MADISON,
Wis., May 1, 2024 /PRNewswire/ -- Accuray
Incorporated (NASDAQ: ARAY) today reported financial results for
the third quarter and nine-months ended March 31, 2024.
Third Quarter Fiscal 2024 Summary
- Net revenue of $101.1 million decreased 14 percent
from the same period in the prior fiscal year. Net revenue on a
constant currency basis was $102.4
million, which represented a 13 percent decrease from the
same period in the prior fiscal year.
- GAAP net loss was $6.3 million,
as compared to GAAP net income of $0.6
million in the same period in the prior fiscal year.
Adjusted EBITDA was $1.1 million, as
compared to adjusted EBITDA of $8.3
million in the same period in the prior fiscal year.
- Gross orders of $89.1 million
increased 21 percent from the same period in the prior fiscal year.
The book to bill ratio was 1.8 in the third quarter of fiscal
2024, compared to a book to bill ratio of 1.2 in the same period in
the prior fiscal year.
Fiscal Nine Months 2024 Summary
- Net revenue of $312.3 million
decreased 5 percent from the same period in the prior fiscal year.
Net revenue on a constant currency basis was $311.2 million, which represented a 6 percent
decrease from the same period in the prior fiscal year.
- GAAP net loss was $18.9 million,
as compared to GAAP net loss of $6.7
million in the same period in the prior fiscal year.
Adjusted EBITDA was $9.6 million as
compared to adjusted EBITDA of $18.7
million in the same period in the prior fiscal year.
- Gross orders of $246.7 million
increased 11 percent from the same period in the prior fiscal year.
The book to bill ratio was 1.6 in the first nine months of fiscal
2024, compared to a book to bill ratio of 1.3 in the same period in
the prior fiscal year.
Other Recent Operational Highlights
- Opened new training center in Genolier, Switzerland, the most recent addition to the
Accuray network of training centers and one of the growth drivers
for the company's service business.
- Introducing at ESTRO a new physics offering, CyberComm™,
intended to significantly reduce the CyberKnife®S7™
System's commissioning time and enable customers to begin treating
patients substantially faster.
- Announced a collaboration agreement with Oncopole Claudius
Regaud (IUCT-Oncopole) in France,
and Airbus SAS, a leader in the aerospace industry, to develop an
artificial intelligence driven solution for predicting radiotherapy
system performance.
"While I am disappointed in our quarterly results where we faced
challenges as a result of multiple factors, including a delay in
product shipments and slower than expected U.S. installations, we
remain confident in our growth strategy and our ability to offer
value to our customers globally," said Suzanne Winter, Chief Executive Officer. "Fiscal
2024 is an important year for the company as we start to make major
advances in long-term growth and profitability drivers, which we
highlighted at our investor day this past fall. We remain
focused on executing on our plan to advance care with innovative
solutions, improving patient access by penetrating higher growth
emerging markets and investing in our service business. Finally, I
am very pleased with customer adoption of our solutions this
quarter that led to a 21 percent increase in gross orders
year-over-year, fueling future revenue and EBITDA growth."
Fiscal Third Quarter Results
Total net revenue in the third quarter of fiscal 2024 was
$101.1 million, compared to
$118.1 million in the prior fiscal
year third quarter. Product revenue in the third quarter of fiscal
2024 was $49.6 million, compared to
$62.8 million in the prior fiscal
year third quarter. Service revenue in the third quarter of fiscal
2024 was $51.5 million, compared to
$55.2 million in the prior fiscal
year third quarter.
Total gross profit in the third quarter of fiscal 2024 was
$29.1 million, or 28.7 percent of
total net revenue, compared to total gross profit of $38.7 million, or 32.8 percent of total net
revenue, in the prior fiscal year third quarter.
Operating expenses in the third quarter of fiscal 2024 were
$33.6 million, compared to
$36.4 million in the prior fiscal
year third quarter.
Net loss in the third quarter of fiscal 2024 was
$6.3 million, or $0.06 per share, compared to a net income of
$0.6 million, or $0.01 per share, in the prior fiscal year third
quarter. Adjusted EBITDA in the third quarter of fiscal 2024 was
$1.1 million, compared to
$8.3 million in the prior fiscal year
third quarter.
