.S., three in Europe and one in Asia Pacific, as well as $1.5 million in orders for Odyssey. As U.S. customers realize the full value of the system and reference sites strengthen, we are confident that sales of the Niobe platform will increase. At the same time, Odyssey continues to represent an important avenue for growth in 2010, in both Niobe and traditional non-magnetic labs. Outside of the U.S., in both Europe and Asia, our Niobe sales remain strong. In addition, revenue per patient continues to trend favorably as our first quarter 2010 results exceeded 2009 levels.

“For the remainder of the year, our top priorities continue to be driving clinical utilization and adoption for complex EP procedures, increasing U.S. Niobe order rates, and building Odyssey orders through internal sales efforts as well as with potential channel partners. At the same time, we are generating very strong gross margins, achieving another record in the first quarter, as recurring revenue comprised over 50% of total revenue. With our continued focus on operating expenses, we believe we can leverage revenue growth to substantially enhance our bottom-line performance during the year,” concluded Mr. Kaminski.

First Quarter 2010 Financial Performance

Gross margin for the quarter was $7.7 million, or 72.5% of revenue, flat with gross margin dollars but an increase from the 68.9% of revenue in the first quarter of 2009. First quarter operating expenses decreased 6% to $14 million from $14.8 million in the first quarter of the prior year. Cash burn improved 44% to $6.4 million for the first quarter of 2010 compared with $11.5 million in the first quarter of 2009.

The operating loss in the first quarter was $6.3 million compared with $7.1 million in the prior year. The Company reported a net loss for the first quarter of 2010 of $8.4 million, or $0.17 per share. The net loss includes an adjustment in value for warrants issued in 2008 of $0.03 per share that results from the appreciation in the Company’s stock price at March 31, 2010 versus December 31, 2009. This compares with a net loss for the first quarter of 2009 of $7.5 million, or $0.18 per share. The weighted average shares for the recent first quarter totaled 49.6 million compared with 41.3 million in the first quarter of last year. The increase was due in large part to the issuance of 7,475,000 shares as part of the stock offering completed in October 2009.

Cash and equivalents at March 31, 2010 totaled $24.5 million, compared with $30.5 million at December 31, 2009. Total debt was $22.7 million, including $10 million drawn against the Company’s $30 million line of credit.

2010 Financial Guidance

The Company reaffirmed its outlook for 2010 as follows:

New capital order growth in excess of 40%
Total revenue growth in the mid-20% range
Gross margins above 65%
Operating expenses between $60 and $65 million

Conference Call Information

The Company has scheduled a conference call for 8:30 a.m. Eastern Time today to discuss its financial results for the first quarter. To access the conference call, please dial (877) 941-2930. International participants can call (480) 629-9690. An audio replay of the call will be available for seven days following the call at (800) 406-7325 for U.S. callers or (303) 590-3030 for those calling outside the U.S. The password required to access the replay is 4284791#. The call will also be available on the Internet live and for 90 days thereafter at the following URL:

http://www.videonewswire.com/event.asp?id=68445

About Stereotaxis

                                STEREOTAXIS, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

                                                 Three Months Ended
                                                 ------------------
                                                     March 31,
                                                     ---------
                                                  2010             2009
                                                  ----             ----

    Revenue
      System                                $5,233,755       $6,860,807
      Disposables, service and accessories   5,382,854        4,272,327
                                             ---------        ---------
    Total revenue                           10,616,609       11,133,134

    Cost of revenue
      System                                 2,076,717        2,563,483
      Disposables, service and accessories     843,953          897,199
                                               -------          -------
    Total cost of revenue                    2,920,670        3,460,682

    Gross margin                             7,695,939        7,672,452

    Operating expenses:
      Research and development               3,369,538        3,309,862
      Sales and marketing                    6,695,117        7,453,439
      General and administration             3,890,336        4,038,156
    Total operating expenses                13,954,991       14,801,457
                                            ----------       ----------
    Operating loss                          (6,259,052)      (7,129,005)
    Other income/(expense)                  (1,537,169)         250,937
    Interest income                              2,782           26,972
    Interest expense                          (633,118)        (678,991)
                                              --------         --------
    Net loss                               $(8,426,557)     $(7,530,087)
                                           ===========      ===========

