Accuray Announces Results for Fourth Quarter and Fiscal Year 2013

August 27, 2013 at 4:25 PM EDT
Continued Momentum in New Order Activity and Backlog Provides Guidance for Fiscal 2014

SUNNYVALE, Calif., Aug. 27, 2013 /PRNewswire/ -- Accuray Incorporated (Nasdaq: ARAY) announced today financial results for the fourth quarter and fiscal year ended June 30, 2013. Non-GAAP results are provided to enhance understanding of Accuray's ongoing core results of operations.

Accuray announced continued strength in new orders booked in the fourth quarter and first patients treated in the United States with the new CyberKnife® M6™ and TomoTherapy® H™ Series Systems as well as continued financial discipline, operating expense control and decreased operating losses.

"This was the second quarter in which we have shown growth and improvement in new order volume, driven by the actions we have taken to improve the commercial focus and execution of our business. I am encouraged that while we have seen improved commercial momentum, at the same time we have also reduced operating expenses, resulting in significantly lower operating losses and cash usage," said Joshua H. Levine, president and chief executive officer of Accuray.

Accuray also announced that based on final results from extensive durability testing, the Company is pursuing alternative manufacturing strategies for the InCise™ multileaf collimator (MLC) option on the CyberKnife M6 System. "Despite delays surrounding the initial shipment of our MLC, we are encouraged by feedback that the expanded feature set and functionality of our CyberKnife M6 System is driving improved clinical benefits for patients and economic value for our customers," said Joshua H. Levine, president and chief executive officer of Accuray.

Financial Highlights
Gross new product orders totaled $71.6 million during the fourth quarter of fiscal 2013, up $17.8 million or 33% from $53.8 million during the third quarter of fiscal 2013. Net new product orders totaled $58.1 million during the fourth quarter of fiscal 2013, up $14.0 million or 32% from $44.1 million during the third quarter of fiscal 2013. Ending product backlog of $317.4 million was 7% higher than $297.9 million at the end of the previous quarter, and 12% higher than $283.6 million at the end of the prior year fourth quarter.

During the fourth quarter of fiscal 2013, 14 units were shipped and 15 were installed, increasing Accuray's worldwide installed base to 700 systems.

For the fourth quarter of fiscal 2013 Accuray reported total consolidated GAAP and non-GAAP revenue of $84.9 million. By comparison, for the fourth quarter of fiscal 2012, total GAAP revenue was $100.5 million and total non-GAAP revenue was $101.1 million. On a non-GAAP basis, product revenue was down by 36.6 percent from the same quarter of the prior year.

The consolidated GAAP gross margin for the fourth quarter of fiscal 2013 was 36.4 percent for products and 28.6 percent for services, compared to 46.2 percent for products and 21.6 percent for services, respectively, for the fourth quarter of the prior year. The consolidated non-GAAP gross margin for the fourth quarter of fiscal 2013 was 41.7 percent for products and 28.7 percent for service, compared to 52.8 percent and 19.9 percent, respectively, for the fourth quarter of the prior year. While we expect the underlying positive trend in our service gross margin to continue, we are likely to experience quarterly fluctuations as in past quarters.

During the second, third and fourth quarters of fiscal 2013, operating expenses included $4.0 million, $4.9 million, and $0.2 million, respectively, of severance and facilities consolidation costs related to our restructuring. Excluding these charges related to our restructuring, ongoing non-GAAP operating expenses totaled $39.4 million in the fourth quarter compared to $50.1 million in the fourth quarter of the prior year which demonstrates significant progress towards our goal of reducing non-GAAP operating expenses to approximately $40 million per quarter during fiscal year 2014 with some expected quarterly fluctuations.

Consolidated GAAP net loss attributable to stockholders for the fourth quarter of fiscal 2013 was $18.7 million, or $0.25 per share, compared to $20.3 million or $0.28 per share for the fourth quarter of the prior year. Non-GAAP net loss for the fourth quarter of fiscal 2013 was $15.1 million or $0.20 per share compared to $14.2 million or $0.20 per share for the fourth quarter of the prior year.

