SUNNYVALE, Calif., Oct. 29, 2020 /PRNewswire/ -- Accuray
Incorporated (NASDAQ: ARAY) today reported its financial results
for the first quarter of fiscal 2021 ended September 30, 2020.
First Quarter Fiscal 2021 Summary
- Net revenue of $85.3 million,
operating income of $5.5 million
- Adjusted EBITDA grew to $9
million from a loss of $1
million in the prior year first quarter
- Gross orders of $50.5 million,
ending backlog of $597.3 million, an
increase of 21 percent from September 30,
2019
Other Recent Operational Highlights
- Expect revenue recognition for China Type A systems previously
awarded in October 2019 to start in
the second quarter of fiscal 2021
- Introduced ClearRT™ Helical kVCT Imaging for the Radixact
System at ASTRO 2020
- 44 clinical abstracts related to customer clinical experience
on CyberKnife and TomoTherapy/Radixact exhibited at ASTRO 2020
Scientific Sessions
"We are off to a solid start in fiscal 2021 despite the
headwinds created by the COVID-19 environment. Our global team
continues to adapt and make the necessary adjustments to compete
and operate effectively given the current market conditions and
delivered the fourth consecutive quarter of operating profit, said
Joshua H. Levine, President and CEO
of Accuray. "Looking ahead, we will be focused on driving the
revenue conversion process related to the China Type A systems
beginning in the second quarter. Concurrent with this year's recent
ASTRO meeting, we have received very positive customer feedback
related to the introduction of our ClearRT™ Helical kVCT imaging
upgrade for the Radixact System as we drive our long-term strategic
commitment to continued innovation."
Q1 Fiscal 2021 Financial Highlights
Gross product orders totaled $50.5
million for the first quarter of fiscal 2021 compared to
$78.5 million for the prior fiscal
year first quarter. Order backlog as of September 30, 2020 was $597.3 million, approximately 21 percent higher
than at the end of the prior fiscal year first quarter.
Total net revenue was $85.3
million for the first quarter of fiscal 2021 compared to
$89.6 million for the prior fiscal
year first quarter. Product revenue totaled $31.3 million for the first quarter of fiscal
2021 compared to $37.6 million for
the prior fiscal year first quarter, while service revenue totaled
$54.1 million for the first quarter
of fiscal 2021 compared to $52.0
million for the prior fiscal year first quarter.
Total gross profit for the first quarter of fiscal 2021 was
$35.4 million or approximately 41.5
percent of total net revenue, comprised of product gross margin of
41.1 percent of product net revenue and service gross margin of
41.7 percent of service net revenue. This compares to total gross
profit of $32.9 million or 36.8
percent of total net revenue, comprised of product gross margin of
42.6 percent of product net revenue and service gross margin of
32.5 percent of service net revenue for the prior fiscal year first
quarter.
Net income was $0.4 million, or
$0.0 per share, for the first quarter
of fiscal 2021, compared to a net loss of $9.4 million, or a loss of $0.11 per share, for the prior fiscal year first
quarter.
Adjusted EBITDA for the first quarter of fiscal 2021 was a
positive $9.0 million, compared to a
negative $1.0 million for the prior
fiscal year first quarter.
Cash, cash equivalents, and short-term restricted cash were
$95.5 million as of September 30, 2020, a decrease of $13.1 million from June
30, 2020 primarily due to a $10
million prepayment in principal with respect to our
long-term debt.
Financial Guidance
The impact of the COVID-19 pandemic on Accuray's fiscal 2021
results remains uncertain. Given the continued evolution of the
COVID-19 pandemic and the uncertainty surrounding its impact on the
global economy and the healthcare industry, Accuray believes it is
prudent to refrain from providing financial guidance for fiscal
year 2021.
Conference Call Information
Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m.
ET today to discuss results for the first quarter of fiscal
2021 as well as recent corporate developments. Conference call
dial-in information is as follows:
- U.S. callers: (877) 270-2148
- International callers: (412) 902-6510
Individuals interested in listening to the live conference call
via the Internet may do so by logging on to the Investor Relations
section of Accuray's website, www.accuray.com.
In addition, a taped replay of the conference call will be
available beginning approximately one hour after the call's
conclusion and available for seven days. The replay telephone
number is (877) 344-7529 (USA) or
(412) 317-0088 (International), Conference ID:10148905. An archived
webcast will also be available at Accuray's website until Accuray
announces its results for the second quarter of fiscal 2021.
