Financial Data and Key Metrics - Net revenue for Q1 2025 was $102 million, down 2% YoY and 2% on a constant currency basis [41] - Product revenue was $48 million, down 9% YoY, while service revenue grew 5% YoY to $53 million [41][42] - Adjusted EBITDA for the quarter was $3.1 million, compared to $6.5 million in the prior year, impacted by one-time ERP implementation costs [47] - The company raised its full-year FY 2025 revenue guidance to $462 million - $472 million and adjusted EBITDA guidance to $28 million - $30 million [51] Business Line Performance - China revenue grew 30% YoY, driven by strong demand in both Type A and B markets, with 22% growth in new customer installations [12][14] - APAC region saw first-in-country shipments, including the first VitalHold system in Thailand and the first CyberKnife S7 in the Philippines [17][18] - EIMEA and Japan revenues declined 35% and 22% YoY, respectively, due to tough comps, but customer base grew 4% and 3% YoY [19][20] - Americas revenue grew 2% YoY, driven by product shipments, but service revenue declined 8% due to installed base consolidation [21] Market Performance - China remains a key growth market, with the Tomo C system expected to drive market share gains in the Type B segment, estimated at $3 billion over the next five years [13][14] - The company expects stronger revenue growth in EIMEA and Japan in the second half of FY 2025, driven by customer timing and additional commercial coverage [20] - The U.S. market is expected to recover in the second half of FY 2025, with improved conditions for trade-in and trade-up upgrades [21] Strategy and Industry Competition - The company is focused on new product innovation, service solutions expansion, and improving patient access in high-growth emerging markets [11] - The launch of the Helix platform in India and other emerging markets is expected to drive growth, with CE Mark approval and orders already secured [24][25] - The Adaptive suite, including Cenos, positions the Radixact system as a key differentiator in the radiotherapy market, with regulatory submission expected in FY Q4 [27][28] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's competitive position and growth trajectory, driven by strong demand in key markets and operational efficiencies [10][33] - The company is focused on margin expansion and productivity initiatives, with cost efficiencies achieved YoY, excluding one-time ERP benefits [31][32] - The global increase in cancer incidence and the need for innovative radiotherapy solutions were highlighted as key drivers of future growth [53] Other Important Information - The company's book-to-bill ratio for Q1 was 1.1, with a backlog of $469 million, representing over two years of FY 2024 product revenue [26][44] - The PACE-B study, published in the New England Journal of Medicine, is expected to change the treatment of localized prostate cancer, further supporting the company's innovation efforts [29][30] Q&A Session Summary Question: Timeline for Tomo C rollout in China and its growth impact - The Tomo C system is expected to drive growth through Q2-Q4 FY 2025, with deferred margin release positively impacting gross margins and adjusted EBITDA [16][56] - The company anticipates gaining market share in the Type B segment while maintaining leadership in the Type A segment [57] Question: Service contract revenue growth and sustainability - Service contract revenue growth outpaced installed base growth, driven by enhanced service offerings and higher pricing for advanced configurations [60][62] - The company expects continued investment in service growth to improve top-line revenue and margins [64] Question: Guidance increase and cautiousness for FY 2025 - The company raised guidance modestly, reflecting strong underlying trends in APAC and optimism for recovery in EIMEA, Japan, and the U.S. in the second half of FY 2025 [68][69] - Revenue is expected to be weighted 45% in the first half and 55% in the second half of FY 2025 [71] Question: Impact of anticorruption campaigns and stimulus in China - The anticorruption campaign has slowed processes, but the company is gaining market share despite budget reductions, driven by pent-up demand and strong JV partnerships [72][73] Question: India market and Helix product outlook - The company has secured CE Mark for the Helix platform and expects to begin shipping in India after completing local regulatory testing in early Q3 FY 2025 [77][78] Question: Impact of U.S. election results on growth outlook - The company is monitoring potential policy changes, including corporate tax rates and onshoring incentives, which could positively impact its U.S.-based manufacturing [80][81]

For the quarter ended September 2024, Accuray (ARAY) reported revenue of $101.55 million, down 2.3% over the same period last year. EPS came in at -$0.04, compared to -$0.03 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $98.1 million, representing a surprise of +3.51%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.04.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Accuray (ARAY) came out with a quarterly loss of $0.04 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this radiation oncology company would post earnings of $0.04 per share when it actually produced earnings of $0.03, delivering a surprise of -25%.Over the last four quarters, the company has not been able to surpass consensus EPS estimates.Accuray, which belongs t ...

