Accuray Reports Fiscal 2025 First Quarter Financial Results
Rhea-AI Summary
Accuray reported its fiscal 2025 Q1 financial results, showing a mixed performance. Total net revenue was $101.5 million, slightly down from $103.9 million in the prior year. Product revenue decreased to $48.4 million from $53.4 million, while service revenue rose to $53.2 million from $50.5 million. Total gross profit was $34.5 million, or 33.9% of total net revenue, compared to $39.5 million or 38.0% last year. Operating expenses were $36.6 million, a slight decrease from $37.3 million the previous year. The company reported a net loss of $4.0 million or $0.04 per share, compared to a net loss of $3.0 million or $0.03 per share last year. Adjusted EBITDA was $3.1 million, down from $6.5 million. Gross product orders totaled $55.4 million, down from $63.7 million. Cash reserves stood at $59.7 million, a decrease of $9.4 million from June 30, 2024.
Positive
- Service revenue increased to $53.2 million from $50.5 million.
- Operating expenses decreased to $36.6 million from $37.3 million.
Negative
- Total net revenue decreased to $101.5 million from $103.9 million.
- Product revenue fell to $48.4 million from $53.4 million.
- Gross profit margin declined to 33.9% from 38.0%.
- Net loss increased to $4.0 million from $3.0 million.
- Adjusted EBITDA decreased to $3.1 million from $6.5 million.
- Gross product orders dropped to $55.4 million from $63.7 million.
- Cash reserves decreased by $9.4 million to $59.7 million.
News Market Reaction 1 Alert
On the day this news was published, ARAY gained 2.96%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Strong Start to Fiscal Year, Raises 2025 Guidance
"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
Fiscal First Quarter Results
Total net revenue in the first quarter of fiscal 2025 was
Total gross profit in the first quarter of fiscal 2025 was
Operating expenses in the first quarter of fiscal 2025 were
Net loss in the first quarter of fiscal 2025 was
Gross product orders in the first quarter of fiscal 2025 totaled
Cash, cash equivalents, and short-term restricted cash were
Fiscal Year 2025 Financial Guidance
Accuray's financial guidance is based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market, economic and geopolitical conditions, including any recovery in the
The Company is raising guidance for fiscal year 2025 as follows:
- Total revenue is expected in the range of
$462 million $472 million - Adjusted EBITDA is expected in the range of
$28 million $30 million
Guidance for non-GAAP financial measures excludes depreciation and amortization, stock-based compensation, interest expense, and provision for income taxes. For more information regarding the non-GAAP financial measures discussed in this press release, please see "Use of Non-GAAP Financial Measures" below.
Conference Call Information
Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m. ET today to discuss results for the first quarter of fiscal 2025 as well as recent corporate developments. Conference call dial-in information is as follows:
U.S. callers: (833) 316-0563- International callers: (412) 317-5747
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Investor Relations section of Accuray's website, www.accuray.com. There will be a slide presentation accompanying today's event which can also be accessed on the company's Investor Relations page at www.accuray.com.
In addition, a taped replay of the conference call will be available beginning approximately one hour after the call's conclusion and will be available for seven days. The replay number is (877) 344-7529 (
Use of Non-GAAP Financial Measures
Accuray reports its financial results in accordance with generally accepted accounting principles in
Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, and ERP and ERP related expenditures. ("adjusted EBITDA"). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items. 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 meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net income (loss) (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedules below.
Accuray has also reported certain operating results on a constant currency basis in order to facilitate period-to-period comparisons of its results without regard to the impact of foreign currency exchange rate fluctuations. Management believes disclosure of non-GAAP constant currency results is helpful to investors because it facilitates period-to-period comparisons of the company's results by increasing the transparency of the underlying performance by excluding the impact of foreign currency exchange rate fluctuations. The GAAP measure most directly comparable to net revenue on a constant currency basis is net revenue. Accuray calculates the constant currency amounts by translating local currency amounts in the current period using the same foreign translation rate used in the prior period being compared against rather than the actual exchange rate in effect during the current period.
There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company's consolidated financial statements prepared in accordance with GAAP.
About Accuray
Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in
Safe Harbor Statement
Statements made in this press release that are not statements of historical fact are forward-looking statements and are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's future results of operations, including expectations regarding: total revenue and adjusted EBITDA; the company's ability to invest on innovations and provide customers with products that enables them to elevate cancer care; the company's ability to benefit from advances in long-term growth and profitability drivers; the company's ability to navigate supply chain, logistics, macroeconomic, and foreign exchange challenges; the company's ability to deliver on its strategic growth agenda and fiscal 2025 plans, ability to progress against long-term strategic goals, and ability to continue adoption and expansion of access of its technologies; the company's ability to execute on margin and profitability expansion initiatives; expectations regarding commercial strategy and execution as well as growth opportunities; expectations regarding the company's
Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements.
