Accuray Reports Fiscal 2020 First Quarter Financial Results

About this update from Accuray Incorporated

[{"type":"text","content":"SUNNYVALE, Calif., Oct. 29, 2019 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported its financial results for the first quarter of fiscal 2020 ended September 30, 2019.\n\n \nRecent Company Highlights\nGross orders increased 28 percent year over year to $78.5 million 11 orders received from China, including 2 orders sourced from the China joint venture Accuray systems named in 50 out of 58 Class A licenses awarded by the China Ministry of Health\"Our first quarter performance represented a solid start to our fiscal year with double digit gross order growth,\" said Joshua H. Levine, president and chief executive officer. \"We are also very excited about Accuray systems named in 50 out of 58 Class A licenses recently awarded by the China National Health Commission which were announced on October 9, 2019. We need to remember that the process identified by the Ministry of Health requires a tender process following the license awards for all participating end user hospitals prior to being able to take receipt of a Type A device. This tender process has been put in place to define the transactional terms and conditions related to each hospital's equipment order and is not a competitive bidding situation that would result in changes in the specific device that the hospital has received the Type A license for. We expect that based on the timelines required for this tendering process, we would not begin to see revenue impact related to the China Type A awards until sometime in our fiscal 4th quarter, and we remain excited about the China market opportunity as a significant growth catalyst for our business.\" \nFiscal First Quarter Results \nGross orders totaled $78.5 million, an increase of 28 percent compared to $61.4 million for the prior year period. Backlog as of September 30, 2019 was $495.0 million, an increase of 7 percent compared to $461.9 million for the prior year period.\nTotal revenue was $89.6 million compared to $95.8 million for the prior year period. Product revenue totaled $37.6 million compared to $41.5 million, while service revenue totaled $52.0 million compared to $54.3 million. \nTotal gross profit for the fiscal 2020 first quarter was $32.9 million, or 36.8 percent of sales, comprised of product gross margin of 42.6 percent and service gross margin of 32.5 percent. This compares to total gross prof...

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