ST. LOUIS, Aug. 5 Stereotaxis, Inc.(Nasdaq: STXS) today reported excellent results for the second quarter endedJune 30, 2008. Revenue for the recent second quarter increased 36% to $10.7million compared with $7.8 million in revenue in the second quarter of 2007.The record revenue for the second quarter was driven by strong sales of theNiobe(R) Magnetic Navigation System and the recently introduced Odyssey(TM)Network information management technology. Revenue in the second quarter of2008 from Niobe and Odyssey systems was $7.9 million, while disposables,services and accessories revenue was $2.8 million. Operating expenses, asidefrom the Company's contribution to the re-engineering of the magneticirrigated catheter, were $1.3 million less than one year ago and $300,000 lessthan in the first quarter of 2008. In the second quarter of 2007, revenuefrom Niobe systems sales was $5.8 million and disposables, services andaccessories revenue was $2.0 million.
"This was a very solid quarter for Stereotaxis and the Company madeexcellent progress on a number of fronts," said Bevil Hogg, Chief ExecutiveOfficer of Stereotaxis. "Our second quarter revenue represents revenuerecognition on eight Niobe systems, as well as growth in sales of our Odysseysystems. New orders were approximately $14 million, a record second quarterfor the Company. Our backlog reached a record $72 million and we had nocancellations during the period. In addition, our efforts to reduce expensesare generating results."
"The increase in the number of Niobe systems recognized in second quarterrevenue compared with the first quarter was achieved despite the lack ofavailability of an irrigated catheter," continued Mr. Hogg. "And, there wasexcellent progress in the second quarter toward resolving the specificationconformance issues that led to the magnetic irrigated catheter's withdrawal inEurope in early 2008. During the week of July 7, Biosense Webster, ourpartner in the development of this catheter, filed a PMA supplement with theU.S. Food and Drug Administration, immediately followed by a CE Mark filingwith European regulators, approximately one month ahead of our expectations.We believe these filings provide the surest approval process for the return tothe market of the irrigated catheter. Pending regulatory approvals, we areoptimistic that sales of the magnetic irrigated catheter will be able toresume in the fourth quarter of 2008 in Europe and shortly thereafter in theU.S. We expect that the availability of the irrigated catheter will drivesubstantially greater utilization of our installed base of Niobe Systems."
"Odyssey continues to show strong customer acceptance with orders of $2.1million in the second quarter," said Mr. Hogg. "During the recent quarter, wesold our first Odyssey for use outside of a Niobe system lab. In addition, weare introducing Odyssey Cinema(TM), an innovative new product. Odyssey Cinemarecords procedures and enables physicians to receive a real-time highdefinition view from any point in the network of installed Odyssey systems.In addition, the Cinema Archiver(TM) feature allows clinicians to store andreplay entire procedures or segments of procedures, providing them with a newtool for collaboration, remote consultation, and training. We previewed theOdyssey Cinema and Archiver at the Heart Rhythm Society conference in May andthey were enthusiastically received by the clinicians in attendance. We werealso very pleased with our recent agreement with Biosense Webster to co-promote and expand Odyssey by granting Biosense Webster non-exclusive rightsto use our information management technology to provide its customers withclinical and technical support. We believe this agreement with BiosenseWebster will help to accelerate the deployment of Odyssey across a broadspectrum of interventional labs."
"Lastly, our recent $18 million financial arra