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1 | © Accuray and/or its affiliates. All rights reserved.
Accuray Incorporated JEFFERIES HEALTHCARE CONFERENCE JUNE 2015
NASDAQ: ARAY
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2 | © Accuray and/or its affiliates. All rights reserved.
Safe Harbor Statement
Forward Looking Statements Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) 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 presentation relate, but are not limited to the size and growth of the global market for radiation therapy systems, market position of our products, product roadmap, and our business opportunities and focus, including strategies for commercial execution, product positioning, customer accounts and emerging markets, and our expected financial results for the second quarter and full fiscal year 2015. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to: the extent of market acceptance for the company’s products and services; the company’s ability to convert backlog to revenue; the success of its worldwide sales and marketing efforts; the ability to control operating expenses; continuing uncertainty in the global economic environment; potential differences between the Company’s preliminary financial analysis and the final results for the applicable period as a result of the completion of internal reporting process and review, and other risks detailed under the heading "Risk Factors" in the company’s report on Form 10-K for fiscal 2014, filed on August 29, 2014 and as updated from time to time in our other filings with the Securities and Exchange Commission. 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. This presentation also contains non-GAAP financial information. 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 more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation is available in the Appendix.
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3 | © Accuray and/or its affiliates. All rights reserved.
Company Highlights
• Large and growing radiation therapy market
• Products positioned in fastest growth segments
• Unique differentiated technology that leads the market in dosing precision
• Roadmap to maintain precision leadership
• Improving commercial execution
• Driving to sustained profitability
Accuray Incorporated
Technological Excellence
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4 | © Accuray and/or its affiliates. All rights reserved.
• Worldwide incidences of cancer are estimated to reach 17 million by 2017 ‒ Driven by growth of aging
population • 90% of all cancers are projected to be
solid tumors ‒ Potentially eligible for
radiation therapy
• 60% of cancer patients worldwide may undergo some form of radiation therapy during their course of treatment ‒ Increasing preference for
non-surgical treatment options
Large and Growing Market
Radiation Therapy Revenue (Global)* $3.5 billion in 2014
Source: Comparative data is based upon information gathered from Fiscal year filings (Varian, Elekta, Accuray); Internal estimates for revenue growth forecast and regional breakdown; Radiation Therapy Equipment-A Global Strategic Business Report (Nov 2013).
Expected market growth of 3%-5% in 2015.
Americas 44%
EIMEA 34%
APAC (inc. Japan)
22%
*Does not include software or brachytherapy.
Radiation Therapy is Integral to Cancer Treatment
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5 | © Accuray and/or its affiliates. All rights reserved.
Specialty
Economy
Premium
Value
SRS/SBRT IMRT Conventional RT
$1M
$2M
$3M
$4M
$5M
Clinical Precision
ASP
CyberKnife®
TomoTherapy®
Products Positioned in Growth Segments
- 1% 14% - 22% 29%
*Source: U.S. data. The Advisory Board Company, five-year growth projection.
New Patient Volume: 5-Year Growth Estimate
http://sharepoint/Departments/Marketing Communications/collateral/tomotherapy-system-images/TomoTherapy H Series/TT - SIDE - white bkgrnd.jpg
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6 | © Accuray and/or its affiliates. All rights reserved.
Uniquely Differentiated Technology Architecture, Imaging and Delivery
• Robotic architecture
• Continual imaging throughout treatment
• Automatically tracks and adjusts beam for tumor movement
CyberKnife®
• CT scanner-based; ring gantry platform
• Daily, low-dose 3D CT scan
• Fast MLC delivers thousands of “beamlets” with continuous 360° rotation
TomoTherapy®
• C-arm based; standard gantry platform
• User discretion and intervention to image
• Slow MLC, combined with fewer delivery angles, limits ability to conform radiation beam to shape of tumor
Conventional LINAC
Sub-millimeter precision Avoids healthy tissue
Conforms to tumor shape Avoids healthy tissue
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7 | © Accuray and/or its affiliates. All rights reserved.