      Net loss per common share:
         Basic and diluted                      $(0.17)          $(0.18)

    Weighted average shares used in
     computing net loss per common share:
       Basic and diluted                    49,621,318       41,281,130

                                STEREOTAXIS, INC.
                                 BALANCE SHEETS

                                                              December
                                               March 31,         31,
                                               ---------     ---------
                                                      2010          2009
                                                       ---           ---
                                              (Unaudited)
    Assets
    Current assets:
      Cash and cash equivalents                $24,512,979   $30,546,550
       Accounts receivable, net of allowance
        of $177,362 and $322,463 in 2010 and
        2009, respectively                      10,580,935    11,152,648
      Current portion of long-term
       receivables                                  66,800        66,800
      Inventories                                4,940,183     4,403,675
      Prepaid expenses and other current
       assets                                    4,048,203     3,872,535
                                                 ---------     ---------
    Total current assets                        44,149,100    50,042,208
    Property and equipment, net                  4,584,611     4,790,310
    Intangible assets                            1,111,111     1,144,445
    Long-term receivables                          127,762       138,441
    Other assets                                     5,113         5,112
                                                     -----         -----
    Total assets                               $49,977,697   $56,120,516
                                               ===========   ===========

    Liabilities and stockholders' equity
    Current liabilities:
      Current maturities of long-term debt     $14,166,666    $3,333,333
      Accounts payable                           5,037,547     3,881,205
      Accrued liabilities                        6,995,774     8,615,287
      Deferred revenue                           8,120,584     7,191,492
      Warrants                                   5,679,783     4,142,614
                                                 ---------     ---------
    Total current liabilities                   40,000,354    27,163,931

    Long term debt, less current
     maturities                                  8,489,530    20,346,655
    Long term deferred revenue                     822,928       948,574
    Other liabilities                               16,733        20,013

    Stockholders' equity:
       Preferred stock, par value $0.001;
        10,000,000 shares authorized at 2010
        and 2009; none outstanding at 2010
        and 2009                                         -             -
       Common stock, par value $0.001;
        100,000,000 shares authorized at 2010
        and 2009; 50,424,664 and 50,208,171
        issued at 2010 and 2009, respectively       50,425        50,208
      Additional paid-in capital               332,683,067   331,249,918
      Treasury stock, 40,151 shares at 2010
       and 2009                                   (205,999)     (205,999)
      Accumulated deficit                     (331,879,341) (323,452,784)
                                              ------------  ------------
    Total stockholders' equity                     648,152     7,641,343
                                                   -------     ---------
    Total liabilities and stockholders'
     equity                                    $49,977,697   $56,120,516
                                               ===========   ===========

SOURCE: Stereotaxis, Inc.

Stereotaxis Updates Progress on Major Clinical Initiative Related to Electrophysiology (EP) Treatment of Ventricular Tachycardia

Giancarlo Nicoli — Wed, 05 May 2010 17:19:25 +0000

from the press release

Stereotaxis Updates Progress on Major Clinical Initiative Related to Electrophysiology (EP) Treatment of Ventricular Tachycardia

ST. LOUIS, May 4, 2010 /PRNewswire via COMTEX/ –Stereotaxis, Inc. (Nasdaq: STXS) today updates progress on a global multi-center clinical study on ventricular tachycardia treatment outcomes by using the company’s proprietary Niobe(R) Magnetic Navigation System.

Ventricular tachycardia (VT) is a life-threatening arrhythmia because it may lead to ventricular fibrillation, asystole, and sudden death. VT is one of the most challenging arrhythmias facing electrophysiologists due to complex anatomy, the sensitive nature of ventricular tissue, and potentially lethal outcomes. Catheter ablation of VT, one of the fastest growing EP procedures globally, requires the delivery of robust lesions for clinical success.

