Accuray Announces Results for Third Quarter Fiscal 2010
SUNNYVALE, Calif., May 6, 2010 /PRNewswire via COMTEX/ --Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the third quarter of fiscal year 2010, ended March 31, 2010.
For the third quarter of fiscal 2010, Accuray reported total revenue of $51.9 million, compared to the third quarter of fiscal 2009 total revenue of $61.3 million.
Accuray reported net income for the third quarter of fiscal 2010 of $2.3 million, or $0.04 per diluted share, compared to a net income of $1.2 million, or $0.02 per diluted share, during the same period last year.
During the third quarter of fiscal 2010, 14 orders for CyberKnife(R) Robotic Radiosurgery Systems with a value of $64.3 million were added to company backlog, which combined with service renewal orders and other ancillary accessory orders yielded a total addition to backlog of $76.6 million. For the first nine months of fiscal 2010, Accuray added 41 CyberKnife Systems to backlog and shipped 26 units.
In the third quarter of fiscal 2010, six CyberKnife Systems were installed, bringing the worldwide CyberKnife installation base to 196 units.
For the nine months ended March 31, 2010, total revenue was $159.8 million, an 8.6 percent decline over total revenue of $174.8 million during the same period last year. Net loss for the first nine months of fiscal 2010 was ($2.2) million or a loss of ($0.04) per share, compared to a net loss of ($613,000) or ($0.01) per share during the first nine months of fiscal 2009.
"We are pleased to report a third quarter with 14 orders being added to backlog," said Euan Thomson, president and chief executive officer of Accuray Incorporated. "Solid order performance and the achievement of profitability in a quarter where deferred platinum revenue is tailing off, highlights our ongoing core revenue growth."
Accuray's cash and investment balances at the end of the third quarter of fiscal 2010 totaled $145.8 million, which includes cash and cash equivalents of $36.0 million, restricted cash of $21,000, short-term investments of $81.5 million, trading securities of $21.9 million and long-term investments of $6.4 million.
Outlook
The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray expects that revenue will likely be toward the lower end of the guidance range of $220 million to $230 million. CyberKnife System revenue, which represents approximately two-thirds of total revenue, is driven by customer installation schedules.
Additional Information
Additional information regarding backlog segmentation, which will be discussed during the conference call, is available in the Investor Relations section of the company's Web site at www.accuray.com.
Earnings Call Open to Investors
Accuray will hold a conference call for financial analysts and investors on Thursday, May 6, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-362-4832 (USA) or 1-617-597-5364 (International), Conference ID: 71384530. A live webcast of the call will also be available from the Investor Relations section on the company's Web site at www.accuray.com. In addition, a recording of the call will be available by calling 1-888-286-8010 (USA) or 1-617-801-6888 (International), Conference ID number: 89588146, beginning at 5:00 p.m. PT / 8:00 p.m. ET, May 6, 2010 and will be available through May 9, 2010. A webcast replay will also be available from the Investor Relations section of the company's Web site at www.accuray.com from approximately 5:00 p.m. PT / 8:00 p.m. ET today through Accuray's release of its results for the fourth quarter of fiscal 2010, ending June 30, 2010.
About the CyberKnife(R) Robotic Radiosurgery System
The CyberKnife Robotic Radiosurgery System is the world's only robotic radiosurgery system designed to treat tumors anywhere in the body non-invasively. Using continual image guidance technology and computer controlled robotic mobility, the CyberKnife System automatically tracks, detects and corrects for tumor and patient movement in real-time throughout the treatment. This enables the CyberKnife System to deliver high-dose radiation with pinpoint precision, which minimizes damage to surrounding healthy tissue and eliminates the need for invasive head or body stabilization frames.
About Accuray
Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is a global leader in the field of radiosurgery dedicated to providing an improved quality of life and a non-surgical treatment option for those diagnosed with cancer. Accuray develops and markets the CyberKnife Robotic Radiosurgery System, which extends the benefits of radiosurgery to include extracranial tumors, including those in the spine, lung, prostate, liver and pancreas. To date, the CyberKnife System has been used to deliver more than 80,000 treatments worldwide and currently 196 systems have been installed in leading hospitals in the Americas, Europe and Asia. For more information, please visit www.accuray.com.
Safe Harbor Statement
This press release contains forward-looking statements, including those concerning Accuray's expectations about revenue for fiscal year 2010, the portion of revenue attributable to CyberKnife System revenue, gross margin, profitability, customer installation schedules, realization of backlog and service activity. Forward looking statements involve risks and uncertainties that may lead to actual results varying materially from the forward looking statements. Accordingly, investors are cautioned not to place undue reliance on such statements. Many factors could cause actual performance or results to differ materially from these forward looking statements, including, but not limited to the uncertainties associated with the medical device industry; variability of installation and sales cycle including customer financing and construction delays; changes in the regulatory environment, including reimbursement for CyberKnife procedures; market acceptance of products; and the impact of competition. These and other risks are discussed under the heading "Risk Factors" in our report on Form 10-K for the 2009 fiscal year as well as in our quarterly report on Form 10-Q, for the third quarter of fiscal year 2010, both of which have been filed with the Securities and Exchange Commission. The Company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information.