Accuray's cash, cash equivalents, investments and restricted cash totaled $177.1 million as of June 30, 2013.

Outlook
Accuray management projects total revenue for fiscal 2014 of $325 million to $345 million on both a GAAP and non-GAAP basis.

Additional Information
Additional information including slides of fourth quarter and year end highlights, which will be discussed during the conference call, is available in the Investor Relations section of the company's website at www.accuray.com/investors.

Earnings Call Open to Investors  
Accuray will hold a conference call for financial analysts and investors on Tuesday, August 27, 2013 at 2:00 p.m. PDT/5:00 p.m. EDT. The conference call dial-in numbers are 1-877-415-3183 (USA) or 1-857-244-7326 (International), Conference ID: 43627074.  A live webcast of the call will also be available from the Investor Relations section of the corporate website at www.accuray.com/investors.  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: 14266989, beginning at 4:00 p.m. PDT/7:00 p.m. EDT on August 27, 2013 and will be available through September 3, 2013. A webcast replay will also be available from the Investor Relations section of the Company's website at www.accuray.com/investors from approximately 5:00 p.m. PDT/8:00 p.m. EDT today through Accuray's release of its results for the first quarter of fiscal 2014, ending September 30, 2013.

About Accuray
Accuray Incorporated (Nasdaq: ARAY), is a radiation oncology company that develops, manufactures and sells personalized, innovative treatment solutions that set the standard of care with the aim of helping patients live longer, better lives. The Company's leading-edge technologies deliver the full range of radiation therapy and radiosurgery treatments. For more information, please visit www.accuray.com.

Safe Harbor Statement
Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to total revenue and operating expenses; delays in the shipment of the MLC options; and expectation of the continuation of the positive trend in our service gross margin. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to: the company's ability to convert backlog to revenue; the success of its worldwide sales and marketing efforts; the success of the introduction of our CyberKnife and TomoTherapy Systems; the extent of market acceptance for the company's products and services; the company's ability to manage its expenses; continuing uncertainty in the global economic environment; and other risks detailed from time to time under the heading "Risk Factors" in the company's report on Form 10-K  to be filed on or before September 13, 2013, and our other filings with the SEC. 

Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. 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, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements.

Financial Tables to Follow

   

 

Accuray Incorporated

Consolidated Statements of Operations

(in thousands, except per share data)









Three Months Ended
June 30,

Years Ended June 30,

2013

2012

2013

2012

(unaudited)

(unaudited)

Net revenue:






Products 

$  38,582

$  60,621

$    137,403

$240,472

Services 

46,318

39,463

178,571

166,681

Other 

-

449

-

2,070

Total net revenue 

84,900

100,533

315,974

409,223

Cost of revenue:






Cost of products 

24,522

32,606

85,498

136,180

Cost of services 

33,093

30,936

132,836

134,562

Cost of other 

-

501

-

1,209

Total cost of revenue 

57,615

64,043

218,334

271,951

Gross profit 

27,285

36,490

97,640

137,272

Operating expenses:






Selling and marketing 

13,076

14,500

54,372

54,547

Research and development 

14,687

21,488

66,197

81,287

General and administrative 

12,247

15,625

57,726

57,672

Total operating expenses 

40,010

51,613

178,295

193,506

Loss from operations

(12,725)

(15,123)

(80,655)

(56,234)

Other expense, net

(4,284)

(4,447)

(13,133)

(12,521)

Loss before provision for income taxes

(17,009)

(19,570)

(93,788)

(68,755)

Provision for income taxes

1,706

443

3,573

2,595

Loss from continuing operations

(18,715)

(20,013)

(97,361)

(71,350)








Loss from discontinued operations:






Loss from operations of a discontinued variable interest entity

-

(1,633)

(3,505)

(7,103)

Impairment of indefinite lived intangible asset of discontinued variable interest entity

-

-

(12,200)

-

Loss from deconsolidation of a variable interest entity

-

-

(3,442)

-

Loss from discontinued operations, net of tax

-

(1,633)

(19,147)

(7,103)

Loss from discontinued operations attributable to non-controlling interest

-

(1,382)

