Accuray Incorporated Reports Second Quarter Fiscal 2007 Financial Results
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SUNNYVALE, Calif., March 15, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of robotic radiosurgery, today announced financial results for the second quarter ended December 30, 2006. Total net revenues were $26.3 million for the quarter ended December 30, 2006, as compared to $11.3 million for the quarter ended December 31, 2005, an increase of 133 percent. The net loss for the second quarter was $7.3 million, or $0.45 per share, compared to a net loss of $7.9 million, or $0.50 per share, for the same quarter in 2005. The fiscal 2007 second quarter results are consistent with the ranges for revenue and net loss included in the Registration Statement on Form S-1 (Reg. No. 333-138622) filed with the U.S. Securities and Exchange Commission in connection with our initial public offering in February.
For the six months ended December 30, 2006, total net revenues were $59.1 million, compared to $15.2 million for the same period in 2005, an increase of 289 percent. The net loss for the six months ended December 30, 2006 was $5.3 million, or $0.33 per share, compared to a net loss of $18.1 million, or $1.14 per share for the same period in 2005.
The Company reported that its losses included stock option expenses of $2.9 million and $2.3 million for the quarters ending December 30, 2006 and December 31, 2005, respectively, and $5.1 million and $4.2 million for the first six months ending December 30, 2006 and December 31, 2005, respectively.
"We are pleased with Accuray's strong growth in both U.S. and international markets," said Euan S. Thomson, Ph.D., president and chief executive officer of Accuray. "Our CyberKnife(R) Robotic Radiosurgery System is an established leader in treating tumors with radiosurgery anywhere in the body, including the spine, lung, liver, prostate and pancreas, which is driving continued demand and adoption."
As of December 30, 2006, 91 CyberKnife systems had been installed at customer sites, up from 83 at the end of the first quarter. This includes 80 systems sold directly to customers and 11 placed under shared ownership agreements. Of the 91 systems installed, 58 are in the United States, 24 in Asia and 9 in Europe. Reported backlog at the end of the quarter ended December 30, 2006 was approximately $328 million, compared to approximately $330 million at the end of the quarter ended September 30, 2006. Reported backlog includes only contracts which contain no contingencies, or for which all contingencies have been met and does not include signed contracts that have contingencies such as the receipt of certain approvals, financing dependencies, or the formation of certain legal structures. The number of signed contracts with contingencies continued to increase in the quarter ended December 30, 2006. These contingent contracts will be added to backlog once all contingencies have been met.
Accuray completed its initial public offering on February 13, 2007. In the initial public offering, Accuray and certain selling stockholders sold approximately 18.4 million shares at a price of $18 per share. Net proceeds to Accuray after exercise of the underwriters' over-allotment and expenses were approximately $170.5 million and there were approximately 53.3 million shares outstanding after completion of the offering.
Accuray Incorporated, based in Sunnyvale, Calif., is a global leader in the field of robotic radiosurgery. Its CyberKnife System is the world's first and only commercially available intelligent robotic radiosurgery system designed to treat tumors anywhere in the body, typically with sub-millimeter accuracy. To date, it is estimated that the CyberKnife System has been used by physicians to treat more than 20,000 patients worldwide. For more information, please visit www.accuray.com.
Except for the historical information contained herein, the matters set forth in this press release, including statements as to financial guidance, development, clinical studies, regulatory review and approval, and commercialization of products, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward- looking statements. Important factors that could cause actual performance and results to differ materially from the forward-looking statements we make include: reimbursement for the CyberKnife procedure; government approvals of our products; market acceptance of products; funding requirements; intellectual property protection for our products; competing products; and other risks detailed from time to time under the heading "Risk Factors" in Registration Statement on Form S-1 (Reg. No. 333-138622), as may be updated from time to time by our other filings with the Securities and Exchange Commission. If one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, our actual performance or results may vary materially from any future performance or results expressed or implied by these forward-looking statements. We assume 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.
NOTE: Accuray, the Accuray logo, CyberKnife, Synchrony, Xsight, Xchange and RoboCouch are among trademarks and/or registered trademarks of Accuray Incorporated in the United States and other countries.
