ACCURAY INCORPORATED SUNNYVALE, Calif., Aug. 17, 2016 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the fourth quarter and fiscal year ended June 30, 2016.
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Q4 Fiscal 2016 Highlights
-- Gross orders increased 12 percent over the prior year period to $95.4
million
-- CyberKnife(®) System gross orders highest in the Company's history
-- TomoTherapy(®) System gross orders benefit from previously announced
multi-system NHS Supply Chain order, the largest single order in the
Company's history. Sites with single and dual vaults comprised greater
than 50 percent of total TomoTherapy System orders
-- Revenue of $95.0 million, gross profit margin of 39 percent, net loss of
$7.2 million and adjusted EBITDA of $5.0 million
-- Cash, cash equivalents and investments increased $17.2 million from
March 31, 2016
Fiscal Year 2016 Financial Highlights
-- Backlog increased 8 percent year-over-year to $405.9 million; gross
orders and net orders increased 6 percent and 19 percent year-over-year,
respectively
-- Revenue increased 5 percent compared with the prior year to $398.8
million and gross profit margin of 40 percent compared to 38 percent in
the prior year
-- Net loss of $25.5 million compared to a net loss of $40.2 million in
prior year and adjusted EBITDA of $24.6 million compared to $11.8
million in the prior year
-- Cash, cash equivalents and investments increased $23.2 million
year-over-year to $167.0 million at June 30, 2016
"We finished our fiscal year on a high note," said Joshua H. Levine, president and chief executive officer. "The fourth quarter represented the highest single quarter of gross order dollars in our history primarily because of continued strong order growth for the CyberKnife System with the MLC. In addition, we continued to execute on our TomoTherapy System growth strategy with more than half of the orders for this product line coming from single and dual vault sites.
"As we look to fiscal 2017, we remain focused on executing our core strategies," continued Mr. Levine. "We plan to officially launch the Radixact(TM) System, which has received FDA clearance and is CE Marked, in late September at ASTRO. Between the Radixact, CyberKnife, TomoTherapy Systems, and other product developments we plan for fiscal 2017, we believe the innovations we are bringing to the market, combined with the industry's highest customer satisfaction ratings, will result in fiscal 2017 being another year of increased growth for Accuray."
"In addition to the gains in the market place, we have substantially improved the financial condition and performance of Accuray," stated Kevin Waters, senior vice president and chief financial officer. "For the fiscal year ended June 30, 2016, we more than doubled our adjusted EBITDA and increased our cash position by $23.2 million compared to prior year. Also, in August 2016, we used $37.3 million of our cash on hand to retire the remaining 3.75 percent Convertible Debt, which reduced potential shareholder dilution by 10.6 million shares of our common stock."
Q4 Fiscal 2016 Financial Highlights
Gross product orders totaled $95.4 million for the 2016 fiscal fourth quarter, an increase of $10.5 million or 12 percent from the fourth quarter of the prior fiscal year. Ending product backlog was $405.9 million, approximately 8 percent higher than backlog at the end of the prior fiscal year fourth quarter.
Total revenue was $95.0 million compared to $101.8 million in the prior fiscal year fourth quarter. Service revenue totaled $51.2 million which was an increase of 2 percent from the prior fiscal year fourth quarter, while product revenue totaled $43.8 million compared to $51.7 million in the prior year period.
Total gross profit for the 2016 fiscal fourth quarter was $37.3 million or 39 percent of sales, comprised of product gross margin of 47 percent and service gross margin of 33 percent. This compares to total gross margin of 40 percent, product gross margin of 43 percent and service gross margin of 36 percent for the prior fiscal year fourth quarter.
Operating expenses were $40.3 million, a decrease of 4 percent compared with $41.9 million in the prior fiscal fourth quarter. The decrease was primarily because of lower legal fees and compensation costs.
Net loss was $7.2 million, or $0.09 per share, for the fourth quarter of fiscal 2016, compared to a net loss of $5.6 million, or $0.07 per share, for the fourth quarter of fiscal 2015.
Adjusted EBITDA for the fourth quarter of fiscal 2016 was $5.0 million, compared to $6.7 million in the prior fiscal year fourth quarter.
Cash, cash equivalents and investments were $167.0 million as of June 30, 2016, an increase of $17.2 million from March 31, 2016.
Fiscal Year 2016 Highlights
For the fiscal year ended June 30, 2016, total revenue was $398.8 million, representing an increase of 5 percent from fiscal year 2015. Product revenue for fiscal 2016 was $193.3 million, representing an increase of 8 percent from the prior fiscal year while service revenue was $205.5 million, representing 2 percent growth from the prior fiscal year.
Gross profit margin for the year ended June 30, 2016 was 40 percent, comprised of product gross margin of 44 percent and service gross margin of 36 percent. This compares to total gross margin of 38 percent for the prior fiscal year.
Operating expenses were $163.6 million for the fiscal year ended June 30, 2016, compared with $164.6 million in fiscal year 2015.
Net loss for the fiscal year ended June 30, 2016 was $25.5 million, or $0.32 per share, compared to a net loss of $40.2 million, or $0.51 per share, for the prior fiscal year.
