0001138723false00011387232023-11-072023-11-07

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 07, 2023

 

 

ACCURAY INCORPORATED

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-33301

20-8370041

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1240 Deming Way

 

Madison, Wisconsin

 

53717-1954

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 608 824-2800

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

ARAY

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On November 7, 2023, Accuray Incorporated (the “Company”) issued a press release announcing its financial results for the first quarter ended September 30, 2023. A copy of the Company’s press release dated November 7, 2023, titled “Accuray Reports Fiscal 2024 First Quarter Financial Results” is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The foregoing information (including the exhibit hereto) is being furnished under “Item 2.02 Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such filing.

 

Item 7.01 Regulation FD Disclosure.

 

Spokespersons of the Company plan to present the information in the presentation attached hereto as Exhibit 99.2 to analysts and investors from time to time on or after November 7, 2023. The presentation will be available on the Company’s Investor Relations website at: http://investors.accuray.com.

The furnishing of the attached presentation is not an admission as to the materiality of any information therein. The information contained in the presentation is summary information that is intended to be considered in the context of more complete information included in the Company’s filings with the U.S. Securities and Exchange Commission and other public announcements that the Company has made and may make from time to time by press release or otherwise. The Company undertakes no duty or obligation to update or revise the information contained in this report. For important information about forward looking statements, see the slide titled “Forward-Looking Statements” in Exhibit 99.2 attached hereto.

The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated by reference into this Item 7.01.

 

The information contained in this Item 7.01 disclosure, including Exhibit 99.1 and Exhibit 99.2, is furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

Description

99.1

Press release dated November 7, 2023, titled “Accuray Reports Fiscal 2024 First Quarter Financial Results”

99.2

Accuray First Quarter Fiscal 2024 Earnings Call Presentation

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

2


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

ACCURAY INCORPORATED

 

 

 

 

Date:

November 7, 2023

By:

/s/ Ali Pervaiz

 

 

 

Ali Pervaiz
Senior Vice President & Chief Financial Officer

 

3


Exhibit 99.1

img235950492_0.jpg 

 

 

Accuray Reports Fiscal 2024 First Quarter Financial Results

 

 

Company Achieves 8% Revenue Growth, Reiterates FY 2024 Guidance

 

MADISON, Wis, November 7, 2023 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the first quarter of fiscal 2024 ended September 30, 2023.

 

First Quarter Fiscal 2024 Summary

Net revenue of $103.9 million increased 7.7 percent from the same period in the prior fiscal year. Net revenue on a constant currency basis was $102.7 million, which represents a 6.5 percent increase from the same period in the prior fiscal year.
GAAP net loss of $3.0 million, as compared to GAAP net loss of $5.4 million in the same period in the prior fiscal year. Adjusted EBITDA of $6.5 million, as compared to adjusted EBITDA of $1.9 million in the same period in the prior fiscal year.
Gross orders of $63.7 million representing a book to bill ratio of 1.2.

 

Other Recent Operational Highlights

FDA 510(k) clearance in the U.S. and CE mark in the EU market for the VitalHold™* breast cancer treatment package for the Radixact® System
China National Medical Products Association approval for Tomo® C, Accuray's China joint venture product for the Type B market
Showcased new product innovations including Cenos™, online adaptive therapy option**, for the Radixact System at the American Society for Radiation Oncology (ASTRO) annual meeting
Completed transition to a new enterprise resource planning ("ERP") system

“We delivered another strong quarter of revenue growth and margin expansion with successful execution against our strategic growth agenda," said Suzanne Winter, Chief Executive Officer. “I am very pleased with our strong start to the fiscal year, which includes key new product introductions and regulatory milestones that I believe will be the catalysts for increased use and adoption of our technology. We remain committed to providing medical care teams with innovative products and services that deliver value and close gaps in access to advanced radiotherapy treatments.”

 

Fiscal First Quarter Results

Total net revenue in the first quarter of fiscal 2024 was $103.9 million, compared to $96.5 million in the prior fiscal year first quarter. Product revenue in the first quarter of fiscal 2024 was $53.4 million, compared to $44.6 million in the prior fiscal year first quarter. Service revenue in the first quarter of fiscal 2024 was $50.5 million, compared to $51.9 million in the prior fiscal year first quarter.

Total gross profit in the first quarter of fiscal 2024 was $39.5 million, or 38.0 percent of total net revenue, compared to total gross profit of $34.6 million, or 35.9 percent of total net revenue, in the prior fiscal year first quarter.

