Quantcast

Accuray Announces Results for Fourth Quarter and Fiscal Year 2009

August 24, 2009

SUNNYVALE, Calif., Aug. 24 /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 2009, ended June 27, 2009.

For the fourth quarter of fiscal 2009, Accuray reported total revenue of $58.8 million, a 15 percent increase over the fourth quarter of fiscal 2008 total revenue of $50.9 million. For the fiscal year ended June 27, 2009, total revenue was $233.6 million, an 11 percent increase over the $210.4 million in total revenue recorded for fiscal year 2008.

Net income for the fourth quarter of fiscal 2009 was $1.2 million, or $0.02 per diluted share, compared to net income of $191,000, or breakeven, during the same period last year. Net income for fiscal year 2009 was $609,000 or $0.01 per diluted share, compared to net income of $5.4 million or $0.09 per diluted share for fiscal year 2008. During fiscal 2009, net income was impacted by $5.8 million or $0.10 per diluted share of non-recurring charges, associated with employee severance, inventory write downs and expenses related to January’s work force reduction.

Non-cash, stock based compensation charges were $3.8 million for the fourth quarter of fiscal 2009 and $15.5 million for the full year.

During the fourth quarter of fiscal 2009, $75.0 million was added to backlog representing 15 CyberKnife((R)) Robotic Radiosurgery System agreements. In addition, new service agreements with a value of $13.6 million were signed.

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 for the fourth quarter of fiscal 2009 was $556 million, with approximately $285 million associated with CyberKnife System contracts and approximately $271 million associated with services and other recurring revenue. Of the contracts signed by June 27, 2009, non-contingent contracts, for which all contractual obligations have been satisfied, accounted for approximately $407 million or 73 percent of total backlog reported for the fourth quarter of fiscal 2009. Contingent contracts made up $149 million of the Company’s backlog. As noted, beginning with the first quarter of fiscal 2010, Accuray will report only non-contingent orders as backlog.

In the fourth quarter of fiscal 2009, 12 new CyberKnife Systems were installed, making a full year installation total of 36 systems, an improvement over the 31 systems installed during the year prior. At the end of the 2009 fiscal year, the worldwide CyberKnife installation base was 176.

“In a year of macro economic headwinds, we are pleased with our double digit revenue growth,” said Euan S. Thomson, Ph.D., Accuray’s president and chief executive officer. “As the momentum in CyberKnife System installations continues, an increasing number of cancer patients around the world are benefiting from full body radiosurgery treatment.”

Accuray’s cash and investment balances at the end of the fourth quarter of 2009 totaled $159.2 million, which includes cash and cash equivalents of $36.8 million, restricted cash of $0.5 million, short-term investments of $64.6 million and long-term investments of $57.3 million. At the end of the fourth quarter of 2009 the Company continued to have no debt.

Outlook

The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray expects revenue to be in the range of $215 to $230 million. CyberKnife system revenue, which represents over 70% of total revenue, is driven by customer installation schedules. Based on current customer schedules, revenue in the first quarter is expected to be low, in the range of $40 to $50 million. Revenue related to systems sold and installed in prior years under Platinum contracts is recognized over the term of the original service contract, generally 5 years. Revenue from Platinum contracts is expected to decline by approximately $38 million in fiscal 2010 from fiscal 2009. All other revenue is expected to grow by approximately $20 to $30 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 Monday, August 24, 2009 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-800-901-5241 (USA) or 1-617-786-2963 (International), Conference ID: 78497690. 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: 53811638, beginning at 5:00 p.m. PT / 8:00 p.m. ET, August 24, 2009 and will be available through August 27, 2009. 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 the release of Accuray’s results for the first quarter of fiscal 2010, ending September 30, 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 (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 70,000 patients worldwide and currently 176 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, realization of backlog, increasing number of patients, customer installation schedules, and market acceptance 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: variability of installation and sales cycle including customer financing and construction delays; market acceptance of products; competing products; 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       Years ended
                                   -------------------  -------------------
                                    June 27,  June 28,   June 27,  June 28,
                                      2009      2008       2009      2008
                                   --------- ---------  --------- ---------
    Net revenue:
      Products                       $39,495   $35,553   $159,257  $152,374
      Shared ownership program           454     2,191      3,651    10,262
      Services                        18,614    11,842     66,344    38,808
      Other                              240     1,353      4,346     8,937
                                   --------- ---------  --------- ---------
      Total net revenue               58,803    50,939    233,598   210,381
    Cost of revenue:
      Cost of products                19,010    14,851     68,904    67,183
      Cost of shared
       ownership program                 121       290        775     2,517
      Cost of services                12,377     7,851     44,591    26,865
      Cost of other                      205     1,051      4,038     6,864
                                   --------- ---------  --------- ---------
     Total cost of revenue            31,713    24,043    118,308   103,429
                                   --------- ---------  --------- ---------
      Gross profit                    27,090    26,896    115,290   106,952
    Operating expenses:
      Selling and marketing            9,870    10,611     45,493    42,726
      Research and development         9,185     8,405     35,992    32,880
      General and administrative       7,710     8,460     36,223    32,280
                                   --------- ---------  --------- ---------
      Total operating expenses        26,765    27,476    117,708   107,886
                                   --------- ---------  --------- ---------
    Income (loss) from operations        325      (580)    (2,418)     (934)
    Interest and other income, net       646     1,030      3,082     7,184
                                   --------- ---------  --------- ---------
    Income before provision
     (benefit) for income taxes          971       450        664     6,250
    Provision (benefit) for
     income taxes                      (251)       259         55       867
                                   --------- ---------  --------- ---------
    Net income                        $1,222      $191       $609    $5,383
                                   ========= =========  ========= =========

