Accuray Reports Fiscal 2019 Third Quarter Results
Fiscal Third Quarter Highlights
- Gross orders increased 12 percent year over year to
$83.6 million - Ending backlog increased 5 percent year over year to
$493.9 million - Revenue increased 3 percent year over year to
$103.2 million - Operating expense decreased 6 percent year over year to
$37.6 million China joint venture granted business license
"We continued to execute our commercial plan during the third quarter and generated a 12 percent increase in gross order growth," said
"During our third quarter, we made progress in operationalizing our
Fiscal Third Quarter Results
Total revenue was
Total gross profit for the 2019 fiscal third quarter was
Total operating expenses were
Net loss was
Adjusted EBITDA for the 2019 fiscal third quarter was
Total cash, cash equivalents, and short-term restricted cash were
Fiscal Nine Month Results
For the nine months ended
Total revenue for the nine months ended
Total gross profit for the nine months ended
Total operating expenses for the nine months ended
Net loss was
Adjusted EBITDA for the nine months ended
2019 Financial Guidance
The company is updating its fiscal year 2019 guidance provided on
- Revenue: Product revenue growth is expected to range between 4 and 8 percent and service revenue is expected to grow approximately 2 percent, resulting in total revenue of between
$415 million to $425 million , which would represent 3 to 5 percent growth year over year. - Adjusted EBITDA:
$23.0 million to $29.0 million , which would represent growth of approximately 35 percent to 70 percent year over year. - Achievement of the higher end of the range for revenue and adjusted EBITDA is dependent on the timing of Class A and Class B user license issuances in
China and conversion of those orders to revenue.
Guidance for non-GAAP financial measures excludes amortization of intangibles, depreciation, stock-based compensation expense, interest expense, net and provision for income taxes. 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
- U.S. callers: (855) 867-4103
- International callers: (262) 912-4764
- Conference ID Number (U.S. and international): 1788894
Individuals interested in listening to the live conference call via the Internet may do so by logging on to
Use of Non-GAAP Financial Measures
There are limitations in using this non-GAAP financial measure because it is 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
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 regarding revenue and adjusted EBITDA; expectations regarding the grant of Class A and Class B user licenses in
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 |
Financial Tables to Follow
Accuray Incorporated |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
Gross Orders |
$ |
83,571 |
$ |
74,906 |
$ |
245,154 |
$ |
208,461 |
||||||||
Net Orders |
59,786 |
40,880 |
153,899 |
144,567 |
||||||||||||
Order Backlog |
493,870 |
468,147 |
493,870 |
468,147 |
||||||||||||
Net revenue: |
||||||||||||||||
Products |
$ |
46,451 |
$ |
43,244 |
$ |
136,019 |
$ |
129,266 |
||||||||
Services |
56,770 |
56,588 |
165,349 |
161,845 |
||||||||||||
Total net revenue |
103,221 |
99,832 |
301,368 |
291,111 |
||||||||||||
Cost of revenue: |
||||||||||||||||
Cost of products |
27,169 |
25,332 |
80,755 |
74,291 |
||||||||||||
Cost of services |
35,586 |
38,251 |
103,888 |
103,110 |
||||||||||||
Total cost of revenue |
62,755 |
63,583 |
184,643 |
177,401 |
||||||||||||
Gross profit |
40,466 |
36,249 |
116,725 |
113,710 |
||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
12,913 |
13,906 |
40,442 |
42,663 |
||||||||||||
Selling and marketing |
12,903 |
14,612 |
41,078 |
43,241 |
||||||||||||
General and administrative |
11,769 |
11,552 |
37,880 |
34,696 |
||||||||||||
Total operating expenses |
37,585 |
40,070 |
119,400 |
120,600 |
||||||||||||
Income/(loss) from operations |
2,881 |
(3,821) |
(2,675) |
(6,890) |
||||||||||||
Other expense, net |
(3,829) |
(4,465) |
(11,133) |
(14,774) |
||||||||||||
Loss before provision for income taxes |
(948) |
(8,286) |
(13,808) |
(21,664) |
||||||||||||
Provision for income taxes |
236 |
566 |
1,222 |
1,289 |
||||||||||||
Net loss |
$ |
(1,184) |
$ |
(8,852) |
$ |
(15,030) |
$ |
(22,953) |
||||||||
Net loss per share - basic and diluted |
$ |
(0.01) |
$ |
(0.10) |
$ |
(0.17) |
$ |
(0.27) |
||||||||
Weighted average common shares used in computing loss per share: |