Gross product orders in the third quarter of fiscal 2024 totaled
$89.1 million compared to
$73.8 million in the prior fiscal
year third quarter. Order backlog as of March 31, 2024 was $503.2
million, an increase of approximately 2 percent
sequentially, and is approximately 1 percent lower than at the end
of the prior fiscal year third quarter.
Cash, cash equivalents, and short-term restricted cash were
$61.1 million as of March 31, 2024, a decrease of $12.1 million from December 31, 2023, and a decrease of $28.8 million from June
30, 2023.
Fiscal Nine Months Results
Total net revenue in the first nine months of fiscal 2024 was
$312.3 million, compared to
$329.3 million in the same prior
fiscal year period. Product revenue in the first nine months of
fiscal 2024 was $154.5 million,
compared to $170.7 million in the
same prior fiscal year period. Service revenue in the first nine
months of fiscal 2024 was $157.8
million, compared to $158.6
million in the same prior fiscal year period.
Total gross profit in the first nine months of fiscal 2024 was
$104.5 million, or 33.5 percent of
total net revenue, compared to total gross profit of $116.3 million, or 35.3 percent of total net
revenue, in the same prior fiscal year period.
Operating expenses in the first nine months of fiscal 2024 was
$110.8 million compared to
$113.4 million in the same prior
fiscal year period.
Net loss in the first nine months of fiscal 2024 was
$18.9 million, or $0.19 per share, compared to a net loss of
$6.7 million, or $0.07 per share, in the same prior fiscal year
period. Adjusted EBITDA in the first nine months of fiscal 2024 was
$9.6 million, compared to
$18.7 million in the same prior
fiscal year period.
Gross product orders in the first nine months of fiscal 2024 was
$246.7 million, compared
to $222.6 million in the same prior fiscal year period.
Fiscal Year 2024 Financial Guidance
Accuray's financial guidance is based on current expectations.
The following statements are forward-looking and actual results
could differ materially depending on market and economic
conditions, supply chain disruption, and the factors set forth
under "Safe Harbor Statement" below.
The company is adjusting its guidance for fiscal year 2024 as
follows:
- Total revenue is expected in the range of $432 million to $437
million.
- Adjusted EBITDA is expected in the range of $19 million to $22
million.
Guidance for non-GAAP financial measures excludes depreciation
and amortization, stock-based compensation, interest expense,
provision for income taxes, and ERP and ERP related expenditures.
For more information regarding the non-GAAP financial measures
discussed in this press release, please see "Use of Non-GAAP
Financial Measures" below.
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 third quarter of fiscal
2024 as well as recent corporate developments. Conference call
dial-in information is as follows:
- U.S. callers: (833) 316-0563
- International callers: (412) 317-5747
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. There will be a
slide presentation accompanying today's event which can also be
accessed on the company's Investor Relations page at
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 will be available for seven days. The replay number
is (877) 344-7529 (USA), or (412)
317-0088 (International), Conference ID: 2071766. An archived
webcast will also be available on Accuray's website until Accuray
announces its results for the fourth quarter of fiscal 2024.
Use of Non-GAAP Financial Measures
Accuray reports its financial results in accordance with
generally accepted accounting principles in the United States ("GAAP") and the rules of
the SEC. To supplement its financial statements prepared and
presented in accordance with GAAP, Accuray uses certain non-GAAP
financial measures, such as adjusted EBITDA, and net revenue on a
constant currency basis.
Accuray has supplemented its GAAP net income (loss) with a
non-GAAP measure of adjusted earnings before interest, taxes,
depreciation, amortization, stock-based compensation, ERP and ERP
related expenditures and restructuring charges ("adjusted EBITDA").
The calculation of adjusted EBITDA also excludes certain
non-recurring, irregular and one-time items. 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.
Accuray has also reported certain operating results on a
constant currency basis in order to facilitate period-to-period
comparisons of its results without regard to the impact of foreign
currency exchange rate fluctuations. Management believes disclosure
of non-GAAP constant currency results is helpful to investors
because it facilitates period-to-period comparisons of the
company's results by increasing the transparency of the underlying
performance by excluding the impact of foreign currency exchange
rate fluctuations. The GAAP measure most directly comparable to net
revenue on a constant currency basis is revenue. Accuray calculates
the constant currency amounts by translating local currency amounts
in the current period using the same foreign translation rate used
in the prior period being compared against rather than the actual
exchange rate in effect during the current period.