Aman Patel, CFA | Beth Kaplan |
Investor Relations, ICR-Westwicke | Public Relations Director, Accuray |
+1 (443) 450-4191 | +1 (408) 789-4426 |
aman.patel@westwicke.com | bkaplan@accuray.com |
Financial Tables to Follow
Accuray Incorporated | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net revenue: | ||||||||
Products | $ | 48,369 | $ | 53,350 | ||||
Services | 53,176 | 50,542 | ||||||
Total net revenue | 101,545 | 103,892 | ||||||
Cost of revenue: | ||||||||
Cost of products | 32,461 | 35,699 | ||||||
Cost of services | 34,615 | 28,700 | ||||||
Total cost of revenue | 67,076 | 64,399 | ||||||
Gross profit | 34,469 | 39,493 | ||||||
Operating expenses: | ||||||||
Research and development | 12,116 | 14,013 | ||||||
Selling and marketing | 11,682 | 10,244 | ||||||
General and administrative | 12,820 | 13,023 | ||||||
Total operating expenses | 36,618 | 37,280 | ||||||
Income (loss) from operations | (2,149) | 2,213 | ||||||
Income (loss) from equity method investment, net | (72) | 431 | ||||||
Interest expense | (2,955) | (2,922) | ||||||
Other income (expense), net | 1,847 | (759) | ||||||
Loss before provision for income taxes | (3,329) | (1,037) | ||||||
Provision for income taxes | 625 | 1,932 | ||||||
Net loss | $ | (3,954) | $ | (2,969) | ||||
Net loss per share - basic and diluted | $ | (0.04) | $ | (0.03) | ||||
Weighted average common shares used in computing loss per share: | ||||||||
Basic and diluted | 100,225 | 96,555 | ||||||
Accuray Incorporated | ||||||||
September 30, | June 30, | |||||||
2024 | 2024 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 59,209 | $ | 68,570 | ||||
Restricted cash | 485 | 485 | ||||||
Accounts receivable, net | 91,789 | 92,001 | ||||||
Inventories | 154,883 | 138,324 | ||||||
Prepaid expenses and other current assets | 21,456 | 23,006 | ||||||
Deferred cost of revenue | 1,721 | 850 | ||||||
Total current assets | 329,543 | 323,236 | ||||||
Property and equipment, net | 25,342 | 24,774 | ||||||
Investment in joint venture | 6,045 | 9,826 | ||||||
Lease right-of-use assets, net | 33,136 | 33,773 | ||||||
Goodwill | 57,810 | 57,672 | ||||||
Intangible assets, net | 48 | 59 | ||||||
Long-term restricted cash | 1,438 | 1,337 | ||||||
Other assets | 19,716 | 17,950 | ||||||
Total assets | $ | 473,078 | $ | 468,627 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 49,808 | $ | 50,020 | ||||
Accrued compensation | 17,540 | 17,128 | ||||||
Lease liabilities, current | 6,779 | 6,218 | ||||||
Other accrued liabilities | 25,457 | 28,508 | ||||||
Customer advances | 13,132 | 13,988 | ||||||
Deferred revenue | 81,321 | 71,649 | ||||||
Short-term debt | 7,769 | 7,756 | ||||||
Total current liabilities | 201,806 | 195,267 | ||||||
Lease liabilities, non-current | 31,773 | 32,373 | ||||||
Long-term other liabilities | 7,335 | 7,389 | ||||||
Deferred revenue, non-current | 24,470 | 24,114 | ||||||
Long-term debt | 162,471 | 164,400 | ||||||
Total liabilities | 427,855 | 423,543 | ||||||
Equity: | ||||||||
Common stock | 100 | 100 | ||||||
Additional paid-in capital | 569,240 | 566,887 | ||||||
Accumulated other comprehensive loss | (2,482) | (4,222) | ||||||
Accumulated deficit | (521,635) | (517,681) | ||||||
Total equity | 45,223 | 45,084 | ||||||
Total liabilities and equity | $ | 473,078 | $ | 468,627 | ||||
Accuray Incorporated | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Gross orders | $ | 55,365 | $ | 63,734 | ||||
Net orders | 29,656 | 31,740 | ||||||
Order backlog | 468,607 | 489,031 | ||||||
Book to bill ratio (a) | 1.1 | 1.2 | ||||||
(a) Book to bill ratio is defined as gross orders for the period divided by product revenue for the period. |
Accuray Incorporated | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
GAAP net loss | $ | (3,954) | $ | (2,969) | ||||
Depreciation and amortization (a) | 1,464 | 1,251 | ||||||
Stock-based compensation | 2,354 | 2,392 | ||||||
Interest expense, net (b) | 2,652 | 2,628 | ||||||
Provision for income taxes | 625 | 1,932 | ||||||
ERP and ERP related expenditures | — | 1,270 | ||||||
Adjusted EBITDA | $ | 3,141 | $ | 6,504 | ||||
(a) Consists of depreciation on property and equipment and amortization of intangibles. |
(b) Consists of interest expense net of interest income. |
Accuray Incorporated | ||||||||
Twelve Months Ending | ||||||||
From | To | |||||||
GAAP net loss | $ | (4,500) | $ | (2,500) | ||||
Depreciation and amortization (a) | 6,500 | 6,500 | ||||||
Stock-based compensation | 10,000 | 10,000 | ||||||
Interest expense, net (b) | 13,000 | 13,000 | ||||||
Provision for income taxes | 3,000 | 3,000 | ||||||
Adjusted EBITDA | $ | 28,000 | $ | 30,000 | ||||
(a) Consists of depreciation on property and equipment and amortization of intangibles. |
(b) Consists of interest expense net of interest income. |
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SOURCE Accuray Incorporated
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