(13,289)

(6,411)

Loss from discontinued operations attributable to stockholders

-

(251)

(5,858)

(692)








Net loss attributable to stockholders

$(18,715)

$(20,264)

$  (103,219)

$ (72,042)








Loss per share attributable to stockholders






Basic and diluted - continuing operations

$    (0.25)

$    (0.28)

$        (1.33)

$     (1.01)

Basic and diluted - discontinued operations

$            -

$    (0.00)

$        (0.08)

$     (0.01)

Basic and diluted - net loss

$    (0.25)

$    (0.28)

$        (1.41)

$     (1.02)

Weighted average common shares used in computing loss per share






Basic and diluted

74,270

71,473

73,281

70,887
















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

charges as follows:






Cost of revenue 

$       455

$       401

$        1,498

$    1,672

Selling and marketing 

$       318

$       184

$        1,121

$       729

Research and development 

$       494

$       667

$        1,949

$    2,340

General and administrative 

$       830

$       905

$        3,648

$    3,717

 

 



 Accuray Incorporated 

 Consolidated Balance Sheets 

 (in thousands, except share amounts) 





 June 30, 

 June 30, 

2013

2012

 Assets 

 (unaudited) 

 (unaudited) 

 Current assets: 


 Cash, cash equivalents and investments 

$      174,397

$      143,504

 Restricted cash 

2,728

1,560

 Accounts receivable, net of allowance for doubtful accounts 

55,458

67,890

 Inventories 

81,592

81,693

 Prepaid expenses and other current assets 

12,595

16,715

 Deferred cost of revenue - current 

9,165

4,896

        Total current assets 

335,935

316,258

 Property and equipment, net 

34,733

37,458

 Goodwill 

59,368

59,215

 Intangible assets, net 

31,896

49,819

 Deferred cost of revenue - noncurrent 

2,149

2,433

 Other assets 

11,848

7,987

        Total assets 

$  475,929

$      473,170

 Liabilities and equity 


 Current liabilities: 


 Accounts payable 

$    15,920

$        18,209

 Accrued compensation 

12,461

23,071

 Other accrued liabilities 

22,893

31,646

 Customer advances - current 

17,692

18,177

 Deferred revenue - current 

86,893

83,071

        Total current liabilities 

155,859

174,174

 Long-term liabilities: 


 Long-term other liabilities 

5,382

5,988

 Deferred revenue - noncurrent 

9,085

9,675

 Long-term debt 

198,768

79,466

        Total liabilities 

369,094

269,303

 Equity: 


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

-

-

Common stock, $0.001 par value; authorized: 200,000,000 and 100,000,000 shares June 30, 2013 and June 30, 2012, respectively; issued and outstanding: 74,587,231 and 71,864,268 shares at June 30, 2013 and 2012, respectively

75

72

 Additional paid-in capital 

424,524

409,143

 Accumulated other comprehensive income 

1,882

2,837

 Accumulated deficit 

(319,646)

(216,427)

        Total stockholders' equity 

106,835

195,625

 Non-controlling interest 

-

8,242

        Total equity 

106,835

203,867

            Total liabilities and equity 

$  475,929

$      473,170

 

 

Revenue

Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Products

$  38,582

$          30

(A)

$  38,612

$   60,621

$        315

 (A) 

$    60,936

$  137,403

$         378

(A)

$ 137,781

$ 240,472

$     2,141

(A)

$ 242,613

Services

46,318

(4)

(B)

46,314

39,463

244

 (B) 

39,707

178,571

(113)

(B)

178,458

166,681

(10,065)

(B)

156,616

Other

-

-

-

449

-

449

-

-

-

2,070

-

2,070

Total

$  84,900

$          26

$  84,926

$ 100,533

$        559

$  101,092

$  315,974

$         265

$ 316,239

$ 409,223

$    (7,924)

$ 401,299




















































(A)

As of the close of the acquisition, TomoTherapy's deferred product revenue related to products shipped but not yet installed was written down to the fair value of goods and services remaining to be delivered. As a result, during the three months ended June 30, 2013 and 2012, product revenue recorded by Accuray for the sale of TomoTherapy products was less than $0.1 million and $0.3 million lower than product revenue that would have been recorded by TomoTherapy if the acquisition had not occurred. For the years ended June 30, 2013 and 2012, product revenue recorded by Accuray for the sale of TomoTherapy products was $0.4 million and $2.1 million lower than product revenue that would have been recorded by TomoTherapy if the acquisition had not occurred.


