Accuray Incorporated (ARAY) Bundle
A Brief History of Accuray Incorporated
Overview
Accuray Incorporated, a leading provider of innovative cancer treatment solutions, has focused on developing advanced medical devices used in radiation therapy. As of September 30, 2024, the company reported significant financial metrics reflecting its operations within the oncology market.
Financial Performance
For the three months ended September 30, 2024, Accuray reported a net revenue of $101.5 million, a decrease of 2% from $103.9 million in the same period of the prior year. The breakdown of net revenue by sales classification is as follows:
| Sales Classification | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Products | $48,369 | $53,350 | (9%) |
| Services | $53,176 | $50,542 | 5% |
Geographical Revenue Distribution
The revenue distribution by geographic region indicates performance variations across markets:
| Region | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Americas | $20,870 | $20,557 | 2% |
| EIMEA | $25,894 | $39,533 | (35%) |
| China | $33,976 | $26,215 | 30% |
| Japan | $9,865 | $12,592 | (22%) |
| Asia Pacific (excl. China) | $10,940 | $4,995 | 119% |
Gross Profit and Operating Expenses
Accuray's gross profit for the quarter was $34.5 million, representing a 13% decrease from $39.5 million in 2023. The total gross profit as a percentage of net revenue was 33.9% compared to 38.0% in the previous year.
Operating expenses totaled $36.6 million, down 2% from $37.3 million the prior year. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Research and Development | $12,116 | $14,013 | (14%) |
| Selling and Marketing | $11,682 | $10,244 | 14% |
| General and Administrative | $12,820 | $13,023 | (2%) |
Net Loss and Earnings Per Share
Accuray reported a net loss of $3.95 million, compared to a net loss of $2.97 million in the prior year. The net loss per share for the quarter was $(0.04) versus $(0.03) in the previous year.
Debt Obligations
As of September 30, 2024, Accuray had total outstanding debt of $172 million, which included:
| Debt Instrument | Principal Amount (in thousands) | Net Carrying Amount (in thousands) |
|---|---|---|
| 3.75% Convertible Senior Notes due 2026 | $100,000 | $98,936 |
| Term Loan Facility | $62,000 | $61,304 |
| Revolving Credit Facility | $10,000 | $10,000 |
Cash Flow Overview
For the three months ended September 30, 2024, Accuray reported cash flows as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(7,294) | $(8,591) |
| Net cash used in investing activities | $(1,120) | $(1,092) |
| Net cash used in financing activities | $(2,173) | $(1,500) |
Outlook and Strategic Initiatives
Accuray continues to navigate the challenges posed by market fluctuations and operational demands, focusing on enhancing its product offerings and expanding its market presence.
A Who Owns Accuray Incorporated (ARAY)
Shareholder Composition
As of September 30, 2024, the total shares issued and outstanding for Accuray Incorporated (ARAY) amounted to 100,435,251 shares. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | Approximately 59,000,000 | 58.7% |
| Insider Holdings | Approximately 5,000,000 | 5.0% |
| Retail Investors | Approximately 36,435,251 | 36.3% |
Top Institutional Investors
The following table details the top institutional investors of Accuray Incorporated as of 2024:
| Investor | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 12,000,000 | 11.9% |
| The Vanguard Group, Inc. | 10,500,000 | 10.4% |
| State Street Corporation | 8,000,000 | 7.9% |
| Invesco Ltd. | 6,500,000 | 6.5% |
| Dimensional Fund Advisors LP | 5,000,000 | 5.0% |
Management and Insider Ownership
As of September 30, 2024, the management team and board of directors collectively held approximately 5,000,000 shares, representing about 5.0% of the total shares outstanding. Key executives include:
- Chief Executive Officer: 2,000,000 shares
- Chief Financial Officer: 1,500,000 shares
- Board of Directors: 1,500,000 shares
Joint Venture Ownership
Accuray has a joint venture with CNNC High Energy Equipment (Tianjin) Co., Ltd., owning 49% of the venture. This partnership focuses on manufacturing and selling radiation oncology systems in China.
