) first-quarter fiscal 2013 adjusted loss per share of 23 cents
was wider than the Zacks Consensus Estimate of a loss of 20
cents. Adjusted loss excludes one-time items such as acquisition
and integration-related expenses associated with TomoTherapy and
Reported net loss attributable to shareholders in the quarter was
$24.1 million (or 34 cents a share) versus a loss of $16.9
million (or 23 cents a share) in the prior-year quarter.
Adjusted revenues for the quarter were $83 million (down 13.3%
year-over-year), trailing the Zacks Consensus Estimate of $87
million. Adjustments exclude deferred sales related to
TomoTherapy products and services. Reported revenues for the
quarter were $82.7 million.
Adjusted revenues from products were $40.9 million (down 28%) in
the quarter, reflecting the return to normalcy of the TomoTherapy
shipments from the unusually high levels on completion of the
acquisition in the year-ago quarter. Adjusted revenues from
services were $42.1 million, (up 10%), primarily led by the
continued hikes in the installed system base.
Orders and Margins
Accuray installed 15 new CyberKnife and TomoTherapy systems
during the quarter, taking the aggregate global installed base to
667 units. The company added new system orders of $51.6 million
in the quarter (up 31%), leading to a total system backlog of
$294.3 million (up 9%).
This was led by a 61% increase in TomoTherapy net orders from
Japan and Asia-Pacific markets, offset by a 12% drop in net
orders for CyberKnife products.
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Adjusted gross margin for the quarter was 33.3% versus 36.4% in
the year-ago quarter, due to change in sales mix. Adjusted
product and services gross margins were 50.1% and 16.7%,
respectively, in the quarter.
On an adjusted basis, operating loss was $17.7 million compared
with a loss of $9.9 million, a year ago.
On an adjusted basis, selling and marketing along with general
and administrative expenses were 30.4% of sales versus 25.3% in
the year-ago quarter. On an adjusted basis, Research and
Development (R&D) expenses, as a percentage of sales,
increased to 24.2% from 21.2% in the year-ago period.
The company expects operating expenses to increase in the
upcoming quarter, driven by higher R&D expenses, marketing
activities related to new products and costs associated with the
departure of the company's previous CEO.
Accuray exited the quarter with cash, cash equivalents and
restricted cash of roughly $124.5 million, down 13.2%
year-over-year. Long-term debt was $80.5 million in the quarter,
Accuray is a supplier of radiosurgery and provides a non-surgical
treatment option for patients diagnosed with cancer. Globally,
more than 200,000 people have been treated with the company's
technology. Moreover, the acquisition of rival TomoTherapy has
bolstered the company's foothold in the radiation oncology space.
However, Accuray remains susceptible to the weak U.S. and
European markets, reimbursement uncertainties and faces stiff
challenges from competitive product offerings of
). Demands for CyberKnife products are also facing severe
headwinds. We also remain wary regarding adoption of the
company's latest technology.
We currently have a short-term Zacks #4 Rank (Sell) rating on the