Improving Commercial Execution The Vital Few
Focus on installed base satisfaction
Accelerate TomoTherapy® mainstream product positioning
Broaden CyberKnife® clinical versatility around MLC
Expand China commercial growth strategy
1
2
3
5
4
Activate GPO/strategic accounts portfolio to improve U.S. commercial momentum
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8 | © Accuray and/or its affiliates. All rights reserved.
Improving Commercial Execution Accelerate TomoTherapy® Mainstream Product Positioning
1. Estimates based on IMV 2012/13 Radiation Therapy Market Summary Report, July 2013. 2. Internal Accuray information (Feb 2014).
Improvements in Performance and Reliability
Opportunities in Single and Multi Vault Facilities
Type Cancer Centers1
TomoTherapy® Share2
3+ vaults 345 23%
2 vaults 736 8%
1 vault 1,219 4%
Total 2,300 9%
“TomoTherapy users feel the system is a workhorse and believe it is one of the best systems on the market for radiation oncology treatments.” MD Buyline Q3 2014
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9 | © Accuray and/or its affiliates. All rights reserved.
Commercialization of our InCise™ MLC for the CyberKnife® System Site Feedback highlights MLC Stability, Reliability and Accuracy
Treatment times reported by customers for clinical cases delivered to patients. Includes setup and delivery time. (Treatment times reported by MultiPlan® planning station for equivalent fixed/Iris plan. Includes estimated setup time.)
Case Type
Treatment
Type
MLC Treatment
Times
Fixed/Iris Treatment
Times Intracranial SRS 22 min ~ 51 min
SRS 30 min ~ 90 min
IMRT 17 min
IMRT 20 min
Prostate SBRT 25 min ~ 40 min
SBRT 18 min ~ 26 min
IMRT 29 min ~ 49 min
Lung SBRT 19 min
“Reduction in integral dose, due to increased
conformity per beam” (Medical physicist at MLC site)
“No MLC errors experienced in six [clinical] cases.
Rock solid performance” (Medical physicist at MLC site. Six patients had
been treated at the time of quote)
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10 | © Accuray and/or its affiliates. All rights reserved.
2,570 Hospitals
1,400 Hospitals
2,900 Hospitals
Improving Commercial Execution Activate GPO/Strategic Accounts
• Premier ‒ Exclusive three-year contract ‒ Only contracted line of radiotherapy
products and services
• Most contracts cover both the CyberKnife® and TomoTherapy® Systems, upgrades and service
• HealthTrust ‒ Currently under contract for the
TomoTherapy System ‒ Initiating negotiations for a three-year
contract for both systems
40% of U.S. Hospitals
Contracts
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11 | © Accuray and/or its affiliates. All rights reserved.
Improving Commercial Execution Expanding China Commercial Growth Strategy
RT Systems Per 1000 Cancer Patients
2.42
1.56
0.46 0
1
2
3
US Japan China
RT
Syst
ems
Per 1
000
New
Can
cer P
atie
nts
Source: Accuray internal estimates.
Estimated LINAC demand at 50% treatment of newly diagnosed cases: 5,000 units
Estimated RT Penetration
57%
45%
20%
0%
10%
20%
30%
40%
50%
60%
US Japan China
RT
Pene
trat
ion
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12 | © Accuray and/or its affiliates. All rights reserved.
China Commercial Growth Opportunity: Progress to Date
• To date, the NHFPC has issued 39 licenses • Licenses for Accuray products have been awarded to
28 hospitals ‒ 22 of these licenses were issued since December 2014
March 2013: NHFPC sets quota of 60 class A licenses
May 2015: 21 class A licenses remaining to be issued
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13 | © Accuray and/or its affiliates. All rights reserved.
Driving to Sustained Profitability Guidance Growth YOY
(in millions) FY2013 FY2014 FY2015 (1) FY14/FY13 FY15/FY14
Product Revenue $137.4 $173.6Service Revenue $178.6 $195.8Total Revenue $316.0 $369.4 $375 to $385 17% 2% to 4%
Gross profit $97.6 $142.8 46% NR Margin 30.9% 38.7%
Operating Income ($80.7) ($18.1)
aEBITDA (2) ($55.7) $13.3 $13 to $16 NM Flat to 20%
Committed to profitable revenue growth from expanding margins and controlled operating expenses
(1) FY2015 Guidance as presented on Q3 earnings release dated April 30, 2015 and not updated today. (2) A reconciliation of aEBITDA to GAAP net income/(loss) can be found in the appendix.
