Stereotaxis 3Q revenue hurt by installation delays
Stereotaxis Inc., which makes devices to help doctors treat coronary artery disease and irregular heartbeat, said Wednesday that revenue will only rise slightly in the third quarter because of installation delays.
The company expects revenue between $13.5 million and $14 million during the quarter. A year prior, it had $13.3 million in revenue. Analysts polled by Thomson Reuters expect revenue of $16.6 million.
Meanwhile, the company expects full-year revenue to rise in the "high single-digit" percentage range, compared with prior guidance of the "mid-20 percent" range. In 2009, the company's revenue was $51.1 million.
"Contributing to the aforementioned delays, the company has been notified by an imaging partner that, due to production constraints, they will not install any magnetically compatible x-ray systems from the fourth quarter of 2010 until the second quarter of 2011," the company said, in a statement.
The company also said a small number of Niobe installations will be impacted from the first to second quarters.
Still, the company highlighted its boost in capital orders, saying that is a better indication of commercial strength. The company said the revenue delay is an issue of system placements and not lost business.
Capital orders rose 94 percent to $12.2 million in the third quarter. The company said orders for its Niobe Remote Magnetic Navigation System totaled $8.1 million, while OdysseyT system orders more than doubled to $4.1 million.
Looking ahead, the company expects capital orders for 2010 to increase 45 percent to 50 percent over 2009 levels, up from an earlier forecast for a 40 percent increase.
Shares of Stereotaxis rose 9 cents to close at $4.12.