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Press Release - Accuray Incorporated (ARAY-NASDAQ)

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“If you are a patient, you should remember that Accuray’s CyberKnife is an alternative to surgery. It’s a non-invasive, painless out-patient procedure. The Cyberknife can treat inoperable tumors, and even if operable, you don’t want to cut open the patient, crack open their rib cage, and deflate their lungs in order to treat a lung tumor or invasively treat a tumor that is wrapped around the spine. It may be inoperable in that case.  Our technology offers the means to deliver high doses of radiation...” - Robert E. McNamara (ARAY) (Interview published May 30, 2008)

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Accuray Announces Results for Third Quarter of Fiscal 2009

Record Total Revenue for Quarter

SUNNYVALE, Calif., May 5 /PRNewswire-FirstCall/ -- Accuray Incorporated (Nasdaq: ARAY), a global leader in the field of radiosurgery, announced today financial results for the third quarter of fiscal 2009, ended March 28, 2009.

For the third quarter of fiscal 2009, Accuray reported total revenue of $61.3 million, a four percent increase over the third quarter of fiscal 2008 total revenue of $58.8 million and a six percent sequential increase over the second quarter of fiscal 2009.

Net income for the third quarter of fiscal 2009 was $1.2 million, or $0.02 per diluted share, compared to net income of $584,000, or $0.01 per diluted share, during the same period last year. During the quarter, net income was impacted by a non-recurring charge of $1.6 million or $0.03 per share associated with severance costs for January's work force reduction. Non-cash, stock based compensation charges for the third quarter of fiscal 2009 were $3.1 million.

For the nine months ended March 28, 2009, total revenue was $174.8 million, a ten percent increase over total revenue of $159.4 million for the same period last year. Net loss for the first nine months of fiscal 2009 was ($613,000), or ($0.01) per diluted share, compared to net income of $5.2 million, or $0.09 per diluted share for the first nine months of fiscal 2008. During the first three quarters of fiscal 2009, net income was impacted by several non-recurring costs, including those associated with employee separation expenses, inventory write downs and a fair market charge 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.

At March 28, 2009, non-contingent contracts, for which all contractual obligations have been satisfied, accounted for approximately $425 million or 72 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 third fiscal quarter of 2009 was $591 million, with approximately $301 million associated with CyberKnife(R) Robotic Radiosurgery System contracts and approximately $290 million associated with services and other recurring revenue. Contingent contracts made up $166 million of backlog. As noted, beginning with the first quarter of fiscal 2010, Accuray will report only non-contingent orders as backlog.

"With record revenue and solid CyberKnife sales, we are pleased with third quarter performance and the strength of our business," said Euan S. Thomson Ph.D., Accuray's president and chief executive officer. "The unique capabilities of the CyberKnife Robotic Radiosurgery System to track and precisely target the movement of tumors throughout treatment are providing physicians and their patients with an effective, non-invasive weapon against cancer."

Accuray's cash and investment balances at the end of the third quarter of 2009 totaled $157.2 million, which includes cash and cash equivalents of $33.9 million, restricted cash of $1.1 million, short-term investments of $64.3 million and long-term investments of $57.9 million. At the end of the third quarter of 2009 the Company continued to have no 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 $225 million to $240 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 Tuesday, May 5, 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: 90985949. 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 1-800-642-1687 (USA) or 1-706-645-9291 (International), Conference ID number: 90985949, beginning at 5:00 p.m. PT / 8:00 p.m. ET, May 5, 2009 and will be available through May 8, 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 Accuray's release of its results for the fourth quarter of fiscal 2009, ending June 27, 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 60,000 patients worldwide and currently 164 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, 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    Nine months ended
                                   ------------------    -----------------
                                  March 28, March 29,  March 28,  March 29,
                                     2009      2008       2009       2008
                                  --------- ---------  ---------  ---------
    Net revenue:
      Products                      $41,006   $40,706   $119,762   $116,821
      Shared ownership program        1,285     2,715      3,197      8,071
      Services                       17,901    11,017     47,730     26,966
      Other                           1,109     4,320      4,106      7,584
                                      -----     -----      -----      -----
      Total net revenue              61,301    58,758    174,795    159,442
    Cost of revenue:
      Cost of products               17,630    19,411     49,894     52,332
      Cost of shared ownership
       program                          185       755        654      2,227
      Cost of services               12,057     8,165     32,214     19,014
      Cost of other                   1,067     4,144      3,833      5,813
                                      -----     -----      -----      -----
      Total cost of revenue          30,939    32,475     86,595     79,386
                                     ------    ------     ------     ------
      Gross profit                   30,362    26,283     88,200     80,056
    Operating expenses:
      Selling and marketing          11,420    10,792     35,623     32,115
      Research and development        9,259     8,632     26,807     24,475
      General and administrative      8,821     7,943     28,513     23,820
                                      -----     -----     ------     ------
      Total operating expenses       29,500    27,367     90,943     80,410
                                     ------    ------     ------     ------
    Income (loss) from
     operations                         862    (1,084)    (2,743)      (354)
    Interest and other income,
     net                                575     1,345      2,436      6,154
                                        ---     -----      -----      -----
    Income (loss) before provision
    for income taxes                  1,437       261       (307)     5,800
    Provision (benefit)
     for income taxes                   221      (323)       306        608
                                        ---      ----        ---        ---
    Net income (loss)                $1,216      $584      $(613)    $5,192
                                     ======      ====      =====     ======

