SUNNYVALE, Calif., Aug. 24 /PRNewswire-FirstCall/ -- Accuray Incorporated (NASDAQ:ARAY), a global leader in the field of radiosurgery, announced today financial results for the fourth quarter and fiscal year 2009, ended June 27, 2009.
For the fourth quarter of fiscal 2009, Accuray reported total revenue of $58.8 million, a 15 percent increase over the fourth quarter of fiscal 2008 total revenue of $50.9 million. For the fiscal year ended June 27, 2009, total revenue was $233.6 million, an 11 percent increase over the $210.4 million in total revenue recorded for fiscal year 2008.
Net income for the fourth quarter of fiscal 2009 was $1.2 million, or $0.02 per diluted share, compared to net income of $191,000, or breakeven, during the same period last year. Net income for fiscal year 2009 was $609,000 or $0.01 per diluted share, compared to net income of $5.4 million or $0.09 per diluted share for fiscal year 2008. During fiscal 2009, net income was impacted by $5.8 million or $0.10 per diluted share of non-recurring charges, associated with employee severance, inventory write downs and expenses related to January's work force reduction.
Non-cash, stock based compensation charges were $3.8 million for the fourth quarter of fiscal 2009 and $15.5 million for the full year.
During the fourth quarter of fiscal 2009, $75.0 million was added to backlog representing 15 CyberKnife Robotic Radiosurgery System agreements. In addition, new service agreements with a value of $13.6 million were signed.
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 for the fourth quarter of fiscal 2009 was $556 million, with approximately $285 million associated with CyberKnife System contracts and approximately $271 million associated with services and other recurring revenue. Of the contracts signed by June 27, 2009, non-contingent contracts, for which all contractual obligations have been satisfied, accounted for approximately $407 million or 73 percent of total backlog reported for the fourth quarter of fiscal 2009. Contingent contracts made up $149 million of the Company's backlog. As noted, beginning with the first quarter of fiscal 2010, Accuray will report only non-contingent orders as backlog.
In the fourth quarter of fiscal 2009, 12 new CyberKnife Systems were installed, making a full year installation total of 36 systems, an improvement over the 31 systems installed during the year prior. At the end of the 2009 fiscal year, the worldwide CyberKnife installation base was 176.
"In a year of macro economic headwinds, we are pleased with our double digit revenue growth," said Euan S. Thomson, Ph.D., Accuray's president and chief executive officer. "As the momentum in CyberKnife System installations continues, an increasing number of cancer patients around the world are benefiting from full body radiosurgery treatment." Accuray's cash and investment balances at the end of the fourth quarter of 2009 totaled $159.2 million, which includes cash and cash equivalents of $36.8 million, restricted cash of $0.5 million, short-term investments of $64.6 million and long-term investments of $57.3 million. At the end of the fourth quarter of 2009 the Company continued to have no debt.
Outlook The following statement is forward-looking and actual results may differ materially. During fiscal year 2010 Accuray expects revenue to be in the range of $215 to $230 million. CyberKnife system revenue, which represents over 70% of total revenue, is driven by customer installation schedules. Based on current customer schedules, revenue in the first quarter is expected to be low, in the range of $40 to $50 million. Revenue related to systems sold and installed in prior years under Platinum contracts is recognized over the term of the original service contract, generally 5 years. Revenue from Platinum contracts is expected to decline by approximately $38 million in fiscal 2010 from fiscal 2009. All other revenue is expected to grow by approximately $20 to $30 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 http://www.accuray.com/.
Earnings Call Open to Investors Accuray will hold a conference call for financial analysts and investors on Monday, August 24, 2009 at 2:00 p.m. PT / 5:00 p.m. ET. The conference call dial-in numbers are 1-800-901-5241 (USA) or 1-617-786-2963 (International), Conference ID: 78497690. A live webcast of the call will also be available from the Investor Relations section on the company's Web site at http://www.accuray.com/. In addition, a recording of the call will be available by calling 1-888-286-8010 (USA) or 1-617-801-6888 (International), Conference ID number: 53811638, beginning at 5:00 p.m. PT / 8:00 p.m. ET, August 24, 2009 and will be available through August 27, 2009. A webcast replay will also be available from the Investor Relations section of the company's Web site at http://www.accuray.com/ from approximately 5:00 p.m. PT / 8:00 p.m. ET today through the release of Accuray's results for the first quarter of fiscal 2010, ending September 30, 2009.
