Accuray Announces Results for Third Quarter Fiscal 2012

May 8, 2012 at 4:06 PM EDT
Continued Service Margin Improvement Highlights Quarter

SUNNYVALE, Calif., May 8, 2012 /PRNewswire/ -- Accuray Incorporated (Nasdaq: ARAY), the premier radiation oncology company, announced today financial results for the third quarter of fiscal 2012 that ended March 31, 2012. The fiscal 2012 financial data presented below reflects Accuray's consolidated results including the results for TomoTherapy which 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 third quarter of fiscal 2012 include continued improvement in service margins, and effective management of operating expenses. Accuray continued to make progress in its integration of TomoTherapy and met or exceeded the goals originally set out when the acquisition was first announced. The company remains on track to return to profitability on a non-GAAP basis by the latter part of fiscal year 2013, ending June 30, 2013, as forecasted.

"We continue to see healthy growth in our installed base, which has grown 14 percent year on year.  This growth in turn drives our service revenues, which have increased 19 percent over the same period last year," said Euan S. Thomson, Ph.D., president and chief executive officer of Accuray. "In addition, our service gross margin continues to improve, reaching 16 percent in the third quarter which puts us well ahead of our 10 percent target for fiscal year 2012." 

For the third quarter of fiscal 2012, Accuray reported total consolidated GAAP revenue of $101.8 million and non-GAAP total revenue of $101.6 million. By comparison, for the quarter ended March 31, 2011, the sum of the revenue reported by Accuray and TomoTherapy as separate companies totaled $101.9 million on a pro forma basis. Legacy TomoTherapy's fiscal year ended December 31. Non-GAAP revenue for the nine-month period ended March 31, 2012 was $300.2 million, which is slightly higher than pro forma total revenue of $299.9 million in the same period of the prior year.

The consolidated GAAP gross margin for the third quarter of fiscal 2012 was 45.9 percent for products and 20.7 percent for services. The consolidated non-GAAP gross margin for the third quarter of fiscal 2012 was 53.5 percent for products and 16.1 percent for services. Positive service gross margins were driven largely by a continued improvement in reliability and reduction of service costs for TomoTherapy Systems. Accuray significantly improved service gross margins and remains well ahead of its plan to achieve at least 10 percent service margins by the fourth quarter of fiscal year 2012 and on track to achieve 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 third quarter of fiscal 2012 was $14.9 million, or $0.21 per share. Non-GAAP net loss for the third quarter of fiscal 2012 was $9.2 million or $0.13 per share. By comparison, for the quarter ended March 31, 2011 the sum of the net losses reported by Accuray and TomoTherapy as separate companies totaled $3.6 million or $0.05 per share on a pro forma basis.

Accuray added $64.2 million of net new system orders to backlog during the period ending March 31, 2012, increasing system backlog to $279.6 million.  During the third quarter, Accuray experienced areas of strength and areas of challenge around the world. While performance internationally was good, the company recently implemented a realignment of its sales organization in the United States designed to enhance performance in this region. 

During the third quarter of fiscal 2012, 18 units were shipped and 22 were installed, increasing Accuray's worldwide installed base to 635 systems.

Accuray's cash, cash equivalents and restricted cash in total increased $2.8 million to $154.8 million as of March 31, 2012. The cash increase was benefited by favorable changes in working capital.   

Outlook

The following statement, among others in this release, is forward-looking and actual results may differ materially. For fiscal year 2012, Accuray maintains its guidance that revenue will be in the range of $409 million to $424 million (GAAP), or $400 million to $415 million (non-GAAP).

Additional Information

Additional information including slides of third 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/investors.

Earnings Call Open to Investors  

Accuray will hold a conference call for financial analysts and investors on Tuesday, May 8, 2012 at 2:00 p.m. PDT/5:00 p.m. EDT. The conference call dial-in numbers are 1-866-203-3206 (USA) or 1-617-213-8848 (International), Conference ID: 41410037. 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:  59135049, beginning at 5:00 p.m. PDT/8:00 p.m. EDT on May 8, 2012 and will be available through May 14, 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. PDT/8:00 p.m. EDT today through Accuray's release of its results for the fourth quarter of fiscal 2012, ending June 30, 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, 635 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 service gross margins, including specific targets for fiscal years 2012 and 2013 service gross margins;  expectations regarding TomoTherapy integration goals; expected impact of the US sales reorganization; and expected 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 reports on Form 10-Q for the first, second and third 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 March 31,

Nine Months Ended March 31,


2012

2011

2012

2011

Net revenue:







Products 

$         59,875

$         35,584

$       179,851

$         90,771

Services 

41,720

18,253

127,218

54,833

Other 

221

910

1,621

1,457

Total net revenue 

101,816

54,747

308,690

147,061

Cost of revenue:







Cost of products 

32,401

14,199

103,574

34,887

Cost of services 

33,100

12,152

103,626

35,397

Cost of other 

204

1,083

708

1,761

Total cost of revenue 

65,705

27,434

207,908

72,045

Gross profit 

36,111

27,313

100,782

75,016

Operating expenses:







Selling and marketing 

12,449

8,127

40,047

23,874

Research and development 

23,783

9,291

64,222

26,651

General and administrative 

14,213

10,421

42,845

27,461

Total operating expenses 

50,445

27,839

147,114

77,986

Loss from operations

(14,334)

(526)

(46,332)

(2,970)

Other income (expense), net

(952)

22

(8,323)

2,314

Loss before provision for income taxes 

(15,286)

(504)

(54,655)

(656)

Provision for income taxes 

1,247

656

2,152

1,046

Net loss

(16,533)

(1,160)

(56,807)

(1,702)

Noncontrolling interest

(1,652)

-

(5,029)

-

Net loss attributable to stockholders

$        (14,881)

$          (1,160)

$        (51,778)

$          (1,702)









Net loss per share:







Basic 

$            (0.21)

$            (0.02)

$            (0.73)

$            (0.03)

Diluted

$            (0.21)

$            (0.02)

$            (0.73)

$            (0.03)

Weighted average common shares  used in computing net loss per share







Basic 

71,120

59,960

70,692

59,298

Diluted

71,120

59,960

70,692

59,298









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









Cost of revenue 

$              276

$              242

$           1,271

$              886

Selling and marketing 

$              165

$              155

$              545

$              512

Research and development 

$              504

$              499

$           1,673

$           1,793

General and administrative 

$              800

$           1,048

$           2,812

$           3,204









 

 

Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)









 March 31, 

 June 30, 

2012

2011




 Assets 


 Current assets: 


 Cash and cash equivalents 

$       151,328

$               95,906

 Restricted cash  

3,455

3,172

 Accounts receivable, net of allowance for doubtful accounts of $1,305 and $324 at 


 March 31, 2012 and June 30, 2011, respectively 

72,481

61,853

 Inventories  

85,122

97,836

 Prepaid expenses and other current assets 

13,798

21,115

 Deferred cost of revenue—current  

6,094

5,840

 Total current assets  

332,278

285,722




 Property and equipment, net 

39,668

44,823

 Goodwill  

56,180

54,474

 Intangible assets, net 

53,842

66,039

 Deferred cost of revenue—noncurrent  

2,755

2,258

 Other assets 

8,006

2,468

 Total assets  

$       492,729

$             455,784

 Liabilities and equity 


 Current liabilities: 


 Accounts payable  

$         23,468

$               38,645

 Accrued compensation 

24,919

27,406

 Other accrued liabilities 

26,795

43,012

 Customer advances 

19,170

25,829

 Deferred revenue—current  

88,724

68,152

 Total current liabilities  

183,076

203,044

 Long-term liabilities: 


 Long-term other liabilities 

6,212

6,321

 Deferred revenue—noncurrent  

8,280

6,092

 Long-term debt 

78,460

-

 Total liabilities  

276,028

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: 71,257,940 and  

 72,199,837 shares at March 31, 2012 and June 30, 2011, respectively; outstanding: 


 71,257,940 and 70,059,819 shares at March 31, 2012 and June 30, 2011, respectively 

71

70

 Additional paid-in capital  

405,393

373,963

 Accumulated other comprehensive income 

1,877

127

 Accumulated deficit  

(196,163)

(144,385)

 Total stockholders' equity 

211,178

229,775

 Noncontrolling interest 

5,523

10,552

 Total equity 

216,701

240,327

 Total liabilities and equity 

$       492,729

$             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 nine months ended March 31, 2012. "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 nine months ended March 31, 2012. 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 nine months ended March 31, 2011 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 9 for additional details.

