Accuray Amends Announcement of its Fiscal Third Quarter 2007 Financial Results
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Revenue, Operating Expenses, Cash Flows and Backlog Unaffected
SUNNYVALE, Calif., May 14 /PRNewswire-FirstCall/ -- Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, today issued an amended announcement of its fiscal third quarter 2007 financial results originally issued in a press release on May 1, 2007. The amended announcement of financial results reflects an additional $904,000 in costs of goods sold related to services. The amendment was identified by the Company during its quarterly review in preparation of its 10-Q for the quarter ended March 31, 2007. This amendment does not impact previously announced revenue, operating expenses, cash flows, or backlog but results in lower gross margins and a net loss for the quarter.
The Company is now announcing gross margin for the fiscal third quarter 2007 of 56.6 percent. The Company had previously announced gross margin for the fiscal third quarter 2007 of 59.0 percent.
The Company is now announcing a net loss for the fiscal third quarter 2007 of $0.8 million, or $0.02 per share. Previously, the Company had announced net income for the fiscal third quarter 2007 of $0.1 million.
For the nine months ended March 31, 2007, the Company is now announcing gross margin of 57.1 percent. The Company had previously announced gross margin of 58.1 percent for the nine-month period.
For the nine months ended March 31, 2007 the Company is now announcing a net loss of $6.1 million, or $0.26 per share. The Company previously announced a net loss of $5.2 million, or $0.23 per share for the nine-month period.
Accuray will hold a conference call for financial analysts and investors to discuss the corrections to the Company's previously announced results of operations for the third fiscal quarter today, May 14, 2007, at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are (800) 289-0533 (USA) or +1 (913) 981-5525 (International), Access Code: 7594903. A live webcast of the call will also be available from the Investor Relations section on the corporate Web site at http://www.accuray.com. In addition, a recording of the call will be available by calling (888) 203-1112 (USA) or +1 (719) 457-0820 (International), Access Code: 7594903, beginning at 3:00 p.m. PT / 6:00 p.m. ET, on May 14, 2007. A webcast replay will also be available from the Investor Relations section of the corporate Web site at http://www.accuray.com beginning at approximately 3:00 p.m. PT / 6:00 p.m. ET, on May 14, 2007. The telephone and webcast replays will remain available for 10 days following the live event.
Accuray Incorporated (Nasdaq: ARAY) based in Sunnyvale, Calif., is a global leader in the field of radiosurgery. Its CyberKnife System is the world's first and only commercially available intelligent robotic radiosurgery system designed to treat tumors anywhere in the body, typically with sub- millimeter accuracy. To date, it is estimated that the CyberKnife System has been used by physicians to treat more than 30,000 patients worldwide. For more information, please visit www.accuray.com.
Except for the historical information contained herein, the matters set forth in this press release, including statements as to financial guidance including realization of backlog, procedure growth and market acceptance, product development, clinical studies, regulatory review and approval, and commercialization of products, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward- looking statements. Important factors that could cause actual performance and results to differ materially from the forward-looking statements we make include: fluctuations in results of operations; reimbursement for the CyberKnife procedure; market acceptance of our products; government approvals of our products; intellectual property protection for our products; competing products; funding requirements; and other risks detailed from time to time under the heading "Risk Factors" in our report on Form 10-Q for the quarterly period ended March 31, 2007, as may be updated from time to time by our other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, our actual performance or results may vary materially from any future performance or results expressed or implied by these forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.
(C)2007 Accuray Incorporated. All rights reserved. Accuray, the Accuray logo, CyberKnife, Synchrony, Xsight and RoboCouch are among trademarks or registered trademarks of Accuray Incorporated.