Sheet1
Guidance Growth YOY
(in millions)FY2013FY2014FY2015 (1)FY14/FY13FY15/FY14
Gross Orders$219.3$263.320.1%NR
Product Revenue$137.4$173.6
Service Revenue$178.6$195.8
Total Revenue$316.0$369.4$375 to $38517%2% to 4%
Gross profit$97.6$142.846%NR
Margin30.9%38.7%
Operating Income($80.7)($18.1)
aEBITDA (2)($55.7)$13.3$13 to $16NMFlat to 20%
Sheet2
Sheet3
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14 | © Accuray and/or its affiliates. All rights reserved.
• Composition: - 40% TomoTherapy in single or dual vault settings
• Chinese NHFPC issued 22 licenses for Accuray product since December: ‒ Four system orders went to backlog in Q2 FY15 ‒ Four system orders went to backlog in Q3FY15 ‒ Seven system orders are expected to go to backlog in Q4 FY15 or Q1 FY16 ‒ Seven system licenses pertain to orders already taken to backlog
• Age-Outs and Cancellations
‒ $11.6 million in Q3 age-outs significantly lower than approximately 18 million in Q1 and Q2
‒ No cancellations ‒ Numerous changes over the past two years designed to reduce age-outs
Q3 FY15 Performance Update Executing on the Transformation
Gross Orders were $51.9 million
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15 | © Accuray and/or its affiliates. All rights reserved.
• Revenue growth consistent with 2014 (5% constant currency) to $97.5 million
• Gross margins of 40% (42% constant currency) ‒ Product gross margins of 41% ‒ Service gross margins of 38%
• Adjusted EBITDA of $9.9 million • Updated guidance for FY15 adjusted for currency impact
‒ Revenue of $375 to $385 million ‒ Adjusted EBITDA of $13 to $16 million
Q3 FY15 Performance Update
A reconciliation of aEBITDA to GAAP net income/(loss) can be found in the appendix
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16 | © Accuray and/or its affiliates. All rights reserved.
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17 | © Accuray and/or its affiliates. All rights reserved.
Appendix
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18 | © Accuray and/or its affiliates. All rights reserved.
aEBITDA Reconciliation: Non-GAAP
This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts.
From ToGAAP net loss (39,975)$ (36,975)$
Amortization of intangibles (a) 8,000 8,000 Depreciation (b) 11,775 11,775 Stock-based compensation (c) 14,000 14,000 Interest expense, net (d) 16,200 16,200 Provision for income taxes 3,000 3,000
Adjusted EBITDA 13,000$ 16,000$
(a) consists of amortization of intangibles - developed technology and distributor licenses(b) consists of depreciation, primarily on property and equipment(c) consists of stock-based compensation in accordance with ASC 718(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
Twelve Months Ending June 30, 2015
Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measure(In thousands)
(Unaudited)
Income statement
Three Months Ended September 30,Three Months Ended December 31,Six Months Ended December 31,Three Months Ended March 31,Nine Months Ended March 31,Three Months Ended June 30,Years Ended June 30,
20142013201420132014201320152014201520142015201420152014
Gross Orders$ 58,763$ 63,398$ 72,261$ 80,294$ 131,024$ 143,692$ 51,891$ 45,168$ 182,915$ 188,860$ 74,492$ 182,915$ 263,352$ 6,723
