ACCURAY INCORPORATED SUNNYVALE, Calif., Oct. 27, 2016 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the 2017 fiscal first quarter ended September 30, 2016.
http://photos.prnewswire.com/prnvar/20160108/320376LOGO
"With our first quarter results we remain well-positioned to drive growth for both orders and revenue in the back half of fiscal 2017," said Joshua H. Levine, president and chief executive officer. "Our full commercial release of Radixact along with new compelling CyberKnife clinical data will result in 2017 being a year of improved performance in orders, revenue, and EBITDA enabling us to affirm our full year fiscal 2017 guidance."
First Quarter Fiscal 2017 Highlights
-- Ending backlog increased 7 percent year-over-year to $407.5 million;
gross orders were $50.3 million with net orders of $37.2 million
-- Total revenue was $86.5 million
-- Net loss of $9.9 million compared to a prior year net loss of $13.0
million
-- Adjusted EBITDA of $1.2 million as compared with an adjusted EBITDA loss
of $1.1 million in the prior year period
-- Repaid $36.6 million in cash on maturity of the 3.75 percent Convertible
Senior Notes on August 1, 2016
-- Radixact(TM) System commercially launched at ASTRO in September, after
receiving FDA 501(k) clearance in June 2016 and CE Mark in August 2016
-- New study data presented at ASTRO demonstrated the clinical efficacy of
the CyberKnife System with 97 percent of low-and intermediate-risk
prostate cancer patients having excellent cancer control five years
after receiving treatment ((1))
Financial Highlights
Gross product orders totaled $50.3 million for the 2017 fiscal first quarter compared to $64.9 million for the year ago period. Ending product backlog was $407.5 million, approximately 7 percent higher than backlog at the end of the prior fiscal year first quarter. The decline in gross orders is mainly attributable to customer timing. Comparable prior fiscal first quarter orders included a greater number of MLC-equipped CyberKnife Systems as well as the first of its kind 5-unit multi-system order in the United States.
Total revenue was $86.5 million compared to $89.6 million in the prior fiscal year first quarter. Service revenue totaled $50.9 million which was an increase of 3 percent from the prior fiscal year first quarter, while product revenue totaled $35.6 million compared to $40.0 million in the prior year period.
Total gross profit for the 2017 fiscal first quarter was $31.3 million or 36 percent of sales, comprised of product gross margin of 34 percent and service gross margin of 38 percent. This compares to total gross margin of 38 percent, product gross margin of 43 percent and service gross margin of 34 percent for the prior fiscal year first quarter. The decrease in gross margin stemmed from lower sales unit volume as well as product and channel mix.
Operating expenses were $37.9 million, a decrease of 8 percent compared with $41.1 million in the prior fiscal first quarter. The decrease was primarily because of lower legal fees and research and development expenses partially offset by increased tradeshow and marketing expenses.
Net loss was $9.9 million, or $0.12 per share, for the first quarter of fiscal 2017, compared to a net loss of $13.0 million, or $0.16 per share, for the first quarter of fiscal 2016.
Adjusted EBITDA for the first quarter of fiscal 2017 was $1.2 million, compared to an Adjusted EBITDA loss of $1.1 million in the prior fiscal year first quarter.
Cash, cash equivalents and investments were $124.4 million as of September 30, 2016, a decrease of $42.6 million from June 30, 2016 as the result of using $36.6 million to fully repay the Company's 3.75 percent convertible debt in August 2016.
2017 Financial Guidance
The Company is today affirming previously provided guidance for fiscal year 2017 as follows:
-- Revenue: $410.0 million to $420.0 million representing growth of
approximately 3 percent to 5 percent year-over-year
-- Operating Expenses: Approximately $164.0 million or flat with the prior
year
-- Adjusted EBITDA: $32.0 million to $38.0 million representing growth of
approximately 30 percent to 55 percent year-over-year
-- Gross Orders growth of approximately 5 percent
Conference Call Information
Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m. ET today to discuss these results. Conference call dial-in information is as follows:
-- U.S. callers: (855) 867-4103
-- International callers: (262) 912-4764
-- Conference ID Number (U.S. and international): 94520436
Individuals interested in listening to the live conference call via the Internet may do so by logging on to Accuray's website, www.accuray.com. In addition, a dial-up replay of the conference call will be available beginning October 27, 2016 at 5:00 p.m. PT/8:00 p.m. ET for seven days. The replay telephone number is (855) 859-2056 (USA) or (404) 537-3406 (International), Conference ID: 94520436. A webcast replay of the call will be available until Accuray announces its results for the second quarter of fiscal 2017, which ends December 31, 2016.
Use of Non-GAAP Financial Measures
Accuray has supplemented its GAAP net loss with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation ("adjusted EBITDA"). Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net loss (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedule below.
There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.
About Accuray
Accuray Incorporated (Nasdaq: ARAY) is a radiation oncology company that develops, manufactures and sells precise, innovative treatment solutions that set the standard of care with the aim of helping patients live longer, better lives. The company's leading-edge technologies deliver the full range of radiation therapy and radiosurgery treatments. For more information, please visit www.accuray.com.
Safe Harbor Statement
Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's future results of operations, including management's expectations for revenue and adjusted EBITDA in fiscal 2017. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to: the company's ability to convert backlog to revenue; the success of the adoption of our technology; the company's ability to manage its expenses; regulatory clearances in new markets; continuing uncertainty in the global economic environment; and other risks detailed from time to time under the heading "Risk Factors" in the company's report on Form 10-K, which was filed on August 24, 2016 and as updated periodically with the company's other filings with the SEC.
Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. 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, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements.
(1) Meier et al. Five-Year
Outcomes From a Multicenter
Trial of Stereotactic Body
Radiation Therapy for Low-
and Intermediate-Risk
Prostate Cancer. Int J Radiat
Oncol Biol Phys. 2016 Oct
1;96(2S):S33-S34; abstract 74
Financial Tables to Follow
Accuray Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
-------------
2016 2015
---- ----
Gross Orders $50,335 $64,928
Net Orders 37,187 44,799
Order Backlog 407,487 379,792
Net revenue:
Products $35,599 $39,995
Services 50,907 49,636
------ ------
Total net
revenue 86,506 89,631
Cost of revenue:
Cost of
products 23,352 23,017
Cost of
services 31,810 32,716
------
Total cost of
revenue 55,162 55,733
------ ------
Gross profit 31,344 33,898
Operating expenses:
Research and
development 12,229 14,296
Selling and
marketing 14,318 13,417
General and
administrative 11,344 13,416
Total
operating
expenses 37,891 41,129
------ ------
Loss from
operations (6,547) (7,231)
Other expense,
net (4,005) (5,091)
Loss before
provision for
income taxes (10,552) (12,322)
(Benefit from)
provision for
income taxes (626) 704
---- ---
Net loss $(9,926) $(13,026)
======= ========
Net loss per
share -basic
and diluted $(0.12) $(0.16)
====== ======
Weighted average common shares used in
computing loss per share:
Basic and
diluted 81,576 79,760
====== ======
Accuray Incorporated
Consolidated Balance Sheets
(in thousands)
(Unaudited)
September 30, June 30,
2016 2016
---- ----
Assets
Current assets:
Cash and cash
equivalents $83,616 $119,771
Investments 40,806 47,239
Restricted cash 470 891
Accounts receivable,
net 56,939 56,810
Inventories 117,358 115,987
Prepaid expenses and
other current
assets 14,655 16,098
Deferred cost of
revenue 4,994 4,884
Total current assets 318,838 361,680
Property and
equipment, net 26,579 27,878
Goodwill 57,844 57,848
Intangible assets,
net 5,622 7,611
Deferred cost of
revenue 1,833 1,996
Other assets 12,017 12,020
Total assets $422,733 $469,033
======== ========
Liabilities and equity
Current liabilities:
Accounts payable $17,049 $15,229
Accrued compensation 19,006 18,725
Other accrued
liabilities 20,100 22,184
Short-term debt 3,500 39,900
Customer advances 21,298 22,123
Deferred revenue 91,265 92,051
Total current
liabilities 172,218 210,212
Long-term liabilities:
Long-term other
liabilities 9,454 10,984
Deferred revenue 16,167 17,665
Long-term debt 171,524 170,512
Total liabilities 369,363 409,373
Commitment and contingencies
Equity:
Common stock 82 81
Additional paid-in
capital 484,863 481,346
Accumulated other
comprehensive loss (842) (960)
Accumulated deficit (430,733) (420,807)
Total equity 53,370 59,660
------ ------
Total liabilities
and equity $422,733 $469,033
======== ========
Accuray Incorporated
Reconciliation of GAAP net loss to Adjusted Earnings Before Interest,
Taxes, Depreciation,
Amortization and Stock-Based Compensation (Adjusted EBITDA)
(In thousands)
(Unaudited)
Three Months Ended
September 30,
-------------
2016 2015
---- ----
GAAP net
loss $(9,926) $(13,026)
Amortization
of
intangibles
(a) 1,988 1,988
Depreciation
(b) 2,667 2,571
Stock-
based
compensation
(c) 3,473 2,514
Interest
expense,
net (d) 3,592 4,156
(Benefit
from)
provision
for income
taxes (626) 704
Adjusted
EBITDA $1,168 $(1,093)
====== =======
(a) consists of amortization of
intangibles -developed
technology
(b) consists of depreciation,
primarily on property and
equipment
(c) consists of stock-based
compensation in accordance with
ASC 718
(d) consists primarily of
interest income from available-
for-sale securities and
interest expense associated with
our convertible notes and term
loan
Accuray Incorporated
Forward-Looking Guidance
Reconciliation of Projected GAAP Net Loss to Adjusted Earnings Before Interest,
Taxes, Depreciation,
Amortization and Stock-Based Compensation (Adjusted EBITDA)
(In thousands)
(Unaudited)
Twelve Months Ending
June 30, 2017
-------------
From To
---- ---
GAAP net loss $(17,000) $(10,600)
Amortization of
intangibles (a) 7,950 7,950
Depreciation (b) 10,150 10,150
Stock-based
compensation (c) 14,800 14,800
Interest expense,
net (d) 14,100 13,700
Provision for
income taxes 2,000 2,000
Adjusted EBITDA $32,000 $38,000
======= =======
(a) consists of amortization of
intangibles -developed
technology
(b) consists of depreciation,
primarily on property and
equipment
(c) consists of stock-based
compensation in accordance with
ASC 718
(d) consists primarily of
interest income from available-
for-sale securities and
interest expense associated with
our convertible notes and tem
loan
Doug Sherk Beth Kaplan
Investor Relations, EVC Group Public Relations Director, Accuray
+1 (415) 652-9100 +1 (408) 789-4426
dsherk@evcgroup.com bkaplan@accuray.com
Logo - http://photos.prnewswire.com/prnh/20160108/320376LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/accuray-reports-financial-results-for-first-quarter-and-affirms-full-year-fiscal-2017-guidance-300352967.html
SOURCE Accuray Incorporated