Financial Performance - Total net revenue for the three months ended September 30, 2024, was $101,545,000, a decrease of 2.3% from $103,892,000 in the same period of 2023[5] - Product revenue decreased to $48,369,000, down 9.3% from $53,350,000 year-over-year, while service revenue increased to $53,176,000, up 5.1% from $50,542,000[5] - Gross profit for the quarter was $34,469,000, representing a gross margin of approximately 33.9%, down from $39,493,000 in the prior year[5] - The net loss for the quarter was $3,954,000, compared to a net loss of $2,969,000 in the same quarter of the previous year[5] - Cash used in operating activities was $7,294 million for the three months ended September 30, 2024, an improvement from $8,591 million in the prior year[9] - The company reported a net deferred gross profit on sales to the joint venture of $3,619 million, up from $1,576 million in the previous year[9] - The company recognized revenue of $27.5 million during the three months ended September 30, 2024, compared to $30.0 million for the same period in 2023, reflecting a decrease of 8.3%[26] - The company reported a net loss of $3.954 million for the three months ended September 30, 2024, compared to a net loss of $2.969 million for the same period in 2023[74] - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.04), compared to $(0.03) for the same period in 2023[74] Cash and Liquidity - Cash and cash equivalents decreased to $59,209,000 from $68,570,000 as of June 30, 2024[4] - Cash and cash equivalents at the end of the period were $61,132 million, down from $78,691 million at the end of the previous year[9] - Cash and cash equivalents stood at $59.2 million as of September 30, 2024, with expectations of sufficient resources to fund operations for at least the next 12 months[125] - The company anticipates that its current cash and cash equivalents will be sufficient to meet anticipated cash needs for at least the next 12 months[135] Assets and Liabilities - Total assets increased to $473,078,000 from $468,627,000 as of June 30, 2024[4] - Total liabilities rose to $427,855,000, up from $423,543,000 in the previous quarter[4] - The total debt as of September 30, 2024, was $170.240 million, a decrease from $172.156 million as of June 30, 2024[66] - Total consolidated liabilities as of September 30, 2024, amounted to $427.9 million, including long-term liabilities of $100.0 million from Convertible Senior Notes[187] Revenue Recognition and Orders - The company anticipates that reduced budgets for radiotherapy equipment will continue to negatively impact net revenue through fiscal year 2026[17] - Gross orders decreased by $8.4 million to $55.365 million in Q3 2024, primarily due to a $9.2 million decrease in CyberKnife System orders[106] - The book-to-bill ratio was 1.1 in Q3 2024, down from 1.2 in Q3 2023, indicating a decline in demand for products[110] - Orders and backlog are reported quarterly and annually, but they are not reliable predictors of future revenues due to potential cancellations and delays[196] Operating Expenses - Total operating expenses decreased to $36,618,000, down from $37,280,000, with research and development expenses at $12,116,000, a reduction from $14,013,000[5] - Operating expenses totaled $36.618 million in Q3 2024, a slight decrease of 2% from $37.280 million in Q3 2023[118] Foreign Currency and Exchange - The company reported a foreign currency translation adjustment of $1,740,000 for the quarter[6] - The company recorded a foreign currency exchange gain of $2.17 million for the three months ended September 30, 2024, compared to a loss of $956,000 in the same period of 2023[44] - The foreign currency exchange gain on forward contracts for the three months ended September 30, 2024, was $1,436,000, compared to a loss of $818,000 for the same period in 2023[53] Market and Competitive Environment - The company faces risks related to the global economic environment, which could adversely affect its financial condition and results of operations[164] - The company is subject to intense competition and rapid technological change, which may impact its product relevance and operating results[164] - The company competes with established radiation therapy systems from larger companies like Varian Medical Systems and Elekta, which have greater market share and resources[199] - The company must demonstrate the advantages of its products over traditional and alternative cancer treatment methods to maintain market relevance[198] Future Outlook and Challenges - The company expects ongoing supply chain challenges and inflation to adversely impact gross margins and net income through fiscal year 2025[17] - The company expects gross margins and net income to continue to be adversely affected by increased material costs and freight expenses in fiscal year 2025[137] - Delays in customer financing and construction have negatively impacted net revenue since fiscal year 2024, with expectations for continued impact through fiscal year 2026[175] - The company faces potential delays in operations due to supply chain issues, regulatory requirements, and unexpected manufacturing difficulties, which can significantly impact quarterly operating results[195] Internal Controls and Compliance - As of June 30, 2024, the company identified two material weaknesses in its internal control over financial reporting[153] - The implementation of the SAP S/4HANA ERP system on August 1, 2023, contributed to these material weaknesses[154] - The company has ongoing remediation measures overseen by the Audit Committee to address identified weaknesses[160] - Management concluded that the consolidated financial statements fairly present the company's financial position despite the identified weaknesses[157]