Net Orders32,28260,06341,47459,36673,756119,42935,93738,622109,693158,05162,967109,693221,0180.1488443146
Order Backlog364,007347,825357,831362,044357,831362,044347,408353,621347,408353,621364,742- 0364,742
Net revenue:
Products $ 33,015$ 29,568$ 47,650$ 45,148$ 80,665$ 74,716$ 46,361$ 47,045$ 127,026$ 121,761$ 51,846$ 127,026$ 173,607
Services 49,36647,07350,50548,48699,87195,55951,15450,099151,025145,65850,154151,025195,812
Total net revenue 82,38176,64198,15593,634180,536170,27597,51597,144278,051267,419- 0102,000278,051369,419$ 371
Cost of revenue:0%
Cost of products 20,66518,60127,17124,98047,83643,58127,33225,25575,16868,83628,75675,16897,592
Cost of services 33,91531,56232,49530,48366,41062,04531,52332,18597,93394,23034,79797,933129,027
Total cost of revenue 54,58050,16359,66655,463114,246105,62658,85557,440173,101163,066- 063,553173,101226,619
Gross profit 27,80126,47838,48938,17166,29064,64938,66039,704104,950104,353- 038,447104,950142,800
Operating expenses:
Research and development 14,14912,95013,91713,43528,06626,38512,83613,76340,90240,14813,57640,90253,724
Selling and marketing 17,97414,45415,80214,26233,77628,71612,98715,31046,76344,02617,85946,76361,885
General and administrative 10,95011,36012,36111,19023,31122,55011,66511,10634,97633,65611,67934,97645,335
Total operating expenses 43,07338,76442,08038,88785,15377,65137,48840,179122,641117,830- 043,114122,641160,944
Income (loss) from operations(15,272)(12,286)(3,591)(716)(18,863)(13,002)1,172(475)(17,691)(13,477)- 0(4,667)(17,691)(18,144)
Other expense, net(5,461)(2,460)(5,528)(3,775)(10,989)(6,235)(3,618)(3,312)(14,607)(9,547)(4,669)(14,607)(14,216)
Loss before provision for income taxes(20,733)(14,746)(9,119)(4,491)(29,852)(19,237)(2,446)(3,787)(32,298)(23,024)- 0(9,336)(32,298)(32,360)
Provision for income taxes9177878739501,7901,7375218782,3112,6154732,3113,088
Net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (31,642)$ (20,974)$ (2,967)$ (4,665)$ (34,609)$ (25,639)$ - 0$ (9,809)$ (34,609)$ (35,448)
Net loss per share - basic and diluted$ (0.28)$ (0.21)$ (0.13)$ (0.07)$ (0.41)$ (0.28)$ (0.04)$ (0.06)$ (0.44)$ (0.34)ERROR:#DIV/0!$ (0.13)ERROR:#DIV/0!$ (0.47)
Weighted average common shares used in computing loss per share:
Basic and diluted77,29074,70077,92475,28077,60774,99078,74676,38277,98175,44776,87975,804
Balance sheet
June 30,March 31,December 31,September 30,June 30,
20152015201420142014
Assets
Current assets:
Cash and cash equivalents$ 95,449$ 97,273$ 107,295$ 92,346
Investments54,18553,51745,41579,553
Restricted cash2,8581,4361,4571,492
Accounts receivable, net61,37662,98752,94372,152
Inventories109,705104,49099,99487,752
Prepaid expenses and other current assets15,65015,07616,26617,873
Deferred cost of revenue8,74311,96012,41713,302
Total current assets- 0347,966346,739335,787364,470
Property and equipment, net29,85630,83032,73334,391
Goodwill58,02058,01558,06658,091
Intangible assets, net17,55219,54121,52923,517
Deferred cost of revenue1,7522,2202,2592,899
Other assets8,51310,2209,26311,820
Total assets$ -$ 463,659$ 467,565$ 459,637$ 495,188
Liabilities and equity
Current liabilities:
Accounts payable$ 13,656$ 15,980$ 14,695$ 15,639
Accrued compensation19,53019,48220,35832,569
