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For the first quarter of fiscal 2010, Accuray reported total revenue of $50.6 million, compared to the first quarter of fiscal 2009 total revenue of $55.9 million. The revenue component associated with legacy Platinum contracts was $10.2 million for the first quarter of fiscal 2010 versus $18.8 million for the first quarter of fiscal 2009. Revenue excluding revenue associated with Platinum contracts, grew year-over-year 9 percent.
Accuray reported a net loss for the first quarter of fiscal 2010 of $3.3 million, or $0.06 per share, compared to net loss of $3.2 million, or $0.06 per share, during the same period last year. The loss was driven by seasonably low first quarter revenue and lower than normal gross margin during the first quarter. Non-cash, stock based compensation charges were $3.1 million for the first quarter of fiscal 2010.
As previously announced, at the beginning of fiscal year 2010, the Company has refined its definition of backlog, which will include non-contingent orders that fulfill refined criteria. Applying these refined criteria to the backlog as of June 30, 2009 would yield a backlog of $282 million. At the end of the first quarter of fiscal 2010, total backlog was $291 million. During the first quarter of fiscal 2010, nine orders for CyberKnife(R) Robotic Radiosurgery Systems met the refined criteria and were added to company backlog, which combined with service renewal orders and other ancillary accessory orders yielded a total addition to backlog of $58.8 million. There were no cancellations to backlog in the first quarter, under either the current refined criteria or previous non-contingent definition.
In the first quarter of fiscal 2010, four new CyberKnife Systems were installed, compared to five installations during the same period last year. At the end of the first quarter, the worldwide CyberKnife installation base was 180 units.
"We are pleased that revenue in the first quarter exceeded our earlier guidance," said Euan S. Thomson, Ph.D., Accuray's president and chief executive officer. "While we anticipated a seasonably low first quarter, we expect the remainder of the year to reflect the increasing worldwide demand for full body radiosurgery treatments with the CyberKnife."
Accuray's cash and investment balances at the end of the first quarter of fiscal 2010 totaled $152.6 million, which includes cash and cash equivalents of $33.3 million, restricted cash of $1.5 million, short-term investments of $69.0 million and long-term investments of $48.8 million.
Outlook
The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray maintains the expectation that revenue will be in the range of $215 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, October 29, 2009 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-800-638-4930 (USA) or 1-617-614-3944 (International), Conference ID: 97746759. 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: 79365074, beginning at 5:00 p.m. PT / 8:00 p.m. ET, October 29, 2009 and will be available through November 1, 2009. 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 second quarter of fiscal 2010, ending December 31, 2009.
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 70,000 patients worldwide and currently 180 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, realization of backlog, customer installation schedules, 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 our quarterly report on Form 10-Q, for the first 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
------------------
September 30, September 27,
2009 2008
------------- -------------
Net revenue:
Products $30,346 $37,455
Shared ownership program 481 1,036
Services 19,654 15,907
Other 94 1,459
-- -----
Total net revenue 50,575 55,857
Cost of revenue:
Cost of products 14,651 14,744
Cost of shared ownership program 321 262
Cost of services 13,920 11,185
Cost of other 64 1,237
-- -----
Total cost of revenue 28,956 27,428
------ ------
Gross profit 21,619 28,429
Operating expenses:
Selling and marketing 8,649 13,480
Research and development 7,662 8,754
General and administrative 8,930 10,433
----- ------
Total operating expenses 25,241 32,667
------ ------
Loss from operations (3,622) (4,238)
Interest and other income, net 485 1,113
--- -----
Loss before provision for income taxes (3,137) (3,125)
Provision for income taxes 139 54
--- --
Net loss $(3,276) $(3,179)
======= =======
Net income per common share, basic
and diluted:
Basic $(0.06) $(0.06)
Diluted $(0.06) $(0.06)
Weighted average common shares
outstanding used in computing net
income per share:
Basic 56,713 54,625
Diluted 56,713 54,625
Cost of revenue, selling and
marketing, research and
development, and general and
administrative expenses include
stock-based compensation charges
as follows:
Cost of revenue $231 $632
Selling and marketing $808 $1,045
Research and development $648 $782
General and administrative $1,418 $2,512
Accuray Incorporated
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
September 30, June 27,
2009 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $33,340 $36,835
Restricted cash 1,498 527
Short-term marketable securities 68,983 64,634
Accounts receivable, net of allowance for
doubtful accounts of $24 at September
30, 2009 and $484 at June 27, 2009 30,305 36,427
Inventories 25,679 28,909
Prepaid expenses and other current assets 7,896 6,186
Deferred cost of revenue-current 18,166 18,984
------ ------
Total current assets 185,867 192,502
------- -------
Long-term marketable securities 48,757 57,252
Property and equipment, net 14,061 15,066
Goodwill 4,495 4,495
Intangible assets, net 582 668
Deferred cost of revenue-noncurrent 2,369 2,933
Other assets 1,498 1,470
----- -----
Total assets $257,629 $274,386
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $8,467 $14,941
Accrued expenses 14,685 16,188
Customer advances-current 15,096 13,185
Deferred revenue-current 58,169 68,105
------ ------
Total current liabilities 96,417 112,419
------ -------
Long-term liabilities:
Long-term other liabilities 288 288
Customer advances-noncurrent - -
Deferred revenue-noncurrent 6,117 7,777
----- -----
Total liabilities 102,822 120,484
------- -------
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:
59,542,259 and 58,783,159 shares at September
30, 2009 and June 27,2009, respectively;
outstanding: 57,405,241 and 56,643,529
shares at September 30, 2009 and June
27, 2009, respectively 57 57
Additional paid-in capital 278,136 273,946
Accumulated other comprehensive income 407 416
Accumulated deficit (123,793) (120,517)
-------- --------
Total stockholders' equity 154,807 153,902
------- -------
Total liabilities and stockholders'
equity $257,629 $274,386
======== ========
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Euan Thomson, Ph.D.
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=81869
SOURCE Accuray Incorporated
http://www.accuray.com
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