(B)

As of the close of the acquisition, TomoTherapy's deferred service revenue was written up to fair value. As a result, deferred service revenue recognized by Accuray during the three months ended June 30, 2013 and 2012 was less than $0.1 million and $0.8 million higher than the amount that would have been recognized by TomoTherapy if the acquisition had not occurred. Partially offsetting this deferred revenue adjustment for the three months ended June 30, 2012, Accuray recorded a reserve for returns of $1.0 million to reflect the expected return of spare parts from TomoTherapy distributors who will cease servicing TomoTherapy systems once the integration is complete and Accuray personnel begin to provide service directly to these customers. For the years ended June 30, 2013 and 2012, deferred service revenue recognized was $0.1 million and $11.5 million higher than the amount that would have been recognized by TomoTherapy if the acquisition had not occurred. Partially offsetting the $11.5 million deferred revenue adjustment for the year ended June 30, 2012, Accuray recorded a reserve for returns of $1.4 million to reflect the expected return of spare parts from TomoTherapy distributors who will cease servicing TomoTherapy systems once the integration is complete and Accuray personnel begin to provide service directly to these customers.





















































Cost of Revenue


























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Products

$  24,522

$    (2,023)

 (C) 

$  22,499

$   32,606

$    (3,818)

 (C) 

$    28,788

$    85,498

$    (9,649)

(C)

$   75,849

$ 136,180

$  (23,796)

(C)

$ 112,384

Services

33,093

(48)

(D)

33,045

30,936

875

(D)

31,811

132,836

(55)

(D)

132,781

134,562

(1,655)

(D)

132,907

Other

-

-

-

501

-

501

-

-

-

1,209

-

1,209

Total

$  57,615

$    (2,071)

$  55,544

$   64,043

$    (2,943)

$    61,100

$  218,334

$    (9,704)

$ 208,630

$ 271,951

$  (25,451)

$ 246,500




















































(C)

Products cost of revenue included the following charges arising from the acquisitions of TomoTherapy and Morphormics: $2.0 million and $3.8 million, respectively, during the three months ended June 30, 2013 and 2012 and $9.6 million and $15.3 million for the years ended June 30, 2013 and 2012 respectively, for the amortization of intangible assets created by the acquisitions. For the year ended June 30, 2012, products cost of revenue also included $8.3 million due to the write up of finished goods and work-in-process inventory on hand at the time of the acquisition of TomoTherapy from cost basis to fair value and $0.2 million due to employee severance and retention expenses.


(D)

Services cost of revenue included the following adjustments to expenses arising from the acquisition of TomoTherapy during the three and twelve months ended June 30, 2013: less than $0.1 million and $0.3 million charges for property, plant and equipment revaluation; less than $(0.1) million and $(0.4) million reductions in expenses due to the roll out of fair value increases in warranty and loss contracts reserves, both of which were related to service provided during the periods. Service cost of revenues also included $0.1 million and $0.2 million of charges during the three and twelve months ended June 30, 2013 due to employee severance and retention. For the three and twelve months ended June 30, 2012: $-0- and $3.6 million charge due to the write up of service related inventory on hand at the time of the acquisition of TomoTherapy from cost basis to fair value, $(0.4) million and $(3.5) million reductions in expenses due to the roll out of fair value increases in warranty and loss contracts reserves for the periods of service consumed, $0.1 million and $0.4 million charges for property, plant and equipment revaluation, less than $0.1 million and $1.9 million charges due to employee severance, integration and retention expenses, and $(0.6) million and $(0.8) million of credits to reflect the cost of spare parts expected to be returned by TomoTherapy distributors who will cease servicing TomoTherapy systems once the integration is complete and Accuray personnel begin to provide service directly to these customers.