Other accrued liabilities20,15124,47820,43824,464
Customer advances18,95119,67320,03419,804
Deferred revenue93,50092,49589,34092,093
Total current liabilities- 0165,788172,108164,865184,569
Long-term liabilities:
Long-term other liabilities10,45410,4837,4256,593
Deferred revenue9,9469,8759,4839,866
Long-term debt200,989199,152197,371195,612
Total liabilities- 0387,177391,618379,144396,640
Commitment and contingencies
Equity:
Common stock79787777
Additional paid-in capital465,952461,995455,928451,750
Accumulated other comprehensive income1546101,2321,815
Accumulated deficit(389,703)(386,736)(376,744)(355,094)(34,609)- 0
Total equity- 076,48275,94780,49398,548
Total liabilities and equity$ - 0$ 463,659$ 467,565$ 459,637$ 495,188
- 0- 0- 0- 0- 0
- 0
- 0- 0
a EBITDA
Accuray Incorporated
Reconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock-Based Compensation (Adjusted EBITDA)
(In thousands)
(Unaudited)
Three Months Ended September 30,Three Months Ended December 31,Three Months Ended March 31,Three Months Ended June 30, Six Months Ended December 31,Nine Months Ended March 31,Years Ended June 30,
20142013201420132015201420152014201420132015201420152014
GAAP net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (2,967)$ (4,665)$ (9,809)$ (31,642)$ (20,974)$ (34,609)$ (25,639)$ (34,609)$ (35,448)
Amortization of intangibles (a)1,9882,2021,9882,2011,9891,9981,9893,9764,4035,9656,3915,9658,390
Depreciation (b)2,9903,2462,9942,9272,9152,9823,0295,9846,1738,8999,1558,89912,184
Stock-based compensation (c)3,2732,1803,8542,8033,3773,2603,0707,1274,98310,5048,24310,50411,313
Interest expense, net (d)3,9883,3064,0233,3414,0513,3663,7468,0116,64712,06210,01312,06213,759
Provision for income taxes9177878739505218784731,7901,7372,3112,6152,3113,088
Adjusted EBITDA$ (8,494)$ (3,812)$ 3,740$ 6,781$ 9,886$ 7,819$ - 0$ 2,498$ (4,754)$ 2,969$ 5,132$ 10,778$ 5,132$ 13,286
(a) consists of amortization of intangibles - developed technology and distributor licenses
(b) consists of depreciation, primarily on property and equipment
(c) consists of stock-based compensation in accordance with ASC 718
(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
Guidance
Accuray Incorporated
Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measures
(In thousands)
(Unaudited)
NOTE: THIS TABLE WASN'T INCLUDED IN Q1'15 8-K
Twelve Months Ending June 30, 2015
FromTo
GAAP net loss$ (39,975)$ (36,975)
Amortization of intangibles (a)8,0008,000
Depreciation (b)11,77511,775
Stock-based compensation (c)14,00014,000
Interest expense, net (d)16,20016,200
Provision for income taxes3,0003,000
Adjusted EBITDA$ 13,000$ 16,000
(a) consists of amortization of intangibles - developed technology and distributor licenses
(b) consists of depreciation, primarily on property and equipment
(c) consists of stock-based compensation in accordance with ASC 718
(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
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19 | © Accuray and/or its affiliates. All rights reserved.
aEBITDA Reconciliation: Non-GAAP
This presentations contains non-GAAP financial information. 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 more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts.