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 committed to expanding
the powerful potential of radiation therapy to improve as many
lives as possible. We invent unique, market-changing solutions that
are designed to deliver radiation treatments for even the most
complex cases—while making commonly treatable cases even easier—to
meet the full spectrum of patient needs. We are dedicated to
continuous innovation in radiation therapy for oncology,
neuro-radiosurgery, and beyond, as we partner with clinicians and
administrators, empowering them to help patients get back to their
lives, faster. Accuray is headquartered in Madison, Wisconsin, with facilities
worldwide.
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 expectations regarding: total
revenue and adjusted EBITDA; the company's ability to benefit from
advances in long-term growth and profitability drivers; the effect
of the global economic environment and the COVID-19 pandemic on the
company and the market in general, including with respect to the
company's ability to navigate supply chain, logistics,
macroeconomic, and foreign exchange challenges; delivering on the
company's strategic growth plan, progressing against long-term
strategic goals, and continuing adoption of its technologies; the
company's ability to execute on margin and profitability expansion
initiatives; expectations regarding commercial strategy and
execution as well as growth opportunities; expectations
regarding the market in China, the
company's China joint venture and
the Tomo® C product as well as expectations with respect
to other strategic partnerships and collaborations, including
expected timing of regulatory clearances; expectations related to
the markets and regions in which the company operates; expectations
regarding new product introductions and innovations and their
effect on use and adoption of the company's products; expectations
regarding orders growth and its effect on market share as well as
revenue, margin and adjusted EBITDA; expectations regarding
backlog; expectations regarding the company's new training center;
expectations regarding service contract revenue and non-contract
service revenue; and the company's ability to advance patient care
through innovation, expanded access to radiotherapy and
improvements in overall profitability and working capital. 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 global macroeconomic
environment on the operations of the company and those of its
customers and suppliers; disruptions to our supply chain, including
increased logistics costs; the company's ability to achieve
widespread market acceptance of its products; the company's ability
to realize the expected benefits of the China joint venture and other partnerships;
risks inherent in international operations; 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 Quarterly Report on
Form 10-Q, filed with the Securities and Exchange Commission (the
"SEC") on February 7, 2024, 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.
Aman Patel,
CFA
|
Beth Kaplan
|
Investor Relations,
ICR-Westwicke
|
Public Relations
Director, Accuray
|
+1 (443)
450-4191
|
+1 (408)
789-4426
|
aman.patel@westwicke.com
|
bkaplan@accuray.com
|
Financial Tables to Follow
Accuray
Incorporated Condensed Consolidated Statements of
Operations (in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