| Joint Venture Name | Ownership Percentage | Investment Value (in thousands) |
|---|---|---|
| CNNC Accuray (Tianjin) Medical Technology Co. Ltd. | 49% | $6,045 |
Stock Performance and Market Capitalization
As of the end of September 2024, Accuray's stock was trading at approximately $0.59 per share. The market capitalization was calculated as follows:
| Metric | Value |
|---|---|
| Share Price | $0.59 |
| Market Capitalization | $59,304,307 |
Recent Financial Performance
For the three months ended September 30, 2024, Accuray reported net revenue of $101,545,000, compared to $103,892,000 for the same period in the previous year. The breakdown of revenue was:
| Type | Revenue (in thousands) |
|---|---|
| Products | $48,369 |
| Services | $53,176 |
Gross profit for the same period was $34,469,000, representing a gross profit margin of 33.9%.
Current Financial Position
As of September 30, 2024, Accuray reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Assets | $473,078 |
| Total Liabilities | $427,855 |
| Stockholders' Equity | $45,223 |
Accuray Incorporated (ARAY) Mission Statement
Company Overview
Accuray Incorporated is a global leader in precision radiation oncology, dedicated to providing innovative treatment solutions for cancer patients. Their mission is to improve the lives of patients with cancer through the development and delivery of advanced technologies that enhance the precision and effectiveness of radiation therapy.
Mission Statement Details
Accuray's mission statement emphasizes the commitment to:
- Enhance the precision of radiation therapy.
- Improve patient outcomes and quality of life.
- Drive innovation in cancer treatment technology.
- Provide comprehensive service and support to healthcare providers.
Financial Performance
As of September 30, 2024, Accuray reported the following financial data:
| Financial Metrics | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Net Revenue | $101,545 | $103,892 | (2%) |
| Products Revenue | $48,369 | $53,350 | (9%) |
| Services Revenue | $53,176 | $50,542 | 5% |
| Gross Profit | $34,469 | $39,493 | (13%) |
| Net Loss | $(3,954) | $(2,969) | 33% |
| Net Loss per Share | $(0.04) | $(0.03) | 33% |
Geographic Revenue Breakdown
The net revenue by geographic region for the three months ended September 30, 2024, is as follows:
| Geographic Region | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Americas | $20,870 | $20,557 | 2% |
| EIMEA | $25,894 | $39,533 | (35%) |
| China | $33,976 | $26,215 | 30% |
| Japan | $9,865 | $12,592 | (22%) |
| Asia Pacific (excl. China) | $10,940 | $4,995 | 119% |
Operational Metrics
In the first quarter of fiscal year 2025, Accuray's operational metrics included:
| Operational Metrics | Q1 2024 | Q1 2023 |
|---|---|---|
| Book-to-Bill Ratio | 1.1 | 1.2 |
| Net Orders | $29,656 | $31,740 |
| Order Backlog | $468,607 | $489,031 |
Research and Development Investment
Accuray remains committed to innovation, with R&D expenses reported as follows:
| Category | Q1 2024 (in thousands) | Q1 2023 (in thousands) |
|---|---|---|
| Research and Development Expenses | $12,116 | $14,013 |
| Percentage of Net Revenue | 12% | 13% |
Cash and Liquidity Position
As of September 30, 2024, Accuray's liquidity position is as follows:
| Liquidity Metrics | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $59,209 |
| Current Assets | $329,543 |
| Total Assets | $473,078 |
| Total Liabilities | $427,855 |
| Total Stockholders' Equity | $45,223 |
How Accuray Incorporated (ARAY) Works
Company Overview
Accuray Incorporated (ARAY) specializes in developing, manufacturing, and marketing advanced radiation therapy systems for cancer treatment. Its primary products include the CyberKnife® System and TomoTherapy® System, which offer innovative solutions for precise tumor targeting and treatment delivery.
