Accuray Announces Results for First Quarter of Fiscal 2011

November 8, 2010 at 4:11 PM EST

SUNNYVALE, Calif., Nov. 8, 2010 /PRNewswire via COMTEX/ --

Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the first quarter of fiscal year 2011, ended September 30, 2010.

For the first quarter of fiscal 2011, Accuray reported total revenue of $38.1 million, a decrease over the first quarter of fiscal 2010 total revenue of $50.6 million.

Net loss for the first quarter of fiscal 2011 was $4.6 million, or $0.08 per share, compared to net loss of $3.3 million, or $0.06 per share, during the same period last year.

During the first quarter of fiscal 2011, seven orders for CyberKnife(R) Robotic Radiosurgery Systems were added to company backlog, with a total value of $33.8 million. In addition, new service and other ancillary orders with a value of $16.8 million were signed. During the first quarter, one order was canceled by a customer and removed from backlog.

Total backlog for the end of the first quarter of fiscal 2011 was $381 million, with approximately $136 million associated with CyberKnife System contracts and approximately $245 million associated with services and other recurring revenue.

In the first quarter of fiscal 2011, nine new CyberKnife Systems were installed, increasing the worldwide CyberKnife installation base to 216.

"Our first quarter results were consistent with the guidance provided and reflective of the seasonality of our business in orders, shipments and revenue," said Euan Thomson, president and chief executive officer of Accuray Incorporated. "We are confident that the continued strong book-to-bill ratio of the past four quarters is a positive indicator of future revenue growth and should be reflected in significantly stronger revenue during the second half of the current year."

Accuray's cash and investment balances at the end of the first quarter of fiscal 2011 totaled $140.9 million, which includes cash and cash equivalents of $42.5 million, restricted cash of $22,000 and short-term investments of $98.3 million.

Outlook

The following statement is forward-looking and actual results may differ materially. During fiscal year 2011 Accuray maintains the expectation that revenue will be in the range of $210 million to $225 million.

Additional Information

Additional information regarding backlog segmentation, which will be discussed during the conference call, is available in the Investor Relations section of the company's Web site at www.accuray.com.

Earnings Call Open to Investors

Accuray will hold a conference call for financial analysts and investors on Monday, November 8, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-800-901-5259 (USA) or 1-617-786-4514 (International), Conference ID: 52510687. A live webcast of the call will also be available from the Investor Relations section on the company's Web site at www.accuray.com. In addition, a recording of the call will be available by calling 1-888-286-8010 (USA) or 1-617-801-6888 (International), Conference ID number: 26757984, beginning at 5:00 p.m. PT / 8:00 p.m. ET, November 8, 2010 and will be available through November 11, 2010. A webcast replay will also be available from the Investor Relations section of the company's Web site at www.accuray.com from approximately 5:00 p.m. PT / 8:00 p.m. ET today through Accuray's release of its results for the second quarter of fiscal 2011, ending December 31, 2010.

About the CyberKnife(R) Robotic Radiosurgery System

The CyberKnife Robotic Radiosurgery System is the world's only robotic radiosurgery system designed to treat tumors anywhere in the body non-invasively. Using continual image guidance technology and computer controlled robotic mobility, the CyberKnife System automatically tracks, detects and corrects for tumor and patient movement in real-time throughout the treatment. This enables the CyberKnife System to deliver high-dose radiation with pinpoint precision, which minimizes damage to surrounding healthy tissue and eliminates the need for invasive head or body stabilization frames.

About Accuray

Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is a global leader in the field of radiosurgery dedicated to providing an improved quality of life and a non-surgical treatment option for those diagnosed with cancer. Accuray develops and markets the CyberKnife Robotic Radiosurgery System, which extends the benefits of radiosurgery to include extracranial tumors, including those in the spine, lung, prostate, liver and pancreas. To date, the CyberKnife System has been used to treat more than 100,000 patients worldwide and currently more than 215 systems have been installed in leading hospitals in the Americas, Europe and Asia. For more information, please visit www.accuray.com.