 

Operating expenses in the first quarter of fiscal 2024 were $37.3 million, compared to $36.8 million in the prior fiscal year first quarter.

 


Net loss in the first quarter of fiscal 2024 was $3.0 million, or $0.03 per share, compared to a net loss of $5.4 million, or $0.06 per share, in the prior fiscal year first quarter. Adjusted EBITDA in the first quarter of fiscal 2024 was $6.5 million, compared to $1.9 million in the prior fiscal year first quarter.

 

Gross product orders in the first quarter of fiscal 2024 totaled $63.7 million compared to $69.8 million in the prior fiscal year first quarter. Order backlog as of September 30, 2023 was $489.0 million, approximately 9.2 percent lower than at the end of the prior fiscal year first quarter.


Cash, cash equivalents, and short-term restricted cash were $77.4 million as of September 30, 2023, a decrease of $12.5 million from June 30, 2023.

 

Fiscal Year 2024 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 and economic conditions, supply chain disruption, and the factors set forth under “Safe Harbor Statement” below.

The company is reaffirming guidance for fiscal year 2024 as follows:

Total revenue is expected in the range of $460 million to $470 million, representing a year-over-year growth range of 3 to 5 percent.
Adjusted EBITDA for fiscal year 2024 is expected in the range of $27 million to $30 million.

 

Guidance for non-GAAP financial measures excludes depreciation and amortization, stock-based compensation, interest expense, provision for income taxes, and ERP and ERP related expenditures. 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 2024 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: 7621845. An archived webcast will also be available on Accuray’s website until Accuray announces its results for the second quarter of fiscal 2024.

 

 

Use of Non-GAAP Financial Measures

 

Accuray reports its financial results in accordance with generally accepted accounting principles in the United States (“GAAP”) and the rules of the SEC. To supplement its financial statements prepared and presented in accordance with GAAP, Accuray uses certain non-GAAP financial measures, such as adjusted EBITDA, and net revenue on a constant currency basis.

Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, ERP and ERP related expenditures, depreciation, amortization and stock-based compensation (“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 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 Madison, Wisconsin, 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; the effect of the global economic environment and the COVID-19 pandemic on the company and the market in general, including with respect to the company’s ability to navigate supply chain, logistics, macroeconomic, and foreign exchange challenges; delivering on the company’s strategic growth plan, progressing against long-term strategic goals, and continuing adoption 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 market in China, the company’s China joint venture and the Tomo-C product as well as expectations with respect to other strategic partnerships, including expected timing of regulatory clearances; expectations related to the markets in which the company operates; expectations regarding new product introductions and innovations and their effect on use and adoption of the company's products as well as revenue growth and EBITDA expansion; expectations with respect to the company’s cost savings initiatives, including its reduction in global workforce and any related costs; expectations regarding backlog; and the company’s ability to continue to build a stronger business and make investments that deliver value to customers and shareholders as well as advance patient care and close gaps in access to advanced radiotherapy treatments. 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 global macroeconomic environment on the operations of the company and those of its customers and suppliers; disruptions to our supply chain, including increased logistics costs; the company's ability to achieve widespread market acceptance of its products; the company’s ability to realize the expected benefits of the China joint venture and other partnerships; risks inherent in international operations; 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 Annual Report on Form 10-K, filed with the Securities and Exchange


Commission (the “SEC”) on September 7, 2023 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.

 

 

* VitalHold™ availability is subject to regulatory clearance or approval in some markets

** Cenos is 510(k) pending. The solution is not available for sale in the USA. It is not CE marked and availability is subject to regulatory clearance or approval in some markets.

 

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

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended
September 30,

 

 

 

2023

 

 

2022

 

Net revenue:

 

 

 

 

 

 

Products

 

$

53,350

 

 

$

44,623

 

Services

 

 

50,542

 

 

 

51,870

 

Total net revenue

 

 

103,892

 

 

 

96,493

 

Cost of revenue:

 

 

 

 

 

 

Cost of products

 

 

35,699

 

 

 

28,850

 

Cost of services

 

 

28,700

 

 

 

33,046

 

Total cost of revenue

 

 

64,399

 

 

 

61,896

 

Gross profit

 

 

39,493

 

 

 

34,597

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

 

14,013

 

 

 

14,092

 

Selling and marketing

 

 

10,244

 

 

 

10,795

 

General and administrative

 

 

13,023

 

 

 

11,892

 

Total operating expenses

 

 

37,280

 

 

 

36,779

 

Income (loss) from operations

 

 

2,213

 

 

