Accuray Announces Results for Second Quarter Fiscal 2012

February 8, 2012 at 4:02 PM EST
Achieves Solid Revenue, Positive Service Margins and Positive Cash Flow
Integration Performance Metrics Ahead of Plan; Remains on Track for Return to Profitability

SUNNYVALE, Calif., Feb. 8, 2012 /PRNewswire/ -- Accuray Incorporated (Nasdaq: ARAY), the premier radiation oncology company, announced today financial results for the second quarter of fiscal 2012 that ended December 31, 2011. The fiscal 2012 financial data presented below reflects the consolidation of both Accuray and TomoTherapy, a company that was acquired by Accuray in June 2011. Non-GAAP results are provided to enhance understanding of Accuray's ongoing core results of operations.  

Highlights from the second quarter of fiscal 2012 included solid revenue, positive service margins and effective management of operating expenses. Accuray continued to successfully execute its integration plans from its acquisition of TomoTherapy and reported integration performance metrics that met or exceeded the company's stated goals. The company was cash-flow positive during the quarter and remains on track to return to profitability on a non-GAAP basis by the end of fiscal year 2013 as forecasted.

"We are pleased to achieve another quarter of solid revenue as our integration of TomoTherapy continues to progress well and our global installed base continues to expand," said Euan S. Thomson, Ph.D., president and chief executive officer of Accuray. "We continue to capture competitive vault space, and as our installed base grows, so does our recurring service revenue. We remain ahead of plan with our TomoTherapy System reliability improvements and have made significant progress on improving service gross margins. Overall, we're pleased to report that we remain on track to return to profitability on a non-GAAP basis as scheduled by the end of fiscal year 2013."

For the second quarter of fiscal 2012, Accuray reported total consolidated GAAP revenue of $106.4 million and non-GAAP total revenue of $102.9 million. By comparison, for the quarter ended December 31, 2010, the sum of the revenue reported by Accuray and TomoTherapy as separate companies totaled $116.3 million on a pro forma basis. The higher 2010 revenue was a result of historically high legacy TomoTherapy revenue for the quarter due to calendar year-end shipment and installation activity.  Legacy TomoTherapy's fiscal year ended December 31. Non-GAAP revenue for the six-month period ended December 31, 2011 was $198.6 million, which is slightly higher than the same period in the prior year.

The consolidated GAAP gross profit margin for the second quarter of fiscal 2012 was 48.6 percent for products and 21.2 percent for services. The consolidated non-GAAP gross profit margin for the second quarter of fiscal 2012 was 55.8 percent for products and 12.3 percent for services. Positive service gross margins were driven largely by continued increase in reliability and reduction of service costs for TomoTherapy Systems. Accuray significantly improved service gross margins and with its reported metrics, remains ahead of plan for achieving at least 10 percent service margins by the fourth quarter of fiscal year 2012 and at least 20 percent by the fourth quarter of fiscal year 2013 on a non-GAAP basis.

Consolidated GAAP net loss attributable to stockholders for the second quarter of fiscal 2012 was $10.4 million, or $0.15 per share. Non-GAAP net loss for the second quarter of fiscal 2012 was $7.1 million or $0.10 per share. By comparison, for the quarter ended December 31, 2010 the sum of the net losses reported by Accuray and TomoTherapy as separate companies totaled $1.9 million on a pro forma basis.

Accuray continues to see a significant sales pipeline in all four of its regional business units for both its CyberKnife and TomoTherapy technologies. During the second quarter of fiscal 2012, $70.3 million of net new system orders were added to backlog, resulting in a total system backlog of $276.8 million as of December 31, 2011, an increase of 2.2 percent from the prior quarter.

During the second quarter of fiscal 2012, 25 units were shipped and 23 were installed, increasing the worldwide Accuray installed base to 616 systems.

Accuray's cash, cash equivalents and restricted cash totaled $152.0 million as of December 31, 2011.

Outlook

The following statement, among others in this release, is forward-looking and actual results may differ materially.  During fiscal year 2012, Accuray expects that revenue will be in the range of $411 million to $426 million (GAAP), or $400 million to $415 million (non-GAAP).

Additional Information

Additional information including slides of second quarter 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.