The prospective multi-center clinical effort, named “Study to Obliterate Persistent Ventricular Tachycardia” (STOP-VT), will be conducted at The Hospital of University of Pennsylvania, Methodist Hospital (Indianapolis), Na Holmoce Hospital (Prague), Loyola University Medical Center (Chicago), and Herzentrum Leipzig GmbH (Germany). During the upcoming 31st Annual Heart Rhythm Society Scientific Sessions in Denver, CO, Petr Neuzil, MD, PhD, from Na Holmoce Hospital in Prague, will present a poster detailing the early results of the “STOP-VT” study.

“Based upon our excellent clinical results, we believe that treatment with magnetically-enabled radiofrequency catheters can effectively terminate a vast majority of documented ventricular tachycardias in patients who had suffered a previous heart attack,” commented Michael P. Kaminski, President and Chief Executive Officer of Stereotaxis, Inc. “This global initiative further exemplifies our commitment to developing long-term solutions for our EP customers.”

“Ablation of ventricular tachycardia is an excellent application for Stereotaxis magnetic navigation,” said John Miller, MD, Professor of Medicine, Krannert Institute of Cardiology, Indiana University School of Medicine. “Our experience has been that the precise intricate mapping and enhanced safety of magnetic navigation allows us to perform successful ablation of complex arrhythmias without the pitfalls associated with manual techniques.”

During the upcoming 31st Annual Heart Rhythm Society Scientific Sessions in Denver, CO, additional VT outcome data will be presented by established Stereotaxis users. Hiroshi Nakagawa, MD, PhD, Co-Director of the Heart Rhythm Institute at the University of Oklahoma Health Sciences Center and one of the world’s foremost experts on contact force and lesion formation, will present a paper entitled, “Substrate Ablation of Scar Ventricular Tachycardia Using Magnetic Catheter Maneuvering System.” In addition to the VT data, several Stereotaxis users from around the world will present clinical results related to atrial fibrillation (AF), pediatric and congenital arrhythmia, supraventricular tachycardia (SVT), atrial flutter, and use with implantable devices through a series of presentations and posters.

The unparalleled clinical capability of Stereotaxis has driven more than 130 hospitals to adopt magnetic navigation for a growing number of complex ablation cases in all four chambers of the heart. Stereotaxis technology is now installed and used by 9 out of the Top 10 Best U.S. Heart Hospitals as ranked by U.S. News and World Report. More than one third of the EP academic training centers in the United States have included Stereotaxis into their arrhythmia treatment laboratories.

About Stereotaxis

About Odyssey

SOURCE: Stereotaxis, Inc.

Stereotaxis, comments regarding the last conference call (Q4 & FY2009)

Giancarlo Nicoli — Sun, 07 Mar 2010 21:30:49 +0000

Stereotaxis, comments regarding the last conference call (Q4 & FY2009)

ahrahr (99.12)
ahrahr beat the market on Friday

Rank: 610 out of 69556

With STXS, I’m down -20.56% since I selected it with CAPS, against a S&P -6.50%. My CAPS loss is -14.16.

This post is devoted to a review of Q4 and FY2009 numbers; and some comments regarding the last CC.

For a review of what Stereotaxis does and why I like the stock, please see my previous post.

On Thursday February 25, 2010, Stereotaxis reported: 16% revenue increase in the fourth quarter 2009; new orders up 22% sequentially; second consecutive quarterly increase; recurring revenue reached record $5.1 Million; cash burn declined to $2.9 Million; full year 2009 revenue up 27%; gross margin percentage of 67%; operating expenses decreased 14% .

There were many positive and constructive things said on the cc (transcript courtesy of SeekingAlpha):

#1 – “During the year, we saw our first placements of Odyssey and non-Niobe or standard labs, demonstrating its broadening appeal as well as its potential to be a significant driver of future growth.“ Odyssey is an EP lab information management system, designed to optimize workflow and improve productivity, that enables live case transmission, remote procedure sharing, and even remote training. An EP lab can use it without a Niobe. I think it’s a positive that labs are purchasing it as a standalone, because I believe it will lead future Niobe sales (An Odyssey system is less expensive to purchase than a Niobe).

