MADISON, Wis., June 6, 2025 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today announced that, after an extensive review over the last several months, including the evaluation of numerous potential financing partners, it has entered into privately negotiated agreements with the holders of its existing 3.75% senior convertible notes due 2026 (the "Notes") to exchange an aggregate of $82.0 million principal amount of Notes for an aggregate of 8,881,579 shares of the Accuray's common stock (the "Shares" ...

Accuray (ARAY) 2025 Conference June 04, 2025 05:30 PM ET Speaker0 All right. Thank you, everyone, for attending. My name is Young Lee, one of the med tech analysts here at Jefferies. Really happy, to be with, Accuray. To my left, Accuray's CFO, Ali Pervais. Thanks for coming. I guess to begin, why don't we start a little bit high level. Just wanted to get an overview about end market growth, your competitive share position, and where Accuray sits or fits in the radiation oncology treatment paradigm. Speaker ...

Company Overview - Accuray (ARAY) shares have increased by approximately 17% over the past month, outperforming the S&P 500 [1] - The most recent earnings report is crucial for understanding the stock's performance and future outlook [1] Earnings Estimates - Estimates for Accuray have trended downward in the past month, with a consensus estimate shift of -60% [2] - The downward revisions indicate a negative outlook for the stock [4] VGM Scores - Accuray has a strong Growth Score of A, but a lower Momentum Score of C [3] - The stock received a B grade for value, placing it in the top 40% of this investment strategy [3] - The aggregate VGM Score for Accuray is A, which is significant for investors not focused on a single strategy [3] Industry Performance - Accuray is part of the Zacks Medical - Instruments industry, where Edwards Lifesciences (EW) has seen a 3.4% gain over the past month [5] - Edwards Lifesciences reported revenues of $1.41 billion for the last quarter, reflecting a year-over-year decline of -11.6% [5] - The expected EPS for Edwards Lifesciences for the current quarter is $0.62, indicating a year-over-year change of -11.4% [6] - Edwards Lifesciences also holds a Zacks Rank 3 (Hold) based on estimate revisions [6]

Group 1 - Accuray Incorporated will participate in the Jefferies Global Healthcare Conference 2025, with a scheduled fireside chat on June 4th, 2025, at 5:30pm EDT/2:30pm PDT [1] - A live webcast of the conference call will be available on the company's Investor Relations website, with a replay accessible for 90 days [1] Group 2 - Accuray is focused on advancing radiation therapy to improve patient outcomes, offering innovative solutions for complex cases and simplifying treatment for more common cases [2] - The company is dedicated to continuous innovation in radiation therapy for oncology and neuro-radiosurgery, collaborating with clinicians and administrators to enhance patient recovery [2] - Accuray is headquartered in Madison, Wisconsin, and has facilities worldwide [2]

More than 40 Clinical Studies Using Accuray Technology Presented at ESTRO 2025; Company Highlights Innovation and Educational Symposia MADISON, Wis., May 7, 2025 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced today that new data presented at the European Society for Radiotherapy and Oncology (ESTRO) meeting reinforces the benefits of the company's CyberKnife® System in the treatment of prostate cancer at multiple stages of the cancer journey. The studies, shared at the annual congress held in ...

Medical Team's Use of Accuray CyberComm™ Reduced Commissioning Time by Approximately 50 Percent*, Enabling Them to Initiate Patient Treatments SoonerMADISON, Wis., May 5, 2025 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced today that the CyberKnife® Center Salzburg is the first in Austria to treat patients with the CyberKnife® System, expanding access to stereotactic radiosurgery (SRS) and ultra-hypofractionated stereotactic body radiation therapy (SBRT), treatment processes necessitating an ...

Core Viewpoint - Accuray has consistently struggled with execution over an extended period, with recent challenges attributed to the U.S.-China tariff/trade war [1] Group 1 - The company has faced ongoing difficulties in maintaining operational effectiveness [1] - The current trade tensions between the U.S. and China are highlighted as a significant recent obstacle [1]