Safe Harbor Statement

This press release contains forward-looking statements, including those concerning Accuray's expectations about revenue for fiscal year 2011, the portion of revenue attributable to CyberKnife System revenue, gross margin, profitability, customer installation schedules, realization of backlog and service activity. Forward looking statements involve risks and uncertainties that may lead to actual results varying materially from the forward looking statements. Accordingly, investors are cautioned not to place undue reliance on such statements. Many factors could cause actual performance or results to differ materially from these forward looking statements, including, but not limited to the uncertainties associated with the medical device industry; variability of installation and sales cycle including customer financing and construction delays; changes in the regulatory environment, including reimbursement for CyberKnife procedures; market acceptance of products; and the impact of competition. These and other risks are discussed under the heading "Risk Factors" in our report on Form 10-K for the 2010 fiscal year which has been filed with the Securities and Exchange Commission, as updated in our Form 10-Q filed on even date herewith. The Company assumes 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.

Accuray Incorporated

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)


Three months ended

September 30,
2010

September 30,
2009

Net revenue:




Products

$ 19,275

$ 30,346

Shared ownership program

641

481

Services

17,734

19,654

Other

418

94

Total net revenue

38,068

50,575

Cost of revenue:




Cost of products

7,325

14,651

Cost of shared ownership program

172

321

Cost of services

11,800

13,920

Cost of other

534

64

Total cost of revenue

19,831

28,956

Gross profit

18,237

21,619

Operating expenses:




Selling and marketing

7,760

8,649

Research and development

8,047

7,662

General and administrative

8,559

8,930

Total operating expenses

24,366

25,241

Loss from operations

(6,129)

(3,622)

Interest and other income, net

1,616

485

Loss before provision for income taxes

(4,513)

(3,137)

Provision for income taxes

127

139

Net loss

$ (4,640)

$ (3,276)




Net loss per common share, basic and diluted:


Basic

$ (0.08)

$ (0.06)

Diluted

$ (0.08)

$ (0.06)

Weighted average common shares outstanding used in computing net loss per share:




Basic

58,667

56,713

Diluted

58,667

56,713

Cost of revenue, selling and marketing, research and development, and general and administrative expenses include stock-based compensation charges as follows:




Cost of revenue

$ 463

$ 231

Selling and marketing

$ 244

$ 808

Research and development

$ 674

$ 648

General and administrative

$ 1,115

$ 1,418

Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)


September 30,


June 30,


2010

2010

Assets


Current assets:




Cash and cash equivalents

$ 42,542

$ 45,434

Restricted cash

22

22

Short-term marketable securities

98,330

99,881

Accounts receivable, net of allowance for doubtful accounts of $266 at September 30, 2010 and $115 at June 30, 2010

36,779

37,955

Inventories

30,014

28,186

Prepaid expenses and other current assets

10,637

19,356

Deferred cost of revenue--current

8,494

7,889

Total current assets

226,818

238,723

Property and equipment, net

17,065

14,684

Goodwill

4,495

4,495

Intangible assets, net

323

388

Deferred cost of revenue--noncurrent

3,066

3,213

Other assets

1,815

1,681

Total assets

$ 253,582

$263,184

Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$ 10,677

$ 10,317

Accrued expenses

14,130

21,455

Customer advances--current

15,730

12,884

Deferred revenue--current

37,552

42,019

Total current liabilities

78,089

86,675

Long-term liabilities:




Long-term other liabilities

1,019

1,059

Deferred revenue--noncurrent

5,774

5,374

Total liabilities

84,882

93,108




Stockholders' equity




Preferred stock, $0.001 par value; authorized: 5,000,000 shares; no shares issued and outstanding.

-

-

Common stock, $0.001 par value; authorized: 100,000,000 shares; issued: 60,999,300 and 60,666,974 shares at September 30, 2010 and June 30,2010, respectively; outstanding: 58,859,282 and 58,526,956 shares at September 30, 2010 and June 30, 2010, respectively

60

59

Additional paid-in capital

290,937

287,764

Accumulated other comprehensive income

46

(71)

Accumulated deficit

(122,343)

(117,676)

Total stockholders' equity

168,700

170,076

Total liabilities and stockholders' equity

$ 253,582

$263,184

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.

Euan Thomson, Ph.D.

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=81869

SOURCE Accuray Incorporated