UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  August 31, 2010

 


 

ACCURAY INCORPORATED

(Exact name of registrant as specified in its charter)

 

Delaware
(State or other jurisdiction of incorporation)

 

001-33301

 

20-8370041

(Commission File Number)

 

(IRS Employer Identification No.)

 

1310 Chesapeake Terrace
Sunnyvale, California 94089

(Address of principal executive offices, including Zip Code)

 

Registrant’s telephone number, including area code: (408) 716-4600

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On August 31, 2010, Accuray Incorporated (the “Company”) issued a press release announcing its financial results for the fourth quarter and fiscal year 2010, ended June 30, 2010.  A copy of the Company’s press release dated August 31, 2010, titled “Accuray Announces Results for Fourth Quarter and Fiscal Year 2010” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The foregoing information (including the exhibit hereto) is being furnished under “Item 2.02 Results of Operations and Financial Condition” (including the exhibit hereto) and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Number

 

Description

99.1

 

Press Release dated August 31, 2010, titled “Accuray Announces Results for Fourth Quarter and Fiscal Year 2010.”

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

ACCURAY INCORPORATED

 

 

Dated: August 31, 2010

By:

/s/ Darren J. Milliken

 

 

Darren J. Milliken

 

 

Senior Vice President, General Counsel & Corporate Secretary

 

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EXHIBIT INDEX

 

Number

 

Description

99.1

 

Press Release dated August 31, 2010, titled “Accuray Announces Results for Fourth Quarter and Fiscal Year 2010”

 

4


 

Exhibit 99.1

 

Contacts:

 

Tom Rathjen

 

Stephanie Tomei

 

 

Vice President, Investor Relations

 

Senior Manager, Marketing Communications

 

 

+1 (408) 789-4458

 

+1 (408) 789-4234

 

 

trathjen@accuray.com

 

stomei@accuray.com

 

Accuray Announces Results for Fourth Quarter and Fiscal Year 2010

 

Strong CyberKnife® Orders Highlight Quarter and Fiscal Year

 

SUNNYVALE, Calif., August 31, 2010 — Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the fourth quarter and fiscal year 2010, ended June 30, 2010.

 

For the fourth quarter of fiscal 2010, Accuray reported total revenue of $61.8 million, a 5.1 percent increase over the fourth quarter of fiscal 2009 total revenue of $58.8 million. For the fiscal year ended June 30, 2010, total revenue was $221.6 million, a twelve million dollar decrease from the $233.6 million in total revenue recorded for fiscal year 2009.

 

Net income for the fourth quarter of fiscal 2010 was $5.0 million, or $0.08 per diluted share, compared to net income of $1.2 million, or $0.02 per diluted share, during the same period last year. Net income for fiscal year 2010 was $2.8 million or $0.05 per diluted share, compared to net income of $609,000 or $0.01 per diluted share for fiscal year 2009.

 

During the fourth quarter of fiscal 2010, 16 CyberKnife® Robotic Radiosurgery Systems were added to company backlog, with a total value of $74 million. In addition, new service and other ancillary orders with a value of $18 million were signed.  During the fourth quarter, one order was canceled by a customer and removed from backlog.

 

Total backlog for the end of the fourth quarter of fiscal 2010 was $374 million, with approximately $132 million associated with CyberKnife System contracts and approximately $242 million associated with services and other recurring revenue.

 

In the fourth quarter of fiscal 2010, 10 new CyberKnife Systems were installed, making a full year installation total of 31 systems. At the end of the 2010 fiscal year, the worldwide CyberKnife installation base was 206.

 

“With 16 CyberKnife orders added into backlog, we are pleased to report another strong quarter of continued sales momentum, which has yielded 56 net orders for fiscal 2010,” said Euan Thomson, president and chief executive officer of

 

1



 

Accuray Incorporated.  “Cancer patients worldwide are receiving highly precise, non-invasive, state-of-the-art radiosurgery treatment from an expanding base of installed CyberKnife Systems.”

 

Accuray’s cash and investment balances at the end of the fourth quarter of 2010 totaled $145.3 million, which includes cash and cash equivalents of $45.4 million, restricted cash of $22,000 and short-term investments of $99.9 million. Not included in the year-end cash and investments balance was $5.9 million, net, of in-transit cash associated with the liquidation of our auction-rate securities on June 30, 2010, which was received on July 1, 2010.

 

Outlook

 

The following statement is forward-looking and actual results may differ materially.  During fiscal year 2011 Accuray expects revenue to 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 Tuesday, August 31, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-578-5771 (USA) or 1-617-213-8055 (International), Conference ID:  28021423.  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: 24002694, beginning at 5:00 p.m. PT / 8:00 p.m. ET, August 31, 2010 and will be available through September 3, 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 first quarter of fiscal 2011, ending September 30, 2010.