Gross Profit


























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Products

$  14,060

$     2,053

$  16,113

$   28,015

$     4,133

$    32,148

$    51,905

$    10,027

$   61,932

$ 104,292

$   25,937

$ 130,229

Services

13,225

44

13,269

8,527

(631)

7,896

45,735

(58)

45,677

32,119

(8,410)

23,709

Other

-

-

-

(52)

-

(52)

-

-

-

861

-

861

Total

$  27,285

$     2,097

$  29,382

$   36,490

$     3,502

$    39,992

$    97,640

$      9,969

$ 107,609

$ 137,272

$   17,527

$ 154,799





















































Gross Profit Margin


























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Products

36.4%

5.3%

41.7%

46.2%

6.6%

52.8%

37.8%

7.1%

44.9%

43.4%

10.3%

53.7%

Services

28.6%

0.1%

28.7%

21.6%

(1.7)%

19.9%

25.6%

0.0%

25.6%

19.3%

(4.2)%

15.1%

Other

-

-

-

(11.6)%

0.0%

(11.6)%

-

-

-

41.6%

0.0%

41.6%

Total

32.1%

2.5%

34.6%

36.3%

3.3%

39.6%

30.9%

3.1%

34.0%

33.5%

5.1%

38.6%





















































Operating Expenses


























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

 Selling and Marketing 

$  13,076

$            7

 (E) 

$  13,083

$   14,500

$       (498)

 (E) 

$    14,002

$    54,372

$           (4)

 (E) 

$   54,368

$   54,547

$    (2,335)

(E)

$   52,212

 Research and Development 

14,687

(128)

 (F) 

14,559

21,488

(163)

 (F) 

21,325

66,197

(612)

 (F) 

65,585

81,287

(1,387)

 (F) 

79,900

 General and Administrative 

12,247

(288)

 (G) 

11,959

15,625

(867)

 (G) 

14,758

57,726

(2,112)

 (G) 

55,614

57,672

(5,598)

 (G) 

52,074

Total

$  40,010

$       (409)

$  39,601

$   51,613

$    (1,528)

$    50,085

$  178,295

$    (2,728)

$ 175,567

$ 193,506

$    (9,320)

$ 184,186




















































(E)

For the three and twelve months ended June 30, 2013, less than $0.1 million charge for property, plant and equipment revaluation. For the three and twelve months ended June 30, 2012, $0.5 million and $2.3 million, respectively, of charges primarily due to employee severance, integration and retention expenses.


(F)

For the three and twelve months ended June 30, 2013: less than $0.1 million and $0.3 million due to retention expenses from the acquisition of Morphormics, and $0.1 million and $0.3 million due to property, plant and equipment revaluation from acquisition of TomoTherapy. For the three and twelve months ended June 30, 2012, less than $0.1 million and $1.2 million charges due to employee severance, integration and retention expenses and $0.1 million and $0.2 million due to property, plant and equipment revaluation from acquisition of TomoTherapy.


(G)

For the three and twelve months ended June 30, 2013: $-0- and $0.3 million charge primarily due to employee severance from the acquisition of Morphormics, $-0- and $0.5 million related to employee severance and retention due to consolidation of European offices, and $0.3 million and $1.3 million due to property, plant and equipment revaluation due to the acquisition of TomoTherapy. For the three and twelve months ended June 30, 2012, $0.2 million and $2.4 million charge due to employee severance and retention expenses, $0.2 million and $1.3 million charge related to preparation for integration of work forces and operations, and $0.5 million and $1.9 million charge for property, plant and equipment revaluation.





















































 Net loss attributable to Stockholders 
























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Loss From Operations

$ (12,725)

$     2,506

 (H) 

$ (10,219)

$ (15,123)

$     5,030

 (H) 

$  (10,093)

$   (80,655)

$    12,697

 (H) 

$ (67,958)

$ (56,234)

$   26,847

 (H) 

$ (29,387)

Other Expense, net

(4,284)

1,110

(I)

(3,174)

(4,447)

1,007

(I)

(3,440)

(13,133)

