Q1 2022 Stereotaxis Inc Earnings Call
Please standby we're about to begin.
Good morning, Thank you for joining us for stereo taxes first quarter 2022 earnings conference call.
Certain statements during the conference call and question and answer period to follow may relate to future events expectations and as such constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Such statements involve known and unknown risks uncertainties and other factors, which may cause the actual results performance or achievements of the company in the future to be materially different from the statements that the company's executives may make today.
These risks are described in detail in our public filings with the Securities and Exchange Commission, including our latest periodic report on Form 10-K or 10-Q.
Assume no duty to update these statements.
At this time, all participants have been placed in a listen only mode. The floor will be opened for questions and comments following the presentation.
As a reminder, today's call is being recorded.
It is now my pleasure to turn the floor over to your host David Fisher, Chairman and CEO of stereo, Texas.
Thank you operator, and thank you all for joining us this morning.
On our last call two months ago, we provided a fairly comprehensive overview of stereotactic mission strategic focus and progress we will keep today's call.
This is both a challenging and exciting period for stereotactic.
On the heels of last year, where we demonstrated a restart in capital adoption and overall sales growth. Our primary challenge has been driving consistent momentum and growth and capital activity.
We are operating in a macro environment with a host of pandemic related supply chain personnel and economic disruption.
In the face of the we demonstrated the ability to successfully launch Genesis and start building a capital sales capability.
While system orders and sales have progressed slower than expected we are making progress.
The $11 million in system revenue, we recorded in that year was higher than any other year in almost a decade.
We received an additional genesis orders since our call two months ago from an existing U S Hospital customers.
Given only the orders we have already received we are in.
Track for system revenue. This year that is approximately 90% of the total system revenue, we reported last year with multiple additional near term opportunities. We are confident we will show system revenue growth this year.
You are still in the early stages of setting ourselves up for a multiyear period.
Consistent revenue growth.
While many factors are outside of our control there are factors within our control that we can improve our commercial sophistication accountability and strategy.
Our responsibility to focus on what we can control.
We are developing a new capital sales platform to provide better transparency into the global capital pipeline and more clearly flagged risks and actionable items to focus on during the effort to advance any individual deal given.
Given the complexity of each capital deal and organized platform like this it's very helpful and creating clarity and providing actionable guidance.
We hope this will fundamentally improve commercial execution, while simultaneously, making us better at forecasting results with relevant pipeline analytics.
Beyond this capital sales platform, we're looking to enhance our team with new senior sales leadership in Europe , where we see a particular opportunity for both clinical adoption and capital sales with the upcoming launch of our magic out there.
Most important for broader adoption of robotics is that new users have positive experiences with our technology, good clinical outcomes and successful growing practices.
First quarter was particularly exciting for us on this front.
During the quarter, we launched for the first time in many years multiple fully greenfield robotically three practices.
Hospital entirely new to robotics.
<unk> entirely new to our technology.
Launches took place at honor health in Scottsdale, Arizona.
National Institute of Cardiology in Warsaw, Poland, and food why Central Hospital in China.
We are delighted to see utilization at these practices and across the installed base of Genesis system greatly exceed global averages.
Exiting the first quarter.
Three new practices performing procedures at a rate over 50% higher than the average robotic practice.
When you look at our Genesis system globally, the utilization on the systems is over 100% higher than the average robotic practice.
While there are various factors that impact utilization the success of the Genesis system and these launches reflects well on the real world performing clinical value and relevance of our technology and the performance of our team.
Qualitatively and speaking with physicians, it's been heartening to hear how pleased they are with the technology and how they find value across a broad range of arrhythmia procedures beyond their original expectations.
This positivity is helping create and perhaps also mirrors similar.
Sentiment that is emerging in the field.
Recently at the Heart Rhythm Society conference in San Francisco, and before that at the European Heart Rhythm Association conference in Copenhagen.
In both conferences, we have an increasingly positive tone emerging around stereotactic and our robotic technology.
We are busy with many physicians test driving our system.
Changing long established reputation encountering misperception takes time, but there clearly seems to be a qualitative turning of the corner stereotaxis be increasingly views as innovative relevant energetic and reliable.
Innovation is key to living up to that reputation.
On our last call we discussed in more detail our technology pipeline.
Five key pillars of our innovation strategy service synergistic in independent growth drivers collectively they enable a future where robotic technology is broadly accessible and can be used with a robust ecosystem modern catheter in P and for a wide range of Endovascular procedures.
