Accuray Announces Results for Third Quarter of Fiscal 2011

May 5, 2011 at 4:17 PM EDT

SUNNYVALE, Calif., May 5, 2011 /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 2011, ended March 31, 2011.

For the third quarter of fiscal 2011, Accuray reported total revenue of $54.7 million, an increase of five percent from total revenue of $51.9 million during the third quarter of fiscal 2010. Total revenue during the third quarter of fiscal 2011 included $0.2 million of previously deferred revenue for systems sold with legacy Platinum service agreements, compared to $2.1 million in the third quarter of fiscal 2010.

Net loss for the third quarter of fiscal 2011 was $1.2 million, or $0.02 per share, compared to net income of $2.3 million, or $0.04 per share, during the same period last year. The net loss was attributable to approximately $2.6 million in costs associated with the pending acquisition of TomoTherapy.

Orders to backlog totaled $58.5 million during the third quarter: $43.2 million for systems and $15.3 million for service. System backlog totaled $158.5 million at the end of the third quarter, comparable to the previous quarter and a 27 percent increase from the same quarter last year. Service backlog totaled $243.5 million at the end of the third quarter, comparable to the previous quarter and an 18 percent increase from the same quarter last year. Total backlog was $413.4 million at the end of the third quarter, comparable and up 18 percent, respectively, from the prior quarter and the third quarter last year.

During the third quarter, 13 orders for CyberKnife® Robotic Radiosurgery Systems were added to backlog, two orders were cancelled by customers, and one order aged beyond two and a half years and is no longer reported in backlog.

During the third quarter, 13 CyberKnife Systems were shipped and four were installed, increasing the worldwide CyberKnife installed base to 226 systems.

"Due to the continued flow of new CyberKnife orders in the third quarter, backlog grew by 18 percent from the same period last year," said Euan Thomson, president and chief executive officer of Accuray Incorporated. "For those healthcare institutions serious about becoming full body radiosurgery centers, the CyberKnife Robotic Radiosurgery System remains the clear and differentiated choice."

Accuray's cash and marketable securities totaled $143 million as of March 31, 2011.

Outlook

The following statement is forward-looking and actual results may differ materially. During fiscal year 2011 Accuray maintains its expectation that revenue will 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 Thursday, May 5, 2011 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-578-5784 (USA) or 1-617-213-8056 (International), Conference ID: 59351513. 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: 19680048, beginning at 5:00 p.m. PT / 8:00 p.m. ET, May 5, 2011 and will be available through May 8, 2011. 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 2011, ending June 30, 2011.

About the CyberKnife® 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 100,000 patients worldwide and currently more than 226 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, as updated in our Form 10-Q to be filed on or before May 10, 2011. 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,

2011

2010

2011

2010








Net revenue:






Products

$35,249

$33,783

$88,915

$99,815

Shared ownership programs

335

484

1,856

1,421

Services

18,253

17,545

54,833

57,887

Other

910

128

1,457

714

Total net revenue

54,747

51,940

147,061

159,837

Cost of revenue:






Cost of products

14,114

14,430

34,508

46,638

Cost of shared ownership programs

85

228

379

877

Cost of services

12,152

11,806

35,397

38,859

Cost of other

1,083

100

1,761

503

Total cost of revenue

27,434

26,564

72,045

86,877

Gross profit

27,313

25,376

75,016

72,960

Operating expenses:






Selling and marketing

8,127

7,179

23,874

25,891

Research and development

9,291

7,719

26,651

23,150

General and administrative

10,421

7,719

27,461

27,079

Total operating expenses

27,839

22,617

77,986

76,120

Income (loss) from operations

(526)

2,759

(2,970)

(3,160)

Other income (loss), net

22

(227)

2,314

684

Income (loss) before provision for (benefit from) income taxes

(504)

2,532

(656)

(2,476)

Provision for (benefit from) income taxes

656

260

1,046

(297)

Net income (loss)

$ (1,160)

$ 2,272

$ (1,702)

$ (2,179)

Net income (loss) per share:






Basic net income (loss) per share

$ (0.02)

$ 0.04

$ (0.03)

$ (0.04)

Weighted average common shares used in computing








basic net income (loss) per share

59,960

57,851

59,298

57,352

Diluted net income (loss) per share

$ (0.02)

$ 0.04

$ (0.03)

$ (0.04)

Weighted average common shares used in computing








diluted net income (loss) per share

59,960

60,470

59,298

57,352

Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)


March 31,

June 30,

2011

2010




Assets


Current assets:


Cash and cash equivalents

$ 57,332

$ 45,434

Restricted cash

22

22

Short-term available-for-sale securities

85,603

99,881

Accounts receivable, net of allowance for doubtful accounts of $225 and $115 at




March 31, 2011 and June 30, 2010, respectively

44,871

37,955

Inventories

34,408

28,186

Prepaid expenses and other current assets

9,150

19,356

Deferred cost of revenue--current

5,131

7,889

Total current assets

236,517

238,723

Deferred cost of revenue--noncurrent

2,193

3,213

Property and equipment, net

16,514

14,684

Goodwill

4,495

4,495

Intangible assets, net

194

388

Other assets

1,816

1,681

Total assets

$261,729

$263,184

Liabilities and stockholders' equity


Current liabilities:


Accounts payable

$ 9,873

$ 10,317

Accrued compensation

9,941

10,786

Other accrued liabilities

7,881

10,669

Customer advances

13,484

12,884

Deferred revenue--current

35,626

42,019

Total current liabilities

76,805

86,675




Long-term other liabilities

999

1,059

Deferred revenue--noncurrent

4,655

5,374

Total liabilities

82,459

93,108

Commitments and contingencies


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: 62,291,644 and 60,666,974 shares at March 31, 2011 and June 30, 2010, respectively; outstanding: 60,151,626 and 58,526,956 shares at March 31, 2011 and June 30, 2010, respectively

60

59

Additional paid-in capital

298,530

287,764

Accumulated other comprehensive income (loss)

85

(71)

Accumulated deficit

(119,405)

(117,676)

Total stockholders' equity

179,270

170,076

Total liabilities and stockholders' equity

$261,729

$263,184

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Euan Thomson, Ph.D.

https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=81869

SOURCE Accuray Incorporated