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Accuray Reports Financial Results for 2Q of Fiscal Year 2014

February 4, 2014

Accuray Inc. announced financial results for the second fiscal quarter and six months ended Dec. 31, 2013 . "The second quarter marks our fourth consecutive quarter of net order strength, driven by our improved commercial execution and customer focus. We are pleased with our strong and improving operational performance during the first half of our fiscal year," said Joshua Levine , president and chief executive officer of Accuray , in a release dated Jan. 30 . "We remain focused on our strategic growth agenda and believe our focus on operational and commercial execution, coupled with fiscal discipline, will continue to create value for all of our stakeholders. "Our upwardly revised guidance range reflects an anticipation of continued momentum throughout the second half of our fiscal year. We are pleased to report an adjusted EBITDA profit of $6.8 million in the second quarter, as we drive toward achieving sustainable positive cash flow." Financial Highlights Gross product orders totaled $80.3 million for the second quarter, an increase of $40.5 million or 102 percent over the second quarter of the prior year. Gross product orders, less cancellations and age-outs, totaled $59.4 million for the second quarter, an increase of $41.5 million or 232 percent from the second quarter of fiscal 2013. Ending product backlog of $362 million was approximately 30 percent higher than backlog at the end of the prior fiscal year second quarter. Total revenue reached $93.6 million , representing an increase of 20 percent from the prior year second quarter. Product revenues totaled $45.1 million and represented an increase of 36 percent from the prior year second quarter while service revenues totaled $48.5M and represented an increase of 9 percent over the prior fiscal year second quarter. Total gross profit of $38.2 million represents an increase of 43 percent from the prior year second quarter. Total gross profit margin improved to 40.8 percent, comprised of product gross margin of 44.7 percent and service gross margin of 37.1 percent. This compares to total gross margin of 34.2 percent, product gross margin of 44.0 percent and service gross margins of 26.9 percent for the prior fiscal year second quarter. Operating expenses were $38.9 million , compared with $48.9 million in the prior fiscal year second quarter. Net loss was ($5.4) million , or ( $0.07 ) per share for the second quarter of 2014, compared to a net loss of ($29.2) million , or ( $0.40 ) per share for the prior fiscal year second quarter. Adjusted EBITDA for the second quarter of 2014 was a profit of $6.8 million , compared to a loss of ($18.1) million in the prior fiscal year second quarter. Cash, cash equivalents, investments and restricted cash were $162.6 million as of Dec. 31, 2013 , a decrease of $1.8 million from Sept. 30, 2013 . Six Month Highlights For the six months ended Dec. 31, 2013 , total revenue reached $170.3 million , representing an increase of 6 percent from the comparable period of fiscal year 2013. Product revenue for the six month period was $74.7 million , representing an increase of 1 percent while service revenue was $95.6 million , representing an increase of 10 percent over the comparable prior fiscal year period. Gross profit margin for the six months ended Dec. 31, 2013 was 38.0 percent, comprised of product gross margin of 41.7 percent and service gross margin of 35.1 percent. This compares to total gross margin of 31.3 percent for the comparable prior fiscal year period. Operating expenses for the six months ended Dec. 31, 2013 of $77.7 million , compared with $93.2 million in the comparable prior fiscal year period. Net loss for the six months ended Dec. 31, 2013 was ($21.0) million , or ( $0.28 ) per share, compared to a net loss of ($53.3) million , or ( $0.74 ) per share for the comparable prior fiscal year period. Adjusted EBITDA for the six months ended Dec. 31, 2013 was a profit of $3.0 million , compared to a loss of ($30.0) million in the comparable prior fiscal year period. 2014 Financial Guidance Accuray updated its financial guidance of total revenue for fiscal 2014 to a range of $340 million to $350 million . This compares to the previous financial guidance of total revenue in the range of $325 million to $345 million which was provided on Aug. 27, 2013 and reaffirmed on Nov. 7, 2013 . Accuray Inc. , is a radiation oncology company. ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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