8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) May 7, 2009

STEREOTAXIS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

000-50884	94-3120386
(Commission File Number)	(IRS Employer Identification No.)

4320 Forest Park Avenue, Suite 100, St. Louis, Missouri	63108
(Address of Principal Executive Offices)	(Zip Code)

(314)678-6100

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On May 7, 2009, Stereotaxis, Inc. issued a press release (the “Press Release”) setting forth its financial results for the first quarter of fiscal 2009. A copy of the Press Release is being filed as Exhibit 99.1 hereto, and the statements contained therein are incorporated by reference herein.

In accordance with General Instruction B.2. of Form 8-K, the information contained in Item 2.02 and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Stereotaxis, Inc. Press Release dated May 7, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	STEREOTAXIS, INC.
Date: May 8, 2009	By:	/s/ James M. Stolze
	Name:	James M. Stolze
	Title:	Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Document
99.1	Stereotaxis, Inc. Press Release dated May 7, 2009.

EX-99.1

Exhibit 99.1

  Company Contact: Jim Stolze Chief Financial Officer 314-678-6105   Investor Contact: EVC Group, Inc. Douglas Sherk & Jenifer Kirtland 415-896-6820   Media Contact: EVC Group, Inc. Steve DiMattia 646-201-5445

Stereotaxis Reports First Quarter 2009 Financial Results

Total Revenue $11.1 Million, 58% Increase From Prior Year

Recurring Revenue Climbs to All Time High of $4.3 Million

Record Gross Margin of 69%

Operating Expenses Decrease 17% from Prior Year, Resulting in a 46% Reduction in Operating Loss

St. Louis, MO, May 7, 2009 —Stereotaxis, Inc. (NASDAQ: STXS) today reported financial results for the first quarter ended March 31, 2009. Revenue for the first quarter of 2009 totaled $11.1 million, an increase of 58% over the $7.0 million reported for the same period in 2008. The company recognized revenue on five Niobe® Magnetic Navigation Systems and five Odyssey™ systems totaling $6.9 million, while disposables, services and accessories revenue was a record $4.3 million, a 61% increase versus the same period in 2008. Purchase orders in the first quarter for Niobe and Odyssey systems totaled $8.8 million, resulting in an ending backlog of $67 million. The Company’s operating expenses fell to $14.8 million, a 17% decrease from the first quarter of 2008.

Michael P. Kaminski, President and Chief Executive Officer, said, “During the first quarter, we demonstrated strong revenue growth, exceptionally strong margins on all our products, and a significant uptick in recurring revenue, driven primarily from the launch of the magnetic irrigated catheter. Additionally, the organization continues to focus on key initiatives and drive robust processes resulting in an improvement in operating expenses from prior year.

“The commercial rollout of the magnetic irrigated catheter in Europe and in the U.S. is proceeding very well,” Mr. Kaminski added. “All European sites are launched and the rollout began in early March for the U.S. sites. Utilization increased by approximately 40% in March compared with January, reflecting the rapid ramp-up of usage in the U.S. Early clinical results of the magnetic irrigated catheter usage have been positive. Electrophysiologists are pleased with the ability of the catheter to deliver effective transmural lesions. Some of the initial results will be presented at the upcoming Heart Rhythm Society conference in Boston.” Mr. Kaminski said.

“We continue to see a marked increase in interest in our Odyssey and Cinema systems not associated with a Niobe platform. The pipeline for our Standard Cath Lab Odyssey systems has grown and we anticipate a pick up in these orders throughout the year,” continued Mr. Kaminski.

“Overall, we are pleased with the results of the first quarter, but recognize there is more work to do. We are energized by the release of our new products and even in light of the current macro trends, are optimistic regarding 2009.” Mr. Kaminski concluded.

First Quarter 2009 Financial Performance

Gross margin for the quarter was $7.7 million, or 69% of revenue, compared with $4.6 million, or 65% of revenue in the first quarter of 2008.

Total first quarter operating expenses decreased 17% to $14.8 million, compared with $17.8 million in the first quarter of 2008. Most notable reductions occurred in research, development and general and administrative spending, while expenditures for sales and marketing support continued at near prior year levels.

The Company reported a net loss for the first quarter of 2009 of $7.5 million, or $(0.18) per share. This compares with a net loss for the first quarter of 2008 of $13.5 million, or $(0.37) per share. The weighted average shares for the recent first quarter totaled 41.3 million compared with 36.5 million in the first quarter of last year. The increase was due in large part to the issuance of 4.4 million shares as part of two concurrent private placements of stock completed in December 2008.

Cash used in operations was $10.4 million for the first quarter of 2009. Cash used in operations during the second quarter of 2009 is expected to be significantly lower than the first quarter of 2009. Cash and equivalents at March 31, 2009 totaled $18.8 million, compared with $30.4 million at December 31, 2008. Total debt amounted to $29.2 million, including $13.2 million drawn against the Company’s $25 million line of credit.