#2 – “(…) patient demand to be treated on the Stereotaxis System is emerging as awareness of the safety and efficacy is becoming more widespread. A live procedure featuring the Niobe was broadcast on the Today’s Show on NBC early in the month and led to several hundred inquiries into the University of Cleveland, where the procedure was performed, within a 24-hour period following the broadcast.The hospitals who informed us to pick several patients throughout North America have been scheduled for the procedure. We also were featured in a BBC documentary and individual hospitals such as Henry Ford in Michigan have advertised the Stereotaxis procedure in the Wall Street Journal New York Times, generating inquiries in the scheduling of procedures.” This a big driver towards widespread adoption of Stereotaxis technology, as everybody can learn from the Intuitive Surgical (ISRG) experience.

#3 – “(…) a worldwide market of more than 12,000 electrophysiology interventional cardiology labs combined (…)” It is the first time I find an accurate estimate of how many EP labs there are around the world. Total Niobe installed base should be 145 (or a number very close to that). It’s actually something more than a 1% penetration. There are vast, green pastures ahead!

#4 – “It’s now about 20, it’s in the mid-20s, 22% to 23% of total sites in Europe and the US are using it (note: Niobes) more than three cases a week.“ That leaves 75% of sites that are using Niobes less than three cases a week. There’s substantial growth ahead, not just from new sites, but from sites that already have a Niobe system.

#5 – On break-even: “To us a break-even quarter is probably something like a $23 million revenue quarter (…) it probably looks like something like 10 Niobe, 20 Odyssey, you know, 10 Cinema, that’s what kind of the quarter would like for us.”

#6 – I’m paraphrasing now. Since Niobe systems are usually sold along with x-ray equipment (typically from Siemens or Philips), Charley Jones of Barrington Research asks a tangential question: Do you have any expectation about the number of X-ray systems that will go into EP labs or new EP labs or redone EP labs in 2010 either in the US, globally, or split up? Mike Kaminski (STXS CEO) answers that STXS is assuming a worldwide number still between 250 and 300, and they get that through their partners. Half of them in the US and the lion’s share of the rest is in Europe and then bounce sprinkle. And China is coming up obviously with a very strong market. In other words, this is how large is the yearly market.

All in all, a good (but not stellar) quarter, and quite a bright horizon ahead for STXS.

Disclosure: I’m long STXS shares.

Just my opinion, not investment advice of any sort.

Stereotaxis Inc., my ten bagger candidate.

Giancarlo Nicoli — Sun, 28 Feb 2010 11:29:20 +0000

Stereotaxis Inc., my ten bagger candidate.

ahrahr (99.20)
ahrahr beat the market on Friday

CAPS Rank: 479 out of 69524

With STXS, I’m down -33.57% since I selected it with CAPS, against a S&P -9.38%. My CAPS loss is -24.19.

This post is going to be entirely devoted to Stereotaxis, Inc. (Nasdaq: STXS), which designs, manufactures, and markets cardiology instrument control system for use in hospital’s interventional surgical suite or interventional lab to treat arrhythmias and coronary artery disease.

Before delving into commentary and analysis of the company my background first.

Under the ahrahr nickname there’s a community pharmacist. Warren Buffett famously said that you should invest in what you understand. Thank you Mr. Buffett, my studies and my job allow me to understand most biotechnology and healthcare equipment and supplies companies.

Truth is, a cyberpal back in 2006 (if I recall correctly) alerted me — on a message board, that is — about this company. I studied it since then, and bought my first shares early in 2008.

The Stereotaxis main product, whose name is Niobe, is a proprietary Magnetic Navigation System that’s designed to allow physicians to more effectively navigate catheters, guidewires and other magnetic interventional devices, through the blood vessels and chambers of the heart to treatment sites and then to effect treatment. This is achieved using computer-controlled, externally applied magnetic fields that precisely and directly govern the motion of the internal working tip of the catheter, guidewire or other magnetic interventional devices.

