STXS - Stereotaxis Makes A Strategic Acquisition Bolstering Its Future

2024-05-23 04:38:03 ET

Summary

• Stereotaxis made a strategic acquisition of catheter company Access Point Technologies, which is expected to contribute $5 million in sales in the first 12 months after the acquisition.
• Access Point will help Stereotaxis release a robotically navigated guide catheter and a robotically navigated mapping catheter.
• Stereotaxis is working with regulators to get MAGiC approved. The CE Mark should be coming late this summer. PMA approval should come at year-end.
• The semi-mobile robot is set to be submitted to regulators in June.
• In addition to a guidewire Innovation Day, Stereotaxis will host an Innovation Day later this year focused on digital surgery.

Stereotaxis Reports Solid Results

We must contextualize Stereotaxis’ ( STXS ) reported results until their new products get approved. The company will have limited sales growth and a modest cash burn in the meantime. This doesn’t mean we shouldn’t analyze the current business. It just shouldn’t be where the majority of our focus lies. I have fairly low expectations for the existing business, but very high expectations for the medium term (next ~2 years). With that in mind, let’s briefly look at the Q1 results.

Stereotaxis reported $6.9 million in sales, which slightly missed estimates for $7.05 million. I was confident its guidance would be met because I (correctly) thought the Genesis installations for Q1 were already done by the time the March Q4 call occurred. Stereotaxis recognized one installation in the quarter and the partial sale of another one....

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