About the CyberKnife 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 70,000 patients worldwide and currently 176 systems have been installed in leading hospitals in the Americas, Europe and Asia. For more information, please visit http://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, realization of backlog, increasing number of patients, customer installation schedules, and market acceptance 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: variability of installation and sales cycle including customer financing and construction delays; market acceptance of products; competing products; 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 Years ended
------------------- -------------------
June 27, June 28, June 27, June 28,
2009 2008 2009 2008
--------- --------- --------- ---------
Net revenue:
Products $39,495 $35,553 $159,257 $152,374
Shared ownership program 454 2,191 3,651 10,262
Services 18,614 11,842 66,344 38,808
Other 240 1,353 4,346 8,937
--------- --------- --------- ---------
Total net revenue 58,803 50,939 233,598 210,381
Cost of revenue:
Cost of products 19,010 14,851 68,904 67,183
Cost of shared
ownership program 121 290 775 2,517
Cost of services 12,377 7,851 44,591 26,865
Cost of other 205 1,051 4,038 6,864
--------- --------- --------- ---------
Total cost of revenue 31,713 24,043 118,308 103,429
--------- --------- --------- ---------
Gross profit 27,090 26,896 115,290 106,952
Operating expenses:
Selling and marketing 9,870 10,611 45,493 42,726
Research and development 9,185 8,405 35,992 32,880
General and administrative 7,710 8,460 36,223 32,280
--------- --------- --------- ---------
Total operating expenses 26,765 27,476 117,708 107,886
--------- --------- --------- ---------
Income (loss) from operations 325 (580) (2,418) (934)
Interest and other income, net 646 1,030 3,082 7,184
--------- --------- --------- ---------
Income before provision
(benefit) for income taxes 971 450 664 6,250
Provision (benefit) for
income taxes (251) 259 55 867
--------- --------- --------- ---------
Net income $1,222 $191 $609 $5,383
========= ========= ========= ========= Net income per common share,
basic and diluted:
Basic $0.02 $0.00 $0.01 $0.10
Diluted $0.02 $0.00 $0.01 $0.09
Weighted average common shares
outstanding used in computing
net income per share:
Basic 56,238 54,506 55,413 54,531
Diluted 59,324 58,854 58,729 60,434
Cost of revenue, selling and
marketing, research and
development, and general and
administrative expenses include
stock-based compensation
charges as follows:
Cost of revenue $484 $494 $2,285 $1,858
Selling and marketing $923 $970 $3,441 $4,197
Research and development $860 $781 $3,190 $3,059
General and administrative $1,518 $1,836 $6,545 $7,785
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share amounts) June 27, June 28,
2009 2008
--------- --------- Assets
Current assets:
Cash and cash equivalents $36,835 $36,936
Restricted cash 527 4,830
Short-term marketable securities 64,634 85,536
Accounts receivable, net of allowance for
doubtful accounts of $484 at June 27, 2009
and $27 at June 28, 2008 36,427 33,918
Inventories 28,909 23,047
Prepaid expenses and other current assets 6,186 6,431
Deferred cost of revenue-current 18,984 31,667
--------- ---------
Total current assets 192,502 222,365
--------- ---------
Long-term marketable securities 57,252 37,014
Property and equipment, net 15,066 17,140
Goodwill 4,495 4,495
Intangible assets, net 668 926
Deferred cost of revenue-noncurrent 2,933 11,724
Other assets 1,470 1,340
--------- ---------
Total assets $274,386 $295,004
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $14,941 $12,962
Accrued expenses 16,188 11,873
Customer advances-current 13,185 22,331
Deferred revenue-current 68,105 87,455
--------- ---------
Total current liabilities 112,419 134,621
--------- ---------
Long-term liabilities:
Long-term other liabilities 288 -
Customer advances-noncurrent - 2,900
Deferred revenue-noncurrent 7,777 26,720
--------- ---------
Total liabilities 120,484 164,241
--------- --------- 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: 58,783,159 and
56,719,864 shares at June 27, 2009 and
June 28, 2008, respectively; outstanding:
56,643,529 and 54,579,846 shares at
June 27, 2009 and June 28, 2008, respectively. 57 55
Additional paid-in capital 273,946 252,901
Accumulated other comprehensive income (loss) 416 (1,067)
Accumulated deficit (120,517) (121,126)
--------- ---------
Total stockholders' equity 153,902 130,763
--------- ---------
Total liabilities and stockholders' equity $274,386 $295,004
========= =========
DATASOURCE: Accuray Incorporated CONTACT: Tom Rathjen, Vice President, Investor Relations, +1-408-789-4458, , or Stephanie Tomei, Senior Manager, Public Relations, +1-408-789-4234, , both of Accuray Incorporated Web Site: http://www.accuray.com/
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