Accuray Incorporated Unaudited Condensed Consolidated Statements of Operations (1) (in thousands, except per share data) Three months ended Six months ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2006 2005 2006 2005 Net revenue: Products $19,309 $7,621 $46,076 $8,089 Shared ownership programs 2,585 2,031 4,811 3,715 Services 3,661 932 6,630 1,929 Other 792 742 1,601 1,464 Total net revenue 26,347 11,326 59,118 15,197 Cost of revenue: Costs of products 7,363 2,809 18,080 3,237 Costs of shared ownership programs 696 699 1,302 1,232 Costs of services 2,960 970 4,629 1,564 Costs of other 626 488 1,102 960 Total cost of revenue 11,645 4,966 25,113 6,993 Gross profit 14,702 6,360 34,005 8,204 Operating expenses: Selling and marketing 9,764 6,236 17,294 10,952 Research and development 6,132 4,366 12,314 8,910 General and administrative 6,136 3,605 10,755 6,387 Total operating expenses 22,032 14,207 40,363 26,249 Loss from operations (7,330) (7,847) (6,358) (18,045) Other income and (expense) 103 (15) 310 (21) Loss before provision for income taxes and cumulative effect of change in accounting principle (7,227) (7,862) (6,048) (18,066) Provision for income taxes 64 74 123 80 Loss before cumulative effect of change in accounting principle (7,291) (7,936) (6,171) (18,146) Cumulative effect of change in accounting principle, net of tax of $0 -- -- 838 -- Net loss $(7,291) $(7,936) $(5,333) $(18,146) Net loss per common share: Basic and diluted $(0.45) $(0.50) $(0.33) $(1.14) Weighted average common shares outstanding used in computing net loss per share: Basic and diluted 16,209 15,942 16,234 15,881 Cost of revenue, selling and marketing, research and development, and general and administrative expenses include stock-based compensation charges as follows: Cost of revenue $232 $265 $450 $419 Selling and marketing $1,007 $762 $1,656 $1,291 Research and development $471 $442 $920 $814 General and administrative $1,164 $847 $2,062 $1,691 (1) Accuray's second quarter ends on the Saturday nearest to December 31. For presentation purposes, the Unaudited Condensed Consolidated Statements of Operations refer to a calendar month end. Accuray Incorporated Unaudited Condensed Consolidated Balance Sheets (1) (in thousands, except share amounts) December 31, June 30, 2006 2006 (unaudited) Assets Current assets: Cash and cash equivalents $15,865 $27,857 Accounts receivable, net of allowance for doubtful accounts of $20 at December 31, 2006 and June 30, 2006 18,841 11,698 Inventories 14,940 10,100 Prepaid expenses and other current assets 6,456 3,512 Deferred cost of revenue-current 10,106 4,810 Total current assets 66,208 57,977 Property and equipment, net 23,440 21,945 Goodwill and intangible assets, net 5,812 5,941 Deferred cost of revenue and other non-current assets 48,263 52,760 Total assets $143,723 $138,623 Liabilities, temporary equity and stockholders' equity (deficiency) Current liabilities: Accounts payable $8,547 $4,726 Accrued expenses 13,110 15,055 Customer advances and deferred revenue - current 50,025 41,979 Total current liabilities 71,682 61,760 Long-term liabilities: Customer advances and deferred revenue - non-current 126,654 130,214 Total liabilities 198,336 191,974 Temporary equity Redeemable convertible preferred stock, no par value; authorized: 30,000,000 shares; issued and outstanding: 17,419,331 at December 31, 2006 and June 30, 2006; liquidation amount: $42,934 and $40,354 at December 31, 2006 and June 30, 2006, respectively. 27,504 27,504 Stockholders' equity (deficiency) Common stock, no par value; authorized: 70,000,000 shares; issued and outstanding: 16,206,327 and 16,243,150 shares at December 31, 2006 and June 30, 2006, respectively. 12,876 13,276 Additional paid-in capital 30,966 43,988 Notes receivable from stockholders -- (206) Deferred stock-based compensation -- (17,272) Accumulated other comprehensive income 15 -- Accumulated deficit (125,974) (120,641) Total stockholders' equity (deficiency) (82,117) (80,855) Total liabilities, temporary equity and stockholders' equity (deficiency) $143,723 $138,623 (1) Accuray's second quarter ends on the Saturday nearest to December 31. For presentation purposes, the Unaudited Condensed Consolidated Balance Sheets refer to a calendar month end.
SOURCE Accuray Incorporated
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