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]

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-33301 1240 Deming Way Madison, Wisconsin 53717 (Address of Principal Executive Offices) (Zip Code) Registrants' telepho ...

Accuray Incorporated (NASDAQ:ARAY) Q4 2024 Earnings Call Transcript August 14, 2024 4:30 PM ET Company Participants Jesse Chew - SVP and Chief Legal Officer Suzanne Winter - President and CEO Ali Pervaiz - CFO Conference Call Participants Young Li - Jefferies Marie Thibault - BTIG Brooks O'Neil - Lake Street Capital Markets Jason Wittes - Roth Capital Operator Good day, and welcome to the Accuray Fscal 2024 Fourth Quarter Financial Results Call. All participants will be in listen-only mode. [Operator Instru ...

Financial Performance Highlights - Accuray achieved record system shipments with a 24% increase compared to the same period in the prior fiscal year, resulting in the highest revenue quarter in company history[14] - Gross orders grew by 10% in FY24, reaching $342.1 million, with a book-to-bill ratio of 1.5, indicating strong demand[22] - International markets experienced a 10% annual revenue growth, driven by the patient access strategy in emerging markets[22] - Operating expenses decreased by 6% annually to $142.4 million, driven by disciplined cost control[22] - Adjusted EBITDA for Q4'FY24 increased by 94% to $10.1 million[22] Product and Market Expansion - The Accuray Precision® Treatment Planning System (TPS) gained approval in China for use with the Tomo® C radiation therapy system for the Type B market[15] - First installations of the VitalHold surface-guided radiation therapy (SGRT) on the Radixact® System were implemented in Japan[16] - The Accuray Helix, a configuration of the Radixact® Treatment Delivery System, gained CE Mark for use in India and other high potential markets[17] FY25 Guidance - The company projects FY25 revenue to be in the range of $460 million to $470 million, representing a growth of 3% to 5%[24] - Adjusted EBITDA for FY25 is projected to be between $27.5 million and $29.5 million, indicating a growth of 40% to 50%[24]

Exhibit 99.1 Accuray Reports Fourth Quarter and Fiscal 2024 Financial Results 14% Revenue and 8% Orders Growth in Q4; Company issues FY25 Guidance MADISON, Wisconsin, August 14, 2024 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the fourth quarter and fiscal 2024, ended June 30, 2024. Fourth Quarter Fiscal 2024 Summary • Net revenue of $134.3 million, an increase of 13.5 percent from the same period in the prior fiscal year. Net revenue on a constant currency basis was $136.7 mi ...