Earnings Call Open to Investors  

Accuray will hold a conference call for financial analysts and investors on Wednesday, February 8, 2012 at 2:00 p.m. PST/5:00 p.m. EST. The conference call dial-in numbers are 1-800-706-7748 (USA) or 1-617-614-3473 (International), Conference ID: 85618699. 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:  85149521, beginning at 5:00 p.m. PST/8:00 p.m. EST on February 8, 2012 and will be available through February 16, 2012. 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. PST/8:00 p.m. EST today through Accuray's release of its results for the third quarter of fiscal 2012, ending March 31, 2012.

About Accuray

Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is the premier 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 – the CyberKnife and TomoTherapy Systems – are designed to deliver radiosurgery, stereotactic body radiation therapy, intensity modulated radiation therapy, image guided radiation therapy, and adaptive radiation therapy. To date, more than 200,000 patients worldwide have been treated using the Company's technologies and 616 systems have been installed in leading hospitals around the world. 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 the company's future profitability, continuing improvements in gross margins and expected achievement of specific targets for fiscal years 2012 and 2013, future demand for its products and services and revenue for fiscal 2012. 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 timeliness and success of the integration of TomoTherapy; the company's ability to convert backlog to revenue; the success of its worldwide sales and marketing efforts; the extent of market acceptance for the company's products and services; the company's ability to develop and bring to market new or enhanced products; 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 for fiscal year 2011 filed on September 19, 2011, and in reports on Form 10-Q for the first and second quarters of fiscal 2012.

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.

Accuray Incorporated
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)



Three Months Ended December 31,

Six Months Ended December 31,


2011

2010

2011

2010

Net revenue:







Products


$                63,802

$             35,271

$       119,976

$          55,187

Services


42,097

18,846

85,498

36,580

Other


524

129

1,400

547

Total net revenue


106,423

54,246

206,874

92,314

Cost of revenue:







Cost of products


32,800

13,256

71,173

20,753

Cost of services


33,177

11,380

70,526

23,180

Cost of other


203

144

504

678

Total cost of revenue


66,180

24,780

142,203

44,611

Gross profit


40,243

29,466

64,671

47,703

Operating expenses:







Selling and marketing


14,017

7,987

27,598

15,747

Research and development


19,874

9,313

40,439

17,360

General and administrative


13,663

8,481

28,632

17,040

Total operating expenses


47,554

25,781

96,669

50,147

Income (loss) from operations

(7,311)

3,685

(31,998)

(2,444)

Other income (expense), net

(4,513)

676

(7,371)

2,292

Income (loss) before provision for income taxes


(11,824)

4,361

(39,369)

(152)

Provision for income taxes


367

263

905

390

Net income (loss)

(12,191)

4,098

(40,274)

(542)

Noncontrolling interest

(1,804)

-

(3,377)

-

Net income (loss) attributable to stockholders

$             (10,387)

$               4,098

$       (36,897)

$            (542)

Net income (loss) per share:







Basic


$                 (0.15)

$                 0.07

$           (0.52)

$           (0.01)

Diluted

$                 (0.15)

$                 0.07

$          (0.52)

$           (0.01)

Weighted average common shares  used in computing net income (loss) per share







Basic


70,698

59,282

70,481

58,975

Diluted

70,698

61,376

70,481

58,975

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

Cost of revenue


$                    437

$                  181

$              995

$               644

Selling and marketing


$                    151

$                  113

$              380

$               357

Research and development


$                    567

$                 620

$           1,169

$            1,294

General and administrative


$                    792

$              1,041

$           2,012

$            2,156



Accuray Incorporated
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)


December 31,

June 30,

2011

2011

(unaudited)

Assets




Current assets:




Cash and cash equivalents

$           148,467

$              95,906

Restricted cash  

3,502

3,172

Accounts receivable, net of allowance for doubtful accounts of $1,650 and $324 at




December 31, 2011 and June 30, 2011, respectively

73,928

61,853

Inventories  

82,881

97,836

Prepaid expenses and other current assets

12,481

21,115

Deferred cost of revenue—current  

6,893

5,840

Total current assets  

328,152

285,722




Property and equipment, net

40,825

44,823

Goodwill  

56,187

54,474

Intangible assets, net

57,865

66,039

Deferred cost of revenue—noncurrent  

2,945

2,258

Other assets

6,062

2,468

Total assets  

$             492,036

$           455,784

Liabilities and equity




Current liabilities:




Accounts payable  

$               22,017

$             38,645

Accrued compensation

19,175

27,406

Other accrued liabilities

23,659

43,012

Customer advances

22,968

25,829

Deferred revenue—current  

83,552

68,152

Total current liabilities  

171,371

203,044

Long-term liabilities:




Long-term other liabilities

5,744

6,321

Deferred revenue—noncurrent  

5,997

6,092

    Long-term debt

77,468

-

Total liabilities  

260,580

215,457




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:

73,145,513 and 72,199,837 shares at December 31, 2011 and June 30, 2011,

respectively; outstanding: 71,005,545 and 70,059,819 shares at December 31,

2011 and June 30, 2011, respectively

71

70

Additional paid-in capital  

402,998

373,963

Accumulated other comprehensive income

2,494

127

Accumulated deficit  

(181,282)

(144,385)

Total stockholders' equity

224,281

229,775

Noncontrolling interest

7,175

10,552

Total equity

231,456

240,327

Total liabilities and equity

$              492,036

$            455,784







Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission, with respect to the three and six months ended December 31, 2011. "GAAP" refers to generally accepted accounting principles in the United States.

Accuray closed the acquisition of TomoTherapy on June 10, 2011 and TomoTherapy's operations since that date are included in Accuray's consolidated results of operations. Accounting for the impact of this acquisition has resulted in changes to the value of assets and liabilities from the amounts reflected by TomoTherapy prior to the acquisition and the creation of incremental assets and liabilities including intangible assets for developed technology and backlog, and unfavorable lease obligations. These changes have impacted revenues and expenses recorded in Accuray's consolidated statements of operations since the close of the acquisition. In addition, Accuray has incurred significant expenses as a result of the acquisition, some of which are one-time charges while others are expected to be incurred over fiscal 2012 for the integration of TomoTherapy.

To reflect the ongoing core results of operations of the Company, including adjusting for the impact of the acquisition of TomoTherapy, the Company has presented its operating results on an adjusted non- GAAP basis as well as in accordance with GAAP for the three and six months ended December 31, 2011. We use the following measures shown in the following tables, which are not calculated in accordance with GAAP. All adjustments to reconcile to GAAP relate to the acquisition of TomoTherapy except the adjustment to Other income (expense). The Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses these non-GAAP financial measures in connection with its own budgeting and financial planning, as well as evaluating management performance for compensation purposes. These non-GAAP financial measures are in addition to, not a substitute for, nor superior to, measures of financial performance prepared in conformity with GAAP.

For comparison purposes, we have also presented our pro forma results for the three and six months ended December 31, 2010 based on the combined total of the financial results previously reported by Accuray and TomoTherapy as separate companies, excluding expenses related to the acquisition incurred during this period. Please refer to the pro forma financial results tables starting on page 10 for additional details.


Revenue

Three Months Ended December 31,

Six Months Ended December 31,

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$  63,802

$     135

(A)

$  63,937

$    83,394

$119,976

$        483

(A)

$120,459

$   133,069

Services

42,097

(3,693)

(B)

38,404

32,794

85,498

(8,761)

(B)

76,737

64,351

Other

524

-

524

129

1,400

-

1,400

547

Total

$106,423

$(3,558)

$102,865

$  116,317

$206,874

$   (8,278)

$198,596

$   197,967



(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 and six months ended December 31, 2011, product revenue recorded by Accuray for the sale of TomoTherapy products was $0.1 million and $0.5 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 and six months ended December 31, 2011 was $3.7 million and $8.8 million higher than the amount that would have been recognized by TomoTherapy if the acquisition had not occurred.



Cost of Revenue

Three Months Ended December 31,

Six Months Ended December 31,

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$  32,800

$(4,549)

(C)

$  28,251

$    36,445

$  71,173

$ (16,040)

(C)

$  55,133

$     60,175

Services

33,177

493

(D)

33,670

35,397

70,526

(3,151)

(D)

67,375

67,536

Other

203

-

203

144

504

-

504

678

Total

$  66,180

$(4,056)

$  62,124

$    71,986

$142,203

$ (19,191)

$123,012

$   128,389



(C)

Products cost of revenue included the following charges arising from the acquisition of TomoTherapy during the three and six months ended December 31, 2011, respectively: $0.7 million and $8.3 million due to the write up of finished goods and work-in-process inventory on hand at the time of the acquisition from cost basis to fair value, $3.8 million and $7.7 million for amortization of intangible assets created by the acquisition, and less than $0.1 million and $0.1 million due to employee severance and retention expenses.