 

(2,182

)

Income (loss) from equity method investment, net

 

 

431

 

 

 

(368

)

Other expense, net

 

 

(3,681

)

 

 

(2,558

)

Loss before provision for income taxes

 

 

(1,037

)

 

 

(5,108

)

Provision for income taxes

 

 

1,932

 

 

 

341

 

Net loss

 

$

(2,969

)

 

$

(5,449

)

Net loss per share - basic and diluted

 

$

(0.03

)

 

$

(0.06

)

Weighted average common shares used in computing loss per share:

 

 

 

 

 

 

Basic and diluted

 

 

96,555

 

 

 

93,529

 

 


Accuray Incorporated

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

 

September 30,

 

 

June 30,

 

 

 

2023

 

 

2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

76,918

 

 

$

89,402

 

Restricted cash

 

 

524

 

 

 

524

 

Accounts receivable, net

 

 

77,370

 

 

 

74,777

 

Inventories

 

 

149,977

 

 

 

145,150

 

Prepaid expenses and other current assets

 

 

28,798

 

 

 

27,612

 

Deferred cost of revenue

 

 

560

 

 

 

568

 

Total current assets

 

 

334,147

 

 

 

338,033

 

Property and equipment, net

 

 

24,963

 

 

 

20,926

 

Investment in joint venture

 

 

13,121

 

 

 

15,128

 

Operating lease right-of-use assets, net

 

 

24,378

 

 

 

25,853

 

Goodwill

 

 

57,656

 

 

 

57,681

 

Intangible assets, net

 

 

163

 

 

 

210

 

Long-term restricted cash

 

 

1,249

 

 

 

1,276

 

Other assets

 

 

21,153

 

 

 

20,107

 

Total assets

 

$

476,830

 

 

$

479,214

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

34,877

 

 

$

33,739

 

Accrued compensation

 

 

26,496

 

 

 

23,793

 

Operating lease liabilities, current

 

 

6,077

 

 

 

4,151

 

Other accrued liabilities

 

 

36,634

 

 

 

38,271

 

Customer advances

 

 

19,372

 

 

 

20,777

 

Deferred revenue

 

 

71,764

 

 

 

72,185

 

Short-term debt

 

 

6,229

 

 

 

5,721

 

Total current liabilities

 

 

201,449

 

 

 

198,637

 

Operating lease liabilities, non-current

 

 

22,806

 

 

 

23,602

 

Long-term other liabilities

 

 

4,900

 

 

 

4,675

 

Deferred revenue, non-current

 

 

26,939

 

 

 

27,079

 

Long-term debt

 

 

169,792

 

 

 

171,562

 

Total liabilities

 

 

425,886

 

 

 

425,555

 

Equity:

 

 

 

 

 

 

Common stock

 

 

97

 

 

 

97

 

Additional paid-in capital

 

 

557,668

 

 

 

555,276

 

Accumulated other comprehensive income (loss)

 

 

(1,716

)

 

 

422

 

Accumulated deficit

 

 

(505,105

)

 

 

(502,136

)

Total equity

 

 

50,944

 

 

 

53,659

 

Total liabilities and equity

 

$

476,830

 

 

$

479,214

 

 


Accuray Incorporated

Summary of Orders and Backlog

(in thousands, except book to bill ratio)

(Unaudited)

 

 

 

 

 

Three Months Ended
September 30,

 

 

 

2023

 

 

2022

 

Gross Orders

 

$

63,734

 

 

$

69,848

 

Net Orders

 

 

31,740

 

 

 

19,571

 

Order Backlog

 

 

489,031

 

 

 

538,447

 

Book to bill ratio (a)

 

 

1.2

 

 

 

1.6

 

(a) Book to bill ratio is defined as gross orders for the period divided by product revenue for the period

 

 

 

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
September 30,

 

 

 

2023

 

 

2022

 

GAAP net loss

 

$

(2,969

)

 

$

(5,449

)

Depreciation and amortization (a)

 

 

1,251

 

 

 

1,176

 

Stock-based compensation

 

 

2,392

 

 

 

2,916

 

Interest expense, net (b)

 

 

2,628

 

 

 

2,256

 

Provision for income taxes

 

 

1,932

 

 

 

341

 

ERP and ERP related expenditures

 

 

1,270

 

 

 

655

 

Adjusted EBITDA

 

$

6,504

 

 

$

1,895

 

(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.