What do I like about the company? Their equipment is superior both to the manual intervention technique and to the only competitor that now exists (it is Hansen Medical, Nasdaq: HNSN).

Why is it superior? Because:

#1 – It takes less time to navigate the catheter into the heart (times are commonly halved);

#2 – It allows physicians go in the cardiovascular system in places that are very difficult or impossible to reach with manual or robotic;

#3 – It is a safer procedure for the patient. Only one adverse event (not fatal) reported to date, against a 2-to-6 percent adverse event ratio with manual. Robotic procedures (i.e. those done with Hansen equipment) experience an adverse event ratio similar to manual.

#4 – It is a safer procedure for the physician. With either manual and robotic, the physician (with his/her heavy lead dress) has to stay close to the patient. Thus they are exposed to x-rays anyway. A Niobe machine is operated from a different, lead-shielded room. The physician gets zero x-rays. And his/her movements are without the heavy lead dress.

#5 – STXS actually has FDA approval to do procedures with Niobe equipment and both in-house and partnered catheters. HNSN product, the Sensei, only has FDA approval for mapping, but not for ablations. They are doing these off-label.

There are some hard facts I like about STXS as an investment. These are:

#1 – Intellectual Property rights. If you want to go magnetic, it’s Stereotaxis’ IP.

#2 – Companies that have magnetic catheters (Biosense Webster, a division of JNJ) or that are developing them (STJ), must use those catheters with Niobes. STXS gets a royalty every time those catheters are used.

#3 Leading international physicians are endorsing STXS. You can check this via PubMed and other peer-reviewed publications. Soon every EP lab will want to have a Niobe.

#4 There possibly is a bidding war for STXS on the horizon. If you want to be in the catheter business, STXS is what you must own. Remember, STXS has the Intellectual Property. A Niobe machine can now use catheters from JNJ, Biotronik and, in the near future, STJ. Just imagine that one of these players wants all the pie: one has to buy STXS and shuts all the competitors out. Bidders might also be GE, MDT, Siemens, Philips…

Next post will be a comment of the recently released Q4 and FY2009 data.

Disclosure: I’m long STXS shares.

Stereotaxis Reports 16% Revenue Increase in the Fourth Quarter 2009

Giancarlo Nicoli — Thu, 25 Feb 2010 11:31:27 +0000

from the press release

–New Orders Up 22% Sequentially; Second Consecutive Quarterly Increase

–Recurring Revenue Reaches Record $5.1 Million –Cash Burn Declines to $2.9 Million

–Full Year 2009 Revenue Up 27%; Gross Margin Percentage of 67%; Operating Expenses Decrease 14%

ST. LOUIS, Feb 25, 2010 /PRNewswire via COMTEX/ — Stereotaxis, Inc. (Nasdaq: STXS) today reported its financial results for the quarter and the year ended December 31, 2009. Revenue for the recent fourth quarter grew 16% to $14.1 million compared with $12.1 million in the same quarter a year ago. The Company recognized revenue on six Niobe(R) Magnetic Navigation Systems, nine Odyssey(TM) systems and four Odyssey Cinema(TM) systems, totaling $9.0 million. Disposables, services and accessories revenue set another record at $5.1 million, a 51% increase from the fourth quarter of 2008, attributable to favorable pricing and procedure growth. The 2009 fourth quarter operating loss decreased 9% to $5.8 million from $6.4 million in 2008.

For the full year 2009, revenue grew 27% to $51.1 million compared with $40.4 million in 2008. Recurring revenue increased 54% to $18.5 million from $12.0 million in 2008. Gross margin for the year was up 30% to $34.1 million, or 66.7% of sales, compared with 64.9% of sales in 2008. Operating expenses decreased 14%, resulting in a 42% reduction in the operating loss to $23.8 million in 2009 compared with the $41.0 million operating loss in 2008.

