Accuray Reports Fiscal 2022 Third Quarter Financial Results
Third Quarter Fiscal 2022 Summary
- Gross orders of
$88.6 million , an increase of 1 percent compared to the prior year - Net revenue of
$96.2 million representing a decrease of 6 percent compared to the prior year - GAAP net loss of
$1.0 million as compared to GAAP net loss of$0.4 million in the prior year. Adjusted EBITDA of$5.4 million as compared to adjusted EBITDA of$8.7 million in the prior year
Other Recent Operational Highlights
- Demand continues for ClearRT™ Helical kVCT Imaging for the Radixact® System and VOLO™ Ultra enhancement to the Accuray Precision® treatment planning system for the Radixact System and CyberKnife® S7™ platform
- Data from a phase III trial indicates that Accuray TomoTherapy® Helical Radiotherapy System can help preserve breast cancer patients' long-term heart and lung functionality
- Introduction of CyberKnife Neuro package with Brainlab Elements software at the
Radiosurgery Society was completed - 10-year data shows Accuray CyberKnife System can provide long-lasting relief of the excruciating pain caused by trigeminal neuralgia
"
Fiscal Third Quarter Results
Total net revenue was
Total gross profit for the third quarter of fiscal 2022 was
Operating expenses for the third quarter of fiscal 2022 were
Net loss was
Gross product orders totaled
Adjusted EBITDA for the third quarter of fiscal 2022 was
Cash, cash equivalents, and short-term restricted cash were
Fiscal Nine Months Results
Total net revenue for the nine months ended
Total gross profit for the nine months ended
Operating expenses for the nine months ended
Net loss was
Gross product orders totaled
Adjusted EBITDA for the nine months ended
Fiscal Year 2022 Financial Guidance
The Company is re-affirming guidance for fiscal year 2022 as follows:
- Total revenue is expected in the range of
$420.0 million to$430.0 million , representing a year-over-year growth at the midpoint of the range of 7%. - Adjusted EBITDA is expected in the range of
$15.0 million to$20.0 million .
Guidance for non-GAAP financial measures excludes depreciation and amortization, stock-based compensation expense, interest expense 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: (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
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 (
Use of Non-GAAP Financial Measures
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
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; expectations regarding the effect of the COVID-19 pandemic on the company; expectations regarding supply chain and logistics challenges; expectations regarding the company's commercial strategy and execution as well as long-term growth opportunities; expectations regarding the company's order growth; the company's ability to continue to drive long-term sustainable revenue growth, grow its top line, expand margins and create value for shareholders; expectations regarding the company's
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.
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Investor Relations, ICR-Westwicke |
Public Relations Director, |
+1 (443) 450-4191 |
+1 (408) 789-4426 |
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Financial Tables to Follow
|
||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||||||||||||||||||
Net revenue: |
||||||||||||||||||||||||||||||||
Products |
$ |
43,198 |
$ |
47,439 |
$ |
156,678 |
$ |
120,502 |
||||||||||||||||||||||||
Services |
52,971 |
55,123 |
163,208 |
164,851 |
||||||||||||||||||||||||||||
Total net revenue |
96,169 |
102,562 |
319,886 |
285,353 |
||||||||||||||||||||||||||||
Cost of revenue: |
||||||||||||||||||||||||||||||||
Cost of products |
28,371 |
27,709 |
95,400 |
69,237 |
||||||||||||||||||||||||||||
Cost of services |
33,014 |
35,311 |
107,551 |
100,340 |
||||||||||||||||||||||||||||
Total cost of revenue |
61,385 |
63,020 |
202,951 |
169,577 |
||||||||||||||||||||||||||||
Gross profit |
34,784 |
39,542 |
116,935 |
115,776 |
||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||
Research and development |
14,104 |
13,268 |
43,183 |
37,372 |
||||||||||||||||||||||||||||
Selling and marketing |
10,798 |
10,567 |
35,302 |
29,813 |
||||||||||||||||||||||||||||
General and administrative |
10,174 |
11,281 |
32,350 |
30,498 |
||||||||||||||||||||||||||||
Total operating expenses |
35,076 |
35,116 |
110,835 |
97,683 |
||||||||||||||||||||||||||||
Income (loss) from operations |
(292) |
4,426 |
6,100 |
18,093 |
||||||||||||||||||||||||||||
Income (loss) on equity investment, net |
1,946 |
(68) |
774 |
1,021 |
||||||||||||||||||||||||||||
Other expense, net |
(2,293) |
(4,027) |
(7,451) |
(12,981) |
||||||||||||||||||||||||||||
Income (loss) before provision for income taxes |
(639) |
331 |
(577) |
6,133 |
||||||||||||||||||||||||||||