We're continuing to methodically advance these technologies and our progress remains consistent with previously provided timeline with many of these approaching regulatory submission and initial commercialization within the coming year.
Collectively these innovations are transformational breath of the company and serve as the foundational product ecosystem for pre eminent medical robotics company that can broadly transform endovascular interventions they.
They allow for dramatic structural improvements to our commercial capability and we are excited by the impact of these innovations will have in 2023 and beyond.
Jim will now provide some commentary on our financial results and then I'll make a few financial comments as well before opening the call to Q&A.
Thank you David and good morning, everyone.
Revenue for the first quarter at 2022 totaled 7 million. This is down from $8 6 million in the prior year first quarter, primarily due to recognizing revenue on one robotic system this quarter compared to two systems in the same quarter last year.
System revenue of $1 6 million reflects initial revenue recognition on the delivery of a greenfield Genesis system.
Recurring revenue for the quarter of $5 4 million compared to five 8 million in the prior year first quarter with revenue impacted by slightly lower service revenue and procedural vote.
Gross margin for the first quarter of 2022 with 70% of revenue.
Recurring revenue gross margin of 85% remains consistent with previous quarters.
Gross margin of 21% continues to reflect significant allocation of overhead expenses over low manufacturing volume.
Operating expenses in the quarter at 9 million included $2 5 million in noncash stock compensation expense.
Excluding stock compensation expense adjusted operating expenses were $6 5 million compared to the prior year adjusted operating expenses of $6 2 million.
Operating loss and net loss in the first quarter were both approximately $4 1 million compared to one 5 million in the previous year.
Adjusted operating loss and net.
For the first quarter, excluding noncash stock compensation expense for $1 6 million negative free cash flow for the first quarter was $3 3 million.
March 31, we had cash and cash equivalents of $36 nine.
I will now hand, the call back to David.
Thank you Kim.
Given the system orders, we received to date along with our late stage pipeline. We are reiterating our guidance of revenue growth for the year driven by continued commercial adoption of the Genesis our system and stable recurring revenue.
Revenue for the year will be primarily recognized in the second half of the year.
We continue to be focused on driving our commercial and technological progress while maintaining financial prudence.
Challenging macroeconomic environment extensively the importance of self sufficiency and financial stability.
The $3 million negative free cash flow, we had last quarter is above the more normalized level. We've previously shown you expect going forward.
<unk> a meaningful amount of cash payments made for the building of our new headquarters as well as continued purchases of robot inventory given.
Given the challenging supply chain environment, it wouldn't be prudent to try to tighten inventory purchases and so we've been willing to spend on inventory earlier than necessary to protect against the uncertainty in supply time.
We continue to view, our balance sheet with $37 million of cash and no debt is very strong.
We feel comfortable investing in our team and the infrastructure and projects that are critical for success and will continue to do so while staying relatively near breakeven our existing balance sheet allows us to establish and commercialize the product ecosystem, we are developing and reached profitability without the need for financing.
We look forward to now taking your questions. Operator can you. Please open the line for Q&A.
Thank you to signal for a question. Please press star one on your telephone keypad also if you are using a speaker phone. Please make sure that your mute button is turned off to allow your signal to reach our equipment.
Once again it is star one for questions and first we'll go to Frank <unk> with Lake Street capital markets.
Great. Thanks for taking my questions and congrats on all the progress I wanted to start on the new programs you called out the <unk>.
Utilization youre seeing from those as well as the Genesis installed base, maybe just take us in a little bit deeper into what those programs fully entail and if theres any early learnings that you can extrapolate out to Genesis users as far as utilization averages once fully scaled versus the previous installed base.
Sure so.
I mentioned that was one of the real highlights of the last few months is that the launch of these completely new Greenfield site.
Obviously, several genesis installations over the last year and a half.
So since we launched Genesis.
Most of those were either to users who had moved to a new hospital, but had a lot of experience with our technology previously or they were replacement projects at existing hospitals.
In the first quarter, we had a launch in each of the three major geographies.
With completely new physicians that completely new hospitals.
What was nice was how how positive overall those launches have been.
Feedback that we received from site has been fantastic and then and so overall, that's very heartening. When you can go to completely new users in and launch things smoothly and they are.
They are grateful and excited to be part of the of.
The robotic community and so that has been particularly nice I gave I think on the on the call.
Utilization numbers for those three tight exiting the first quarter was that was about over 50% higher than what our average utilization globally is that old robotic site and at the Genesee site.
