Accuray Announces Results for Fourth Quarter and Fiscal Year 2010
SUNNYVALE, Calif., Aug 31, 2010 /PRNewswire via COMTEX/ --
Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the fourth quarter and fiscal year 2010, ended June 30, 2010.
For the fourth quarter of fiscal 2010, Accuray reported total revenue of $61.8 million, a 5.1 percent increase over the fourth quarter of fiscal 2009 total revenue of $58.8 million. For the fiscal year ended June 30, 2010, total revenue was $221.6 million, a twelve million dollar decrease from the $233.6 million in total revenue recorded for fiscal year 2009.
Net income for the fourth quarter of fiscal 2010 was $5.0 million, or $0.08 per diluted share, compared to net income of $1.2 million, or $0.02 per diluted share, during the same period last year. Net income for fiscal year 2010 was $2.8 million or $0.05 per diluted share, compared to net income of $609,000 or $0.01 per diluted share for fiscal year 2009.
During the fourth quarter of fiscal 2010, 16 CyberKnife(R) Robotic Radiosurgery Systems were added to company backlog, with a total value of $74 million. In addition, new service and other ancillary orders with a value of $18 million were signed. During the fourth quarter, one order was canceled by a customer and removed from backlog.
Total backlog for the end of the fourth quarter of fiscal 2010 was $374 million, with approximately $132 million associated with CyberKnife System contracts and approximately $242 million associated with services and other recurring revenue.
In the fourth quarter of fiscal 2010, 10 new CyberKnife Systems were installed, making a full year installation total of 31 systems. At the end of the 2010 fiscal year, the worldwide CyberKnife installation base was 206.
"With 16 CyberKnife orders added into backlog, we are pleased to report another strong quarter of continued sales momentum, which has yielded 56 net orders for fiscal 2010," said Euan Thomson, president and chief executive officer of Accuray Incorporated. "Cancer patients worldwide are receiving highly precise, non-invasive, state-of-the-art radiosurgery treatment from an expanding base of installed CyberKnife Systems."
Accuray's cash and investment balances at the end of the fourth quarter of 2010 totaled $145.3 million, which includes cash and cash equivalents of $45.4 million, restricted cash of $22,000 and short-term investments of $99.9 million. Not included in the year-end cash and investments balance was $5.9 million, net, of in-transit cash associated with the liquidation of our auction-rate securities on June 30, 2010, which was received on July 1, 2010.
Outlook
The following statement is forward-looking and actual results may differ materially. During fiscal year 2011 Accuray expects revenue to be in the range of $210 million to $225 million.
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 Tuesday, August 31, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-578-5771 (USA) or 1-617-213-8055 (International), Conference ID: 28021423. 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: 24002694, beginning at 5:00 p.m. PT / 8:00 p.m. ET, August 31, 2010 and will be available through September 3, 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 first quarter of fiscal 2011, ending September 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 treat more than 95,000 patients worldwide and currently more than 206 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 2011, 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 2010 fiscal year which has 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 Years ended
------------------ -----------
June 30, June 27, June 30, June 27,
2010 2009 2010 2009
--------- --------- --------- ---------
Net revenue:
Products $41,482 $39,495 $141,297 $159,257
Shared ownership
program 469 454 1,890 3,651
Services 19,617 18,614 77,504 66,344
Other 220 240 934 4,346
Total net revenue 61,788 58,803 221,625 233,598
Cost of revenue:
Cost of products 18,559 19,010 65,197 68,904
Cost of shared
ownership program 142 121 1,019 775
Cost of services 11,873 12,377 50,732 44,591
Cost of other 156 205 659 4,038
Total cost of revenue 30,730 31,713 117,607 118,308
------ ------ ------- -------
Gross profit 31,058 27,090 104,018 115,290
Operating expenses:
Selling and marketing 8,296 9,870 34,187 45,493
Research and
development 8,373 9,185 31,523 35,992
General and
administrative 8,393 7,710 35,472 36,223
----- ----- ------ ------
Total operating
expenses 25,062 26,765 101,182 117,708
------ ------ ------- -------
Income (loss) from
operations 5,996 325 2,836 (2,418)
Interest and other
income, net (683) 646 1 3,082
---- --- --- -----
Income before
provision for income
taxes 5,313 971 2,837 664
Provision (benefit)
for income taxes 292 (251) (4) 55
--- ---- --- ---
Net income $5,021 $1,222 $2,841 $609
====== ====== ====== ====
Net income per common
share, basic and
diluted:
Basic $0.09 $0.02 $0.05 $0.01
Diluted $0.08 $0.02 $0.05 $0.01
Weighted average
common shares
outstanding used in
computing net income
per
share:
Basic 58,205 56,238 57,560 55,413
Diluted 60,564 59,324 60,191 58,729
Cost of revenue,
selling and
marketing, research
and development, and
general
and administrative
expenses include
stock-based
compensation charges
as follows:
Cost of revenue $553 $484 $1,721 $2,285
Selling and marketing $54 $923 $1,433 $3,441
Research and
development $913 $860 $2,850 $3,190
General and
administrative $889 $1,518 $4,642 $6,545
Accuray Incorporated
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
June 30, June 27,
2010 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $45,434 $36,835
Restricted cash 22 527
Short-term marketable securities 99,881 64,634
Accounts receivable, net of allowance for
doubtful accounts of $115
at June 30, 2010 and $484 at June 27,
2009 37,955 36,427
Inventories 28,186 28,909
Prepaid expenses and other current assets 19,356 6,186
Deferred cost of revenue-current 7,889 18,984
----- ------
Total current assets 238,723 192,502
------- -------
Long-term marketable securities - 57,252
Property and equipment, net 14,684 15,066
Goodwill 4,495 4,495
Intangible assets, net 388 668
Deferred cost of revenue-noncurrent 3,213 2,933
Other assets 1,681 1,470
Total assets $263,184 $274,386
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $10,317 $14,941
Accrued expenses 21,455 16,188
Customer advances-current 12,884 13,185
Deferred revenue-current 42,019 68,105
Total current liabilities 86,675 112,419
------ -------
Long-term liabilities:
Long-term other liabilities 1,059 288
Customer advances-noncurrent - -
Deferred revenue-noncurrent 5,374 7,777
Total liabilities 93,108 120,484
------ -------
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:
60,666,974 59 57
and 58,783,159 shares at June 30, 2010
and June 27, 2009, respectively;
outstanding:
58,526,956 and 56,643,529 shares at June
30, 2010 and June 27, 2009,
respectively.
Additional paid-in capital 287,764 273,946
Accumulated other comprehensive income
(loss) (71) 416
Accumulated deficit (117,676) (120,517)
Total stockholders' equity 170,076 153,902
------- -------
Total liabilities and stockholders'
equity $263,184 $274,386
======== ========
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Euan Thomson, Ph.D
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=81869
SOURCE Accuray Incorporated