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) Provides a comprehensive overview of the company's financial performance, condition, and related disclosures [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for the period ended March 31, 2024, show decreased assets, net losses, and negative operating cash flow [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and equity as of March 31, 2024, and June 30, 2023 Condensed Consolidated Balance Sheet Data (in thousands) | Balance Sheet Item | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $60,450 | $89,402 | | Accounts receivable, net | $73,154 | $74,777 | | Inventories | $159,566 | $145,150 | | Total current assets | $313,910 | $338,033 | | Total assets | $462,527 | $479,214 | | **Liabilities & Equity** | | | | Total current liabilities | $198,390 | $198,637 | | Long-term debt | $166,246 | $171,562 | | Total liabilities | $421,446 | $425,555 | | Total stockholders' equity | $41,081 | $53,659 | - Total assets decreased from **$479.2 million** at June 30, 2023, to **$462.5 million** at March 31, 2024, primarily driven by a decrease in cash and cash equivalents[16](index=16&type=chunk) - Total liabilities saw a slight decrease to **$421.4 million** from **$425.6 million**, while stockholders' equity declined from **$53.7 million** to **$41.1 million** over the same period[16](index=16&type=chunk)[23](index=23&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Summarizes the company's revenues, expenses, and net income or loss for the three and nine months ended March 31, 2024 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total net revenue | $101,132 | $118,060 | $312,262 | $329,313 | | Gross profit | $29,074 | $38,718 | $104,469 | $116,282 | | Income (loss) from operations | $(4,562) | $2,316 | $(6,313) | $2,839 | | Net income (loss) | $(6,342) | $599 | $(18,932) | $(6,724) | | Diluted EPS | $(0.06) | $0.01 | $(0.19) | $(0.07) | - Total net revenue decreased by **14%** for the three months and **5%** for the nine months ended March 31, 2024, compared to the same periods in the prior year[20](index=20&type=chunk) - The company reported a net loss of **$6.3 million** for the third quarter of fiscal 2024, a significant shift from a net income of **$0.6 million** in the prior-year quarter[20](index=20&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Details the cash inflows and outflows from operating, investing, and financing activities for the nine months ended March 31, 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(21,786) | $6,658 | | Net cash used in investing activities | $(3,136) | $(4,705) | | Net cash used in financing activities | $(3,257) | $(1,590) | | Net increase (decrease) in cash | $(29,048) | $696 | - Net cash used in operating activities was **$21.8 million** for the nine months ended March 31, 2024, a significant negative swing from the **$6.7 million** provided by operating activities in the prior-year period, primarily due to the net loss and a **$22.7 million** increase in inventories[25](index=25&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides additional details and explanations for the financial statements, including significant accounting policies and disclosures - The company faces risks from geopolitical and macroeconomic impacts, including inflation, rising interest rates, and supply chain challenges, which are expected to adversely affect gross margins and net income through at least the remainder of calendar year 2024[34](index=34&type=chunk)[35](index=35&type=chunk) - As of March 31, 2024, total remaining performance obligations amounted to **$959.9 million**, of which the company estimates **27% to 30%** of the **$896.1 million** related to open systems sales and upgrades will be recognized in the next 12 months[47](index=47&type=chunk)[49](index=49&type=chunk) - The company owns a **49%** interest in its China joint venture (JV), CNNC Accuray (Tianjin) Medical Technology Co. Ltd., which is accounted for using the equity method. The carrying value of this investment was **$13.6 million** as of March 31, 2024[116](index=116&type=chunk) - On October 25, 2023, the company initiated a cost savings plan, eliminating approximately **5.9%** of its global workforce and recording **$2.6 million** in restructuring charges for the nine months ended March 31, 2024[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant financial decline in Q3 and first nine months of fiscal 2024, highlighting revenue drops, margin contraction, and liquidity [Overview and Current Economic Conditions](index=36&type=section&id=Overview%20and%20Current%20Economic%20Conditions) Provides an overview of the company's business and the macroeconomic factors impacting its operations and financial performance - Accuray develops, manufactures, and sells advanced radiation therapy solutions, including the CyberKnife® and TomoTherapy® platforms, designed for precise cancer treatment[128](index=128&type=chunk)[129](index=129&type=chunk) - The company is navigating significant macroeconomic headwinds, including rising inflation, supply chain challenges, and adverse foreign currency fluctuations, which are negatively impacting results of operations[130](index=130&type=chunk) - Reduced budgets and longer customer installation timelines in the United States negatively impacted revenue in Q3 FY2024, with this trend expected to continue through at least fiscal year 2026[131](index=131&type=chunk) [Backlog and Orders](index=39&type=section&id=Backlog%20and%20Orders) Presents key metrics related to gross orders, net orders, and the order backlog, indicating future revenue potential Order and Backlog Summary (in thousands) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | Gross orders | $89,086 | $73,764 | $246,676 | $222,647 | | Net orders | $60,795 | $54,737 | $147,141 | $115,176 | | Order backlog at end of period | $503,220 | $506,587 | $503,220 | $506,587 | - Gross orders increased by **$15.3 million (21%)** in Q3 FY2024 compared to the prior year, driven by a **$28.1 million** increase in CyberKnife System orders, primarily from the EIMEA and Asia Pacific regions[142](index=142&type=chunk) - The book-to-bill ratio was **1.8** for the third quarter of fiscal 2024, up from **1.2** in the prior-year period, indicating strong demand for the company's products relative to current product revenue[144](index=144&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Analyzes the company's net revenue, gross profit, operating expenses, and net income (loss) for the reporting periods Net Revenue by Sales Classification (in thousands) | Revenue Type | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Products | $49,603 | $62,846 | (21)% | | Services | $51,529 | $55,214 | (7)% | | **Total Net Revenue** | **$101,132** | **$118,060** | **(14)%** | Net Revenue by Geographic Region (in thousands) | Region | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | Americas | $21,270 | $34,160 | (38)% | | EIMEA | $37,858 | $37,983 | (0)% | | China | $19,125 | $22,165 | (14)% | | Japan | $15,200 | $16,524 | (8)% | | Asia Pacific (ex-China) | $7,679 | $7,228 | 6% | - Gross profit margin decreased to **28.7%** in Q3 FY2024 from **32.8%** in Q3 FY2023, primarily due to the lower volume of shipments[154](index=154&type=chunk) - Total operating expenses decreased by **8%** in Q3 FY2024, mainly due to a **23%** reduction in R&D expenses resulting from lower headcount after the 2024 restructuring initiative[155](index=155&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's cash position, debt facilities, and ability to fund