Revenue

Three Months Ended March 31,

Nine Months Ended March 31,

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$   59,875

$  1,343

 (A) 

$   61,218

$    67,261

$    179,851

$    1,826

(A)

$  181,677

$       200,330

Services

41,720

(1,548)

(B)

40,172

33,749

127,218

(10,309)

(B)

116,909

98,100

Other

221

-

221

910

1,621

-

1,621

1,457

Total

$ 101,816

$   (205)

$ 101,611

$  101,920

$    308,690

$   (8,483)

$  300,207

$       299,887



































(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 nine months ended March 31, 2012, product revenue recorded by Accuray for the sale of TomoTherapy products was $1.3 million and $1.8 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 nine months ended March 31, 2012 was $1.9 million and $10.7 million higher than the amount that would have been recognized by TomoTherapy if the acquisition had not occurred. Partially offsetting this deferred revenue adjustment, Accuray recorded a reserve for returns of $0.4 million during the three months ended March 31, 2012 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 March 31,

Nine Months Ended March 31,

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$   32,401

$(3,938)

 (C) 

$   28,463

$    28,438

$    103,574

$ (19,978)

(C)

$    83,596

$         88,613

Services

33,100

621

(D)

33,721

32,277

103,626

(2,530)

(D)

101,096

99,813

Other

204

-

204

1,083

708

-

708

1,761

Total

$   65,705

$(3,317)

$   62,388

$    61,798

$    207,908

$ (22,508)

$  185,400

$       190,187



































(C)

Products cost of revenue included the following charges arising from the acquisition of TomoTherapy during the three and nine months ended March 31, 2012, respectively: less than $0.1 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 $11.5 million for amortization of intangible assets created by the acquisition, and less than $0.1 million and $0.2 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 nine months ended March 31, 2012: $-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, $(0.6) million and $(3.1) 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 $0.3 million charges for property, plant and equipment revaluation, $0.1 million and $1.9 million charges due to employee severance, integration and retention expenses and $(0.3) million and $(0.3) 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.



















Three Months Ended March 31,

Nine Months Ended March 31,

Gross Profit

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

$   27,474

$  5,281

$   32,755

$    38,823

$      76,277

$  21,804

$    98,081

$       111,717

Services

8,620

(2,169)

6,451

1,472

23,592

(7,779)

15,813

(1,713)

Other

17

-

17

(173)

913

-

913

(304)

Total

$   36,111

$  3,112

$   39,223

$    40,122

$    100,782

$  14,025

$  114,807

$       109,700



































Three Months Ended March 31,

Nine Months Ended March 31,

Gross Profit Margin

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Products

45.9%

7.6%

53.5%

57.7%

42.4%

11.6%

54.0%

55.8%

Services

20.7%

(4.6)%

16.1%

4.4%

18.5%

(5.0)%

13.5%

(1.7)%

Other

7.7%

0.0%

7.7%

(19.0)%

56.3%

0.0%

56.3%

(20.9)%

Total

35.5%

3.1%

38.6%

39.4%

32.6%

5.6%

38.2%

36.6%



































Three Months Ended March 31,

Nine Months Ended March 31,

Operating Expenses

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Selling and Marketing

$   12,449

$     (67)

 (E) 

$   12,382

$    14,020

$      40,047

$   (1,837)

(E)

$    38,210

$         44,720

Research and Development

23,783

(340)

(F)

23,443

16,732

64,222

(1,224)

(F)

62,998

51,122

General and Administrative

14,213

(1,124)

(G)

13,089

14,824

42,845

(4,731)

(G)

38,114

45,353

Total

$   50,445

$(1,531)

$   48,914

$    45,576

$    147,114

$   (7,792)

$  139,322

$       141,195



































(E)

Selling and marketing included the following charges arising from the acquisition of TomoTherapy for the three months ended March 31, 2012: less than $0.1 million charge primarily due to employee severance, integration and retention expenses. For the nine months ended March 31, 2012, $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)

Research and development included the following charges arising from the acquisition of TomoTherapy during the three and nine months ended March 31, 2012: $0.3 million and $1.2 million charges primarily due to employee severance, integration and retention expenses.



(G)

General and administration included the following charges arising from the acquisition of TomoTherapy for the three and nine months ended March 31, 2012: $0.4 million and $2.0 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 $1.4 million charge for property, plant and equipment revaluation.


















Net Loss Attributable to

Stockholders










Three Months Ended March 31,

Nine Months Ended March 31,

2012

2012

2012

2011

2012

2012

2012

2011

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

GAAP

Adjustments

Non-GAAP

Pro forma Combined Results

Loss From Operations

$  (14,334)

$  4,643

 (H) 

$    (9,691)

$     (5,454)

$    (46,332)

$  21,817

(H)

$  (24,515)

$        (31,495)

Other Income (Expense)

(952)

991

(I)

39

1,949

(8,323)

2,589

(I)

(5,734)

6,028

Provision For Income Taxes

1,247

-

1,247

1,409

2,152

-

2,152

1,975

Noncontrolling Interest

(1,652)

-

(1,652)

(1,325)

(5,029)

-

(5,029)

(5,393)

Net Loss Attributable to Stockholders

$  (14,881)

$  5,634

$    (9,247)

$     (3,589)