Orders and Backlog - Gross orders for the three months ended March 31, 2025, were $71.167 million, a decrease of $17.9 million compared to the same period in 2024[117] - Net orders for the three months ended March 31, 2025, were $46.656 million, down from $60.795 million in the same period in 2024[117] - The order backlog at the end of March 31, 2025, was $452.392 million, compared to $503.220 million at the end of March 31, 2024[117] - The book-to-bill ratio for the three months ended March 31, 2025, was 1.2, down from 1.8 in the same period in 2024, indicating a decline in demand[120] - CyberKnife System gross orders decreased by $21.9 million during the three months ended March 31, 2025, compared to the same period in the prior fiscal year[119] - Gross orders primarily decreased in the EIMEA region, the Americas region, and Japan during the three months ended March 31, 2025[119] Financial Performance - Net revenue increased by 12% to $113.2 million for the three months ended March 31, 2025, and by 6% to $331.0 million for the nine months ended March 31, 2025, compared to the prior fiscal year[122] - Products net revenue increased by $7.7 million (16%) and $12.4 million (8%) during the three and nine months ended March 31, 2025, respectively, driven by higher shipments of TomoTherapy and CyberKnife Systems[123] - Services net revenue increased by $4.4 million (9%) and $6.3 million (4%) during the three and nine months ended March 31, 2025, respectively, primarily due to increased sales of spare parts and higher contract revenues[124] - Gross profit increased by $2.6 million (9%) and $3.5 million (3%) during the three and nine months ended March 31, 2025, respectively, due to higher net revenues[125] - Total operating expenses decreased by 9% to $30.6 million for the three months ended March 31, 2025, and by 6% to $104.4 million for the nine months ended March 31, 2025, compared to the prior fiscal year[127] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended March 31, 2025, was $12,568,000, a significant improvement from a net cash used of $21,786,000 in the same period of 2024[141] - The company incurred $5.1 million in net cash used in investing activities during the nine months ended March 31, 2025, primarily due to $2.9 million for property and equipment and $2.2 million for capitalized software investments[143] - Net cash provided by financing activities was $1.6 million for the nine months ended March 31, 2025, driven by $7.0 million in net borrowings on the Revolving Credit Facility[144] Challenges and Risks - The company expects inflation and ongoing supply chain challenges to adversely impact gross margins and net income through calendar year 2025[107] - The company is navigating significant geopolitical and macroeconomic risks, including inflation and foreign currency exchange rate fluctuations, which negatively impact operations[106] - The company anticipates a decrease in product sales volume in China due to uncertainties surrounding tariffs and trade relations with the United States[114] - The company expects gross margins and net income to continue to be adversely affected by increased material costs and logistics expenses throughout calendar year 2025[147] Debt and Financing - As of March 31, 2025, the company had an outstanding balance of $58.0 million under the Term Loan Facility and $17.0 million under the Revolving Credit Facility[138] - The company anticipates needing to refinance $50.0 million on the Term Loan Facility and $100.0 million on the Notes by their respective maturity dates in 2026[139] - The company issued approximately $100.0 million in 3.75% Convertible Senior Notes due June 1, 2026, with an initial conversion rate of 170.5611 shares per $1,000 principal amount[160] - The conversion price for the 3.75% Convertible Senior Notes is approximately $5.86 per share, with no equity price risk if the share price is below this amount upon conversion[160] - For every $1 increase in the share price above $5.86, the company expects to issue an additional $17.1 million in cash or shares if all Convertible Senior Notes are converted[160] Tax and Other Income - The provision for income taxes for the three months ended March 31, 2025, was $457,444, unchanged from the same period in the prior fiscal year, while it decreased by 45% to $1,777,000 for the nine months ended March 31, 2025, compared to $3,254,000 in the prior year[134] - Total other income (expense), net decreased by $1.8 million during the three months ended March 31, 2025, primarily due to unfavorable changes in foreign currency forward contracts[133] - Interest expense remained flat at $(2.9) million for the three months ended March 31, 2025, compared to the same period in the prior fiscal year[131] Inventory and Cash Reserves - As of March 31, 2025, the company had $77.8 million in cash and cash equivalents, with expectations that inflation and supply chain challenges will impact cash from operations through calendar year 2025[135] - The company reported a $14.6 million increase in inventories during the nine months ended March 31, 2025, primarily due to increased purchases to meet expected demand[142] - As of March 31, 2025, the company had $11.5 million in cash and cash equivalents at foreign subsidiaries, which are considered indefinitely reinvested and may incur additional foreign tax withholdings if repatriated[140] - As of March 31, 2025, the company has borrowings of $58.0 million under the Term Loan Facility and $17.0 million under the Revolving Credit Facility, both subject to a variable interest rate tied to SOFR[159] - A 50 basis point change in interest rates would result in an annual interest expense increase or decrease of approximately $0.4 million if the outstanding amount remains constant for the next 12 months[159]

Core Viewpoint - Accuray Incorporated reported a narrower loss per share in Q3 fiscal 2025, exceeding consensus estimates, driven by strong revenue growth and demand for its products, despite facing challenges from tariffs impacting margins and sales in China [1][10][11]. Revenue Performance - Accuray's Q3 fiscal 2025 revenues reached $113.2 million, reflecting an 11.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 10.9% [2]. - Product revenues grew by 15.6% year-over-year to $57.3 million, while service revenues increased by 8.5% to $55.9 million [6]. Stock Performance - Accuray's shares declined by 4.3% to close at $1.55, with a year-to-date loss of 21.7%, compared to a 9.1% decline in the industry and a 5.9% loss in the S&P 500 Index [3]. Segment Analysis - The company reported gross product orders of $71.2 million, down 20.1% year-over-year, with a book-to-bill ratio of 1.2, indicating a decrease from 1.8 in the previous year [6][12]. Margin and Profitability - Gross profit improved by 8.8% year-over-year to $31.6 million, but gross margin contracted by 80 basis points to 27.9% due to tariff impacts [7][13]. - Operating profit was $1 million, a significant improvement from an operating loss of $4.6 million in the prior year [8]. Financial Position - At the end of Q3 fiscal 2025, Accuray had cash and cash equivalents of $77.8 million, up from $62.6 million at the end of the previous quarter, while total debt decreased slightly to $173.8 million [9]. Guidance and Outlook - The company adjusted its revenue guidance for fiscal 2025 to a range of $452-$460 million, down from the previous estimate of $463-$475 million, reflecting the impact of tariffs on product volume [10][13]. - Despite challenges, Accuray's growth was supported by strong demand in both developed and emerging markets, with a notable increase in unit volume and service revenue [11].

Company Performance - Accuray reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and an improvement from a loss of $0.06 per share a year ago, representing an earnings surprise of 80% [1] - The company posted revenues of $113.24 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 10.86%, and up from $101.13 million in the same quarter last year [2] - Over the last four quarters, Accuray has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Outlook - Accuray shares have declined approximately 18.2% since the beginning of the year, compared to a decline of 5.5% in the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.08 on revenues of $149.95 million, and $0.01 on revenues of $469.8 million for the current fiscal year [7] Industry Context - The Medical - Instruments industry, to which Accuray belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Accuray's stock performance [5]