Financial Performance - Total net revenue for Q1 fiscal 2025 was $101.5 million, a decrease of 2.3% from $103.9 million in Q1 fiscal 2024[3] - Product revenue in Q1 fiscal 2025 was $48.4 million, down 9.3% from $53.4 million in the same period last year[3] - Service revenue increased to $53.2 million, up 5.3% from $50.5 million in Q1 fiscal 2024[3] - Gross profit for Q1 fiscal 2025 was $34.5 million, representing 33.9% of total net revenue, compared to 38.0% in Q1 fiscal 2024[4] - Net loss for Q1 fiscal 2025 was $4.0 million, or $0.04 per share, compared to a net loss of $3.0 million, or $0.03 per share, in Q1 fiscal 2024[5] - Adjusted EBITDA for Q1 fiscal 2025 was $3.1 million, down from $6.5 million in the prior fiscal year[5] Orders and Backlog - Gross product orders totaled $55.4 million, a decline from $63.7 million in Q1 fiscal 2024, with a book to bill ratio of 1.1[6] - Order backlog as of September 30, 2024, was $468.6 million, approximately 4% lower than the previous fiscal year[6] - Gross orders for the three months ended September 30, 2024, were $55,365,000, down from $63,734,000 in the same period last year, representing a decrease of 13%[21] - Net orders decreased to $29,656,000 from $31,740,000, a decline of 7%[21] - Order backlog as of September 30, 2024, was $468,607,000, compared to $489,031,000, reflecting a decrease of 4%[21] Guidance and Projections - The company raised its fiscal 2025 total revenue guidance to a range of $462 million to $472 million[8] - Adjusted EBITDA guidance for fiscal 2025 is now expected to be in the range of $28 million to $30 million[9] - Projected GAAP net loss for the twelve months ending June 30, 2025, is expected to range from $(4,500,000) to $(2,500,000)[23] - Projected adjusted EBITDA for the twelve months ending June 30, 2025, is anticipated to be between $28,000,000 and $30,000,000[23] Assets and Liabilities - Total current assets increased to $329,543,000 from $323,236,000, a growth of 1%[20] - Total liabilities increased to $427,855,000 from $423,543,000, a rise of 1%[20] - Total equity increased slightly to $45,223,000 from $45,084,000, reflecting a growth of 0.3%[20] Losses - GAAP net loss for the three months ended September 30, 2024, was $(3,954,000), compared to $(2,969,000) for the same period last year[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $3,141,000, down from $6,504,000 year-over-year[22]

Strong Start to Fiscal Year, Raises 2025 GuidanceMADISON, Wis., Nov. 6, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the first quarter ended September 30, 2024."We continue to make solid progress in the execution of our strategic growth agenda and performed better than expected in the first quarter and are on track to deliver our fiscal 2025 plan. Our performance in the China region was strong and we saw significant interest in the recently introduced Accuray ...

MADISON, Wis., Oct. 23, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) will report financial results for the first quarter of fiscal year 2025, ended September 30, 2024, during a conference call hosted by company management at 1:30 p.m. PT/4:30 p.m. ET on November 6, 2024.The conference call dial-in numbers are (833) 316-0563 (USA) or (412) 317-5747 (international). In addition, a dial-up replay of the conference call will be available approximately one hour after the call's conclusion for one wee ...

MADISON, Wis., Oct. 21, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced today that Michael Murphy, CPA has joined the company as Vice President, Corporate Controller. Mr. Murphy will be responsible for leading the global accounting function including corporate tax, regulatory reporting, accounting policies, and risk management, along with associated budgetary and administrative operations. He will report to Accuray Senior Vice President & Chief Financial Officer Ali Pervaiz. The company a ...

MADISON, Wis., Oct. 15, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced that, effective as of today, Suzanne Winter has returned from her temporary medical leave and assumed her full duties as President and Chief Executive Officer. Sandeep Chalke, who has served as interim CEO during Ms. Winter's absence, will continue in his position as Senior Vice President and Chief Commercial Officer."On behalf of the entire Board of Directors, I am delighted Suzanne has resumed her role as CEO. We ap ...

Accuray is the first industry partner to open a facility at the Genolier Innovation Hub, created to provide opportunities for clinician-industry collaborations that can help accelerate improvements in patient careNew Accuray CyberComm™ tool was used to significantly reduce the CyberKnife® S7™ System's commissioning time and enable product training in Genolier to begin more quicklyMADISON, Wis., Sept. 30, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced today the initiation of CyberKnife® S ...