Michael P. Kaminski, President and Chief Executive Officer, said, “We are very pleased with our financial performance in 2009. Both systems revenue and revenue from disposables and services grew substantially during the year. During the quarter, we generated new orders totaling $7.7 million, up from $6.3 million in the third quarter and just $5.0 million in the second. The increase in orders is an indication that capital spending by hospitals is improving. The Odyssey platform continues to gain recognition in the market. There was substantial interest in the Odyssey platform at the Atrial Fibrillation Symposium in Boston last month. Physicians recognize Odyssey’s value in integration of diverse sources of diagnostic and other patient information into a single format, which provides improved efficiency, enhanced archiving and a unique opportunity to network labs and sites. We anticipate significant Odyssey revenue in 2010 from non-magnetic labs. We anticipate the economic recovery in the U.S. to result in increased commitments from hospitals for new capital projects. From a financial perspective, we are committed to driving revenue growth, generating solid gross profit margins and controlling our expenses,” Mr. Kaminski concluded.

Fourth Quarter 2009 Financial Performance

Gross margin for the quarter was $9.5 million, or 67.3% of revenue, compared with $8.2 million, or 67.6% of revenue, in the fourth quarter of 2008. Fourth quarter operating expenses increased 5% to $15.3 million from $14.6 million in the fourth quarter of the prior year as 2008 benefited from the reversal of certain non-cash compensation costs related to stock compensation programs. Cash burn improved 36% to $2.9 million for the fourth quarter of 2009 compared with $4.5 million in the fourth quarter of 2008.

The operating loss in the fourth quarter decreased 9% to $(5.8) million compared with $(6.4) million in the prior year. The Company reported a net loss for the fourth quarter of 2009 of $(6.7) million, or $(0.14) per share. This compares with a net loss for the fourth quarter of 2008 of $(7.5) million, or $(0.20) per share. The weighted average shares for the recent fourth quarter totaled 48.4 million compared with 36.7 million in the fourth quarter of last year. The increase was due in large part to the issuance of 7,475,000 shares as part of the secondary stock offering completed in October 2009.

Cash and equivalents at December 31, 2009 totaled $30.5 million, compared with $30.4 million at December 31, 2008. Included in the cash position at the end of 2009 was approximately $27.8 million in net proceeds received from the stock offering during the fourth quarter. Total debt was $23.7 million, including $10 million drawn against the Company’s $30 million line of credit. As previously disclosed, in October 2009 the Company received a commitment to expand its line of credit from $25 million to $30 million and to extend the maturity date from March 31, 2010 to March 31, 2011.

2010 Financial Guidance

The Company provided its outlook for 2010 as follows:

New capital order growth in excess of 40%
Total revenue growth in the mid-20% range
Gross margins above 65%
Operating expenses between $60 and $65 million

Conference Call Information

The Company has scheduled a conference call for 8:30 a.m. Eastern Time today to discuss its financial results for the fourth quarter. To access the conference call, please dial (877) 941-9205. International participants can call (480) 629-9866. An audio replay of the call will be available for seven days following the call at (800) 406-7325 for U.S. callers or (303) 590-3030 for those calling outside the U.S. The password required to access the replay is 4207018#. The call will also be available on the Internet live and for 90 days thereafter at the following URL:

http://www.videonewswire.com/event.asp?id=66045

About Stereotaxis

(Tables to follow)

STEREOTAXIS, INC.
STATEMENTS OF OPERATIONS (1)
(Unaudited)

Three Months Ended        Twelve Months Ended
December 31,              December 31,
2009        2008         2009           2008
----        ----         ----           ----
Revenue
System          $8,966,960   $8,743,693   $32,661,573   $28,375,880
Disposables,
service and
accessories     5,114,431    3,382,791    18,487,982    11,989,293
---------    ---------    ----------    ----------
Total revenue      14,081,391   12,126,484    51,149,555    40,365,173

Cost of revenue
System           3,990,424    3,233,985    13,240,430    12,008,090
Disposables,
service and
accessories       619,061      693,558     3,781,203     2,169,700
-------      -------     ---------     ---------
Total cost of
revenue            4,609,485    3,927,543    17,021,633    14,177,790