Use of Non-GAAP Financial Measures
Accuray has supplemented its GAAP net income (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 meaningful comparison of results for current periods with
previous operating results. A reconciliation of GAAP net income
(loss) (the most directly comparable GAAP measure) to non-GAAP
adjusted EBITDA is provided in the schedules 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) develops, manufactures and
sells radiotherapy systems that are intended to make cancer
treatments shorter, safer, personalized and more effective,
ultimately enabling patients to live longer, better lives. Our
radiation treatment delivery systems in combination with
fully-integrated software solutions set the industry standard for
precision and cover the full range of radiation therapy and
radiosurgery procedures. 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; expectations regarding the effect of the
COVID-19 pandemic on the company and the company's position in a
post-COVID-19 environment; the company's ability to adapt and make
the necessary adjustments to compete and operate effectively; the
company's ability to realize the benefits of working capital
management and cash preservation activities; expectations regarding
future sales in China;
expectations regarding the company's Chinese joint venture,
including the timing of revenue conversion and the manufacture and
shipment of a joint venture manufactured product; expectations
regarding the company's product portfolio, including with respect
to the company's Synchrony and Clear RT Helical kVCT imaging
upgrades as well as other strategic product innovations;
expectations regarding the new Centers for Medicare and Medicaid
Services alternative payment model and reimbursement schedule;
expectations regarding gross orders, revenue and product mix;
expectations regarding the future of radiotherapy treatment; and
the company's leadership position in radiation oncology innovation
and technologies. These forward-looking statements involve
risks and uncertainties. If any of these risk or
uncertainties materialize, or if any of the company's assumptions
prove incorrect, actual results could differ materially from the
results express or implied by these forward-looking
statements. These risks and uncertainties include, but are
not limited to, the effect of the COVID-19 pandemic on the
operations of the company and those of its customers and suppliers;
the company's ability to achieve widespread market acceptance of
its products, including new product and software offerings; the
company's ability to develop new products or enhance existing
products to meet customers' needs and compete favorably in the
market, the company's ability to effectively integrate and execute
the joint venture, the company's ability to realize the expected
benefits of the joint venture; the ability of customers in
China to obtain Class A or B user
licenses to purchase radiotherapy systems; risks inherent in
international operations; the company's ability to effectively
manage its growth; the company's ability to maintain or increase
its gross margins on product sales and services; delays in
regulatory approvals or the development or release of new
offerings; the company's ability to meet the covenants under its
credit facilities; the company's ability to convert backlog to
revenue; and such other risks identified under the heading "Risk
Factors" in the company's Annual Report on Form 10-K, filed with
the Securities and Exchange Commission (the "SEC") on August 25, 2020 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.
Financial Tables to Follow
Accuray
Incorporated
|
Consolidated
Statements of Operations
|
(in thousands, except
per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
Gross
Orders
|
|
$
|
50,528
|
|
|
$
|
78,487
|
|
Net Orders
|
|
|
23,554
|
|
|
|
38,981
|
|
Order
Backlog
|
|
|
597,276
|
|
|
|
495,029
|
|
Net
revenue:
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
31,258
|
|
|
$
|
37,605
|
|
Services
|
|
|
54,074
|
|
|
|
51,972
|
|
Total net
revenue
|
|
|
85,332
