Medical equipment maker Stereotaxis Inc. (STXS) posted fourth-quarter fiscal 2010 loss per share of 5 cents, lower than the Zacks Consensus Estimate of a loss of 11 cents and the year-ago loss of 14 cents. For the full year, loss per share of 39 cents was also below the Zacks Consensus Estimate of a loss of 49 cents and the earlier-year loss of 63 cents.
The Missouri-based company has trimmed its losses in the fourth quarter by roughly 63% year over year to $2.5 million, helped by solid growth in new capital orders, higher gross margins and lower expenses.
Revenues for the quarter rose 2.8% year over year to $14.5 million, but trailed the Zacks Consensus Estimate of $17 million. Delays associated with the installation of the company’s solutions impacted revenue growth in the quarter. For the fiscal, Stereotaxis raked in $54.1 million in sales, up 5.7% year over year, but missed the Zacks Consensus Estimate of $57 million.
Stereotaxis offers the Niobe Magnetic Navigation System, which allows physicians to perform complex interventional procedures. Moreover, its Odyssey Enterprise Solution integrates and records all lab data allowing physicians to focus on the patient for optimal procedure efficiency.
Revenues from Niobe and Odyssey systems were $5 million and $3.3 million, respectively, in the fourth quarter. Roughly 8,900 electrophysiology procedures were performed with the Niobe system during 2010, up 26% year over year.
New capital orders surged 48% year over year in the quarter to $11.4 million. Niobe systems orders cruised 84% to $8.3 million, while Odyssey system orders came in at $3.1 million. For fiscal 2010, new capital orders climbed 48% year over year to $41 million.
Gross margin for the quarter climbed to 73.4% from 67.3% a year-ago owing to higher revenues and lower cost of sales. Management’s cost-cutting initiatives led to a 7.8% year over year reduction in operating expenses which registered $14.1 million.
The company ended fiscal 2010 with cash and cash equivalents of $35.2 million, up roughly 15% year over year. Total debt increased 22% year over year to $28.9 million.
For 2011, Stereotaxis expects revenue growth between 20% and 30%. New capital orders have been forecast to grow in the mid-30% range. Moreover, gross margins for the year have been pegged in the high-60% range while operating expenses are expected in the band of $62 million to $63 million.
Stereotaxis develops and markets advanced cardiology instrument control system for use in cardiac catheterization labs for the treatment of coronary artery disease and arrhythmias. The company, in January 2011, extended its long-standing exclusive global collaboration with its existing strategic partner for the distribution of the approved magnetic ablation catheters through end-2015. Stereotaxis’ competitors include Boston Scientific (BSX) and Edwards Lifesciences (EW).
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