October 13, 2010 / 9:11 PM / in 7 years

UPDATE 1-Stereotaxis sees installation delays hurting Q3, Q4 rev

* May also see some delays in Q1, Q2 of 2011

* Cuts 2010 revenue growth view

* Raises 2010 capital orders outlook

* Shares fall 10 pct

Oct 13 (Reuters) - Medical device maker Stereotaxis Inc STXS.O said its third- and fourth-quarter revenue will be hurt by installation delays, and sees 2010 revenue to grow in the high single digit percentage range, down from previously expected mid-20 percent.

The company also expects to see some installation delays in the first and second quarters of 2011.

For the third quarter, Stereotaxis sees revenue of $13.5-$14 million. Analysts were expecting revenue of $16.1 million, according to Thomson Reuters I/B/E/S.

However, the company said it now expects capital orders for 2010 to increase by about 45-50 percent over 2009. Previously, it was expecting new orders for 2010 to increase by over 40 percent.

The broad medical device sector has recently fallen into hard times as a fallout of the economic recession that forced many Amricans to delay or go without medical care. [ID:nN05205430]

Capital equipment makers like Steretaxis -- which makes a cardiology-instrument control system for use in hospitals -- saw demand dwindling as hospitals try to cut costs in order to fight declining patient volumes.

The company’s shares, which lost 7 percent of their value since the company posted its second-quarter results, were down 10 percent to $3.69 in after-hours trade. They closed at $4.12 Wednesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Jarshad Kakkrakandy)

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