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Actionable news in ARAY: Accuray Incorporated,

Accuray: Investor Relations, Evc Group Public Relations Director, Accuray

The following excerpt is from the company's SEC filing.

+1 (415) 652-9100

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bkaplan@accuray.com

Accuray Generates 10% Year-Over-Year Gross Order Growth in First Quarter

Commercial Momentum Continues; Management Reaffirms Fiscal 2016 Guidance

SUNNYVALE, Calif., October 29, 2015

Accuray Incorporated (NASDAQ: ARAY) announced today financial results for the fiscal first quarter ended September 30, 2015.

Fiscal First Quarter Highlights

Gross orders were $64.9 million, representing 10 percent year-over-year growth or 18 percent on a constant currency basis

Total reven ue was $89.6 million, an increase of 9 percent year-over-year or 12 percent on a constant currency basis

Gross profit margin expanded to 38 percent from 34 percent in the prior year period, driven by both improved product and service margins

Adjusted EBITDA was a positive $2.3 million compared to a negative $8.5 million in the prior year, representing a $10.8 million improvement

Cash and investments increased $9.2 million compared to a $19.2 million decrease in the prior year quarter

Single and dual vault sites comprised more than 50 percent of total TomoTherapy

System orders

We executed on our commercial strategies during the first quarter, resulting in continued momentum in order activity and improvements in overall financial performance, said Joshua H. Levine, president and chief executive officer of Accuray. Our team focused on positioning the TomoTherapy System as a mainstream device, which led to more than 50 percent of its orders during the quarter being placed by sites with single or dual vaults. At the same time, we continued to see order momentum for the CyberKnife

M6 with the InCise Multileaf Collimator as our first installation sites demonstrated its ability to provide extremely precise treatments in significantly reduced time for an expanded patient population.

Financial Highlights

Gross product orders totaled $64.9 million for the 2016 fiscal first quarter, an increase of $6.1 million or 10 percent from the first quarter of the prior fiscal year. On a constant currency basis, gross product orders increased 18 percent from the prior fiscal year first quarter. Ending product backlog was $379.8 million, approximately 4 percent higher than backlog at the end of the prior fiscal year first quarter.

, an improvement of 9 percent from the prior fiscal year first quarter and an increase of 12 percent on a constant currency basis. The Americas region total revenue was $45.3 million and total revenue outside of the Americas region was $44.3 million. Product revenue increased 21 percent to $40.0 million while service revenue totaled $49.6 million, which was a slight increase compared to the prior year.

Total gross profit for the fiscal first quarter of 2016 was $33.9 million or 37.8 percent of sales, comprised of product gross margin of 42.5 percent and service gross margin of 34.1 percent. This compares to total gross margin of 33.7 percent, product gross margin of 37.4 percent and service gross margin of 31.3 percent for the prior fiscal year first quarter. On a constant currency basis, total gross margin for the first quarter of fiscal 2016 was 38.6 percent.

Operating expenses were $37.7 million, a decrease of 12 percent compared with $43.1 million in the prior fiscal first quarter. The decrease was primarily because of timing of tradeshow related expenses in sales and marketing, as well as reduced compensation related expenses in sales and marketing and general and administrative functions, offset by a slight increase in research and development to support ongoing product development efforts

Net loss improved to $9.6 million, or $0.12 per share, for the first quarter of fiscal 2016...


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