operations, including recent credit agreement amendments - As of March 31, 2024, the company had **$60.5 million** in cash and cash equivalents. Management believes this, along with available debt facilities and anticipated cash flows, is sufficient to fund operations for at least the next 12 months[162](index=162&type=chunk) - Net cash used in operating activities was **$21.8 million** for the nine months ended March 31, 2024, a sharp decline from **$6.7 million** in cash provided by operations in the prior-year period, driven by the net loss and an increase in inventory[169](index=169&type=chunk)[170](index=170&type=chunk) - On April 25, 2024, the company amended its Credit Agreement to update the calculation of Consolidated EBITDA to maintain compliance with debt covenants as of March 31, 2024[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency, interest rate, and equity price risks, with strategies to mitigate these financial exposures - The company is exposed to foreign currency risk as a majority of its sales are in foreign currencies, notably the Euro and Japanese Yen. It uses forward contracts, with a notional value of **$80.5 million** as of March 31, 2024, to manage this exposure[184](index=184&type=chunk)[185](index=185&type=chunk) - The company has variable-rate debt under its Credit Facilities. As of March 31, 2024, a **50 basis point (0.50%)** change in interest rates would result in an approximate **$0.4 million** change in annual interest expense on its outstanding **$75.5 million** balance[186](index=186&type=chunk) - Equity price risk exists due to the **3.75%** Convertible Notes due 2026. If the stock price exceeds the conversion price of approximately **$5.86 per share** upon conversion, the company may need to issue additional cash or shares[187](index=187&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated disclosure controls as effective, noting the new ERP system's impact on internal controls over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[189](index=189&type=chunk) - The company implemented a new enterprise resource planning (ERP) system, SAP, in August 2023. This is expected to change certain processes and internal controls over financial reporting, which management will continue to evaluate[190](index=190&type=chunk) [PART II. Other Information](index=54&type=section&id=PART%20II.%20Other%20Information) Details legal proceedings, significant risk factors, and other pertinent disclosures impacting operations and outlook [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, with no expected material adverse financial impact - The company is involved in legal proceedings from time to time in the ordinary course of business. Management does not currently believe any of these proceedings will have a material adverse effect on its financial condition or results of operations[90](index=90&type=chunk)[193](index=193&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) Outlines numerous significant risks, including business, regulatory, and financial factors, that could adversely affect the company's operations and stock [Risks related to our business and results of operations](index=58&type=section&id=Risks%20related%20to%20our%20business%20and%20results%20of%20operations) Identifies key risks impacting the company's core business, including economic conditions, competition, and supply chain dependencies - The business is materially affected by the global economic environment, including inflation, rising interest rates, and potential recession, which could delay customer purchases and negatively impact revenues and gross margins[205](index=205&type=chunk)[206](index=206&type=chunk) - The industry is subject to intense competition from large, well-capitalized companies like Varian (a Siemens Healthineers company) and Elekta, which have greater market share and resources[227](index=227&type=chunk)[229](index=229&type=chunk) - Reliance on single-source suppliers for critical components (e.g., robot, couch, magnetron) exposes the company to supply chain disruptions, which could harm its ability to meet product demand and has already adversely affected gross margins[259](index=259&type=chunk)[260](index=260&type=chunk) - Cybersecurity risks are significant, as a breach could lead to loss of data, business disruptions, and liability. The increasing use of AI and remote work may heighten these risks[265](index=265&type=chunk)[266](index=266&type=chunk) [Risks related to the regulation of our products and business](index=102&type=section&id=Risks%20related%20to%20the%20regulation%20of%20our%20products%20and%20business) Highlights regulatory challenges, including FDA approvals, compliance with healthcare laws, and reimbursement policy changes - The company's products are subject to extensive regulation by the FDA in the U.S. and similar agencies internationally. Product modifications or new products may require new, lengthy, and unpredictable 510(k) clearances or premarket approvals[330](index=330&type=chunk)[332](index=332&type=chunk)[333](index=333&type=chunk) - The company is subject to various federal, state, and foreign laws, including anti-kickback statutes, false claims acts, and anti-corruption laws like the FCPA, violations of which could result in substantial penalties[339](index=339&type=chunk)[340](index=340&type=chunk)[345](index=345&type=chunk) - Changes in healthcare reimbursement policies, such as those from Medicare (CMS) or private payors, could reduce demand for the company's products if coverage and payment for procedures are reduced[284](index=284&type=chunk)[285](index=285&type=chunk) [Risks related to our common stock](index=112&type=section&id=Risks%20related%20to%20our%20common%20stock) Addresses risks specific to the company's common stock, such as price volatility and potential dilution from convertible notes - The company's common stock price is volatile and subject to significant fluctuations due to factors like variations in operating results, regulatory developments, and broader market conditions[360](index=360&type=chunk)[361](index=361&type=chunk) - The conditional conversion features of the company's Convertible Senior Notes, if triggered, could require cash payments or result in the reclassification of debt to a current liability, adversely affecting financial condition[363](index=363&type=chunk)[364](index=364&type=chunk) - Provisions in the company's debt agreements, certificate of incorporation, and bylaws could discourage or prevent a takeover, even if an acquisition would be beneficial to stockholders[365](index=365&type=chunk)

Accuray Incorporated (NASDAQ:ARAY) Q3 2024 Earnings Conference Call May 1, 2024 4:30 PM ET Company Participants Jesse Chew - SVP and Chief Legal Officer Suzanne Winter - President and CEO Ali Pervaiz - CFO Conference Call Participants Young Li - Jefferies Brooks O'Neil - Lake Street Jason Wittes - ROTH MKM Operator Good afternoon, and welcome to the Accuray conference call to review financial results for the third quarter of fiscal year 2024 which ended March 31 of 2024. All participants will be in listen-o ...

Exhibit 99.1 Accuray Reports Fiscal 2024 Third Quarter Financial Results MADISON, Wis, May 1, 2024 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the third quarter and nine-months ended March 31, 2024. Third Quarter Fiscal 2024 Summary • Net revenue of $101.1 million decreased 14 percent from the same period in the prior fiscal year. Net revenue on a constant currency basis was $102.4 million, which represented a 13 percent decrease from the same period in the prior fiscal year. ...