Accuray Incorporated
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
--------- ---------
2010 2009 2010 2009
---- ---- ---- ----
Net revenue:
Products $33,783 $41,006 $99,815 $119,762
Shared ownership programs 484 1,285 1,421 3,197
Services 17,545 17,901 57,887 47,730
Other 128 1,109 714 4,106
--- ----- --- -----
Total net revenue 51,940 61,301 159,837 174,795
Cost of revenue:
Cost of products 14,430 17,630 46,638 49,894
Cost of shared ownership
programs 228 185 877 654
Cost of services 11,806 12,057 38,859 32,214
Cost of other 100 1,067 503 3,833
--- ----- --- -----
Total cost of revenue 26,564 30,939 86,877 86,595
------ ------ ------ ------
Gross profit 25,376 30,362 72,960 88,200
Operating expenses:
Selling and marketing 7,179 11,420 25,891 35,623
Research and development 7,719 9,259 23,150 26,807
General and
administrative 7,719 8,821 27,079 28,513
----- ----- ------ ------
Total operating expenses 22,617 29,500 76,120 90,943
------ ------ ------ ------
Income (loss) from
operations 2,759 862 (3,160) (2,743)
Other income (loss), net (227) 575 684 2,436
---- --- --- -----
Income (loss) before
provision for (benefit
from) income taxes 2,532 1,437 (2,476) (307)
Provision for (benefit
from) income taxes 260 221 (297) 306
--- --- ---- ---
Net income (loss) $2,272 $1,216 $(2,179) $(613)
====== ====== ======= =====
Net income (loss) per
share:
Basic net income (loss)
per share $0.04 $0.02 $(0.04) $(0.01)
===== ===== ====== ======
Weighted average common
shares used in computing
basic net income (loss)
per share 57,851 55,724 57,352 55,138
====== ====== ====== ======
Diluted net income (loss)
per share $0.04 $0.02 $(0.04) $(0.01)
===== ===== ====== ======
Weighted average common
shares used in computing
diluted net income (loss)
per share 60,470 58,772 57,352 55,138
====== ====== ====== ======
Cost of revenue, selling
and marketing, research
and development, and
general and
administrative expenses
include stock-based
compensation charges as
follows:
Cost of revenue $492 $622 $1,168 $1,801
Selling and marketing $(84) $538 $1,379 $2,518
Research and development $636 $797 $1,937 $2,330
General and
administrative $839 $1,167 $3,753 $5,027
Accuray Incorporated
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
March 31, June 27,
2010 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $36,036 $36,835
Restricted cash 21 527
Short-term available-for-sale securities 81,542 64,634
Trading securities 21,860 -
Accounts receivable, net of allowance for
doubtful accounts of $35
at March 31, 2010 and $484 at June 27, 2009 36,321 36,427
Inventories 28,231 28,909
Prepaid expenses and other current assets 11,636 6,186
Deferred cost of revenue-current 12,876 18,984
------ ------
Total current assets 228,523 192,502
------- -------
Long-term available-for-sale securities 6,359 35,245
Long-term trading securities - 22,007
Property and equipment, net 13,242 15,066
Goodwill 4,495 4,495
Intangible assets, net 452 668
Deferred cost of revenue-noncurrent 3,274 2,933
Other assets 1,630 1,470
Total assets $257,975 $274,386
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,734 $14,941
Accrued expenses 17,022 15,768
Customer advances-current 13,170 13,185
Deferred revenue-current 50,830 68,105
Total current liabilities 90,756 111,999
------ -------
Long-term liabilities:
Long-term other liabilities 928 708
Deferred revenue-noncurrent 4,599 7,777
Total liabilities 96,283 120,484
------ -------
Stockholders' equity
Preferred stock, $0.001 par value; authorized:
5,000,000 shares; no shares issued
and outstanding. - -
Common stock, $0.001 par value; authorized:
100,000,000 shares; issued: 60,147,061
and 58,783,547 shares at March 31, 2010 and June
27,2009, respectively; outstanding: 58,007,043
and 56,643,529 shares at March 31, 2010 and
June 27, 2009, respectively 58 57
Additional paid-in capital 284,268 273,946
Accumulated other comprehensive income 62 416
Accumulated deficit (122,696) (120,517)
--------
Total stockholders' equity 161,692 153,902
------- -------
Total liabilities and stockholders' equity $257,975 $274,386
======== ========
SOURCE Accuray Incorporated