||||||||||||||||
Basic and diluted |
87,962 |
85,459 |
87,220 |
84,594 |
Accuray Incorporated |
||||||||
Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
March 31, |
June 30, |
|||||||
2019 |
2018 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
62,509 |
$ |
83,083 |
||||
Restricted cash |
2,103 |
9,830 |
||||||
Accounts receivable, net |
99,774 |
65,994 |
||||||
Inventories |
124,433 |
108,540 |
||||||
Prepaid expenses and other current assets |
21,452 |
15,569 |
||||||
Deferred cost of revenue |
157 |
1,141 |
||||||
Total current assets |
310,428 |
284,157 |
||||||
Property and equipment, net |
20,265 |
23,698 |
||||||
Goodwill |
57,813 |
57,855 |
||||||
Intangible assets, net |
714 |
821 |
||||||
Other assets |
16,914 |
12,196 |
||||||
Total assets |
$ |
406,134 |
$ |
378,727 |
||||
Liabilities and equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
25,392 |
$ |
19,694 |
||||
Accrued compensation |
27,082 |
28,992 |
||||||
Other accrued liabilities |
26,945 |
22,448 |
||||||
Customer advances |
22,822 |
22,896 |
||||||
Deferred revenue |
78,833 |
75,404 |
||||||
Total current liabilities |
181,074 |
169,434 |
||||||
Long-term liabilities: |
||||||||
Long-term other liabilities |
8,168 |
8,608 |
||||||
Deferred revenue |
23,291 |
20,976 |
||||||
Long-term debt |
145,957 |
131,077 |
||||||
Total liabilities |
358,490 |
330,095 |
||||||
Equity: |
||||||||
Common stock |
88 |
86 |
||||||
Additional paid-in capital |
531,207 |
521,738 |
||||||
Accumulated other comprehensive income |
489 |
1,093 |
||||||
Accumulated deficit |
(484,140) |
(474,285) |
||||||
Total equity |
47,644 |
48,632 |
||||||
Total liabilities and equity |
$ |
406,134 |
$ |
378,727 |
Accuray Incorporated |
||||||||||||||||
Reconciliation of GAAP Net Loss to Adjusted EBITDA |
||||||||||||||||
(in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
2019 |
2018 |
2019 |
2018 |
|||||||||||||
GAAP net loss |
$ |
(1,184) |
$ |
(8,852) |
$ |
(15,030) |
$ |
(22,953) |
||||||||
Amortization of intangibles |
36 |
36 |
108 |
107 |
||||||||||||
Depreciation (a) |
1,878 |
2,344 |
5,980 |
7,280 |
||||||||||||
Stock-based compensation |
2,880 |
3,204 |
7,779 |
9,074 |
||||||||||||
Interest expense, net (b) |
3,857 |
4,062 |
11,042 |
14,460 |
||||||||||||
Impairment charge (c) |
- |
- |
3,707 |
- |
||||||||||||
Cost savings initiative (d) |
- |
- |
998 |
- |
||||||||||||
Gain on lease termination (e) |
(1,007) |
- |
(1,007) |
- |
||||||||||||
Provision for income taxes |
236 |
566 |
1,222 |
1,289 |
||||||||||||
Adjusted EBITDA |
$ |
6,696 |
$ |
1,360 |
$ |
14,799 |
$ |
9,257 |
(a) consists of depreciation, primarily on property and equipment. |
||||||
(b) consists primarily of interest income, interest expense associated with outstanding debt, and non-cash loss on extinguishment of debt. |
||||||
(c) consists of a one-time accounts receivable impairment charge related to one customer. |
||||||
(d) consists of costs associated with a staff reduction recorded in the fiscal second quarter of 2019. |
||||||
(e) consists of a non-cash reversal of deferred rent related to a facility lease that was terminated. |
Accuray Incorporated |
||||||||
Forward-Looking Guidance |
||||||||
Reconciliation of Projected Net Loss to Projected Adjusted EBITDA |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
Twelve Months Ending |
||||||||
From |
To |
|||||||
GAAP net loss |
$ |
(16,700) |
$ |
(10,700) |
||||
Depreciation and amortization (a) |
8,400 |
8,400 |
||||||
Stock-based compensation |
11,000 |
11,000 |
||||||
Impairment charge (b) |
3,700 |
3,700 |
||||||
Cost savings initiative (c) |
1,500 |
1,500 |
||||||
Gain on lease termination (d) |
(1,000) |
(1,000) |
||||||
Interest expense, net (e) |
14,400 |
14,400 |
||||||
Provision for income taxes |
1,700 |
1,700 |
||||||
Adjusted EBITDA |
$ |
23,000 |
$ |
29,000 |
(a) consists of depreciation, primarily on property and equipment as well as amortization of intangibles. |
||||||
(b) consists of a one-time accounts receivable impairment charge related to one customer in the first quarter of 2019. |
||||||
(c) consists of costs associated with a staff reduction initiated in the fiscal second quarter of 2019. |
||||||
(d) consists of a non-cash reversal of deferred rent related to a facility lease that was terminated. |
||||||
(e) consists primarily of interest expense associated with outstanding debt. |
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