Accuray Incorporated Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended Nine months ended March 31, March 31, 2007 2006 2007 2006 Net revenue: Products $29,515 $12,261 $75,591 $20,350 Shared ownership programs 2,437 2,145 7,248 5,860 Services 4,579 1,134 11,209 3,063 Other 809 760 2,410 2,224 Total net revenue 37,340 16,300 96,458 31,497 Cost of revenue: Costs of products 12,183 7,086 30,263 10,323 Costs of shared ownership programs 663 620 1,965 1,852 Costs of services 2,859 1,310 7,488 2,874 Costs of other 517 506 1,619 1,466 Total cost of revenue 16,222 9,522 41,335 16,515 Gross profit 21,118 6,778 55,123 14,982 Operating expenses: Selling and marketing 9,830 6,319 27,124 17,271 Research and development 6,951 4,141 19,265 13,051 General and administrative 6,100 3,852 16,855 10,239 Total operating expenses 22,881 14,312 63,244 40,561 Loss from operations (1,763) (7,534) (8,121) (25,579) Other income (expense) 1,040 (40) 1,350 (61) Loss before provision for income taxes and cumulative effect of change in accounting principle (723) (7,574) (6,771) (25,640) Provision for income taxes 62 116 185 196 Loss before cumulative effect of change in accounting principle (785) (7,690) (6,956) (25,836) Cumulative effect of change in accounting principle, net -- -- 838 -- of tax of $0 Net loss $(785) $(7,690) $(6,118) $(25,836) Net loss per common share, basic and diluted: Loss before cumulative effect of change in accounting principle $(0.02) $(0.48) $(0.30) $(1.62) Cumulative effect of change in accounting principle -- -- 0.04 -- Basic and diluted net loss per share $(0.02) $(0.48) $(0.26) $(1.62) Weighted average common shares outstanding used in computing net loss per share: Basic and diluted 37,018 16,100 23,137 15,953 Cost of revenue, selling and marketing, research and development, and general and administrative expenses include stock-based compensation charges as follows: Cost of revenue $398 $222 $848 $641 Selling and marketing $1,247 $627 $2,903 $1,918 Research and development $689 $407 $1,609 $1,220 General and administrative $1,350 $767 $3,412 $2,457 Accuray Incorporated Unaudited Condensed Consolidated Balance Sheets (in thousands, except share amounts) March 31, June 30, 2007 2006 (unaudited) Assets Current assets: Cash and cash equivalents $193,354 $27,856 Restricted cash -- 1 Accounts receivable, net of allowance for doubtful accounts of $20 at March 31, 2007 and June 30, 2006 15,285 11,698 Inventories 14,694 10,100 Prepaid expenses and other current assets 6,004 3,512 Deferred cost of revenue -- current 25,066 4,810 Total current assets 254,403 57,977 Property and equipment, net 24,657 21,945 Goodwill 4,495 4,495 Intangible assets, net 1,252 1,446 Deferred cost of revenue and other noncurrent assets 36,235 52,760 Total assets $321,042 $138,623 Liabilities, temporary equity and stockholders' equity (deficiency) Current liabilities: Accounts payable $13,012 $4,726 Accrued expenses 14,623 15,055 Customer advances and deferred revenue 62,200 41,979 Total current liabilities 89,835 61,760 Long-term liabilities: Customer advances and deferred revenue 111,359 130,214 Total liabilities 201,194 191,974 Commitments and contingencies (Note 6) Temporary equity Redeemable convertible preferred stock, no par value Authorized: 30,000,000 shares; issued and outstanding: none and 17,419,331 at March 31, 2007 and June 30, 2006, respectively; liquidation amount: none and $40,354 at March 31, 2007 and June 30, 2006, respectively. -- 27,504 Stockholders' equity (deficiency) Preferred stock, $0.001 par value; Authorized: 5,000,000 shares and none at March 31, 2007 and June 30, 2006, respectively; no shares outstanding. -- -- Common stock, $0.001 par value and no par value at March 31, 2007 and June 30, 2006, respectively; authorized: 100,000,000 and 70,000,000 shares at March 31, 2007 and June 30, 2006, respectively; issued and outstanding: 53,438,922 and 16,243,150 shares at March 31, 2007 and June 30, 2006, respectively. 53 13,276 Additional paid-in capital 246,571 43,988 Notes receivable from stockholders -- (206) Deferred stock-based compensation -- (17,272) Accumulated other comprehensive loss (17) -- Accumulated deficit (126,759) (120,641) Total stockholders' equity (deficiency) 119,848 (80,855) Total liabilities, temporary equity and stockholders' equity (deficiency) $321,042 $138,623
SOURCE Accuray Incorporated
investors, Robert McNamara, Senior Vice President and CFO, +1-408-789-4264, or
firstname.lastname@example.org, or Stephanie Tomei, Accuray PR Manager,
+1-408-789-4234, or email@example.com, both of Accuray Incorporated
Web site: http://www.accuray.com