    Net income per common share,
     basic and diluted:
      Basic                            $0.02     $0.00      $0.01     $0.10
      Diluted                          $0.02     $0.00      $0.01     $0.09
    Weighted average common shares
     outstanding used in computing
     net income per share:
      Basic                           56,238    54,506     55,413    54,531
      Diluted                         59,324    58,854     58,729    60,434
    Cost of revenue, selling and
     marketing, research and
     development, and general and
     administrative expenses include
     stock-based compensation
     charges as follows:
      Cost of revenue                   $484      $494     $2,285    $1,858
      Selling and marketing             $923      $970     $3,441    $4,197
      Research and development          $860      $781     $3,190    $3,059
      General and administrative      $1,518    $1,836     $6,545    $7,785
                 Unaudited Condensed Consolidated Balance Sheets
                       (in thousands, except share amounts)

                                                        June 27,  June 28,
                                                          2009      2008
                                                       --------- ---------

    Assets
    Current assets:
      Cash and cash equivalents                          $36,835   $36,936
      Restricted cash                                        527     4,830
      Short-term marketable securities                    64,634    85,536
      Accounts receivable, net of allowance for
       doubtful accounts of $484 at June 27, 2009
       and $27 at June 28, 2008                           36,427    33,918
      Inventories                                         28,909    23,047
      Prepaid expenses and other current assets            6,186     6,431
      Deferred cost of revenue-current                    18,984    31,667
                                                       --------- ---------
        Total current assets                             192,502   222,365
                                                       --------- ---------
      Long-term marketable securities                     57,252    37,014
      Property and equipment, net                         15,066    17,140
      Goodwill                                             4,495     4,495
      Intangible assets, net                                 668       926
      Deferred cost of revenue-noncurrent                  2,933    11,724
      Other assets                                         1,470     1,340
                                                       --------- ---------
        Total assets                                    $274,386  $295,004
                                                       ========= =========
    Liabilities and stockholders' equity
    Current liabilities:
      Accounts payable                                   $14,941   $12,962
      Accrued expenses                                    16,188    11,873
      Customer advances-current                           13,185    22,331
      Deferred revenue-current                            68,105    87,455
                                                       --------- ---------
        Total current liabilities                        112,419   134,621
                                                       --------- ---------
    Long-term liabilities:
      Long-term other liabilities                            288         -
      Customer advances-noncurrent                             -     2,900
      Deferred revenue-noncurrent                          7,777    26,720
                                                       --------- ---------
        Total liabilities                                120,484   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: 58,783,159 and
     56,719,864 shares at June 27, 2009 and
     June 28, 2008, respectively; outstanding:
     56,643,529 and 54,579,846 shares at
     June 27, 2009 and June 28, 2008, respectively.           57        55
    Additional paid-in capital                           273,946   252,901
    Accumulated other comprehensive income (loss)            416    (1,067)
    Accumulated deficit                                 (120,517) (121,126)
                                                       --------- ---------
        Total stockholders' equity                       153,902   130,763
                                                       --------- ---------
        Total liabilities and stockholders' equity      $274,386  $295,004
                                                       ========= =========

SOURCE Accuray Incorporated


Source: newswire



comments powered by Disqus