Accuray Reports Fiscal 2020 Second Quarter Financial Results

About this update from Accuray Incorporated

[{"type":"text","content":"SUNNYVALE, Calif., Jan. 28, 2020 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported its financial results for the second quarter of fiscal 2020 ended December 31, 2019.\n\n \n \n\n \nRecent Company Highlights\nGross orders of $98.6 million, including 11 orders from China Net orders of $89.9 million, an increase of 30% year over year Total backlog increased 12 percent year over year to $539.4 million Net revenue of $98.8 million, net income of $10.7 million, Adjusted EBITDA of $7.1 million\"Financial and operational results for our second fiscal quarter and for the first half of fiscal year 2020 were solid,\" commented Joshua H. Levine, president and chief executive officer of Accuray. \"Gross orders for the second quarter exceeded our internal expectations heading into the quarter, including a solid order contribution from China. We expect revenue growth to improve in the second half of fiscal 2020 as we believe revenue recognition of China Type A systems will start in our fourth fiscal quarter. In addition, we have confirmed that the tariff exemption for medical linear accelerators is applicable to all of our systems. We believe that this exemption will support our commercial momentum and expand access to our innovative radiation therapy solutions for hospitals and patients in China. In light of recent events with the coronavirus outbreak in China, we do not believe that the outbreak affects the longer-term demand outlook for radiotherapy equipment in China. China remains the world's fastest growing market for radiation oncology systems where we have a highly differentiated strategy to drive significant revenue growth in the coming years.\"\nFiscal Second Quarter Results\nGross orders totaled $98.6 million compared to $100.2 million for the prior year period. Backlog as of December 31, 2019 was $539.4 million, an increase of 12 percent compared to $482.2 million for the prior year period. \nTotal net revenue was $98.8 million compared to $102.3 million for the prior year period. Product revenue totaled $43.8 million compared to $48.1 million in the same prior fiscal year period, while service revenue totaled $55.1 million compared to $54.3 million in the same prior fiscal year period. \nTotal gross profit for the fiscal 2020 second quarter was $37.9 million, or 38.4 percent of net revenue, comprised of product g...

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