2015 2014 2015 2014GAAP net loss (2,967)$ (4,665)$ (34,609)$ (25,639)$
Amortization of intangibles (a) 1,989 1,998 5,965 6,391 Depreciation (b) 2,915 2,982 8,899 9,155 Stock-based compensation (c) 3,377 3,260 10,504 8,243 Interest expense, net (d) 4,051 3,366 12,062 10,013 Provision for income taxes 521 878 2,311 2,615
Adjusted EBITDA 9,886$ 7,819$ 5,132$ 10,778$
(a) consists of amortization of intangibles - developed technology and distributor licenses(b) consists of depreciation, primarily on property and equipment(c) consists of stock-based compensation in accordance with ASC 718(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
Nine Months Ended March 31,
Accuray IncorporatedReconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock-Based Compensation (Adjusted EBITDA)(In thousands)
(Unaudited)
Three Months Ended March 31,
Income statement
Three Months Ended September 30,Three Months Ended December 31,Six Months Ended December 31,Three Months Ended March 31,Nine Months Ended March 31,Three Months Ended June 30,Years Ended June 30,
20142013201420132014201320152014201520142015201420152014
Gross Orders$ 58,763$ 63,398$ 72,261$ 80,294$ 131,024$ 143,692$ 51,891$ 45,168$ 182,915$ 188,860$ 74,492$ 182,915$ 263,352$ 6,723
Net Orders32,28260,06341,47459,36673,756119,42935,93738,622109,693158,05162,967109,693221,0180.1488443146
Order Backlog364,007347,825357,831362,044357,831362,044347,408353,621347,408353,621364,742- 0364,742
Net revenue:
Products $ 33,015$ 29,568$ 47,650$ 45,148$ 80,665$ 74,716$ 46,361$ 47,045$ 127,026$ 121,761$ 51,846$ 127,026$ 173,607
Services 49,36647,07350,50548,48699,87195,55951,15450,099151,025145,65850,154151,025195,812
Total net revenue 82,38176,64198,15593,634180,536170,27597,51597,144278,051267,419- 0102,000278,051369,419$ 371
Cost of revenue:0%
Cost of products 20,66518,60127,17124,98047,83643,58127,33225,25575,16868,83628,75675,16897,592
Cost of services 33,91531,56232,49530,48366,41062,04531,52332,18597,93394,23034,79797,933129,027
Total cost of revenue 54,58050,16359,66655,463114,246105,62658,85557,440173,101163,066- 063,553173,101226,619
Gross profit 27,80126,47838,48938,17166,29064,64938,66039,704104,950104,353- 038,447104,950142,800
Operating expenses:
Research and development 14,14912,95013,91713,43528,06626,38512,83613,76340,90240,14813,57640,90253,724
Selling and marketing 17,97414,45415,80214,26233,77628,71612,98715,31046,76344,02617,85946,76361,885
General and administrative 10,95011,36012,36111,19023,31122,55011,66511,10634,97633,65611,67934,97645,335
Total operating expenses 43,07338,76442,08038,88785,15377,65137,48840,179122,641117,830- 043,114122,641160,944
Income (loss) from operations(15,272)(12,286)(3,591)(716)(18,863)(13,002)1,172(475)(17,691)(13,477)- 0(4,667)(17,691)(18,144)
Other expense, net(5,461)(2,460)(5,528)(3,775)(10,989)(6,235)(3,618)(3,312)(14,607)(9,547)(4,669)(14,607)(14,216)
Loss before provision for income taxes(20,733)(14,746)(9,119)(4,491)(29,852)(19,237)(2,446)(3,787)(32,298)(23,024)- 0(9,336)(32,298)(32,360)
Provision for income taxes9177878739501,7901,7375218782,3112,6154732,3113,088
Net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (31,642)$ (20,974)$ (2,967)$ (4,665)$ (34,609)$ (25,639)$ - 0$ (9,809)$ (34,609)$ (35,448)
Net loss per share - basic and diluted$ (0.28)$ (0.21)$ (0.13)$ (0.07)$ (0.41)$ (0.28)$ (0.04)$ (0.06)$ (0.44)$ (0.34)ERROR:#DIV/0!$ (0.13)ERROR:#DIV/0!$ (0.47)
Weighted average common shares used in computing loss per share:
Basic and diluted77,29074,70077,92475,28077,60774,99078,74676,38277,98175,44776,87975,804
Balance sheet
June 30,March 31,December 31,September 30,June 30,
20152015201420142014
Assets
Current assets:
Cash and cash equivalents$ 95,449$ 97,273$ 107,295$ 92,346
Investments54,18553,51745,41579,553
Restricted cash2,8581,4361,4571,492
Accounts receivable, net61,37662,98752,94372,152
Inventories109,705104,49099,99487,752
Prepaid expenses and other current assets15,65015,07616,26617,873
