SUNNYVALE, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Accuray Incorporated
( ARAY), a global leader in the field of radiosurgery, announced today
financial results for the second quarter of fiscal 2009, ended December 27,
2008.
For the second quarter of fiscal 2009, Accuray reported total revenue of
$57.6 million, a 10.8 percent increase over second quarter of fiscal 2008
total revenue of $52.0 million and a 3.2 percent sequential increase over the
first quarter of fiscal 2009.
In the second quarter of fiscal 2009, Accuray recorded a market fair value
charge of $860,000, or $0.02 per share, in connection with a settlement
agreement entered into with the distributor of the auction rate securities
that guarantees repayment of the securities at par value beginning in June
2010. As a result net income for the second quarter of fiscal 2009 was $1.4
million, or $0.02 per diluted share, compared to net income of $2.3 million,
or $0.04 per diluted share, during the same period last year. Non-cash, stock
based compensation charges for the second quarter of fiscal 2009 were $3.6
million.
For the six months ended December 27, 2008, total revenue was $113.5
million, a 12.7 percent increase over total revenue of $100.7 million for the
same period last year. Net loss for the first half of fiscal 2009 was $1.8
million, or a loss of $0.03 per diluted share, compared to net income of $4.6
million, or $0.08 per diluted share, for the first half of fiscal 2008. The
net loss in the first six months of fiscal 2009 was primarily driven by non-
recurring costs associated with employee separation expenses and inventory
write downs incurred during the fiscal first quarter of 2009.
"We are encouraged by the year-over-year revenue growth plus strong
installation and shipment numbers for the quarter, reflecting an expanding
demand for our CyberKnife(R) Robotic Radiosurgery System," said Euan S.
Thomson Ph.D., Accuray's president and chief executive officer.
In an effort to contain costs, Accuray has eliminated approximately 60
positions or approximately 13 percent of its U.S. workforce. The Company is
focused on improving processes and cross-company collaboration with the goal
of raising efficiency, and has taken these actions to enhance the Company's
success in the long term and position itself to weather the potential impact
of the current global downturn. The Company estimates that the future savings
in employment related expenses will be approximately $8.7 million per year.
Due to severance pay and the timing of employment terminations, limited
savings will begin in the fourth fiscal quarter of 2009 with the full benefit
starting in the first quarter of fiscal 2010. Most of the affected jobs are
located at Accuray's Sunnyvale, Calif. headquarters.
At December 27, 2008, non-contingent contracts, for which all contractual
obligations have been satisfied, accounted for approximately $452 million or
76 percent of total backlog. 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. Total backlog at the end of
the second fiscal quarter of 2009 was $598 million, with approximately $311
million associated with CyberKnife Robotic Radiosurgery System contracts and
approximately $287 million associated with services and other recurring
revenue. Contingent contracts made up $146 million of backlog.
Accuray's cash and investment balances at the end of the second quarter of
2009 totaled $154.7 million, which includes cash and cash equivalents of $29.4
million, restricted cash of $0.6 million, short-term investments of $80.2
million and long-term investments of $44.5 million. At the end of the second
quarter of 2009 the Company continued to have zero debt.
Outlook
The following statement is forward-looking and actual results may differ
materially. Accuray expects total revenues 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 company's Web site at http://www.accuray.com.
Earnings Call Open to Investors
Accuray will hold a conference call for financial analysts and investors
on Thursday January 29, 2009 at 2:00 p.m. PT / 5:00 p.m. ET. The conference
call dial-in numbers are 1-866-379-2019 (USA) or 1-706-634-1525
(International), Conference ID: 80572858. A live webcast of the call will
also be available from the Investor Relations section on the company's Web
site at http://www.accuray.com. In addition, a recording of the call will be
available by calling 1-800-642-1687 (USA) or 1-706-645-9291(International),
Conference ID number: 80572858, beginning at 5:00 p.m. PT 8:00 p.m. ET,
January 29, 2009 and will be available through February 1, 2009. A webcast
replay will also be available from the Investor Relations section of the
company's 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 third
quarter of fiscal 2009, ending March 28, 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 ( 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 155 systems have been installed in leading hospitals
in the Americas, Europe and Asia. For more information, please visit
http://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, anticipated cost savings and benefits from job
eliminations, 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: failure to achieve anticipated savings from cost-
cutting efforts; 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 2008 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. 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.