(D)

Services cost of revenue included the following charges and reductions to expenses arising from the acquisition of TomoTherapy during the three and six months ended December 31, 2011: $-0- and $3.6 million charge due to the write up of service related inventory on hand at the time of the acquisition from cost basis to fair value, $1.2 million and $2.4 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 $0.2 million charges for property, plant and equipment revaluation, and $0.6 million and $1.8 million charges due to employee severance, integration and retention expenses.




Three Months Ended December 31,

Six Months Ended December 31,

Gross Profit

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$  31,002

$  4,684

$  35,686

$    46,949

$  48,803

$   16,523

$  65,326

$     72,894

Services

8,920

(4,186)

4,734

(2,603)

14,972

(5,610)

9,362

(3,185)

Other

321

-

321

(15)

896

-

896

(131)

Total

$  40,243

$     498

$  40,741

$    44,331

$  64,671

$   10,913

$  75,584

$     69,578





Three Months Ended December 31,

Six Months Ended December 31,

Gross Profit Margin

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

48.6%

7.2%

55.8%

56.3%

40.7%

13.5%

54.2%

54.8%

Services

21.2%

(8.9)%

12.3%

(7.9)%

17.5%

(5.3)%

12.2%

(4.9)%

Other

61.3%

0.0%

61.3%

(11.6)%

64.0%

0.0%

64.0%

(23.9)%

Total

37.8%

1.8%

39.6%

38.1%

31.3%

6.8%

38.1%

35.1%





Three Months Ended December 31,

Six Months Ended December 31,

Operating Expenses

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Selling and Marketing

$  14,017

$     (46)

(E)

$  13,971

$    15,685

$  27,598

$   (1,770)

(E)

$  25,828

$     30,700

Research and Development

19,874

(583)

(F)

19,291

18,115

40,439

(884)

(F)

39,555

34,390

General and Administrative

13,663

(1,226)

(G)

12,437

14,835

28,632

(3,607)

(G)

25,025

30,529

Total

$  47,554

$(1,855)

$  45,699

$    48,635

$  96,669

$   (6,261)

$  90,408

$     95,619



(E)

For the three months ended December 31, 2011, $0.1 million charge primarily due to employee severance, integration and retention expenses. For the six months ended December 31, 2011, $1.2 million charge due to employee severance and retention expenses, and $0.6 million due to preparation for integration of work forces and operations.


(F)

Includes $0.6 million and $0.9 million charges primarily due to employee severance, integration and retention expenses during the three and six months ended December 31, 2011.


(G)

For the three months ended December 31, 2011, $0.5 million charge due to employee severance and retention expenses, $0.2 million charge related to preparation for integration of work forces and operations, and $0.5 million charge for property, plant and equipment revaluation. For the six months ended December 31, 2011, $1.5 million charge due to employee severance and retention expenses, $1.2 million charge  related to preparation for integration of work forces and operations, and $0.9 million charge for property, plant and equipment revaluation.



Net Income (Loss) Attributable to Stockholders









Three Months Ended December 31,

Six Months Ended December 31,

2011

2011

2011

2010

2011

2011

2011

2010

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Income (Loss) From Operations

$   (7,311)

$  2,353

(H)

$   (4,958)

$     (4,304)

$ (31,998)

$   17,174

(H)

$ (14,824)

$   (26,041)

Other Income (Expense)

(4,513)

959

(I)

(3,554)

586

(7,371)

1,598

(I)

(5,773)

4,079

Provision For Income Taxes

367

-

367

392

905

-

905

566

Noncontrolling Interest

(1,804)

-

(1,804)

(2,226)

(3,377)

-

(3,377)

(4,068)

Net Income (Loss) Attributable to Stockholders

$ (10,387)

$  3,312

$   (7,075)

$     (1,884)

$ (36,897)

$   18,772

$ (18,125)

$   (18,460)


































Net Income (Loss) Per Share - Basic and Diluted

$     (0.15)

$    0.05

$     (0.10)

$       (0.03)

$     (0.52)

$       0.26

$     (0.26)

$       (0.27)

















Weighted Average Common Shares outstanding - Basic and Diluted

70,698


70,698

68,395

(J)

70,481


70,481

68,088

(J)





















(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)

Represents weighted average common shares outstanding used to compute our basic and diluted net loss per share as disclosed in our Form 10Q for the three and six months ended December 31, 2010, adjusted to reflect the acquisition of TomoTherapy as if it occurred on July 1, 2010.


