EX-99.1 2 a08-21944_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contacts:

 

Tom Rathjen

 

Stephanie Tomei

 

 

Vice President, Investor Relations

 

Public Relations Manager

 

 

 +1 (408) 789-4458

 

+1 (408) 789-4234

 

 

trathjen@accuray.com

 

stomei@accuray.com

 

Accuray Announces Results for the Fourth Quarter and Fiscal Year End 2008

28 New Contracts Valued at $115.5 Million Signed in Fourth Quarter

 

SUNNYVALE, Calif., August  19, 2008– Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the fourth quarter and fiscal year ended June 28, 2008.

 

For the fourth quarter of fiscal 2008, Accuray reported total revenue of $50.9 million, a 16 percent increase over fourth quarter of fiscal 2007 total revenue of $44.0 million.  For the fiscal year ended June 28, 2008, total revenue was $210.4 million, a 50 percent increase over the $140.5 million in total revenue for the fiscal year ended June 30, 2007.

 

Net income for the fourth quarter of fiscal 2008 was $191,000, or breakeven on a per diluted share basis, compared to net income of $502,000, or $0.01 per diluted share, in the fourth quarter of fiscal 2007.  Net income for fiscal year 2008 was $5.4 million, or $0.09 per diluted share, compared to a net loss of $5.6 million, or $0.18 per diluted share, for the fiscal year 2007.

 

Non-cash, stock based compensation charges for the fourth quarter of fiscal 2008 were $4.1 million, or $0.07 per diluted share.  For the full fiscal year 2008, non-cash stock-based compensation charges were $16.9 million, or $0.28 per diluted share.

 

During the fourth quarter of fiscal 2008, the company signed 28 new contracts with a value of $115.5 million which were entered into backlog.  Of the 28 contracts, 17 came from international customers.

 

At June 28, 2008, backlog was approximately $647 million, with approximately $359 million associated with CyberKnife® Robotic Radiosurgery System contracts and approximately $288 million associated with services and other recurring revenue. Accuray’s backlog is composed of signed contracts that the company believes have a substantially high probability of being recognized as revenue in future periods.  Of the $647 million in backlog at fiscal year end, 71 percent consisted of non-contingent contracts, representing backlog for which contractual contingencies have been satisfied.

 


 

Accuray’s cash and investment balances at the end of the quarter totaled $159.5 million, consisting of cash and cash equivalents of $36.9 million, short-term investments of $85.5 million and long-term investments of $37.0 million.  At the end of the fourth quarter the company continued to have zero debt.

 

“We ended the fiscal year with strong momentum in new contracts and the quality of our sales pipeline, confirming the growing demand for our CyberKnife Robotic Radiosurgery System,” said Euan S. Thomson, Ph.D., president and CEO of Accuray. “Cancer patients, physicians and hospitals worldwide are benefiting from the non-invasive, painless, outpatient treatment offered by our System.”

 

Outlook

 

The following statement is forward-looking and actual results may differ materially.  Accuray expects revenue for fiscal 2009 to be in the range of $230 million to $250 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 corporate Website at www.accuray.com.

 

Earnings Call Open to Investors

 

Accuray will hold a conference call for financial analysts and investors today, August 19, 2008 at 2:00 p.m. PT / 5:00 p.m. ET.  The conference call dial-in numbers are (866) 575-6539 (USA) or (913) 981-5530 (International), Access Code: 9058024.   A live webcast of the call will also be available from the Investor Relations section of the corporate Web site at http://www.accuray.com.  In addition, a recording of the call will be available by calling (888) 203-1112 (USA) or (719) 457-0820 (International), Access Code: 9058024, beginning at 5:00 p.m. PT / 8:00 p.m. ET, August 19, 2008 and will be available through August 29, 2008.  A webcast replay will also be available from the Investor Relations section of the corporate Web site at http://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 2009, ending September 27, 2008.

 

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

 

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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 50,000 patients worldwide and currently 140 systems have been installed in leading hospitals in the Americas, Europe and Asia. For more information, please visit www.accuray.com.

 

Safe Harbor Statement

 

The foregoing may contain certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with the medical device industry. Except for the historical information contained herein, the matters set forth in this press release, as to financial guidance including realization of backlog, procedure growth, market acceptance; clinical studies, regulatory review and approval, and commercialization of products are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance and results to differ materially from the forward-looking statements we make include: market acceptance of products; variability of installation and sales cycle including customer financing and construction delays; competing products, the combination of our products with complementary technology; and other risks detailed from time to time under the heading “Risk Factors” in our report on Form 10-K for the 2007 fiscal year, as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the Securities and Exchange Commission, including our Form 10-K for fiscal 2008 when filed. The Company’s actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors. We assume 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, except to the extent required by applicable securities laws.