Accuray Incorporated
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Six months ended
December 27, December 29, December 27, December 29,
2008 2007 2008 2007
Net revenue:
Products $41,301 $39,131 $78,756 $76,115
Shared ownership
program 876 3,044 1,912 5,356
Services 13,922 8,950 29,829 15,949
Other 1,538 913 2,997 3,264
Total net revenue 57,637 52,038 113,494 100,684
Cost of revenue:
Cost of products 17,520 16,481 32,264 32,921
Cost of shared
ownership program 207 760 469 1,472
Cost of services 8,972 6,391 20,157 10,849
Cost of other 1,529 544 2,766 1,669
Total cost of revenue 28,228 24,176 55,656 46,911
Gross profit 29,409 27,862 57,838 53,773
Operating expenses:
Selling and marketing 10,723 11,167 24,203 21,323
Research and
development 8,794 8,128 17,548 15,843
General and
administrative 9,259 7,976 19,692 15,877
Total operating
expenses 28,776 27,271 61,443 53,043
Income (loss) from
operations 633 591 (3,605) 730
Interest and other
income, net 748 2,197 1,861 4,809
Income (loss) before
provision for income
taxes and cumulative
effect of change in
accounting principle 1,381 2,788 (1,744) 5,539
Provision for income
taxes 31 445 85 931
Net income (loss) $1,350 $2,343 $(1,829) $4,608
Net income (loss)
per common share,
basic and diluted:
Basic $0.02 $0.04 $(0.03) $0.08
Diluted $0.02 $0.04 $(0.03) $0.08
Weighted average
common shares
outstanding used
in computing net
income (loss)
per share:
Basic 55,064 54,737 54,845 54,380
Diluted 58,267 61,293 54,845 61,257
Cost of revenue,
selling and marketing,
research and
development, and
general and
administrative expenses
include stock-based
compensation charges
as follows:
Cost of revenue $547 $530 $1,179 $851
Selling and
marketing $935 $1,039 $1,980 $2,146
Research and
development $751 $803 $1,533 $1,478
General and
administrative $1,348 $1,911 $3,860 $4,112
Accuray Incorporated
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
December 27, June 28,
2008 2008
Assets
Current assets:
Cash and cash equivalents $29,373 $36,936
Restricted cash 581 4,830
Short-term marketable securities 80,242 85,536
Accounts receivable, net of allowance
for doubtful accounts of $195
at December 31, 2008 and $27
at June 30, 2008 40,935 33,918
Inventories 24,080 23,047
Prepaid expenses and other current
assets 8,824 6,431
Deferred cost of revenue-current 21,968 31,667
Total current assets 206,003 222,365
Long-term marketable securities 44,487 37,014
Property and equipment, net 16,158 17,140
Goodwill 4,495 4,495
Intangible assets, net 797 926
Deferred cost of revenue-noncurrent 12,209 11,724
Other assets 1,402 1,340
Total assets $285,551 $295,004
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,329 $12,962
Accrued expenses 16,713 11,873
Customer advances-current 17,408 22,331
Deferred revenue-current 69,453 87,455
Total current liabilities 112,903 134,621
Long-term liabilities:
Customer advances-noncurrent 1,500 2,900
Deferred revenue-noncurrent 28,538 26,720
Total liabilities 142,941 164,241
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: 57,697,449 and 56,719,864
shares at December 31, 2008 and
June 30, 2008, respectively;
outstanding: 55,557,431 and
54,579,846 shares at December 31,
2008 and June 30, 2008, respectively. 56 55
Additional paid-in capital 264,970 252,901
Accumulated other comprehensive
income (loss) 539 (1,067)
Accumulated deficit (122,955) (121,126)
Total stockholders' equity 142,610 130,763
Total liabilities and stockholders'
equity $285,551 $295,004
SOURCE Accuray Incorporated