Globally.
We are now at over 100% of the utilization.
A typical robotic sites. It obviously utilization is driven by various factors in some of the early adopters of Genesis are particularly high robotic users regularly.
But still I think it points to the fact that Genesis is working very nicely in the field.
Feedback has been positive and hopefully we can maintain that type of that those types of statistics going forward.
Great. Okay, I'll just ask one more I think last quarter you called out for late stage replacement conversations ongoing can you give us an update on those four was one of the orders in the quarter. What is the order in the quarter one of those four and then what's the status of the other three if that's the case.
Yes.
Order that we received was one of those four and we have.
The continued discussions with other parties.
Some in the very late stages and start Matt.
Moving forward and again those were called out specifically is one that we're very easy to identify is very very high likelihood orders, but but there remains a relatively robust pipeline behind those of the hospitals that we're engaging with.
Perfect I'll stop there thanks for taking my questions and congrats again on all the progress.
Thank you.
Moving on we'll go to Adam Maeder with Piper Sandler.
Hey, good morning, Congrats on the progress and thank you for taking the questions here, maybe just to start with one on the the top line expectation and just trying to.
Deconstruct that a little bit so David did I hear correctly with the orders that you have in hand.
Year to date Youre on track for 90% of system revenue that you had last year.
Is that kind of like the driving force that combined with the pipeline, while you expect system revenue.
To grow year over year, I, just wanted to kind of better understand that.
Are those puts and takes and I had a follow up or two thanks.
Sure Hi, Adam Yes, you heard that exactly correctly, so with the existing orders that we have already announced now.
We would come out to system revenue for this year.
Approximately 90% of last year and so.
So based off of that and the fact that we are still working on the orders that we expect to turn into revenue this year and we're confident in the guidance of growth.
In reality, we need one additional order and we would be above last year's level.
Okay I appreciate it.
Are there.
And then maybe just to ask.
A big picture question next just on capital environment.
Are you seeing any kind of material changes and just capex budgets at hospital customers.
Obviously.
There is some macroeconomic.
The.
Challenges and pressures that are seemingly kind of coming down the pike. So just wondering if you've seen any shifts or have things kind of remain.
Fairly resilient.
Like we've seen over the past two years, despite the pandemic and then I had one quick follow up thanks.
So it's hard to discern.
Pattern that crosses all sides and anecdotally there are areas, where where there is incremental pressure and incremental financial pressure I think because of some of the costs that hospital systems are seeing and then their reluctance to spending more and but then also there are.
Many cases, where business continues as usual or where there might be continued pressure, but obviously electrophysiology labs are are importing.
Financial centers of the hospital and and if they need to invest then there they are ready to invest so so I think kind of gets a little bit of a mixed bag I can't say that there has been.
Any sea change in the environment, but.
But we're definitely still working in an environment full of headwinds I think headwinds.
Our customers perspective, and just general macro headwinds.
Okay understood. That's helpful. And then just the last one and thanks for taking the questions here.
Just on the.
The pipeline, so RF ablation catheter.
And in the mobile system it sounds like those are tracking.
According to plan in line with previous timelines.
Just talk about the.
The level of conviction in.
And delivering against those guideposts.
Kind of what's what's left to do before.
And position to kind of make those regulatory submissions. Thanks again.
Sure. So yes, we are on track for.
Development timelines and submission timelines on the magic catheter, specifically the proprietary ablation catheter that we're developing and we have done the vast vast majority of all the testing required for CE Mark submission I think we're waiting to hear back.
One or two final test that were being done in an outsourced lab and concurrent with waiting for those results were also compiling all of the information for the CE Mark submission and so we should be able to do that in the summer time, hopefully earlier in the summer.
And.
So thats obviously on track with what we described on the last call and then obviously the regulatory review period is is not up to our timeline, but hopefully that would allow for a commercial launch towards the end of this year beginning of next year.
And with the mobile system. We're also developing that we're still in the stages of hardcore.
Hardcore development of various aspects of the technology and working on the prototypes that we built.
But but but given kind of where we are to date.
Still comfortable with the previous you've reiterated your guidance.
Have a submission around year end.
So our commercialization.
Next year.
Okay perfect. Thank you.
And moving on we'll go to Alex Nowak with Craig Hallum Capital Group.
Great Good morning, everyone.
