Stereotaxis Inc. Q2 2009 Earnings Call Transcript

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2009-08-06 12:31:25.0

Tags: Microsoft ASP, Stereotaxis Inc., Call Transcript, Quarter, Earnings, Pricing Strategy, Pricing, Marketing Research, Scripting Languages, Marketing, Software/Web Development, Web Development, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) The first question comes from Charley Jones from Barrington Research. Please go ahead.

Charley Jones your line is open. Okay. We’ll go with the questions. Spencer Nam from Summer Street Research. Please go ahead.

Spencer Nam - Summer Street Research

Just a couple of questions. Number one, this backlog we were looking at some where in the $63 million backlog last quarter. So, it was apples-to-apples is the 59 million apples-to-apples comparison versus last quarter. How to get above that?

Mike Kaminski

Yes, it is.

Spencer Nam - Summer Street Research

Okay, I see. Then related to this, the orders that are coming in say between now and the end of the year those are most likely to recognize sometime in 2010, is that fair to estimate that one?

Mike Kaminski

We have one to four customers that have requested shipment this year of Niobe and of course Odyssey will be different. Because they ordered a cash cycle on Odyssey is much more compact than Niobe, but I’d expect your general statement that Niobe orders between now and the first quarter of 2010 will largely be shipping in 2010.

Spencer Nam - Summer Street Research

Got it and then on the pricing side. The based on numbers that I have, it looks like that maybe the average selling price of Niobe was little below the historical ASP? Now you mentioned in the call that the pricing was steady and I couldn't quite get the numbers right. How the pricing work out?

Mike Kaminski

On the call, I was talking about the income orders. For the pricing on the incoming orders is continued to be steady. There are two or three issues that impact what I call apparent pricing, Spencer.

Spencer Nam - Summer Street Research

Okay.

Mike Kaminski

One is depends on the individual contract. Some contracts will have 5% withheld pending installation, some will have 10% or 15%. So, it's a mix of how much and we don't recognize until installation is completed. So, in one case I might hold back 15% of the ASP, when I shipped and recognized revenue and the other case, then I'd hold back 5%. So, you can see it 10% swing in ASP depending on which type of contract you have in that given quarter.

In addition, as I mentioned we have several distributor orders this quarter and we do passed through some concession to distributors. Although all those systems were actually shipped directly to the hospitals and I think every distributor orders shipped this quarter is actually in the process of installation at the relevant hospital.

 

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