Progress and Performance

COVER STORY

Stereotaxis began its pioneering work on automating cardiac interventions more than a decade ago. In that time, the company has established itself as a leader in remote navigation for all manner of interventional procedures with the Stereotaxis magnetic navigation system, introduced in 2003.

More than 120 Stereotaxis systems have been sold, mainly since 2005. Clinicians' use of the system has climbed steadily to more than 10,000 procedures, including 2000 percutaneous coronary interventions (PCI) and left ventricular lead placements; approximately 6000 right-sided electrophysiology mapping and ablation procedures; and nearly 2000 complex left-sided procedures.

The company's sales have tracked this solid clinical record. For the quarter ended June 30, 2007, the most recent quarter reported before press time, the company reported revenue of $7.8 million, a 105% increase compared with $3.8 million in the second quarter of 2006. As part of that total, revenue from disposables, services, and accessories set a new record, increasing to $2.1 million in the second quarter of 2007 from $1.0 million in the second quarter of 2006, reflecting increased usage across the installed base.

In the same period, purchase orders and other commitments for Stereotaxis systems totaled approximately $55 million. According to the company, there were more than 250 accounts in the company's mid- to late-stage pipeline, and another 300 accounts in the early stages of development.

Stereotaxis still hasn't turned the corner into profitability. The company lost $44 million ($1.39 per share) in 2005 and $46 million ($1.39 per share) in 2006, bringing its total investment tab to $214 million. But the company is at last experiencing clinical acceptance and revenue growth that bodes well for profitability in the long run.

Copyright ©2007 MX