Conference Call Information

The Company has scheduled a conference call for 8:30 a.m. Eastern Time today to discuss its financial results for the first quarter. To access the conference call, please dial (800) 257-7063. International participants can call (303) 262-2075. An audio replay of the call will be available for seven days following the call at (800) 405-2236 for U.S. callers or (303) 590-3000 for those calling outside the U.S. The password required to access the replay is 11130340#. The call will also be available on the Internet live and for 90 days thereafter at the following URL:

http://www.videonewswire.com/event.asp?id=58066

About Stereotaxis

Stereotaxis designs, manufactures and markets an advanced cardiology instrument control system for use in a hospital’s interventional surgical suite to enhance the treatment of arrhythmias and coronary artery disease. The Stereotaxis system is designed to enable physicians to complete more complex interventional procedures by providing image guided delivery of catheters and guidewires through the blood vessels and chambers of the heart to treatment sites. This is achieved using computer-controlled, externally applied magnetic fields that

govern the motion of the working tip of the catheter or guidewire, resulting in improved navigation, shorter procedure time and reduced x-ray exposure. The core components of the Stereotaxis system have received regulatory clearance in the U.S., Europe, Canada and elsewhere.

This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance for the Company’s products in the marketplace, the effect of global credit and economic conditions on the ability and willingness of customers to purchase our systems, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, timing of regulatory approval and return of the irrigated catheter to the market, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. There can be no assurance that the Company will recognize revenue related to its purchase orders and other commitments in any particular period or at all because some of these purchase orders and other commitments are subject to contingencies that are outside of the Company’s control. In addition, these orders and commitments may be revised, modified or canceled, either by their express terms, as a result of negotiations, or by project changes or delays.

STEREOTAXIS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended March 31,
	2009			2008
Revenue
System	$	6,860,807		$	4,377,398
Disposables, service and accessories		4,272,327			2,651,053
Total revenue		11,133,134			7,028,451
Cost of revenue
System		2,563,483			1,856,102
Disposables, service and accessories		897,199			569,960
Total cost of revenue		3,460,682			2,426,062
Gross margin		7,672,452			4,602,389
Operating expenses:
Research and development		3,309,862			4,698,797
Sales and marketing		7,453,439			7,663,713
General and administration		4,038,156			5,476,122
Total operating expenses		14,801,457			17,838,632
Operating loss		(7,129,005	)		(13,236,243	)
Other income		250,937			–
Interest income		26,972			107,728
Interest expense		(678,991	)		(402,651	)
Net loss	$	(7,530,087	)	$	(13,531,166	)
Net loss per common share:
Basic and diluted	$	(0.18	)	$	(0.37	)
Weighted average shares used in computing net loss per common share:
Basic and diluted		41,281,130			36,493,662

STEREOTAXIS, INC.

BALANCE SHEETS

	March 31, 2009			December 31, 2008
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	18,799,762		$	30,355,657
Short-term investments
Accounts receivable, net of allowance of $436,957 and $328,307 in 2009 and 2008, respectively		12,569,981			9,739,008
Current portion of long-term receivables		190,968			197,351
Inventories		8,145,691			8,086,956
Prepaid expenses and other current assets		4,934,792			2,966,510
Total current assets		44,641,194			51,345,482
Property and equipment, net		6,955,458			6,420,600
Intangible assets		1,244,445			1,277,778
Long-term Receivables		284,457			298,123
Other assets		98,863			98,382
Total assets	$	53,224,417		$	59,440,365
Liabilities and stockholders' equity
Current liabilities:
Current maturities of long-term debt	$	13,901,491		$	3,901,491
Accounts payable		5,330,995			4,561,928
Accrued liabilities		8,709,512			9,873,818
Deferred contract revenue		8,418,545			9,676,339
Warrants		4,803,654			–
Total current liabilities		41,164,197			28,013,576
Long term debt, less current maturities		15,294,783			25,271,547
Long term deferred contract revenue		1,100,321			1,225,656
Other liabilities		146,465			158,905
Stockholders' equity:
Preferred stock, par value $0.001; 10,000,000 shares authorized at 2009 and 2008; none outstanding at 2009 and 2008		–			–
Common stock, par value $0.001; 100,000,000 shares authorized at 2008 and 2007; 42,384,136 and 42,049,792 issued at 2008 and 2007, respectively		42,384			42,050
Additional paid-in capital		299,170,680			300,892,957
Treasury stock, 40,151 shares at 2008 and 2007		(205,999	)		(205,999	)
Accumulated deficit		(303,488,414	)		(295,958,327	)
Total stockholders' equity		(4,481,349	)		4,770,681
Total liabilities and stockholders' equity	$	53,224,417		$	59,440,365