Provision for income taxes |
407 |
721 |
1,318 |
1,352 |
||||||||||||||||||||||||||||
Net income (loss) |
$ |
(1,046) |
$ |
(390) |
$ |
(1,895) |
$ |
4,781 |
||||||||||||||||||||||||
Net income (loss) per share - basic |
$ |
(0.01) |
$ |
(0.00) |
$ |
(0.02) |
$ |
0.05 |
||||||||||||||||||||||||
Net income (loss) per share - diluted |
$ |
(0.01) |
$ |
(0.00) |
$ |
(0.02) |
$ |
0.05 |
||||||||||||||||||||||||
Weighted average common shares used in |
||||||||||||||||||||||||||||||||
Basic |
92,761 |
93,123 |
91,780 |
92,106 |
||||||||||||||||||||||||||||
Diluted |
92,761 |
93,123 |
91,780 |
93,422 |
|
||||||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||||||
(in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|||||||||||||||
2022 |
2021 |
|||||||||||||||
Assets |
||||||||||||||||
Current assets: |
||||||||||||||||
Cash and cash equivalents |
$ |
97,839 |
$ |
116,369 |
||||||||||||
Restricted cash |
205 |
560 |
||||||||||||||
Accounts receivable, net |
89,295 |
85,360 |
||||||||||||||
Inventories |
137,519 |
125,929 |
||||||||||||||
Prepaid expenses and other current assets |
21,987 |
21,547 |
||||||||||||||
Deferred cost of revenue |
351 |
3,008 |
||||||||||||||
Total current assets |
347,196 |
352,773 |
||||||||||||||
Property and equipment, net |
12,220 |
12,332 |
||||||||||||||
Investment in joint venture |
14,251 |
15,935 |
||||||||||||||
|
58,000 |
57,960 |
||||||||||||||
Intangible assets, net |
286 |
435 |
||||||||||||||
Operating lease right-of-use assets |
17,851 |
22,522 |
||||||||||||||
Other assets |
19,632 |
18,141 |
||||||||||||||
Total assets |
$ |
469,436 |
$ |
480,098 |
||||||||||||
Liabilities and equity |
||||||||||||||||
Current liabilities: |
||||||||||||||||
Accounts payable |
$ |
32,364 |
$ |
19,467 |
||||||||||||
Accrued compensation |
25,461 |
26,865 |
||||||||||||||
Operating lease liabilities, current |
8,351 |
8,169 |
||||||||||||||
Other accrued liabilities |
26,018 |
27,471 |
||||||||||||||
Customer advances |
24,363 |
24,937 |
||||||||||||||
Deferred revenue |
76,732 |
81,660 |
||||||||||||||
Short-term debt |
8,051 |
3,790 |
||||||||||||||
Total current liabilities |
201,340 |
192,359 |
||||||||||||||
Long-term other liabilities |
6,812 |
7,766 |
||||||||||||||
Deferred revenue |
24,550 |
23,685 |
||||||||||||||
Operating lease liabilities, non-current |
11,929 |
17,441 |
||||||||||||||
Long-term debt |
173,196 |
170,007 |
||||||||||||||
Total liabilities |
417,827 |
411,258 |
||||||||||||||
Equity: |
||||||||||||||||
Common stock |
93 |
91 |
||||||||||||||
Additional paid-in capital |
539,383 |
554,680 |
||||||||||||||
Accumulated other comprehensive income |
1,203 |
2,093 |
||||||||||||||
Accumulated deficit |
(489,070) |
(488,024) |
||||||||||||||
Total equity |
51,609 |
68,840 |
||||||||||||||
Total liabilities and equity |
$ |
469,436 |
$ |
480,098 |
|
||||||||||||||||||||||||||||||||
Summary of Orders and Backlog |
||||||||||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||||||||||||||||||
Gross Orders |
$ |
88,561 |
$ |
87,365 |
$ |
243,926 |
$ |
213,258 |
||||||||||||||||||||||||
|
43,542 |
62,826 |
124,488 |
128,843 |
||||||||||||||||||||||||||||
Order Backlog |
580,428 |
610,795 |
580,428 |
610,795 |
|
||||||||||||||||||||||||||||||||
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 |
Nine Months Ended |
|||||||||||||||||||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||||||||||||||||||
GAAP net income (loss) |
$ |
(1,046) |
$ |
(390) |
$ |
(1,895) |
$ |
4,781 |
||||||||||||||||||||||||
Depreciation and amortization (a) |
1,406 |
1,577 |
4,247 |
4,890 |
||||||||||||||||||||||||||||
Stock-based compensation |
2,695 |
2,489 |
7,906 |
7,097 |
||||||||||||||||||||||||||||
Interest expense, net (b) |
1,975 |
4,320 |
6,081 |
13,143 |
||||||||||||||||||||||||||||
Provision for income taxes |
407 |
721 |
1,318 |
1,352 |
||||||||||||||||||||||||||||
Adjusted EBITDA |
$ |
5,437 |
$ |
8,717 |
$ |
17,657 |
$ |
31,263 |
(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. |
|
||||||||||||||||||||||||
Forward-Looking Guidance |
||||||||||||||||||||||||
Reconciliation of Projected Net Loss to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and |
||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
Twelve Months Ending |
||||||||||||||||||||||||
From |
To |
|||||||||||||||||||||||
GAAP net loss |
$ |
(12,000) |
$ |
(7,000) |
||||||||||||||||||||
Depreciation and amortization (a) |
6,100 |
6,100 |
||||||||||||||||||||||
Stock-based compensation |
10,600 |
10,600 |
||||||||||||||||||||||
Interest expense, net (b) |
8,300 |
8,300 |
||||||||||||||||||||||
Provision for income taxes |
2,000 |
2,000 |
||||||||||||||||||||||
Adjusted EBITDA |
$ |
15,000 |
$ |
20,000 |
(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. |
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