 

 

 

 

 


Accuray Incorporated

Forward-Looking Guidance

Reconciliation of Projected Net Income (Loss) to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA)

(in thousands)

(Unaudited)

 

 

 

Twelve Months Ending
June 30, 2024

 

 

 

From

 

 

To

 

GAAP net income (loss)

 

$

(1,000

)

 

$

2,000

 

Depreciation and amortization (a)

 

 

4,500

 

 

 

4,500

 

Stock-based compensation

 

 

10,500

 

 

 

10,500

 

Interest expense, net (b)

 

 

10,000

 

 

 

10,000

 

Provision for income taxes

 

 

2,000

 

 

 

2,000

 

ERP and ERP related expenditures

 

 

1,000

 

 

 

1,000

 

Adjusted EBITDA

 

$

27,000

 

 

$

30,000

 

(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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Slide 1

Q1’FY24 Earnings Call Supplemental Presentation November 7, 2023


Slide 2

Forward-looking Statements This presentation is intended exclusively for investors. It is not intended for use in Sales or Marketing. 2 Proprietary and Confidential Property of Accuray Safe Harbor Statement   Statements in this presentation (including the oral commentary that accompanies it) 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 presentation relate, but are not limited, to: expectations regarding fiscal 2024 full-year adjusted EBITDA and revenue; our ability to deliver on our goals and strategic growth plans; and expectations related to new product innovations and offerings as well as revenue growth and market share going forward. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “may,” “will be,” “will continue,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to: risks related to the current global economic environment, including in connection with the COVID-19 pandemic, inflation or recession on our business, financial condition, results of operations or cash flows; disruptions to our supply chain, including increased logistics costs; our ability to achieve widespread market acceptance of our products, including new product offerings and improvements; our ability to develop new products or enhance existing products to meet customers’ needs and compete favorably in the market; our ability to realize the expected benefits of the joint-venture and other partnerships; risks inherent in international operations; our ability to effectively manage our growth; our ability to maintain or increase our gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; our ability to meet the covenants under our credit facilities; our ability to convert backlog to revenue; and other risks identified under the heading “Risk Factors” in our quarterly report on Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on November 7, 2023, and as updated periodically with our 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 Accuray at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Accuray 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 place undue reliance on any forward-looking statements.  Non-GAAP Financial Measures   This presentation also contains non-GAAP financial measures.  Management believes that non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results.  Additionally, these non-GAAP financial measures assist management in analyzing future trends, making strategic and business decisions, and establishing internal budgets and forecasts.  A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in the Appendix. 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. 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.  Medical Advice Disclaimer   Accuray Incorporated as a medical device manufacturer cannot and does not recommend specific treatment approaches. Individual results may vary.   


Slide 3

Delivering on Our Strategy


Slide 4

Closing the Gaps to Cancer Care Advance Care by providing solutions that address the biggest pain points in RT  Drive Patient Access to radiotherapy treatments in developed and high potential underserved markets Delight Customers by ensuring high operational performance so no patient is rescheduled Hope Confidence Goals


Slide 5

Our Strategic Growth Plan: Key Pillars Guided by Our Vision: To expand the curative power of radiation therapy to improve as many lives as possible Outpace market growth with innovations Operational excellence and efficiency Expand service revenue with installed base growth and focus on uptime Profitability expansion Strengthen balance sheet and cash flow 


Slide 6

Patient-Focused Innovations Advancing care through partnerships Proprietary and Confidential Property of Accuray FDA 510(k) clearance in the U.S. and CE mark in the EU market for VitalHold™1 breast cancer treatment package for the Radixact® System NMPA regulatory approval for Tomo® C, the Joint Venture product for the China Type B segment FDA 510(k) pending for online adaptive therapy option2, Cenos™, for the Radixact System 1. VitalHold availability is subject to regulatory clearance or approval in some markets. 2. Cenos is 510(k) pending. The solution is not available for sale in the USA. It is not CE marked and availability is subject to regulatory clearance or approval in some markets..


Slide 7

Innovation Highlights from ASTRO Exceptional quality diagnostic-like CT imaging Driving Radixact new system demand ClearRT™ VitalHold™1 Surface Guided RT for breast cancer therapy  Available in US, EU; Japan/Sonin pending Alliance A+ Value-added Service solutions Accuray Financial Services Online Adaptive Solution for Radixact  510(k) pending Cenos™2 1. VitalHold availability is subject to regulatory clearance or approval in some markets. 2. Cenos is 510(k) pending. The solution is not available for sale in the USA. It is not CE marked and availability is subject to regulatory clearance or approval in some markets.