 

# # #

 

3


 

Accuray Incorporated

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three months ended

 

Years ended

 

 

 

June 28,

 

June 30,

 

June 28,

 

June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

Net revenue:

 

 

 

 

 

 

 

 

 

Products

 

$

35,553

 

$

34,729

 

$

152,374

 

$

110,320

 

Shared ownership programs

 

2,191

 

2,842

 

10,262

 

10,090

 

Services

 

11,842

 

5,651

 

38,808

 

16,860

 

Other

 

1,353

 

772

 

8,937

 

3,182

 

Total net revenue

 

50,939

 

43,994

 

210,381

 

140,452

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Costs of products

 

14,851

 

13,100

 

67,183

 

43,363

 

Costs of shared ownership programs

 

290

 

672

 

2,517

 

2,637

 

Costs of services

 

7,851

 

4,781

 

26,865

 

12,269

 

Costs of other

 

1,051

 

525

 

6,864

 

2,144

 

Total cost of revenue

 

24,043

 

19,078

 

103,429

 

60,413

 

Gross profit

 

26,896

 

24,916

 

106,952

 

80,039

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

10,611

 

10,765

 

42,726

 

37,889

 

Research and development

 

8,405

 

7,510

 

32,880

 

26,775

 

General and administrative

 

8,460

 

7,060

 

32,280

 

23,915

 

Total operating expenses

 

27,476

 

25,335

 

107,886

 

88,579

 

Loss from operations

 

(580

)

(419

)

(934

)

(8,540

)

Interest and other income, net

 

1,030

 

2,180

 

7,184

 

3,530

 

Income (loss) before provision for income taxes and cumulative effect of change in accounting principle

 

450

 

1,761

 

6,250

 

(5,010

)

Provision for income taxes

 

259

 

1,259

 

867

 

1,444

 

Income (loss) before cumulative effect of change in accounting principle

 

191

 

502

 

5,383

 

(6,454

)

Cumulative effect of change in accounting principle, net of tax of $0

 

—

 

—

 

—

 

838

 

Net income (loss)

 

$

191

 

$

502

 

$

5,383

 

$

(5,616

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common share, basic and diluted:

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

Income (loss) before cumulative effect of change in accounting principle

 

$

0.00

 

$

0.01

 

$

0.10

 

$

(0.21

)

Cumulative effect of change in accounting principle

 

—

 

—

 

—

 

0.03

 

Basic net income (loss) per share

 

$

0.00

 

$

0.01

 

$

0.10

 

$

(0.18

)

 

 

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

 

 

 

Income (loss) before cumulative effect of change in accounting principle

 

$

0.00

 

$

0.01

 

$

0.09

 

$

(0.21

)

Cumulative effect of change in accounting principle

 

—

 

—

 

—

 

0.03

 

Diluted net income (loss) per share

 

$

0.00

 

$

0.01

 

$

0.09

 

$

(0.18

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

54,506

 

53,732

 

54,531

 

30,764

 

Diluted

 

58,854

 

62,553

 

60,434

 

30,764

 

 

 

 

 

 

 

 

 

 

 

Stock-Based Compensation Charges:

 

 

 

 

 

 

 

 

 

Cost of revenue, selling and marketing, research and development, and general and administrative expenses include stock-based compensation charges as follows:

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

494

 

$

357

 

$

1,858

 

$

1,205

 

Selling and marketing

 

$

970

 

$

1,055

 

$

4,197

 

$

3,958

 

Research and development

 

$

781

 

$

839

 

$

3,059

 

$

2,448

 

General and administrative

 

$

1,836

 

$

1,604

 

$

7,785

 

$

5,016

 

 

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Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

 

 

 

June 28,

 

June 30,

 

 

 

2008

 

2007

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

36,936

 

$

204,830

 

Restricted cash

 

4,830

 

—

 

Short-term investments

 

85,536

 

—

 

Accounts receivable, net of allowance for doubtful accounts of $27 and $20 at June 30, 2008 and 2007, respectively

 

33,918

 

10,105

 

Inventories

 

23,047

 

16,984

 

Prepaid expenses and other current assets

 

6,431

 

7,937

 

Deferred cost of revenue—current

 

31,667

 

30,709

 

Total current assets

 

222,365

 

270,565

 

Long-term investments

 

37,014

 

—

 

Property and equipment, net

 

17,140

 

23,937

 

Goodwill

 

4,495

 

4,495

 

Intangible assets, net

 

926

 

1,184

 

Deferred cost of revenue - noncurrent

 

11,724

 

30,522

 

Other assets

 

1,340

 

1,406

 

Total assets

 

$

295,004

 

$

332,109

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

12,962

 

$

14,147

 

Accrued expenses

 

11,873

 

17,240

 

Customer advances - current

 

22,331

 

12,634

 

Deferred revenue - current

 

87,455

 

78,022

 

Total current liabilities

 

134,621

 

122,043

 

Long-term liabilities:

 

 

 

 

 

Customer advances - noncurrent

 

2,900

 

8,388

 

Deferred revenue - noncurrent

 

26,720

 

76,235

 

Total liabilities

 

164,241

 

206,666

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock, $0.001 par value; Authorized: 5,000,000 shares at both June 30, 2008 and 2007; no shares issued or outstanding.

 

—

 

—

 

 

 

 

 

 

 

Common stock, $0.001 par value at both June 30, 2008 and 2007; authorized: 100,000,000 shares at both June 30, 2008 and 2007; issued: 56,719,864 and 53,798,643 shares at June 30, 2008 and 2007, respectively; outstanding: 54,579,846 and 53,798,643 shares at June 30, 2008 and 2007, respectively.

 

55

 

53

 

Additional paid-in capital

 

252,901

 

251,637

 

Accumulated other comprehensive income (loss)

 

(1,067

)

10

 

Accumulated deficit

 

(121,126

)

(126,257

)

Total stockholders’ equity

 

130,763

 

125,443

 

Total liabilities and stockholders’ equity

 

$

295,004

 

$

332,109

 

 

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