David I'll turn it open for those three greenfield sites, how much I guess did the innovation coming down from surface access in a new catheter, but also the interventional tools, how much does that play into their decision making to adopt Genesis and then just taking that beyond the three sites, but just in your ordering conversations how critical are those new tools and the conversation.
Sure Hi, Alex Good morning, So I would say that probably the knowledge that we are developing a next generation of ablation catheter.
That has been known to the community since we started commercializing Genesis and I think it is important for them to know that there is a future not just in terms of the new robot, but in terms of new new ablation catheters and that overall concept of an open ecosystem around robotics, and so I think that that was no.
When these hospitals order Genesis and it is an important consideration because.
Just the robot by itself without the product ecosystem.
It is.
It is not particularly meaningful so they do think about it in terms of the ecosystem I'd say one of our biggest challenges still now is the fact that we are we.
We don't have a newer catheter and the only catheter that's able to be used with the robot is 15 years old and Theres definitely is pressure, where some sites aren't willing to invest in things based off the future promises they want to see what's available now and so I'd say, that's probably one of the bigger pressures, we have on our technology and adoption of our rollout right now.
The fact that there isn't a newer interventional technologies available to be used with the robot.
I'd say the availability of a guide wires guide catheters.
The ability to use the robot for broader indications that was probably not part of any of the consideration of the hospitals when they purchase and it's just kind of over the last couple of months few months that we've started to engage with with hospitals.
And our existing physician installed base and more regularly sharing with them. What we're doing also on the vascular navigation side and then starting to prepare them for when our guide wires available are the types of procedures that might be interesting to perform with it and so I think that that will that will start to become more part of the conversation going.
But that was that was not really part of the conversation in the past.
That's very helpful. And then maybe expand on the investments you're making in the changes youre, making to the commercial organization.
What have you done so far what an additional do you plan to do over this year and then maybe just kind of highlight the current salesforce com plant structure for logic Genesis or sorry, Jonathan This time.
Sure. So I think I've described before that the vast majority of our commercial team is focused on clinical adoption and working with our existing customers around the world to make sure that they are successful.
<unk> practices and we have a relatively small.
Capital sales team.
And that includes various people in sales leadership, who spend a good portion of their timeline capital sales and I guess, what I describe our capital sales capability.
Our efforts in the past is on the one hand, we did.
Create various infrastructure that is helpful and things like ROI model or <unk>.
Or or or.
The clinical dossier that we created that summarizes all of the clinical data.
In a thoughtful fashion.
Our information on the model S X ray and its image quality and radiation dose things and so we created various types of materials, but overall I'd say that our efforts were what type of hustle and.
And really relying.
Predominantly on the relationship with the physician and being responsive to their questions and to their needs and then and that was the <unk>.
Primary ways by which we advance debt deals what.
What we've noticed is that often times.
Physicians.
Only have part of the picture of how our capital process is advanced or what the main determining factors are or even the timing of things.
Timing that a physician provider might be very very different than what an administrator provides once youre able to actually speak with the administrator and so as we've been learning and again its stereo, Texas for many years stereotactic, having practically no capital sales.
We're building a capital sales capability.
And from a from a standing stop so as we've been going through these learnings.
We are becoming somewhat more sophisticated in the red flags to watch out for and the things that can delay projects and so we're trying to channel all of those learnings into a more organized process that then that allows us to to one provide kind of a.
Kind of a quicker clarity on the status of a project across the key key drivers of that project moving forward is to provide better guidance to the.
Our sales team on what are the next actionable items that are most impactful are the gaps anywhere in terms of literature or end or kind of tool sets that would be helpful. And then and are the red flags that kind of should be addressed much earlier in the process before they become.
Materials. So I think there's just kind of a mature duration of all of our capital sales process that we are developing and I think that will kind of still take us a long way from moving from this more hustling environment to add to a more mature organization.
Very helpful. And then just lastly, we're hearing about some shortages of hospitals biotech saw another contrast engaged it just curious if youre seeing that delay any potential cath lab procedures in the last couple of weeks.
You've been seeing delays in what.
Io axle and other contracting agents.
That I have not heard I've heard all sorts of things coming from the field in terms of the challenges that hospitals I've not heard that one yet so we.
We do hear still staffing issues, we hear various times so.
Certain types of supply constraints, but I've not heard that one.
Okay. That's good I appreciate the update thank you.
Thank you.
And next we'll go to Jason Wittes with loop capital.
Hi, Thanks for taking the questions maybe just a follow up in terms of your discussions on capital equipment sales has the mobile unit come into play there.