Slide 8

~ 1 in 8 men in the U.S. will be diagnosed with prostate cancer2 Phase 3 trial testing 5-fraction SBRT vs 20- or 39-fraction conventional radiation therapy1 N=874 patients, 38 centers, 3 countries1 Conclusion PACE A + PACE B: “SBRT should be considered a new standard of care in low and intermediate risk prostate cancer1” PACE B Prostate Study Shows SBRT is as Effective as Conventional Radiation Therapy in Fewer Treatment Sessions1 1. https://www.astro.org/ASTRO/media/ASTRO/News%20and%20Publications/Press%20Kits/PDFs/2023/ASTRO23Slides_vanAs.pdf; https://www.astro.org/News-and-Publications/News-and-Media-Center/News-Releases/2023/High-cure-rate,-low-toxicity-maintained-with-short 2. American Cancer Society 95.8% chance of no disease progression within five years with SBRT1 The CyberKnife® System: SBRT with sub-millimeter precision and accuracy


Slide 9

Q1’FY24 Financials Strong financial performance Gross orders $63.7M (9%) Revenues $103.9M 8% Product $53.3M 17%3 Service $50.5M (1%)3 Op. Expenses $37.3M 1% R&D $14.0M (1%) SG&A $23.3M 3% Adj. EBITDA 1 $6.5M 243% KEY FINANCIAL METRICS $M Q1 Y/Y Highlights Robust orders with book-to-bill ratio of 1.2 Strong revenue growth through continued customer adoption of our innovations YoY gross margin accretion of 2.1 pts driven by pricing, productivity and lower service costs Disciplined cost management providing operating leverage Reaffirming FY24 full year revenue and adjusted EBITDA1 guidance 1. Adjusted EBITDA is a non-GAAP measure.  Please see Slide 13 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure. 2. Percentages shown on a constant currency basis to facilitate period-to-period comparisons without regard to the impact of foreign currency exchange rate fluctuations. 3. Product net revenue for Q1FY'23 includes certain upgrades that were reclassified from service net revenue for Q1FY'23 for Y/Y comparison purposes only. These    upgrades are now being recorded in product net revenue for Q1FY'24 and going forward. Y/Y XFX2 (9%) 6% 15%3 (1%)3


Slide 10

Maintaining FY24 Guidance Communicated August 9, 2023 Takes into account expectations regarding uncertainty and impact from macro environmental climate, FX and inflation Revenue Adjusted EBITDA1 $447.6M $23.9M FY24 Guidance Range FY23 Actual $ in millions % = YoY Growth $460M - $470M +3% - 5% $27M - $30M +13% - 25% 1 Adjusted EBITDA is a non-GAAP measure.  Please see Slides 13 and 14 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.


Slide 11

Accuray at the Jefferies Conference Proprietary and Confidential Property of Accuray Accuray will participate in the 14th Annual Jefferies London Healthcare Conference CEO Suzanne Winter and CFO Ali Pervaiz will share prepared remarks and take part in a moderated Q&A Wednesday, November 15th, 2023, at 9:00am GMT/4:00am EST A live webcast can be accessed on investors.accuray.com Photo by Sabrina Mazzeo on Unsplash 11


Slide 12

Thank you


Slide 13

$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 $ $ $ $ (2,969) 1,251 2,392 2,628 1,932 6,504 (5,449) 1,176 2,916 2,256 341 1,895 ERP and ERP related expenditures 1,270 655 GAAP to Adjusted EBITDA Q1 FY’24 and Q1 FY’23 Actual Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA)


Slide 14

$K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization To From $ $ $ $ (1,000) 4,500 10,500 10,000 2,000 27,000 2,000 4,500 10,500 10,000 2,000 30,000 ERP and ERP related expenditures 1,000 1,000 GAAP to Adjusted EBITDA FY’24 – Forward Looking Guidance Actual Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) Twelve Months Ended June 30, 2024

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Document And Entity Information
Nov. 07, 2023
Cover [Abstract]  
Document Type 8-K
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Document Period End Date Nov. 07, 2023
Entity Registrant Name ACCURAY INCORPORATED
Entity Central Index Key 0001138723
Entity Emerging Growth Company false
Securities Act File Number 001-33301
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 20-8370041
Entity Address, Address Line One 1240 Deming Way
Entity Address, City or Town Madison
Entity Address, State or Province WI
Entity Address, Postal Zip Code 53717-1954
City Area Code 608
Local Phone Number 824-2800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 par value per share
Trading Symbol ARAY
Security Exchange Name NASDAQ

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