Accuray Announces Results for Second Quarter Fiscal 2010
18 New Orders to Backlog and 11 CyberKnife Installations Drive Quarter
SUNNYVALE, Calif., Feb. 4 /PRNewswire-FirstCall/ -- Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the second quarter of fiscal year 2010, ended December 31, 2009.
For the second quarter of fiscal 2010, Accuray reported total revenue of $57.3 million, compared to the second quarter of fiscal 2009 total revenue of $57.6 million.
Accuray reported a net loss for the second quarter of fiscal 2010 of ($1.2) million, or ($0.02) per share, compared to net income of $1.4 million, or $0.02 per diluted share, during the same period last year.
During the second quarter of fiscal 2010, 18 orders for CyberKnife® Robotic Radiosurgery Systems with a value of $84.9 million were added to company backlog, which combined with service renewal orders and other ancillary accessory orders yielded a total addition to backlog of $92.1 million. For the first six months of fiscal 2010, Accuray added 27 CyberKnife Systems to backlog and shipped 18 units.
In the second quarter of fiscal 2010, 11 new CyberKnife Systems were installed, including the replacement of an early model, bringing the worldwide CyberKnife installation base to 190 units.
Non-cash, stock-based compensation charges were $3.2 million for the second quarter of fiscal 2010, compared to $3.6 million for the same period in fiscal 2009.
For the six months ended December 31, 2009, total revenue was $107.9 million, a five percent decrease over total revenue of $113.5 million during the same period last year. Net loss for the first half of fiscal 2010 was ($4.5) million or a loss of ($0.08) per share, compared to a net loss of ($1.8) million or ($0.03) per share during the first half of fiscal 2009. The net loss in the first six months of fiscal 2010 was primarily driven by product mix and higher levels of lower margin service revenue.
"We are very pleased with the number of new orders added to backlog during the second quarter, as well as the steadily expanding installed base of CyberKnife units globally," said Euan S. Thomson, Ph.D., Accuray's president and chief executive officer. "Adding 27 new orders to backlog in the first six months of fiscal 2010, plus shipping 18 units validates the growing worldwide demand for the CyberKnife and bodes well for the future."
Accuray's cash and investment balances at the end of the second quarter of fiscal 2010 totaled $151.1 million, which includes cash and cash equivalents of $39.5 million, restricted cash of $873,000, short-term investments of $96.5 million and long-term investments of $14.3 million.
Outlook
The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray expects that revenue will be in the range of $220 million to $230 million, up from its prior guidance 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, February 4, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-831-6247 (USA) or 1-617-213-8856 (International), Conference ID: 13147425. 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: 38994158, beginning at 5:00 p.m. PT / 8:00 p.m. ET, February 4, 2010 and will be available through February 7, 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 third quarter of fiscal 2010, ending March 31, 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 deliver more than 80,000 treatments worldwide and currently 190 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, customer installation schedules, realization of backlog, service activity and stock based compensation. 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 second 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 Six months ended
------------------ -----------------
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
-------- -------- -------- --------
Net revenue:
Products $35,686 $41,301 $66,032 $78,756
Shared
ownership
program 456 876 937 1,912
Services 20,688 13,922 40,342 29,829
Other 491 1,538 585 2,997
--- ----- --- -----
Total net
revenue 57,321 57,637 107,896 113,494
Cost of
revenue:
Cost of
products 17,556 17,520 32,207 32,264
Cost of
shared
ownership
program 329 207 650 469
Cost of
services 13,133 8,972 27,053 20,157
Cost of
other 339 1,529 403 2,766
--- ----- --- -----
Total
cost of
revenue 31,357 28,228 60,313 55,656
------ ------ ------ ------
Gross
profit 25,964 29,409 47,583 57,838
Operating
expenses:
Selling and
marketing 10,063 10,723 18,712 24,203
Research and
development 7,769 8,794 15,431 17,548
General and
administrative 10,430 9,259 19,360 19,692
------ ----- ------ ------
Total
operating
expenses 28,262 28,776 53,503 61,443
------ ------ ------ ------
Income
(loss) from
operations (2,298) 633 (5,920) (3,605)
Interest
and other
income, net 426 748 911 1,861
--- --- --- -----
Income
(loss) before
provision
for income
taxes (1,872) 1,381 (5,009) (1,744)
Provision
(benefit)
for income
taxes (696) 31 (557) 85
---- -- ---- --
Net income
(loss) $(1,176) $1,350 $(4,452) $(1,829)
======= ====== ======= =======
Net income
(loss) per
common
share, basic
and diluted:
Basic $(0.02) $0.02 $(0.08) $(0.03)
Diluted $(0.02) $0.02 $(0.08) $(0.03)
Weighted
average
common
shares
outstanding
used in
computing
net income
(loss) per
share:
Basic 57,405 55,064 57,112 54,845
Diluted 57,405 58,267 57,112 54,845
Cost of revenue,
selling and
marketing,
research and
development, and
general and
administrative
expenses include
stock-based
compensation
charges as
follows:
Cost of
revenue $445 $547 $676 $1,179
Selling and
marketing $655 $935 $1,463 $1,980
Research and
development $653 $751 $1,301 $1,533
General and
administrative $1,496 $1,348 $2,914 $3,860
Accuray Incorporated
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
December 31, June 27,
2009 2009
---- ----
Assets
Current assets:
Cash and cash equivalents $39,463 $36,835
Restricted cash 873 527
Short-term available-for-
sale securities 74,504 64,634
Trading securities 22,011 -
Accounts receivable, net
of allowance for
doubtful accounts of $24
at December 31, 2009 and
$484 at June 27, 2009 37,433 36,427
Inventories 25,292 28,909
Prepaid expenses and
other current assets 8,973 6,186
Deferred cost of revenue-current 15,761 18,984
------ ------
Total current assets 224,310 192,502
------- -------
Long-term available-for-
sale securities 14,254 35,245
Long-term trading securities - 22,007
Property and equipment, net 12,502 15,066
Goodwill 4,495 4,495
Intangible assets, net 517 668
Deferred cost of revenue-noncurrent 2,817 2,933
Other assets 1,622 1,470
----- -----
Total assets $260,517 $274,386
======== ========
Liabilities and
stockholders' equity
Current liabilities:
Accounts payable $11,175 $14,941
Accrued expenses 18,345 15,768
Customer advances-current 13,577 13,185
Deferred revenue-current 53,098 68,105
------ ------
Total current liabilities 96,195 111,999
------ -------
Long-term liabilities:
Long-term other liabilities 697 708
Deferred revenue-noncurrent 6,218 7,777
----- -----
Total liabilities 103,110 120,484
------- -------
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: 59,847,863
and 58,783,547 shares at December 31,
2009 and June 27,2009, respectively;
outstanding: 57,707,845 and
56,643,529 shares at December 31,
2009 and June 27, 2009, respectively 58 57
Additional paid-in capital 282,048 273,946
Accumulated other
comprehensive income 270 416
Accumulated deficit (124,969) (120,517)
-------- --------
Total stockholders' equity 157,407 153,902
------- -------
Total liabilities and
stockholders' equity $260,517 $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
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