Pro forma financial tables

Tables below represent our pro forma results for the three and six months ended December 31, 2010 based on the combined total of the financial results previously reported by Accuray and TomoTherapy as separate companies, excluding expenses related to the acquisition incurred during this period.

Revenue

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$                35,271

$           48,123

$       83,394

$                55,187

$           77,882

$     133,069

Services

18,846

13,948

32,794

36,580

27,771

64,351

Other

129

-

129

547

-

547

Total

$                54,246

$           62,071

$     116,317

$                92,314

$         105,653

$     197,967




























Cost of Revenue

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$                13,256

$           23,189

$       36,445

$                20,753

$           39,422

$       60,175

Services

11,380

24,017

35,397

23,180

44,356

67,536

Other

144

-

144

678

-

678

Total

$                24,780

$           47,206

$       71,986

$                44,611

$           83,778

$     128,389




























Gross Profit

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$                22,015

$           24,934

$       46,949

$                34,434

$           38,460

$       72,894

Services

7,466

(10,069)

(2,603)

13,400

(16,585)

(3,185)

Other

(15)

-

(15)

(131)

-

(131)

Total

$                29,466

$           14,865

$       44,331

$                47,703

$           21,875

$       69,578




























Gross Profit Margin

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

62.4%

51.8%

56.3%

62.4%

49.4%

54.8%

Services

39.6%

(72.2%)

(7.9%)

36.6%

(59.7%)

(4.9%)

Other

(11.6%)

-

(11.6%)

(23.9%)

-

(23.9%)

Total

54.3%

23.9%

38.1%

51.7%

20.7%

35.1%


















Operating Expenses

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Adjustments

Combined

Accuray

Tomo

Adjustments

Combined

Selling and Marketing

$      7,987

$      7,698

-

$       15,685

$    15,747

$    14,953

-

$       30,700

Research and Development

9,313

8,802

-

18,115

17,360

17,030

-

34,390

General and Administrative

8,481

6,759

(405)

14,835

17,040

13,894

(405)

30,529

Total

$    25,781

$    23,259

$                  (405)

$       48,635

$    50,147

$    45,877

$                  (405)

$       95,619






































Net Income (Loss) Attributable to Stockholders

Three Months Ended December 31, 2010

Six Months Ended December 31, 2010


Accuray

Tomo

Adjustments

Combined

Accuray

Tomo

Adjustments

Combined

Income (Loss) From Operations

$      3,685

$     (8,394)

$                   405

$        (4,304)

$     (2,444)

$   (24,002)

$                   405

$     (26,041)

Other Income (expense)

676

(90)

-

586

2,292

1,787

-

4,079

Provision For Income Taxes

263

129

-

392

390

176

-

566

Noncontrolling Interest

-

(2,226)

-

(2,226)

-

(4,068)

-

(4,068)

Net Income (Loss) Attributable to Stockholders

$      4,098

$     (6,387)

$                   405

$        (1,884)

$        (542)

$   (18,323)

$                   405

$     (18,460)






































Net Income (Loss) Per Share - Basic and Diluted

$        0.07

$       (0.12)


$          (0.03)

$       (0.01)

$       (0.35)


$         (0.27)



















Weighted Average Common Shares outstanding - Basic

59,282

52,909


68,395

(A)


58,975

52,421


68,088

(A)

Weighted Average Common Shares outstanding - Diluted

61,376

52,909


68,395

(A)


58,975

52,421


68,088

(A)























(A)

Represents weighted average common shares outstanding used to compute our basic and diluted net loss per share as disclosed in our Form 10Q for the three and six months ended December 31, 2010, adjusted to reflect the acquisition of TomoTherapy as if it occurred on July 1, 2010.


SOURCE Accuray Incorporated

Tom Rathjen, Vice President, Investor Relations, +1-408-789-4458, trathjen@accuray.com, or Stephanie Tomei, Director, Corporate Communications, +1-408-789-4234, stomei@accuray.com