Accuray Reports Fourth Quarter and Fiscal 2021 Financial Results
Accuray Incorporated (NASDAQ: ARAY) reported Q4 fiscal 2021 results with gross orders of $112.7 million, a 19% increase year-over-year. Net revenue reached $110.9 million, up 17%. Despite these gains, the company faced a net loss of $11.1 million due to a $9.9 million one-time refinancing charge. For the fiscal year, total revenue was $396.3 million, a 3.5% increase, with an ending backlog of $616.4 million. Looking ahead, Accuray forecasts fiscal year 2022 revenue between $410 million and $420 million.
- Gross orders increased by 19% to $112.7 million in Q4.
- Net revenue rose by 17% to $110.9 million in Q4.
- Ending backlog reached a record $616.4 million.
- Adjusted EBITDA of $38.0 million for fiscal year 2021, up from $27.4 million.
- Net loss of $11.1 million in Q4, including a one-time charge of $9.9 million.
- Fiscal year 2021 gross product orders decreased by 13.6% to $325.9 million.
- Net loss of $6.3 million for fiscal year 2021, down from a net income of $3.8 million.
SUNNYVALE, Calif., Aug. 11, 2021 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the fourth quarter and fiscal year ended June 30, 2021.
Q4 Fiscal 2021 and Recent Operating Highlights
- Gross orders of
$112.7 million , an increase of 19 percent from the prior year - Net revenue of
$110.9 million , an increase of 17 percent from the prior year - Net loss of
$11.1 million including a one-time charge of$9.9 million associated with debt refinancing; Adjusted EBITDA of$6.7 million - Extended maturities of both convertible notes and bank debt to 2026 with improved terms on both
- Received CE Mark certification ClearRT™ Helical kVCT Imaging for the Radixact® System
Fiscal Year 2021 Highlights
- Gross orders of
$325.9 million and the record ending backlog of$616.4 million - Net revenue of
$396.3 million , an increase of3.5% from fiscal 2021, including$54.2 million of China Type A system revenue - GAAP operating income grew to
$22.2 million from$12.5 million in the prior year - Net loss
$6.3 million , Adjusted EBITDA of$38.0 million - Robust demand for ClearRT™ Helical kVCT Imaging for the Radixact® System: 44 global orders received since its commercial release
"Despite the challenging environment caused by the COVID-19 pandemic, we finished fiscal year 2021 on a strong note with
Q4 Fiscal 2021 Financial Highlights
Gross product orders totaled
Total revenue was
Total gross profit for the fourth quarter of fiscal 2021 was
Net loss was
Adjusted EBITDA for the fourth quarter of fiscal 2021 was
Cash, cash equivalents, and short-term restricted cash were
Fiscal Year 2021 Highlights
For the fiscal year ended June 30, 2021, gross product orders totaled
Total revenue was
Total gross profit for the year ended June 30, 2021 was
Operating expenses were
Net loss was
Net loss included an interest expense of
Prior fiscal year net income included a non-cash, special gain of
Adjusted EBITDA for the fiscal year ended June 30, 2021 was
Fiscal Year 2022 Financial Guidance
The Company is introducing guidance for fiscal year 2022 as follows:
- Total revenue is expected to range between
$410.0 million to$420.0 million , representing a year-over year growth at the midpoint of the range of5% . - Adjusted EBITDA is expected to range between
$32.0 million to$35.0 million .
Guidance for non-GAAP financial measures excludes depreciation and amortization, stock-based compensation expense, 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.
CFO Departure
Shig Hamamatsu, Accuray's Chief Financial Officer, announced his resignation from the Company to pursue an opportunity in another industry. Mr. Hamamatsu will continue as Chief Financial Officer through September 3, 2021 to help ensure a smooth transition. The Company has appointed Brandy Green, the Company's Vice President, Corporate Controller, as Interim Chief Financial Officer effective September 4, 2021 and has initiated a national search to identify a permanent replacement.
"I want to thank Shig for all his contributions to Accuray during his tenure," said Josh Levine, chief executive officer of Accuray. "He was integral in helping us navigate the COVID-19 pandemic, strengthening our balance sheet, and positioning us for long-term growth."
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 fourth quarter of fiscal 2021 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 (USA), or (412) 317-0088 (International), Conference ID: 10158497. An archived webcast will also be available on Accuray's website until Accuray announces its results for the first quarter of fiscal 2022.