49,603
|
|
|
$
|
62,846
|
|
|
$
|
154,491
|
|
|
$
|
170,738
|
|
Services
|
|
|
51,529
|
|
|
|
55,214
|
|
|
|
157,771
|
|
|
|
158,575
|
|
Total net
revenue
|
|
|
101,132
|
|
|
|
118,060
|
|
|
|
312,262
|
|
|
|
329,313
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
products
|
|
|
35,945
|
|
|
|
43,529
|
|
|
|
105,977
|
|
|
|
111,627
|
|
Cost of
services
|
|
|
36,113
|
|
|
|
35,813
|
|
|
|
101,816
|
|
|
|
101,404
|
|
Total cost of
revenue
|
|
|
72,058
|
|
|
|
79,342
|
|
|
|
207,793
|
|
|
|
213,031
|
|
Gross profit
|
|
|
29,074
|
|
|
|
38,718
|
|
|
|
104,469
|
|
|
|
116,282
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
10,909
|
|
|
|
14,209
|
|
|
|
40,203
|
|
|
|
42,942
|
|
Selling and
marketing
|
|
|
10,318
|
|
|
|
11,130
|
|
|
|
31,923
|
|
|
|
35,511
|
|
General and
administrative
|
|
|
12,409
|
|
|
|
11,063
|
|
|
|
38,656
|
|
|
|
34,990
|
|
Total operating
expenses
|
|
|
33,636
|
|
|
|
36,402
|
|
|
|
110,782
|
|
|
|
113,443
|
|
Income (loss) from
operations
|
|
|
(4,562)
|
|
|
|
2,316
|
|
|
|
(6,313)
|
|
|
|
2,839
|
|
Income from equity
method investment, net
|
|
|
1,024
|
|
|
|
2,027
|
|
|
|
1,028
|
|
|
|
960
|
|
Other expense,
net
|
|
|
(2,360)
|
|
|
|
(3,222)
|
|
|
|
(10,393)
|
|
|
|
(8,611)
|
|
Loss before provision
for income taxes
|
|
|
(5,898)
|
|
|
|
1,121
|
|
|
|
(15,678)
|
|
|
|
(4,812)
|
|
Provision for income
taxes
|
|
|
444
|
|
|
|
522
|
|
|
|
3,254
|
|
|
|
1,912
|
|
Net income
(loss)
|
|
$
|
(6,342)
|
|
|
$
|
599
|
|
|
$
|
(18,932)
|
|
|
$
|
(6,724)
|
|
Net income (loss) per
share - basic
|
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.07)
|
|
Net income (loss) per
share - diluted
|
|
$
|
(0.06)
|
|
|
$
|
0.01
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.07)
|
|
Weighted average common
shares used in computing loss
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
99,197
|
|
|
|
95,522
|
|
|
|
97,838
|
|
|
|
94,532
|
|
Diluted
|
|
|
99,197
|
|
|
|
97,455
|
|
|
|
97,838
|
|
|
|
94,532
|
|
Accuray
Incorporated Condensed Consolidated Balance
Sheets (in thousands)
(Unaudited)
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2024
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
60,450
|
|
|
$
|
89,402
|
|
Restricted
cash
|
|
|
674
|
|
|
|
524
|
|
Accounts receivable,
net
|
|
|
73,154
|
|
|
|
74,777
|
|
Inventories
|
|
|
159,566
|
|
|
|
145,150
|
|
Prepaid expenses and
other current assets
|
|
|
19,043
|
|
|
|
27,612
|
|
Deferred cost of
revenue
|
|
|
1,023
|
|
|
|
568
|
|
Total current
assets
|
|
|
313,910
|
|
|
|
338,033
|
|
Property and equipment,
net
|
|
|
25,387
|
|
|
|
20,926
|
|
Investment in joint
venture
|
|
|
13,586
|
|
|
|
15,128
|
|
Lease right-of-use
assets, net
|
|
|
29,127
|
|
|
|
25,853
|
|
Goodwill
|
|
|
57,682
|
|
|
|
57,681
|
|
Intangible assets,
net
|
|
|
70
|
|
|
|
210
|
|
Long-term restricted
cash
|
|
|
1,030
|
|
|
|
1,276
|
|
Other assets
|
|
|
21,735
|
|
|
|
20,107
|
|
Total
assets
|
|
$
|
462,527
|
|
|
$
|
479,214
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
44,430
|
|
|
$
|
33,739
|
|
Accrued
compensation
|
|
|
21,604
|
|
|
|
23,793
|
|
Lease liabilities,
current
|
|
|
5,279
|
|
|
|
4,151
|
|
Other accrued
liabilities
|
|
|
30,703
|
|
|
|
38,271
|
|
Customer
advances
|
|
|
15,392
|
|
|
|
20,777
|
|
Deferred
revenue
|
|
|
73,734
|
|
|
|
72,185
|
|
Short-term
debt
|
|
|
7,248
|
|
|
|
5,721
|
|
Total current