|
|
|
|
89,577
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Cost of
products
|
|
|
18,426
|
|
|
|
21,570
|
|
Cost of
services
|
|
|
31,503
|
|
|
|
35,064
|
|
Total cost of
revenue
|
|
|
49,929
|
|
|
|
56,634
|
|
Gross
profit
|
|
|
35,403
|
|
|
|
32,943
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
12,148
|
|
|
|
13,341
|
|
Selling and
marketing
|
|
|
8,898
|
|
|
|
13,266
|
|
General and
administrative
|
|
|
8,889
|
|
|
|
10,616
|
|
Total operating
expenses
|
|
|
29,935
|
|
|
|
37,223
|
|
Income (loss) from
operations
|
|
|
5,468
|
|
|
|
(4,280)
|
|
Loss on equity
investment, net
|
|
|
(28)
|
|
|
|
—
|
|
Other expense,
net
|
|
|
(4,694)
|
|
|
|
(4,439)
|
|
Income (loss) before
provision for income taxes
|
|
|
746
|
|
|
|
(8,719)
|
|
Provision for income
taxes
|
|
|
344
|
|
|
|
637
|
|
Net income
(loss)
|
|
$
|
402
|
|
|
$
|
(9,356)
|
|
Net income (loss) per
share - basic
|
|
$
|
0.00
|
|
|
$
|
(0.11)
|
|
Net income (loss) per
share - diluted
|
|
$
|
0.00
|
|
|
$
|
(0.11)
|
|
Weighted average
common shares used in
computing income (loss) per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
91,194
|
|
|
|
88,772
|
|
Diluted
|
|
|
91,681
|
|
|
|
88,772
|
|
Accuray
Incorporated
|
Consolidated
Balance Sheets
|
(in
thousands)
|
(Unaudited)
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2020
|
|
|
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
89,955
|
|
|
$
|
107,577
|
|
Restricted
cash
|
|
|
5,531
|
|
|
|
997
|
|
Accounts receivable,
net
|
|
|
75,034
|
|
|
|
90,599
|
|
Inventories,
net
|
|
|
141,017
|
|
|
|
134,374
|
|
Prepaid expenses and
other current assets
|
|
|
18,139
|
|
|
|
21,227
|
|
Deferred cost of
revenue
|
|
|
2,800
|
|
|
|
2,712
|
|
Total current
assets
|
|
|
332,476
|
|
|
|
357,486
|
|
Property and
equipment, net
|
|
|
14,540
|
|
|
|
15,349
|
|
Investment in joint
venture
|
|
|
15,591
|
|
|
|
13,929
|
|
Goodwill
|
|
|
57,834
|
|
|
|
57,717
|
|
Intangible assets,
net
|
|
|
606
|
|
|
|
663
|
|
Operating lease
right-of-use assets
|
|
|
27,377
|
|
|
|
28,647
|
|
Other
assets
|
|
|
16,286
|
|
|
|
17,136
|
|
Total
assets
|
|
$
|
464,710
|
|
|
$
|
490,927
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
6,162
|
|
|
$
|
—
|
|
Accounts
payable
|
|
|
17,841
|
|
|
|
23,126
|
|
Accrued
compensation
|
|
|
19,618
|
|
|
|
17,963
|
|
Operating lease
liabilities, current
|
|
|
8,381
|
|
|
|
8,224
|
|
Other accrued
liabilities
|
|
|
19,047
|
|
|
|
27,180
|
|
Customer
advances
|
|
|
16,712
|
|
|
|
22,571
|
|
Deferred
revenue
|
|
|
81,344
|
|
|
|
83,207
|
|
Total current
liabilities
|
|
|
169,105
|
|
|
|
182,271
|
|
Long-term other
liabilities
|
|
|
7,644
|
|
|
|
7,416
|
|
Deferred
revenue
|
|
|
24,406
|
|
|
|
24,125
|
|
Operating lease
liabilities, non-current
|
|
|
22,588
|
|
|
|
24,173
|
|
Long-term
debt
|
|
|
173,527
|
|
|
|
189,307
|
|
Total
liabilities
|
|
|
397,270
|
|
|
|
427,292
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
91
|
|
|
|
91
|
|
Additional paid-in
capital
|
|
|
547,651
|
|
|
|
545,741
|
|
Accumulated other
comprehensive income (loss)
|
|
|
1,009
|
|
|
|
(484)
|
|
Accumulated
deficit
|
|
|
(481,311)
|
|
|
|
(481,713)
|
|
Total
equity
|
|
|
67,440
|
|
|
|
63,635
|
|
Total liabilities and
equity
|
|
$
|
464,710
|
|
|
$
|
490,927
|
|
Accuray
Incorporated
|
Reconciliation of
GAAP Net Income (Loss) to Adjusted Earnings Before Interest, Taxes,
Depreciation,
|
Amortization and
Stock-Based Compensation (Adjusted EBITDA)
|
(in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
2020
|
|
|
2019
|
|
GAAP net income
(loss)
|
|
$
|
402
|
|
|
$
|
(9,356)
|
|
Depreciation and
amortization
|
|
|
1,650
|
|
|
|
1,851
|
|
Stock-based
compensation
|
|
|
2,244
|
|
|
|
1,700
|
|
Interest expense,
net
|
|
|
4,393
|
|
|
|
4,200
|
|
Provision for income
taxes
|
|
|
344
|
|
|
|
637
|
|
Adjusted
EBITDA
|
|
$
|
9,033
|
|
|
$
|
(968)
|
|
Joe Diaz
|
Beth
Kaplan
|
Investor Relations,
Lytham Partners
|
Public Relations
Director, Accuray
|
+1 (602)
889-9700
|
+1 (408)
789-4426
|
diaz@lythampartners.com
|
bkaplan@accuray.com
|
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SOURCE Accuray Incorporated