Use of Non-GAAP Financial Measures
Accuray has supplemented its GAAP net loss with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation ("adjusted EBITDA"). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items, including the non-cash, special gain related to Accuray's capital contribution to the China joint venture, one-time charge related to the refinancing of the Company's debt and convertible notes exchange, and costs associated with reduction of staff. 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.
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 Sunnyvale, California, with facilities worldwide.
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; expectations regarding the effect of the COVID-19 pandemic on the Company and the market in general; expectations regarding the Company's commercial strategy, including with respect to future sales in China and other underpenetrated markets; expectations regarding the Company's China joint venture,; expectations regarding the Company's product innovations and developments; expectations regarding the Company's product portfolio and its ability to position the Company for growth; the impact of the Company's products on its customers and its business, and market adoption of such products, including with respect to the Company's Synchrony on Radixact, CyberKnife S7 System and Clear RT Helical kVCT Imaging upgrades as well as other strategic product innovations; expectations regarding the future of radiotherapy treatment; and the Company's leadership position in radiation oncology innovation and technologies. These forward-looking statements involve risks and uncertainties. If any of these risk or uncertainties materialize, or if any of the Company's assumptions prove incorrect, actual results could differ materially from the results express or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the effect of the COVID-19 pandemic on the operations of the Company and those of its customers and suppliers; the Company's ability to achieve widespread market acceptance of its products, including new product and software offerings; the Company's ability to develop new products or enhance existing products to meet customers' needs and compete favorably in the market, the Company's ability to effectively integrate and execute the joint venture, the Company's ability to realize the expected benefits of the joint venture; the ability of customers in China to obtain Class A or B user licenses to purchase radiotherapy systems; risks inherent in international operations; the Company's ability to effectively manage its growth; the Company's ability to maintain or increase its gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; the Company's ability to meet the covenants under its credit facilities; the Company's ability to convert backlog to revenue; and such other risks identified under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC") on April 30, 2021 and as updated periodically with the Company's other filings with the SEC.
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.
Financial Tables to Follow
Accuray Incorporated Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Gross Orders | $ | 112,672 | $ | 94,293 | $ | 325,929 | $ | 377,295 | ||||||||
Net Orders | 63,038 | 74,607 | 191,881 | 280,537 | ||||||||||||
Order Backlog | 616,399 | 602,713 | 616,399 | 602,713 | ||||||||||||
Net revenue: | ||||||||||||||||
Products | $ | 56,145 | $ | 40,410 | $ | 176,647 | $ | 167,302 | ||||||||
Services | 54,791 | 54,567 | 219,642 | 215,626 | ||||||||||||
Total net revenue | 110,936 | 94,977 | 396,289 | 382,928 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of products | 32,863 | 22,221 | 102,100 | 95,882 | ||||||||||||
Cost of services | 34,342 | 33,011 | 134,682 | 137,325 | ||||||||||||
Total cost of revenue | 67,205 | 55,232 | 236,782 | 233,207 | ||||||||||||
Gross profit | 43,731 | 39,745 | 159,507 | 149,721 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 15,357 | 12,215 | 52,729 | 49,784 | ||||||||||||
Selling and marketing | 13,007 | 11,555 | 42,820 | 47,254 | ||||||||||||
General and administrative | 11,225 | 10,748 | 41,723 | 40,144 | ||||||||||||
Total operating expenses | 39,589 | 34,518 | 137,272 | 137,182 | ||||||||||||
Income from operations | 4,142 | 5,227 | 22,235 | 12,539 | ||||||||||||
Income (loss) on equity investment, net | (149) | (371) | 872 | (149) | ||||||||||||
Other expense, net | (14,685) | (4,746) | (27,666) | (6,700) | ||||||||||||
Income (loss) before provision for income taxes | (10,692) | 110 | (4,559) | 5,690 | ||||||||||||