3,640

(J)

(9,493)

(12,521)

3,596

(I)

(8,925)

Provision For Income Taxes

1,706

-

1,706

443

-

443

3,573

-

3,573

2,595

-

2,595

Loss from Continuing Operations

$ (18,715)

$     3,616

$ (15,099)

$ (20,013)

$     6,037

$  (13,976)

$   (97,361)

$    16,337

$ (81,024)

$ (71,350)

$   30,443

$ (40,907)



























Loss from operations of a discontinued variable interest entity 

-

-

-

(1,633)


(1,633)

(3,505)

-

(3,505)

(7,103)

-

(7,103)



























Impairment of indefinite lived intangible asset of discontinued variable interest entity 

-

-

-

-

-

-

(12,200)

12,200

 (K) 

-

-

-

-



























Loss from deconsolidation of a variable interest entity 

-

-

-

-

-

-

(3,442)

3,442

 (L) 

-

-

-

-

Loss from discontinued operations, net of tax

$          -

$           -

$          -

$   (1,633)

$           -

$    (1,633)

$   (19,147)

$    15,642

$   (3,505)

$   (7,103)

$           -

$   (7,103)



























Loss from discontinued operations attributable to noncontrolling interest

-

-

-

(1,382)

-

(1,382)

(13,289)

10,323

 (M) 

(2,966)

(6,411)

-

(6,411)

Loss from discontinued operations attributable to stockholders

$          -

$           -

$          -

$      (251)

$           -

$       (251)

$     (5,858)

$      5,319

$      (539)

$      (692)

$           -

$      (692)















































-

-

-

Net Loss Attributable to Stockholders

$ (18,715)

$     3,616

$ (15,099)

$ (20,264)

$     6,037

$  (14,227)

$ (103,219)

$    21,656

$ (81,563)

$ (72,042)

$   30,443

$ (41,599)




















































(H)

Represents impact of all adjustments (A) through (G) on loss from operations.


(I)

Represents non-cash interest expense arising from the accretion of interest expense on the long-term debt.


(J)

Includes $4.3 million of non-cash interest expense arising from the accretion of interest expense on the long-term debt, offset by $0.7 million gain on previously held equity interest due to the acquisition of Morphormics.


(K)

Represents the impairment charges related to the write-down of the in-process research and development (IPR&D) asset based on results of research and development work carried out by CPAC, a variable interest entity deconsolidated by the Company during the three months ended December 31, 2012.


(L)

Represents loss from deconsolidation of CPAC.


(M)

Represents the noncontrolling portion of the $12.2 million impairment charge related to the write-down of the IPR&D asset based on results of research and development work carried out by CPAC, a variable interest entity deconsolidated by the Company during the three months ended December 31, 2012.





Loss per share attributable to stockholders























Three months ended June 30,

Three months ended June 30,

Year ended June 30,

Years ended June 30,



2013

2013

2013

2012

2012

2012

2013

2013

2013

2012

2012

2012



GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Basic and diluted - continuing operations

$     (0.25)

$       0.05

$     (0.20)

$     (0.28)

$       0.08

$      (0.20)

$       (1.33)

$        0.23

$     (1.11)

$     (1.01)

$       0.43

$     (0.58)



























Basic and diluted - discontinued operations

$          -

$           -

$          -

$     (0.00)

$       0.00

$        0.00

$       (0.08)

$        0.07

$     (0.01)

$     (0.01)

$           -

$     (0.01)



























Basic and diluted - net loss

$     (0.25)

$       0.05

$     (0.20)

$     (0.28)

$       0.08

$      (0.20)

$       (1.41)

$        0.30

$     (1.12)

$     (1.02)

$       0.43

$     (0.59)



























Weighted average common shares used in computing loss per share

74,270

-

74,270

71,473

-

71,473

73,281


73,281

70,887


70,887


























 

 

SOURCE Accuray Incorporated

Lynn Pieper, Investor Relations, +1 (415) 202-5678, Lynn.pieper@westwicke.com or Rebecca Phillips, Public Relations Manager, +1 (408) 716-4773, rphillips@accuray.com