Deferred cost of revenue8,74311,96012,41713,302
Total current assets- 0347,966346,739335,787364,470
Property and equipment, net29,85630,83032,73334,391
Goodwill58,02058,01558,06658,091
Intangible assets, net17,55219,54121,52923,517
Deferred cost of revenue1,7522,2202,2592,899
Other assets8,51310,2209,26311,820
Total assets$ -$ 463,659$ 467,565$ 459,637$ 495,188
Liabilities and equity
Current liabilities:
Accounts payable$ 13,656$ 15,980$ 14,695$ 15,639
Accrued compensation19,53019,48220,35832,569
Other accrued liabilities20,15124,47820,43824,464
Customer advances18,95119,67320,03419,804
Deferred revenue93,50092,49589,34092,093
Total current liabilities- 0165,788172,108164,865184,569
Long-term liabilities:
Long-term other liabilities10,45410,4837,4256,593
Deferred revenue9,9469,8759,4839,866
Long-term debt200,989199,152197,371195,612
Total liabilities- 0387,177391,618379,144396,640
Commitment and contingencies
Equity:
Common stock79787777
Additional paid-in capital465,952461,995455,928451,750
Accumulated other comprehensive income1546101,2321,815
Accumulated deficit(389,703)(386,736)(376,744)(355,094)(34,609)- 0
Total equity- 076,48275,94780,49398,548
Total liabilities and equity$ - 0$ 463,659$ 467,565$ 459,637$ 495,188
- 0- 0- 0- 0- 0
- 0
- 0- 0
a EBITDA
Accuray Incorporated
Reconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock-Based Compensation (Adjusted EBITDA)
(In thousands)
(Unaudited)
Three Months Ended September 30,Three Months Ended December 31,Three Months Ended March 31,Three Months Ended June 30, Six Months Ended December 31,Nine Months Ended March 31,Years Ended June 30,
20142013201420132015201420152014201420132015201420152014
GAAP net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (2,967)$ (4,665)$ (9,809)$ (31,642)$ (20,974)$ (34,609)$ (25,639)$ (34,609)$ (35,448)
Amortization of intangibles (a)1,9882,2021,9882,2011,9891,9981,9893,9764,4035,9656,3915,9658,390
Depreciation (b)2,9903,2462,9942,9272,9152,9823,0295,9846,1738,8999,1558,89912,184
Stock-based compensation (c)3,2732,1803,8542,8033,3773,2603,0707,1274,98310,5048,24310,50411,313
Interest expense, net (d)3,9883,3064,0233,3414,0513,3663,7468,0116,64712,06210,01312,06213,759
Provision for income taxes9177878739505218784731,7901,7372,3112,6152,3113,088
Adjusted EBITDA$ (8,494)$ (3,812)$ 3,740$ 6,781$ 9,886$ 7,819$ - 0$ 2,498$ (4,754)$ 2,969$ 5,132$ 10,778$ 5,132$ 13,286
(a) consists of amortization of intangibles - developed technology and distributor licenses
(b) consists of depreciation, primarily on property and equipment
(c) consists of stock-based compensation in accordance with ASC 718
(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
Guidance
Accuray Incorporated
Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measures
(In thousands)
(Unaudited)
NOTE: THIS TABLE WASN'T INCLUDED IN Q1'15 8-K
Twelve Months Ending June 30, 2015
FromTo
GAAP net loss$ (39,975)$ (36,975)
Amortization of intangibles (a)8,0008,000
Depreciation (b)11,77511,775
Stock-based compensation (c)14,00014,000
Interest expense, net (d)16,20016,200
Provision for income taxes3,0003,000
Adjusted EBITDA$ 13,000$ 16,000
(a) consists of amortization of intangibles - developed technology and distributor licenses
(b) consists of depreciation, primarily on property and equipment
(c) consists of stock-based compensation in accordance with ASC 718
(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes
Slide Number 1Forward Looking StatementsAccuray IncorporatedLarge and Growing MarketProducts Positioned in Growth SegmentsUniquely Differentiated TechnologyImproving Commercial ExecutionImproving Commercial ExecutionCommercialization of our InCise™ MLC for �the CyberKnife® SystemImproving Commercial ExecutionImproving Commercial ExecutionChina Commercial Growth Opportunity: �Progress to DateDriving to Sustained ProfitabilityQ3 FY15 Performance UpdateQ3 FY15 Performance UpdateSlide Number 16Slide Number 17aEBITDA Reconciliation: Non-GAAPaEBITDA Reconciliation: Non-GAAP