Accuray Incorporated · NASDAQ:ARAY
Accuray — Morgan Stanley Healthcare Conference 2015
19 slides from Accuray's conference presentation, Sep 16, 2015
Slide 1: Accuray Incorporated - Morgan Stanley Healthcare Conference September 2015
Accuray Incorporated Josh levine president and ceo Morgan Stanley Healthcare Conference september 2015 NASDAQ: ARAY
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward Looking Statements Safe Harbor 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 Securiti
Slide 3: Growth Strategy Execution
Growth Strategy Execution Large and growing radiation therapy market Uniquely differentiated technology that leads the market in dosing precision Products positioned in fastest growth segments Roadmap to maintain precision leadership Improving commercial execution Driving to sustained profitability
Slide 4: Large and Growing Market
Worldwide incidences of cancer are estimated to reach 17 million by 2017 Driven by growth of aging population 90% of all cancers are projected to be solid tumors Potentially eligible for radiation therapy 60% of cancer patients worldwide may undergo some form of radiation therapy during their course
Slide 5: Uniquely Differentiated Technology
Uniquely Differentiated Technology Architecture, Imaging and Delivery Robotic architecture Continual imaging throughout treatment Automatically tracks and adjusts beam for tumor movement CyberKnife® CT scanner-based; ring gantry platform Daily, low-dose 3D CT scan Fast MLC delivers thousands of “bea
Slide 6: Products Positioned in Growth Segments
Specialty Economy Premium Value SRS/SBRT IMRT Conventional RT $1M $2M $3M $4M $5M Clinical Precision ASP CyberKnife® VSI Products Positioned in Growth Segments *Source: U.S. data. The Advisory Board Company, five-year growth projection. New Patient Volume: 5-Year Growth Estimate TomoTherapy® Hi-Art
Slide 7: Improving Commercial Execution: The Vital Few
Improving Commercial Execution The Vital Few Focus on installed base satisfaction Accelerate TomoTherapy® mainstream product positioning Broaden CyberKnife® clinical versatility around MLC Expand China commercial growth strategy 1 2 3 5 4 Grow GPO/strategic accounts portfolio to improve U.S. commerc
Slide 8: Accelerate TomoTherapy Mainstream Product Positioning
Improving Commercial Execution Accelerate TomoTherapy® Mainstream Product Positioning 1. MD Buyline Market Intelligence Briefing™ Q2 2015. 2. Estimates based on U.S. IMV 2012/13 Radiation Therapy Market Summary Report, July 2013. 3. Internal Accuray information (July 2015). Improvements in Performan
Slide 9: Commercialization of InCise MLC for the CyberKnife System
Commercialization of our InCise™ MLC for the CyberKnife® System Site Feedback Highlights MLC Stability, Reliability and Accuracy Treatment times reported by customers for clinical cases delivered to patients. Includes setup and delivery time. (Treatment times reported by MultiPlan® planning station
Slide 10: Grow GPO/Strategic Accounts
Improving Commercial Execution Grow GPO/Strategic Accounts GPO’s - Three system orders that went to Q4 backlog placed by hospitals affiliated with our GPO partners - 30% of system upgrades in fiscal 2015 were GPO sourced 21st Century - Multi-system order for 1 CyberKnife and 4 TomoTherapy Systems in
Slide 11: China Commercial Opportunity
China Commercial Opportunity Progress to date on growth strategy Significant growth opportunity based on low penetration and growing demand Accuray winning market share in class A licenses RT Systems per 1,000 Cancer Patients Estimated RT Penetration 34 licenses awarded to hospitals for Accuray prod
Slide 12: Installed Base Focus
Installed Base Focus Significant New Order Opportunity 4.6X units will hit 10 year mark in next 3 years vs. previous 3 years Most radiation therapy systems are replaced in 10 years Aging installed base provides significant new order opportunity Installed base customer satisfaction critical to achiev
Slide 13: Q4 FY15 Performance Update
Gross orders of $85M grow 14% (20% constant currency) Revenues of $102M consistent with prior year (grow 5% constant currency) Gross margins of 40% (42% constant currency), up 210 bps over prior year Product gross margins of 43% Service gross margins of 36% Adjusted EBITDA of $6.7 million ($9.7M con
Slide 14: Driving to Sustained Profitability
Driving to Sustained Profitability Committed to profitable revenue growth from expanding margins and controlled operating expenses Currency fluctuations in FY2015 negatively impacted Revenues and Operating Income by approximately $14M and $9M respectively A reconciliation of aEBITDA to GAAP net inco
Slide 15: Fiscal Year 2016 Outlook
Fiscal Year 2016 Outlook Focus on Growth and Profitability Gross Orders $295M or 10% YoY growth Age-Outs 1) YoY decrease in age-outs as percent of average backlog 2) Significant variability on a quarterly basis 3) Q1 FY16 expected to be between $20M - $23M Revenue $395M to $410M or 4% to 8% YoY grow
Slide 16: Accuray: Precise, innovative tumor treatments
w ACCURAY® Precise, innovative tumor treatments”
Slide 17: Appendix
ACCURAY Appendix
Slide 18: aEBITDA Reconciliation: Non-GAAP
aEBITDA Reconciliation: Non-GAAP This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful compar
Slide 19: aEBITDA Reconciliation: Non-GAAP
aEBITDA Reconciliation: Non-GAAP This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful compar