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Accuray Inc. Reports Operating Results (10-Q)

February 08, 2012 | About:
10qk

10qk

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Accuray Inc. (ARAY) filed Quarterly Report for the period ended 2011-12-31.

Accuray Inc. has a market cap of $436.5 million; its shares were traded at around $6.29 with and P/S ratio of 2.
This is the annual revenues and earnings per share of ARAY over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ARAY.


Highlight of Business Operations:

International sales of our products account for a significant and growing portion of our total revenue. Revenue derived from sales outside of the United States was $52.2 million and $103.8 million for the three and six months ended December 31, 2011 while it was $15.4 million and $30.4 million for the three and six months ended December 31, 2010, respectively. International sales as a percentage of our total revenue was 49% and 28% for the three months ended December 31, 2011 and 2010, respectively and 50% and 33% for the six months ended December 31, 2011 and 2010, respectively. The increase in international revenues during fiscal 2012 resulted from the inclusion of sales of TomoTherapy products and services in the three and six months ended December 31, 2011.

Selling and marketing expenses for the three months ended December 31, 2011 increased $6.0 million compared to the three months ended December 31, 2010. The increase was attributable primarily to higher employee related expenses and sales commissions of $3.8 million due to headcount increases, tradeshows expense of $0.8 million, travel expense of $0.7 million and office facilities and communications related expenses of $0.5 million. During the three months ended December 31, 2011, we incurred $4.5 million of selling and marketing expenses from our TomoTherapy subsidiary consisting primarily of employee related expenses and sales commissions of $3.0 million, travel expense of $0.7 million and tradeshows expense of $0.3 million.

Selling and marketing expenses for the six months ended December 31, 2011 increased $11.9 million compared to the six months ended December 31, 2010. The increase was primarily attributable to higher employee related expenses and sales commissions of $7.0 million, travel expense of $1.7 million, tradeshows expense of $1.1 million, office facilities and communication related expenses of $0.9 million and consulting fees of $0.7 million. During the six months ended December 31, 2011, we incurred $9.3 million of selling and marketing expenses from our TomoTherapy subsidiary consisting primarily of employee related expenses and sales commissions of $6.4 million, travel expense of $1.4 million and tradeshows expense of $0.6 million.

Net cash used in operating activities was $38.4 million for the six months ended December 31, 2011 which was attributable to net loss of $40.3 million, $25.2 million of non-cash charges and cash used for working capital purposes of $23.3 million. Non-cash charges primarily included $16.5 million of depreciation and amortization expenses, $4.6 million of share-based compensation expense, accretion of interest expense on the Notes of $1.6 million, $1.3 million for provision for bad debts and $1.0 million for provision for write-down of inventories. Cash used for working capital was primarily attributed to increases in account receivable of $15.0 million due to higher billings, decreases in accounts payable of $17.0 million due to timing of vendor payments and decreases in accrued liabilities of $23.8 million due to payments for acquisition related, value-added tax related, and other liabilities, and partially offset by cash flow from decreases in inventory balances of $12.1 million due to usage and increases in deferred revenues of $17.2 million due to increased shipments and billings.

Net cash provided by operating activities was $0.2 million for the six months ended December 31, 2010. Our net loss of $0.5 million contributed to the negative cash flows from working capital changes including a decrease in deferred revenue, net of deferred cost of revenue of $3.6 million, an increase in inventories of $8.8 million and a decrease in accounts payable of $4.0 million. This was offset primarily by a decrease in accounts receivable of $8.5 million. The decrease in deferred revenue, net of deferred cost of revenue, was primarily a result of the recognition of revenue previously deferred for systems sold under our Platinum plan and timing differences between invoicing customers for products and services and the recognition of the invoicing as revenue. Increases in inventory were due to increases in production while the decrease in accounts payable was due to timing differences between the receipt of goods and service and vendor payments. Non-cash charges included $4.5 million of stock-based compensation charges, $2.9 million of depreciation and amortization expense, and write-down of inventories of $0.7 million.

Read the The complete Report

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