Adjusted EBITDA for the fiscal year ended June 30, 2016 was $24.6 million, compared to $11.8 million in the prior fiscal year.
Financial Guidance for Fiscal Year 2017
The Company is today introducing 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
-- Backlog and Gross Orders growth of approximately 5 percent
-- Approximately 55 percent of revenue and 60 percent of gross orders are
anticipated in the second half of the fiscal year
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): 43857401
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 August 17, 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: 43857401. A webcast replay of the call will be available until Accuray announces its results for the first quarter of fiscal 2017, which ends September 30, 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 28, 2015, the company's reports on Form 10-Q which were filed on November 5, 2015, February 1, 2016 and April 29, 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.
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
Financial Tables to Follow
Accuray Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended June 30, Years Ended June 30,
--------------------------- --------------------
2016 2015 2016 2015
---- ---- ---- ----
Gross Orders $95,437 $84,862 $283,853 $267,777
Net Orders 79,216 79,304 224,253 188,997
Order Backlog 405,900 375,028 405,900 375,028
Net revenue:
Products $43,805 $51,684 $193,299 $178,710
Services 51,168 50,066 205,501 201,091
------ ------
Total net revenue 94,973 101,750 398,800 379,801
Cost of revenue:
Cost of products 23,315 29,381 108,671 104,549
Cost of services 34,358 31,917 131,416 129,850
Total cost of
revenue 57,673 61,298 240,087 234,399
------ ------ ------- -------
Gross profit 37,300 40,452 158,713 145,402
Operating expenses:
Research and
development 14,155 14,850 56,652 55,752
Selling and
marketing 15,803 15,677 56,812 62,440
General and
administrative 10,302 11,403 50,122 46,379
Total operating
expenses 40,260 41,930 163,586 164,571
------ ------ ------- -------
Loss from operations (2,960) (1,478) (4,873) (19,169)
Other expense, net (4,171) (4,014) (18,295) (18,621)
Loss before
provision for
income taxes (7,131) (5,492) (23,168) (37,790)
Provision for income
taxes 76 108 2,336 2,419
--- ---
Net loss $(7,207) $(5,600) $(25,504) $(40,209)
======= ======= ======== ========
Net loss per share -
basic and diluted $(0.09) $(0.07) $(0.32) $(0.51)
====== ====== ====== ======
Weighted average common shares used in computing
loss per share:
Basic and diluted 81,081 79,170 80,509 78,277
====== ====== ====== ======
Accuray Incorporated
Consolidated Balance Sheets
(in thousands)
(Unaudited)
June 30, June 30,
2016 2015
---- ----
Assets
Current assets:
Cash and cash
equivalents $119,771 $79,551
Investments 47,239 64,306
Restricted cash 891 3,734
Accounts receivable,
net 56,810 77,727
Inventories 115,987 106,151
Prepaid expenses and
other current assets 16,098 15,991
Deferred cost of
revenue 4,884 6,869
Total current assets 361,680 354,329
Property and
equipment, net 27,878 31,829
Goodwill 57,848 58,054
Intangible assets, net 7,611 15,564
Deferred cost of
revenue 1,996 1,500
Other assets 12,020 5,497
Total assets $469,033 $466,773
======== ========
Liabilities and equity
Current liabilities:
Accounts payable $15,229 $13,096
Accrued compensation 18,725 21,934
Other accrued
liabilities 22,184 18,720
Short-term debt 39,900 -
Customer advances 22,123 19,385
Deferred revenue 92,051 96,780
Total current
liabilities 210,212 169,915
Long-term liabilities:
Long-term other
liabilities 10,984 10,934
Deferred revenue 17,665 10,489
Long-term debt 170,512 199,655
Total liabilities 409,373 390,993
Commitment and contingencies
Equity:
Common stock 81 79
Additional paid-in
capital 481,346 471,430
Accumulated other
comprehensive loss (960) (426)
Accumulated deficit (420,807) (395,303)
Total equity 59,660 75,780
------ ------
Total liabilities and
equity $469,033 $466,773
======== ========
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 June 30, Years Ended June 30,
--------------------------- --------------------
2016 2015 2016 2015
---- ---- ---- ----
GAAP net loss $(7,207) $(5,600) $(25,504) $(40,209)
Amortization of
intangibles (a) 1,989 1,989 7,953 7,954
Depreciation (b) 2,664 2,640 10,343 11,539
Stock-based
compensation (c) 3,192 3,426 12,637 13,930
Interest expense,
net (d) 4,237 4,096 16,822 16,158
Provision for
income taxes 76 108 2,336 2,419
Adjusted EBITDA $4,951 $6,659 $24,587 $11,791
====== ====== ======= =======
(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 Net Loss to Projected 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 $(17,800) $(11,800)
Amortization of
intangibles (a) 7,950 7,950
Depreciation (b) 10,100 10,100
Stock-based
compensation (c) 14,400 14,400
Interest expense,
net (d) 13,950 13,950
Provision for income
taxes 3,400 3,400
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 term loan
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SOURCE Accuray Incorporated
