Accuray Incorporated · NASDAQ:ARAY
Accuray — Q2 FY2013 Earnings Presentation
20 slides from Accuray's earnings presentation, Feb 8, 2013
Slide 1: Accuray Company Overview
Accuray Company Overview About Accuray Accuray is a radiation oncology company that develops, manufactures and sells personalized, innovative treatment solutions that set the standard of care with the aim of helping patients live longer, better lives. The Company's leading-edge technologies deliver
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward Looking 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 Ac
Slide 3: Investment Highlights
Large and growing market $1.9B* global market for radiation therapy systems (International > 60%) New leadership Significant transformation New product platforms Cultural realignment Restructuring Profitability/Value creation imperatives Accelerate revenue growth and drive profitability Create custo
Slide 4: Global Market for Radiation Therapy Systems
Global Market for Radiation Therapy Systems Global New System Sales $1.9 Billion in 2012 *Global market estimates based upon: fiscal year filings of market participants; Radiation Therapy Equipment-A Global Strategic Business Report (October 2010) There are two sources of revenue: System sales Servi
Slide 5: Accuray in Transition
Accuray in Transition Past: Technology and R&D focus Features and capabilities limited our products to niche market segments Future: Customer focus Prioritize and enable commercial strategy The new TomoTherapy® product portfolio enables access to mainstream market The new CyberKnife® with MLC option
Slide 6: Strategic Imperatives
Strategic Imperatives New Product Cycle – Greatly Expands Market Opportunity TomoTherapy® New TomoTherapy® H™ Series capabilities transitions product from niche position to mainstream CyberKnife® New CyberKnife® M6™ Series is the premier solution for full-body radiosurgery plus expanded range of tre
Slide 7: New Products Introduced at ASTRO 2012
New Products Introduced at ASTRO 2012 CyberKnife® M6™ Series Unique robot architecture Premier solution for full-body radiosurgery MLC option expands range of patients that can be treated TomoTherapy® H™ Series Differentiated helical architecture Mainstream product that covers full-spectrum of radia
Slide 8: TomoTherapy System
TomoTherapy® System PRE-ASTRO Meeting October 2012 TomoTherapy® was seen as a specialty system used to deliver IMRT for complex and difficult cases Niche position in market POST-ASTRO Meeting October 2012 TomoTherapy® H™ Series New designs for many components Treatments cover entire spectrum of radi
Slide 9: TomoTherapy - Mainstream Opportunity
Estimates based upon IMV 2012 Radiation Therapy Market Summary Report (Feb. 2012), and internal Accuray information TomoTherapy® - Mainstream Opportunity IMV Radiation Therapy Market Summery Report - 2012 Type Centers TomoTherapy® Systems TomoTherapy Share 3 vaults 343 119 35% 2 vaults 733 63 9% 1 v
Slide 10: CyberKnife System
CyberKnife® System PRE-ASTRO Meeting October 2012 CyberKnife® was seen as a specialty system for radiosurgery treatment Niche position in market POST-ASTRO Meeting October 2012 CyberKnife® M6™ Series MLC can treat larger tumor areas and provide IMRT treatments Improved treatment speed and better pat
Slide 11: Improve Sales & Marketing Execution
Improve Sales & Marketing Execution Demonstrate enhanced value proposition of new models for customers New products meet customers’ needs across wider range of patients Faster delivery of treatment and quicker planning improve hospital throughput and economics Improved reliability of new TomoTherapy
Slide 12: Restructuring
Restructuring Establish new cost structure to position company to achieve sustained profitability Rationalize R&D and G&A costs Reallocate resources to better support key commercial activities Drive order and revenue momentum Transform our company culture Align culture with new business strategy Imp
Slide 13: Latest Results: Quarter-End Dec. 31, 2012
Latest Results: Quarter-End Dec. 31, 2012 Q2 FY2013 Q2 FY2012 Revenue: Product $ 33.2 42.7% $ 64.5 63.0% Revenue: Service 44.6 57.3% 38.4 37.0% 77.7 100.0% 102.9 100.0% Gr. Profit: Product 16.6 50.0% 36.0 55.9% Gr. Profit: Service 12.0 26.9% 4.7 12.3% 28.6 36.7% 40.7 39.6% R&D 17.0 17.7 Sales & Mark
Slide 14: Service is growing and profitable
Service is growing and profitable Non-GAAP results – See appendix for bridge from GAAP to Non-GAAP
Slide 15: Shareholder Value Creation Model
Reduce operating expenses Reduce operating expenses by approximately $40M from the level originally reported for FY2012 Result: Positions company for profitability and growth Continue to grow service revenue Continue to increase recurring revenue from growth in installed base Continue to improve gro
Slide 16: Appendix
Wwe ACCURAY APPENDIX
Slide 17: GAAP to Non-GAAP: Revenue & Cost of Sales Bridge
GAAP to Non-GAAP: Revenue & Cost of Sales Bridge (Extract from 2/6/13 Press Release) Non-GAAP results Revenue 2012 2012 2012 2011 2011 2011 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Products 33,170 $ - (A) 33,170 $ 63,802 135 (A) 63,937 Services 44,609 (33) (B) 44,576 42,097 (3,693) (B) 38
Slide 18: GAAP to Non-GAAP: OpEx Bridge
GAAP to Non-GAAP: OpEx Bridge (Extract from 2/6/13 Press Release) Non-GAAP results Operating Expenses 2012 2012 2012 2011 2011 2011 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Selling and Marketing 15,761 $ (11) (E) 15,750 $ 14,017 $ (46) $ (E) 13,971 $ Research and Development 17,239 (188)
Slide 19: GAAP to Non-GAAP: Net Loss
GAAP to Non-GAAP: Net Loss (Extract from 2/6/13 Press Release) Non-GAAP results 2012 2012 2012 2011 2011 2011 GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Loss From Operations $ (22,266) 2,710 $ (H) (19,556) $ (5,452) $ 2,353 $ (H) (3,099) $ Other Expense (2,580) 1,058 (I) (1,522) (4,464) 959
Slide 20: GAAP to Non-GAAP: Service Margins
GAAP to Non-GAAP: Service Margins Non-GAAP results Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Service Revenue 43,401 42,097 41,720 39,463 42,120 44,609 Service Cost 37,349 33,177 33,100 30,936 35,063 32,589 Service Gross Margin 13.9% 21.2% 20.7% 21.6% 16.8% 26.9% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12