liabilities
|
|
|
198,390
|
|
|
|
198,637
|
|
Lease liabilities,
non-current
|
|
|
28,217
|
|
|
|
23,602
|
|
Long-term other
liabilities
|
|
|
4,969
|
|
|
|
4,675
|
|
Deferred revenue,
non-current
|
|
|
23,624
|
|
|
|
27,079
|
|
Long-term
debt
|
|
|
166,246
|
|
|
|
171,562
|
|
Total
liabilities
|
|
|
421,446
|
|
|
|
425,555
|
|
Equity:
|
|
|
|
|
|
|
Common
stock
|
|
|
99
|
|
|
|
97
|
|
Additional paid-in
capital
|
|
|
563,958
|
|
|
|
555,276
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(1,908)
|
|
|
|
422
|
|
Accumulated
deficit
|
|
|
(521,068)
|
|
|
|
(502,136)
|
|
Total
equity
|
|
|
41,081
|
|
|
|
53,659
|
|
Total liabilities and
equity
|
|
$
|
462,527
|
|
|
$
|
479,214
|
|
Accuray
Incorporated Summary of Orders and Backlog (in
thousands, except book to bill ratio)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Gross orders
|
|
$
|
89,086
|
|
|
$
|
73,764
|
|
|
$
|
246,676
|
|
|
$
|
222,647
|
|
Net orders
|
|
|
60,795
|
|
|
|
54,737
|
|
|
|
147,141
|
|
|
|
115,176
|
|
Order
backlog
|
|
|
503,220
|
|
|
|
506,587
|
|
|
|
503,220
|
|
|
|
506,587
|
|
Book to bill ratio
(a)
|
|
|
1.8
|
|
|
|
1.2
|
|
|
|
1.6
|
|
|
|
1.3
|
|
(a) Book to bill ratio
is defined as gross orders for the period divided by product
revenue for the period.
|
Accuray
Incorporated Reconciliation of GAAP Net Income (Loss) to
Adjusted EBITDA (in thousands)
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
Nine Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
GAAP net
loss
|
|
$
|
(6,342)
|
|
|
$
|
599
|
|
|
$
|
(18,932)
|
|
|
$
|
(6,724)
|
|
Depreciation and
amortization (a)
|
|
|
1,601
|
|
|
|
1,103
|
|
|
|
4,398
|
|
|
|
3,430
|
|
Stock-based
compensation
|
|
|
2,735
|
|
|
|
1,559
|
|
|
|
7,441
|
|
|
|
7,601
|
|
Interest expense, net
(b)
|
|
|
2,649
|
|
|
|
2,707
|
|
|
|
7,990
|
|
|
|
7,605
|
|
Provision for income
taxes
|
|
|
444
|
|
|
|
522
|
|
|
|
3,254
|
|
|
|
1,912
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
800
|
|
|
|
2,633
|
|
|
|
2,738
|
|
ERP and ERP related
expenditures
|
|
|
—
|
|
|
|
1,057
|
|
|
|
2,815
|
|
|
|
2,178
|
|
Adjusted
EBITDA
|
|
$
|
1,087
|
|
|
$
|
8,347
|
|
|
$
|
9,599
|
|
|
$
|
18,740
|
|
(a) Consists of
depreciation, primarily on property and equipment as well as
amortization of intangibles.
|
|
(b) Consists primarily
of interest expense associated with outstanding debt.
|
|
Accuray
Incorporated Forward-Looking
Guidance Reconciliation of Projected GAAP Net Income
(Loss) to Projected Adjusted EBITDA (in thousands)
(Unaudited)
|
|
|
|
Twelve Months
Ending
June 30, 2024
|
|
|
|
From
|
|
|
To
|
|
GAAP net
loss
|
|
$
|
(17,400)
|
|
|
$
|
(14,400)
|
|
Depreciation and
amortization (a)
|
|
|
6,000
|
|
|
|
6,000
|
|
Stock-based
compensation
|
|
|
10,300
|
|
|
|
10,300
|
|
Interest expense, net
(b)
|
|
|
10,700
|
|
|
|
10,700
|
|
Provision for income
taxes
|
|
|
4,000
|
|
|
|
4,000
|
|
Restructuring
charges
|
|
|
2,600
|
|
|
|
2,600
|
|
ERP and ERP related
expenditures
|
|
|
2,800
|
|
|
|
2,800
|
|
Adjusted
EBITDA
|
|
$
|
19,000
|
|
|
$
|
22,000
|
|
(a) Consists of
depreciation, primarily on property and equipment as well as
amortization of intangibles.
|
(b) Consists primarily
of interest expense associated with outstanding debt.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/accuray-reports-fiscal-2024-third-quarter-financial-results-302133588.html
SOURCE Accuray Incorporated