Our customers.
Customers are aware of it and are are they reacting to it.
There is now some of what they earn it.
I'd say that.
I do not believe that has impacted the genesis orders to date.
And I think overall it is unlikely to have an impact on the vast majority of our Genesis pipeline.
And particularly on the replacement cycle side, there is some awareness, though and there is some.
Some discussions already on hospitals that that might be interested in that type of platform.
Okay and then.
I know you've mentioned timelines are pretty much are basically in line for these discussed last quarter.
I think you've always sort of.
Or kind of of <unk>.
You mentioned that the U S approval for the catheter was roughly two years away from the European approval is that still the right way to think about.
Coming on that.
Yes.
<unk> roughly right. We would then we would be filing for an IV E.
<unk>.
In the second half of this year after the CE, Mark submission and with a little bit of additional testing we have to do an incremental to the CE Mark submission for the IV and then and then we would run the IV trial and submit the PMA as the IV trial.
Overall constructive it is relatively well defined by now given our discussions with FDA and it should be a relatively quick follow up period.
Maximum three bonds and so.
And so we think that's a trial that can go fairly quickly given the type of arrhythmia and the fact that we have an installed base of users.
Content that should be a trial that can be fairly quickly and have a short follow up and so on and so as we as we are able to submit the IDE get that trial started hopefully progress should be relatively quick.
Great I'll jump back to you. Thank you very much.
Thank you.
And Josh Jennings with Cowen has our next question.
Hi, good morning, Thanks for taking the questions.
Hoping to just get.
Get a better understanding David how are you.
Your your sales team is approaching or viewing the opportunity within idms in the United States I know you have now.
<unk> and <unk>.
Placed at some major hospital systems, and IBM I think Kaiser HCA.
And sometimes those those ibm's take.
Best practices approach in and replicate the highest.
The best technology and the most efficient.
Strategies.
From one hospital system to two others.
Do you see do you see these IV Ns as an opportunity and how is your sales force kind of attacking that channel currently.
Yes.
Yeah, So hi, Josh that's a great question and particularly the two you mentioned HCA and Kaiser R. R. Ibm's, what we do have a very successful robotic practices.
Great clinical outcomes very efficient practices.
And so kind of are viewed very positively and we.
Well I would say that the challenge in some ways a broader deal at an idea and mimics the challenges that I described earlier of how accessible is your robot and how.
What type of disposable product ecosystem interventional product ecosystem is available to work with the robot and the more that you address those two items the more the easier. It is for an IBM to think about a multi system purchased which can then be deployed broadly across the house.
Total network and so we do.
You were at the Heart Rhythm Society Conference you noticed us sitting with one of the networks probably is there and we do have those discussions.
I think overall, we have been.
Particularly at one of those we have good visibility.
Two to senior leadership also at the corporate side and they have good visibility into the impact that our technology has and more more generally.
At some of their key accounts, and then and hopefully we'll be able to advance something over the coming.
On the quarters, but again I think that the.
The concepts of accessibility of robotics, and having a broader ecosystem of interventional devices very impactful one at generally for any customers and particularly for <unk> as you think about and as you think about.
Wanting to pursue a multi system order that gets deployed broadly across accounts.
Thanks, Thanks for that and follow up on just China.
And you're building out your ecosystem with <unk>.
<unk> products with Mike report.
There's challenges over there.
Covid has been impactful, but hopefully though.
Some of the Lockdowns will open up but what are you seeing over there.
Any hurdle and ensure there is challenges in terms of this collaboration with Mike report, but how should we be thinking about 2023, and <unk> and where that ecosystem will stand and then.
Facilitate.
Rapid and new orders for your capital your robotics system in China.
Sure. So overall, we're delighted about our collaboration with micro Port and as you mentioned and as is obvious said theres been more pressure in China recently, a lot of that a lot of the micro <unk> team a lot of our team has generally been stuck in quarantine over the last several weeks.
If we look at just our numbers are recurring revenue procedure numbers were obviously hit later in the quarter and this quarter based off of reduced staff.
Our procedures in China, but that.
<unk>, what we've seen kind of in other geographies when COVID-19 have flare ups.
And overall I think very impactful.
But I think kind of the primary effort and as we've described in the past is the building of this robust ecosystem getting Genesis approved having not been integration with the with Microsoft's mapping system.
