EX-99.1 2 a10-9394_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contacts:

 

Tom Rathjen

 

Stephanie Tomei

 

 

Vice President, Investor Relations

 

Senior Manager, Marketing Communications

 

 

+1 (408) 789-4458

 

+1 (408) 789-4234

 

 

trathjen@accuray.com

 

stomei@accuray.com

 

Accuray Announces Results for Third Quarter Fiscal 2010

 

14 Orders Added to Backlog Highlight Profitable Quarter

 

SUNNYVALE, Calif., May 6, 2010 — Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the third quarter of fiscal year 2010, ended March 31, 2010.

 

For the third quarter of fiscal 2010, Accuray reported total revenue of $51.9 million, compared to the third quarter of fiscal 2009 total revenue of $61.3 million.

 

Accuray reported net income for the third quarter of fiscal 2010 of $2.3 million, or $0.04 per diluted share, compared to a net income of $1.2 million, or $0.02 per diluted share, during the same period last year.

 

During the third quarter of fiscal 2010, 14 orders for CyberKnife® Robotic Radiosurgery Systems with a value of $64.3 million were added to company backlog, which combined with service renewal orders and other ancillary accessory orders yielded a total addition to backlog of $76.6 million. For the first nine months of fiscal 2010, Accuray added 41 CyberKnife Systems to backlog and shipped 26 units.

 

In the third quarter of fiscal 2010, six CyberKnife Systems were installed, bringing the worldwide CyberKnife installation base to 196 units.

 

For the nine months ended March 31, 2010, total revenue was $159.8 million, an 8.6 percent decline over total revenue of $174.8 million during the same period last year. Net loss for the first nine months of fiscal 2010 was ($2.2) million or a loss of ($0.04) per share, compared to a net loss of ($613,000) or ($0.01) per share during the first nine months of fiscal 2009.

 

“We are pleased to report a third quarter with 14 orders being added to backlog,” said Euan Thomson, president and chief executive officer of Accuray Incorporated.  “Solid order performance and the achievement of profitability in a quarter where deferred platinum revenue is tailing off, highlights our ongoing core revenue growth.”

 

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Accuray’s cash and investment balances at the end of the third quarter of fiscal 2010 totaled $145.8 million, which includes cash and cash equivalents of $36.0 million, restricted cash of $21,000, short-term investments of $81.5 million, trading securities of $21.9 million and long-term investments of $6.4 million.

 

Outlook

 

The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray expects that revenue will likely be toward the lower end of the guidance range of $220 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, May 6, 2010 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-866-362-4832 (USA) or 1-617-597-5364 (International), Conference ID:  71384530. 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: 89588146, beginning at 5:00 p.m. PT / 8:00 p.m. ET, May 6, 2010 and will be available through May 9, 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 fourth quarter of fiscal 2010, ending June 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.

 

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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 196 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, 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 2009 fiscal year as well as in our quarterly report on Form 10-Q, for the third 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.

 

# # #

 

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Accuray Incorporated

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three Months Ended
March 31,

 

Nine Months Ended
March 31,

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Net revenue:

 

 

 

 

 

 

 

 

 

Products

 

$

33,783

 

$

41,006

 

$

99,815

 

$

119,762

 

Shared ownership programs

 

484

 

1,285

 

1,421

 

3,197

 

Services

 

17,545

 

17,901

 

57,887

 

47,730

 

Other

 

128

 

1,109

 

714

 

4,106

 

Total net revenue

 

51,940

 

61,301

 

159,837

 

174,795

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

Cost of products

 

14,430

 

17,630

 

46,638

 

49,894

 

Cost of shared ownership programs

 

228

 

185

 

877

 

654

 

Cost of services

 

11,806

 

12,057

 

38,859

 

32,214

 

Cost of other

 

100

 

1,067

 

503

 

3,833

 

Total cost of revenue

 

26,564

 

30,939

 

86,877

 

86,595

 

Gross profit

 

25,376

 

30,362

 

72,960

 

88,200

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing

 

7,179

 

11,420

 

25,891

 

35,623

 

Research and development

 

7,719

 

9,259

 

23,150

 

26,807

 

General and administrative

 

7,719

 

8,821

 

27,079

 

28,513

 

Total operating expenses

 

22,617

 

29,500

 

76,120

 

90,943

 

Income (loss) from operations

 

2,759

 

862

 

(3,160

)

(2,743

)

Other income (loss), net

 

(227

)

575

 

684

 

2,436

 

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

 

2,532

 

1,437

 

(2,476

)

(307

)

Provision for (benefit from) income taxes

 

260

 

221

 

(297

)

306

 

Net income (loss)

 

$

2,272

 

$

1,216

 

$

(2,179

)

$

(613

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

$

0.04

 

$

0.02

 

$

(0.04

)

$

(0.01

)

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

 

57,851

 

55,724

 

57,352

 

55,138

 

Diluted net income (loss) per share

 

$

0.04

 

$

0.02

 

$

(0.04

)

$

(0.01

)

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

 

60,470

 

58,772

 

57,352

 

55,138

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

492

 

$

622

 

$

1,168

 

$

1,801

 

Selling and marketing

 

$

(84

)

$

538

 

$

1,379

 

$

2,518

 

Research and development

 

$

636

 

$

797

 

$

1,937

 

$

2,330

 

General and administrative

 

$

839

 

$

1,167

 

$

3,753

 

$

5,027

 

 

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Accuray Incorporated

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

 

 

 

March 31,

 

June 27,

 

 

 

2010

 

2009

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

36,036

 

$

36,835

 

Restricted cash

 

21

 

527

 

Short-term available-for-sale securities

 

81,542

 

64,634

 

Trading securities

 

21,860

 

 

Accounts receivable, net of allowance for doubtful accounts of $35 at March 31, 2010 and $484 at June 27, 2009

 

36,321

 

36,427

 

Inventories

 

28,231

 

28,909

 

Prepaid expenses and other current assets

 

11,636

 

6,186

 

Deferred cost of revenue—current

 

12,876

 

18,984

 

Total current assets

 

228,523

 

192,502

 

Long-term available-for-sale securities

 

6,359

 

35,245

 

Long-term trading securities

 

 

22,007

 

Property and equipment, net

 

13,242

 

15,066

 

Goodwill

 

4,495

 

4,495

 

Intangible assets, net

 

452

 

668

 

Deferred cost of revenue—noncurrent

 

3,274

 

2,933

 

Other assets

 

1,630

 

1,470

 

Total assets

 

$

257,975

 

$

274,386

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

9,734

 

$

14,941

 

Accrued expenses

 

17,022

 

15,768

 

Customer advances—current

 

13,170

 

13,185

 

Deferred revenue—current

 

50,830

 

68,105

 

Total current liabilities

 

90,756

 

111,999

 

Long-term liabilities:

 

 

 

 

 

Long-term other liabilities

 

928

 

708

 

Deferred revenue—noncurrent

 

4,599

 

7,777

 

Total liabilities

 

96,283

 

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: 60,147,061 and 58,783,547 shares at March 31, 2010 and June 27,2009, respectively; outstanding: 58,007,043 and 56,643,529 shares at March 31, 2010 and June 27, 2009, respectively

 

58

 

57

 

Additional paid-in capital

 

284,268

 

273,946

 

Accumulated other comprehensive income

 

62

 

416

 

Accumulated deficit

 

(122,696

)

(120,517

)

Total stockholders’ equity

 

161,692

 

153,902

 

Total liabilities and stockholders’ equity

 

$

257,975

 

$

274,386

 

 

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