    Net income (loss) per common
     share, basic and diluted:
      Basic                           $0.02     $0.01     $(0.01)     $0.10
      Diluted                         $0.02     $0.01     $(0.01)     $0.09
    Weighted average common
     shares outstanding used in
     computing net income (loss)
     per share:
      Basic                          55,724    54,856     55,138     54,539
      Diluted                        58,772    60,125     55,138     60,862
    Cost of revenue, selling and
     marketing, research and
     development, and general
     and administrative expenses
     include stock-based
     compensation charges as
     follows:
      Cost of revenue                  $622      $514     $1,801     $1,364
      Selling and marketing            $538    $1,081     $2,518     $3,227
      Research and development         $797      $800     $2,330     $2,278
      General and administrative     $1,167    $1,837     $5,027     $5,949



                               Accuray Incorporated
                  Unaudited Condensed Consolidated Balance Sheets
                       (in thousands, except share amounts)

                                                          March 28,   June 28,
                                                             2009        2008
                                                             ----        ----

    Assets
    Current assets:
      Cash and cash equivalents                           $33,907     $36,936
      Restricted cash                                       1,093       4,830
      Short-term marketable securities                     64,333      85,536
      Accounts receivable, net of allowance for
       doubtful accounts of $477 at March 28, 2009
       and $27 at June 28, 2008                            33,097      33,918
      Inventories                                          28,562      23,047
      Prepaid expenses and other current assets             4,978       6,431
      Deferred cost of revenue - current                   21,621      31,667
                                                           ------      ------
        Total current assets                              187,591     222,365
                                                          -------     -------
    Long-term marketable securities                        57,887      37,014
    Property and equipment, net                            14,830      17,140
    Goodwill                                                4,495       4,495
    Intangible assets, net                                    732         926
    Deferred cost of revenue - noncurrent                   5,300      11,724
    Other assets                                            1,340       1,340
                                                            -----       -----
        Total assets                                     $272,175    $295,004
                                                         ========    ========
    Liabilities and stockholders' equity
    Current liabilities:
      Accounts payable                                    $11,372     $12,962
      Accrued expenses                                     15,892      11,873
      Customer advances - current                          13,207      22,331
      Deferred revenue - current                           74,104      87,455
                                                           ------      ------
        Total current liabilities                         114,575     134,621
                                                          -------     -------
    Long-term liabilities:
      Customer advances - noncurrent                          ---       2,900
      Deferred revenue - noncurrent                        10,358      26,720
                                                           ------      ------
        Total liabilities                                 124,933     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: 58,052,062
       and 56,719,864 shares at March 28, 2009
       and June 28, 2008, respectively;
       outstanding: 55,912,044 and 54,579,846
       shares at March 28, 2009 and June 28,
       2008, respectively.                                     56          55
      Additional paid-in capital                          268,811     252,901
      Accumulated other comprehensive
       income (loss)                                          114      (1,067)
      Accumulated deficit                                (121,739)   (121,126)
                                                         --------    --------
        Total stockholders' equity                        147,242     130,763
                                                          -------     -------
        Total liabilities and
         stockholders' equity                            $272,175    $295,004
                                                         ========    ========

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
05/05/2009
CONTACT: Tom Rathjen, Vice President, Investor Relations,
+1-408-789-4458, trathjen@accuray.com, or Stephanie Tomei, Senior Manager, Public Relations, +1-408-789-4234, stomei@accuray.com, both of Accuray Incorporated
Web Site: http://www.accuray.com


			

			

			

			
 




    

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