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.
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™ 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
Investor Relations,
EVC Group
+1 (415)
652-9100
dsherk@evcgroup.com
|
Beth
Kaplan
Public Relations
Director, Accuray
+1 (408)
789-4426
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
|
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-fourth-quarter-and-fiscal-2016-financial-results-300315017.html
SOURCE Accuray Incorporated