$    (51,778)

$  24,406

$  (27,372)

$        (22,049)


































Net Loss Per Share - Basic and Diluted

$      (0.21)

$    0.08

$      (0.13)

$       (0.05)

$        (0.73)

$      0.34

$      (0.39)

$            (0.32)

















Weighted Average Common Shares outstanding - Basic and Diluted

71,120


71,120

69,073

 (J) 

70,692


70,692

68,411

 (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 nine months ended March 31, 2011, 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 nine months ended March 31, 2011 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 March 31, 2011

Nine Months Ended March 31, 2011


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$              35,584

$         31,677

$          67,261

$              90,771

$        109,559

$         200,330

Services

18,253

15,496

33,749

54,833

43,267

98,100

Other

910

-

910

1,457

-

1,457

Total

$              54,747

$         47,173

$        101,920

$           147,061

$        152,826

$         299,887


























Cost of Revenue

Three Months Ended March 31, 2011

Nine Months Ended March 31, 2011


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$              14,199

$         14,239

$          28,438

$              34,952

$           53,661

$           88,613

Services

12,152

20,125

32,277

35,332

64,481

99,813

Other

1,083

-

1,083

1,761

-

1,761

Total

$              27,434

$         34,364

$          61,798

$              72,045

$        118,142

$         190,187


























Gross Profit

Three Months Ended March 31, 2011

Nine Months Ended March 31, 2011


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

$              21,385

$         17,438

$          38,823

$              55,819

$           55,898

$         111,717

Services

6,101

(4,629)

1,472

19,501

(21,214)

(1,713)

Other

(173)

-

(173)

(304)

-

(304)

Total

$              27,313

$         12,809

$          40,122

$              75,016

$           34,684

$         109,700


























Gross Profit Margin

Three Months Ended March 31, 2011

Nine Months Ended March 31, 2011


Accuray

Tomo

Combined

Accuray

Tomo

Combined

Products

60.1%

55.0%

57.7%

61.5%

51.0%

55.8%

Services

33.4%

(29.9%)

4.4%

35.6%

(49.0%)

(1.7%)

Other

(19.0%)

0.0%

(19.0%)

(20.9%)

0.0%

(20.9%)

Total

49.9%

27.2%

39.4%

51.0%

22.7%

36.6%



























Operating Expenses

Three Months Ended March 31, 2011

Nine Months Ended March 31, 2011



Accuray

Tomo

Adjustments

Combined

Accuray

Tomo

Adjustments

Combined

Selling and Marketing

$    8,127

$    6,098

$            (205)

 (A) 

$     14,020

$ 23,874

$   21,051

$            (205)

 (A) 

44,720

Research and Development

9,291

7,441

-

16,732

26,651

24,471

-

51,122

General and Administrative

10,421

8,934

(4,531)

(B)

14,824

27,461

22,828

(4,936)

(B)

45,353

Total

$ 27,839

$ 22,473

$         (4,736)

$     45,576

$ 77,986

$   68,350

$         (5,141)

$ 141,195









































(A)

Selling and marketing included the following charges arising from the acquisition of TomoTherapy for the three and nine months ended March 31, 2011: $0.2 million primarily due to preparation for integration of work forces and operations.





(B)

General and administration included the following charges arising from the acquisition of TomoTherapy for the three and nine months ended March 31, 2011: $4.5 million and $4.9 million due to preparation for integration of work forces and operations.






















Net Loss Attributable

to Stockholders

Three Months Ended March 31, 2011

Nine Months Ended March 31, 2011



Accuray

Tomo

Adjustments

Combined

Accuray

Tomo

Adjustments

Combined

Loss From Operations

$     (526)

$  (9,664)

$           4,736

$      (5,454)

$  (2,970)

$ (33,666)

$           5,141

$  (31,495)

Other Income (Expense)

22

1,927

-

1,949

2,314

3,714

-

6,028

Provision For Income Taxes

656

753

-

1,409

1,046

929

-

1,975

Noncontrolling Interest

-

(1,325)

-

(1,325)

-

(5,393)

-

(5,393)

Net Loss Attributable to Stockholders

$  (1,160)

$  (7,165)

$           4,736

$      (3,589)

$  (1,702)

$ (25,488)

$           5,141

$  (22,049)







































Net Loss Per Share - Basic and Diluted

$    (0.02)

$    (0.13)


$        (0.05)

$    (0.03)

$      (0.48)


$      (0.32)




















Weighted Average Common Shares outstanding - Basic and Diluted

59,960

53,125


69,073

(C)

59,298

52,652


68,411

 (C) 









































(C)

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 nine months ended March 31, 2011, 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