 

About the CyberKnife® 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.

 

2



 

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 95,000 patients worldwide and currently more than 206 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. 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.

 

# # #

 

3



 

Accuray Incorporated

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended

 

Years ended

 

 

 

June 30, 2010

 

June 27, 2009

 

June 30, 2010

 

June 27, 2009

 

Net revenue:

 

 

 

 

 

 

 

 

 

Products

 

$

41,482

 

$

39,495

 

$

141,297

 

$

159,257

 

Shared ownership program

 

469

 

454

 

1,890

 

3,651

 

Services

 

19,617

 

18,614

 

77,504

 

66,344

 

Other

 

220

 

240

 

934

 

4,346

 

Total net revenue

 

61,788

 

58,803

 

221,625

 

233,598

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Cost of products

 

18,559

 

19,010

 

65,197

 

68,904

 

Cost of shared ownership program

 

142

 

121

 

1,019

 

775

 

Cost of services

 

11,873

 

12,377

 

50,732

 

44,591

 

Cost of other

 

156

 

205

 

659

 

4,038

 

Total cost of revenue

 

30,730

 

31,713

 

117,607

 

118,308

 

Gross profit

 

31,058

 

27,090

 

104,018

 

115,290

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

8,296

 

9,870

 

34,187

 

45,493

 

Research and development

 

8,373

 

9,185

 

31,523

 

35,992

 

General and administrative

 

8,393

 

7,710

 

35,472

 

36,223

 

Total operating expenses

 

25,062

 

26,765

 

101,182

 

117,708

 

Income (loss) from operations

 

5,996

 

325

 

2,836

 

(2,418

)

Interest and other income, net

 

(683

)

646

 

1

 

3,082

 

Income before provision for income taxes

 

5,313

 

971

 

2,837

 

664

 

Provision (benefit) for income taxes

 

292

 

(251

)

(4

)

55

 

Net income

 

$

5,021

 

$

1,222

 

$

2,841

 

$

609

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic and diluted:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.09

 

$

0.02

 

$

0.05

 

$

0.01

 

Diluted

 

$

0.08

 

$

0.02

 

$

0.05

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Basic

 

58,205

 

56,238

 

57,560

 

55,413

 

Diluted

 

60,564

 

59,324

 

60,191

 

58,729

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

553

 

$

484

 

$

1,721

 

$

2,285

 

Selling and marketing

 

$

54

 

$

923

 

$

1,433

 

$

3,441

 

Research and development

 

$

913

 

$

860

 

$

2,850

 

$

3,190

 

General and administrative

 

$

889

 

$

1,518

 

$

4,642

 

$

6,545

 

 

4



 

Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

 

 

 

June 30,

 

June 27,

 

 

 

2010

 

2009

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

45,434

 

$

36,835

 

Restricted cash

 

22

 

527

 

Short-term marketable securities

 

99,881

 

64,634

 

Accounts receivable, net of allowance for doubtful accounts of $115 at June 30, 2010 and $484 at June 27, 2009

 

37,955

 

36,427

 

Inventories

 

28,186

 

28,909

 

Prepaid expenses and other current assets

 

19,356

 

6,186

 

Deferred cost of revenue—current

 

7,889

 

18,984

 

Total current assets

 

238,723

 

192,502

 

Long-term marketable securities

 

 

57,252

 

Property and equipment, net

 

14,684

 

15,066

 

Goodwill

 

4,495

 

4,495

 

Intangible assets, net

 

388

 

668

 

Deferred cost of revenue—noncurrent

 

3,213

 

2,933

 

Other assets

 

1,681

 

1,470

 

Total assets

 

$

263,184

 

$

274,386

 

Liabilities and stockholders' equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

10,317

 

$

14,941

 

Accrued expenses

 

21,455

 

16,188

 

Customer advances—current

 

12,884

 

13,185

 

Deferred revenue—current

 

42,019

 

68,105

 

Total current liabilities

 

86,675

 

112,419

 

Long-term liabilities:

 

 

 

 

 

Long-term other liabilities

 

1,059

 

288

 

Customer advances—noncurrent

 

 

 

Deferred revenue—noncurrent

 

5,374

 

7,777

 

Total liabilities

 

93,108

 

120,484

 

 

 

 

 

 

 

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: 60,666,974 and 58,783,159 shares at June 30, 2010 and June 27, 2009, respectively; outstanding: 58,526,956 and 56,643,529 shares at June 30, 2010 and June 27, 2009, respectively.

 

59

 

57

 

Additional paid-in capital

 

287,764

 

273,946

 

Accumulated other comprehensive income (loss)

 

(71

)

416

 

Accumulated deficit

 

(117,676

)

(120,517

)

Total stockholders' equity

 

170,076

 

153,902

 

Total liabilities and stockholders' equity

 

$

263,184

 

$

274,386

 

 

5