Knock knock, anybody here?
Not sure if anyone here is interested in STXS with it broken and with no institutional support. Below is Goldman update. Predictable, not much analysis and they adjust price target to real time quotes.
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Stereotaxis, Inc. (STXS): Irrigated catheter delay a significant setback, reducing estimates
March 4, 2008
What's changed
Stereotaxis reported 4Q2007 results. (1) As pre-announced, revs were $10 mn. (2) A total of 7 systems were installed during the qtr, 6 in the US. (3) The backlog at year-end was $59 mn, up $1 mn from the 3Q. (4) Biosense Webster has suspended the production/shipment of the irrigated catheter to resolve out-of-spec manufacturing that has led to char formation. A root cause analysis has yet to be completed and mgmt hopes for a broader launch by mid-2008. (5) Due to the uncertainty in timing for the irrigated catheter, mgmt refrained from providing 2008 guidance and now anticipates profitability in 2009. (6) Mgmt estimates there are more than 275 accounts in the mid/late stage pipeline and expects the avg installed base (systems that are installed, trained, and producing revenues) to increase from 60 systems in 2007 to 100 systems in 2008 and 150 in 2009.
Implications
Considering the recent pace of system installations has been governed by the visibility/availability for the irrigated catheter, the launch delay for the irrigated is a significant setback for the Stereotaxis story. What remains unclear is how system installation and backlog growth will be affected in 2008/2009 and what the recurring revenue outlook will be in outer years. Given the reduced visibility for the irrigated catheters, we believe management’s expectations to establish an average installed base of 150 systems in 2009 seems aggressive. We are reducing our 2008 rev estimate to $50.0 mn (vs. our prior est of $58.4 mn) and our 2009 rev est to $83.0 mn from $87mn. We maintain our Neutral rating on STXS shares.
Valuation
We are reducing our 6-mos price target from $8 to $4.50, based on an equal weighting of our 10-year DCF and EV/sales analyses. |
