Accuray Announces Results for Fourth Quarter and Fiscal Year 2010
Strong CyberKnife® Orders Highlight Quarter and Fiscal Year
SUNNYVALE, Calif., Aug. 31 /PRNewswire-FirstCall/ -- 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® 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® 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, 2010 | June 27, 2009 | June 30, 2010 | June 27, 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 | ||||||||
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 | ||||||||
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 | ||
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
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