Bringing both the magic catheter and a family of Micropore catheters to market in China and that really allows you to take advantage of the robust commercial organization that might report has been in the country and then an overall.
Despite the the multiple disturbances there and it's a it seems to be going fairly well in terms of advancing that product ecosystem, even during the lockdown that we've been in communication with their team on a fairly regular basis. There is progress being made and so on so we still look towards.
Our 2023 is a year, where and most likely the majority of that product ecosystem comes together and you can start to engage the broader microphone commercial team in stronger launch in China.
And just to thank you for that and just to follow up on the China market I know there was a.
Dataset I think published last year.
Around.
Asymptomatic through <unk> and the <unk>.
The different the lower much lower rates or nonexistent rates and robotic magnetic navigation Carter completion cases relative to kind of stand your manual radiofrequency ablation cases.
Is that is that data said, taking trash contraction over over in China and are there any follow up studies planned to investigate that phenomenon further.
Yes, so the data that you described is.
Is the one where they did pre operative and post operative imaging of then somewhere 150 or so patients.
And that we're getting atrial fibrillation ablation, some robotics and manual and showed an 80% or so reduction in silent cerebral strokes in the robotic arm. So that overall it was a beautiful study and it did generate some interest and we have actually a few sites that have been that have been.
Talking about potentially trying to replicate the study to corroborate the data so.
So there has been some interest in it and again I think that.
Clinical data.
Shifting behavior relatively gradually in the world of procedural medicine, and but but there are there have been a few physicians that I've talked about wanting to do a follow on study on that same topic.
Great and then just last question on the neurovascular.
<unk> Guidewire.
<unk> program.
Any updates there or anything you can change in terms of how we should be thinking about the development progress and tracking it over the course of 2022. Thanks for taking my questions David I appreciate it.
Sure. So so overall, where we are.
We're in the development Manny.
Manufacturing scale up and then testing phase and.
And we still look towards that.
Roughly the turn of the year as a period of when we would begin.
Beginning of next year at a time, when we should be able to start commercializing. The first in a family of guide wires and and and and then we'll kind of follow that up with say with a few variance of guide wires and then also the guide catheters.
That's first guidewire will be kind of our initial foray into the vascular navigation World and then and then that product ecosystem.
Build itself out over the over the coming quarters.
Great. Thank you.
Thank you.
And next we'll go to Javier Francecca with Spartan capital.
Hello, David and Kim Thanks for taking my call a quick question as far as the <unk>.
Catherine So early earlier in the call. It was mentioned that as far as the timeline of bringing the catheter to market and my question is.
Other than than any meaningful changes.
Despite the timeline.
When can investors really expect considerable growth in recurring revenue from the <unk> catheter.
So we'd expect to start to see next year in 2023, as we launch the catheter in Europe and to start to see the impact of the catheter.
Being adopted in Europe , and then hopefully also driving get broader utilization of robotics with the launch.
And there's probably going to be in Europe , theres going to be somewhat of a gradual aspect to it just because certain countries can adopt it and kind of very easily after Steve Mark approval, others still have local tender requirements and so you have to kind of grind your way through and.
Through that but overall, we'd start to see in 2023 some of the impact and then and then obviously as we as we expand throughout Europe and as we are able to achieve U S FDA approval.
It would be that would be kind of the second big step up.
Okay.
Excellent and my follow up question is on lines.
A new mobile system.
So sumit.
Assuming market approval.
What do you expect the typical sales mix toward Viper system system revenue between Genesis system.
It's very hard at this point to to guesstimate that.
<unk>.
There's both there's a value to both systems.
And it depends a little bit on the clinical indication.
And the geography and.
And how confident the hospital.
And then wanting to adopt robotic program that there are certain that theyre going to be committed to for multiple years or that they want to just try and see how it goes and so at this stage I think it's a little bit too premature to estimate that I think that over the longer term and the concept of that.
Highly accessible robotics is.
It is likely to be more impactful and so I think that you would have more of a trend towards mobile systems.
Time, but in terms of kind of for the first few years of adoption, it's hard to it's hard to be to be certain what that mix would be.
Excellent thanks for taking my questions.
Sure. Thank you.
And that concludes our question and answer session I would like to turn it back to our presenters for any additional or closing comments.
Okay. Thank you for your questions and for your continued support and interest in stereo taxes.
We look forward to working hard on your behalf in the coming months and speaking again next quarter. Thank you.
Thank you and that does conclude today's conference we'd like to thank everyone for their participation you may now disconnect.