Provision for income taxes | 400 | 262 | 1,752 | 1,863 | ||||||||||||
Net income (loss) | $ | (11,092) | $ | (152) | $ | (6,311) | $ | 3,827 | ||||||||
Net income (loss) per share - basic | $ | (0.12) | $ | (0.00) | $ | (0.07) | $ | 0.04 | ||||||||
Net income (loss) per share - diluted | $ | (0.12) | $ | (0.00) | $ | (0.07) | $ | 0.04 | ||||||||
Weighted average common shares used in computing income (loss) per share: | ||||||||||||||||
Basic | 91,613 | 90,748 | 92,031 | 89,874 | ||||||||||||
Diluted | 91,613 | 90,748 | 92,031 | 90,623 | ||||||||||||
Accuray Incorporated Consolidated Balance Sheets (in thousands) (Unaudited) | ||||||||
June 30, | June 30, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 116,369 | $ | 107,577 | ||||
Restricted cash | 560 | 997 | ||||||
Accounts receivable, net | 85,360 | 90,599 | ||||||
Inventories | 125,929 | 134,374 | ||||||
Prepaid expenses and other current assets | 21,547 | 21,227 | ||||||
Deferred cost of revenue | 3,008 | 2,712 | ||||||
Total current assets | 352,773 | 357,486 | ||||||
Property and equipment, net | 12,332 | 15,349 | ||||||
Investment in joint venture | 15,935 | 13,929 | ||||||
Goodwill | 57,960 | 57,717 | ||||||
Intangible assets, net | 435 | 663 | ||||||
Operating lease right-of-use assets | 22,522 | 28,647 | ||||||
Other assets | 18,141 | 17,136 | ||||||
Total assets | $ | 480,098 | $ | 490,927 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 19,467 | $ | 23,126 | ||||
Accrued compensation | 26,865 | 17,963 | ||||||
Operating lease liabilities, current | 8,169 | 8,224 | ||||||
Other accrued liabilities | 27,471 | 27,180 | ||||||
Customer advances | 24,937 | 22,571 | ||||||
Deferred revenue | 81,660 | 83,207 | ||||||
Short-term debt | 3,790 | — | ||||||
Total current liabilities | 192,359 | 182,271 | ||||||
Long-term other liabilities | 7,766 | 7,416 | ||||||
Deferred revenue | 23,685 | 24,125 | ||||||
Operating lease liabilities, non-current | 17,441 | 24,173 | ||||||
Long-term debt | 170,007 | 189,307 | ||||||
Total liabilities | 411,258 | 427,292 | ||||||
Equity: | ||||||||
Common stock | 91 | 91 | ||||||
Additional paid-in capital | 554,680 | 545,741 | ||||||
Accumulated other comprehensive income (loss) | 2,093 | (484) | ||||||
Accumulated deficit | (488,024) | (481,713) | ||||||
Total equity | 68,840 | 63,635 | ||||||
Total liabilities and equity | $ | 480,098 | $ | 490,927 | ||||
Accuray Incorporated Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) (in thousands) (Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
GAAP net income (loss) | $ | (11,092) | $ | (152) | $ | (6,311) | $ | 3,827 | ||||||||
Depreciation and amortization | 1,498 | 1,960 | 6,389 | 7,526 | ||||||||||||
Stock-based compensation | 2,236 | 2,287 | 9,332 | 8,152 | ||||||||||||
Interest expense, net | 3,734 | 4,590 | 16,877 | 17,986 | ||||||||||||
One-time charge related to debt refinance and convertible notes | 9,948 | — | 9,948 | — | ||||||||||||
Gain on contribution to equity method investment in joint | — | — | — | (12,965) | ||||||||||||
Cost savings initiative (c) | — | 1,058 | — | 1,058 | ||||||||||||
Provision for income taxes | 400 | 262 | 1,752 | 1,863 | ||||||||||||
Adjusted EBITDA | $ | 6,724 | $ | 10,005 | $ | 37,987 | $ | 27,447 | ||||||||
(a) consists one-time charge related to the exchange of our |
(b) consists of non-cash gain related to the value of the Company's capital contribution to the China joint venture. |
(c) consists of costs associated with reduction of staff. |
Accuray Incorporated Forward-Looking Guidance Reconciliation of Projected Net Income (Loss) to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, (in thousands) (Unaudited) | ||||||||
Twelve Months Ending June 30, 2022 | ||||||||
From | To | |||||||
GAAP net income (loss) | $ | (800) | $ | 2,200 | ||||
Depreciation and amortization (a) | 6,400 | 6,400 | ||||||
Stock-based compensation | 10,200 | 10,200 | ||||||
Interest expense, net (b) | 13,400 | 13,400 | ||||||
Provision for income taxes | 2,800 | 2,800 | ||||||
Adjusted EBITDA | $ | 32,000 | $ | 35,000 | ||||
(a) consists of depreciation, primarily on property and equipment as well as amortization of intangibles. |
(b) consists primarily of interest expense associated with outstanding debt. |
Joe Diaz | Beth Kaplan |
Investor Relations, Lytham Partners | Public Relations Director, Accuray |
+1 (602) 717-7804 | +1 (408) 789-4426 |
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SOURCE Accuray Incorporated
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