Gross margin        9,471,906    8,198,941    34,127,922    26,187,383

Operating expenses:
Research and
development     4,012,977    3,561,488    14,260,854    17,422,828
Sales and
marketing       7,269,738    5,363,663    28,694,540    28,660,663
General and
administration  4,003,449    5,663,051    15,010,490    21,121,164
---------    ---------    ----------    ----------
Total operating
expenses          15,286,164   14,588,202    57,965,884    67,204,655
----------   ----------    ----------    ----------
Operating loss     (5,814,258)  (6,389,261)  (23,837,962)  (41,017,272)
Other income/
(expense)            845,470            -       911,977             -
Interest income        10,699       29,205        44,768       194,870
Interest expense   (1,752,762)  (1,131,965)   (4,613,240)   (3,063,572)
----------   ----------    ----------    ----------
Net loss          $(6,710,851) $(7,492,021) $(27,494,457) $(43,885,974)
===========  ===========  ============  ============

Net loss per
common share:
Basic and
diluted          $(0.14)      $(0.20)       $(0.63)       $(1.20)
======       ======        ======        ======

Weighted average
shares used in
computing net
loss per common
share:
Basic and
diluted        48,374,735   36,714,618    43,344,324    36,585,086
==========   ==========    ==========    ==========

(1) On September 23, 2009, the Financial Accounting Standards Board
ratified Emerging Issues Task Force (EITF) Issue 08-1, creating
Accounting Standards Update (ASU) 2009-13 "Multiple-Deliverable
Revenue Arrangements".  The Company adopted this standard in the
fourth quarter of 2009, effective for transactions occurring on or
after January 1, 2009.  Since there were no material changes to any
amounts previously reported in 2009 or 2008, these periods were not
required to be restated.

STEREOTAXIS, INC.
BALANCE SHEETS

December 31,    December 31,
2009             2008
----             ----
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents                 $30,546,550      $30,355,657
Accounts receivable, net of allowance
of $322,463 and $328,307 in 2009 and
2008, respectively                        11,152,648        9,739,008
Current portion of long-term receivables       66,800          197,351
Inventories                                 4,403,675        8,086,956
Prepaid expenses and other current assets   3,872,535        2,966,510
---------        ---------
Total current assets                         50,042,208       51,345,482
Property and equipment, net                   4,790,310        6,420,600
Intangible assets                             1,144,445        1,277,778
Long-term Receivables                           138,441          298,123
Other assets                                      5,112           98,382
-----           ------
Total assets                                $56,120,516      $59,440,365
===========      ===========

Liabilities and stockholders' equity
Current liabilities:
Current maturities of long-term debt       $3,333,333       $3,901,491
Accounts payable                            3,881,205        4,561,928
Accrued liabilities                         8,615,287        9,873,818
Deferred contract revenue                   7,191,492        9,676,339
Warrants                                    4,142,614                -
---------              ---
Total current liabilities                    27,163,931       28,013,576

Long term debt, less current maturities      20,346,655       25,271,547
Long term deferred contract revenue             948,574        1,225,656
Other liabilities                                20,013          158,905

Stockholders' equity:
Preferred stock, par value $0.001;
10,000,000 shares authorized at 2009
and 2008; none outstanding at 2009
and 2008                                           -                -
Common stock, par value $0.001;
100,000,000 shares authorized at 2009
and 2008; 50,208,171 and 42,049,792
issued at 2009 and 2008, respectively         50,208           42,050
Additional paid-in capital                331,249,918      300,892,957
Treasury stock, 40,151 shares at 2009
and 2008                                    (205,999)        (205,999)
Accumulated deficit                      (323,452,784)    (295,958,327)
------------     ------------
Total stockholders' equity                    7,641,343        4,770,681
---------        ---------
Total liabilities and stockholders' equity  $56,120,516      $59,440,365
===========      ===========

SOURCE: Stereotaxis, Inc.