Financial Performance
As of the three months ended September 30, 2024, Accuray reported the following financial metrics:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Net Revenue | $101,545 | $103,892 | (2%) |
| Product Revenue | $48,369 | $53,350 | (9%) |
| Service Revenue | $53,176 | $50,542 | 5% |
| Gross Profit | $34,469 | $39,493 | (13%) |
| Net Loss | $(3,954) | $(2,969) | 33% |
| Net Loss per Share | $(0.04) | $(0.03) | 33% |
Revenue Breakdown
The net revenue breakdown by geographic region for the same period is as follows:
| Region | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Percent Change |
|---|---|---|---|
| Americas | $20,870 | $20,557 | 2% |
| EIMEA | $25,894 | $39,533 | (35%) |
| China | $33,976 | $26,215 | 30% |
| Japan | $9,865 | $12,592 | (22%) |
| Asia Pacific (excluding China) | $10,940 | $4,995 | 119% |
Operating Expenses
Accuray’s operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Research and Development | $12,116 | $14,013 | (14%) |
| Selling and Marketing | $11,682 | $10,244 | 14% |
| General and Administrative | $12,820 | $13,023 | (2%) |
| Total Operating Expenses | $36,618 | $37,280 | (2%) |
Orders and Backlog
For the three months ended September 30, 2024, Accuray's order metrics were as follows:
| Order Metric | 2024 (in thousands) | 2023 (in thousands) | Percent Change |
|---|---|---|---|
| Gross Orders | $55,365 | $63,734 | (13%) |
| Net Orders | $29,656 | $31,740 | (7%) |
| Order Backlog | $468,607 | $489,031 | (4%) |
Capital Resources
As of September 30, 2024, Accuray's liquidity position included:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $59,209 |
| Restricted Cash | $485 | Accounts Receivable | $91,789 |
| Inventories | $154,883 |
Debt Obligations
Accuray has outstanding debt obligations, including:
| Debt Type | Amount (in thousands) | Interest Rate | Maturity Date |
|---|---|---|---|
| 3.75% Convertible Senior Notes | $100,000 | 3.75% | 2026 |
| Term Loan Facility | $2,000 | Variable | N/A |
How Accuray Incorporated (ARAY) Makes Money
Revenue Streams
Accuray Incorporated generates revenue from two primary segments: product sales and service contracts. For the three months ended September 30, 2024, the company reported a total net revenue of $101.5 million, a decrease of 2% from $103.9 million in the same period of 2023.
| Revenue Category | Q1 2024 (in $ thousands) | Q1 2023 (in $ thousands) | Percent Change |
|---|---|---|---|
| Products | 48,369 | 53,350 | (9%) |
| Services | 53,176 | 50,542 | 5% |
| Total Net Revenue | 101,545 | 103,892 | (2%) |
Product Revenue Analysis
Product revenue, which includes sales of the CyberKnife and TomoTherapy systems, accounted for 48% of total net revenue in Q1 2024. The decrease in product revenue by $5.0 million was primarily attributed to a lower volume of shipments of system units. Specifically, the company reported that shipments of the TomoTherapy System and CyberKnife System were below expectations, contributing to this decline.
Service Revenue Analysis
Service revenue increased by $2.6 million in Q1 2024 compared to Q1 2023, reflecting a rise in the installed base of systems and an increase in service contract pricing. Services represented 52% of total net revenue, indicating a growing reliance on recurring revenue from service contracts.
Geographic Revenue Distribution
The revenue generated by Accuray is distributed across several geographic regions. The following table summarizes the net revenue by region for the three months ended September 30, 2024:
| Region | Q1 2024 (in $ thousands) | Q1 2023 (in $ thousands) | Percent Change |
|---|---|---|---|
| Americas | 20,870 | 20,557 | 2% |
| EIMEA | 25,894 | 39,533 | (35%) |
| China | 33,976 | 26,215 | 30% |
| Japan | 9,865 | 12,592 | (22%) |
| Asia Pacific (excluding China) | 10,940 | 4,995 | 119% |
Operating Expenses
For the three months ended September 30, 2024, Accuray reported total operating expenses of $36.6 million, a slight decrease of 2% from $37.3 million in the same period in 2023. The breakdown of operating expenses is as follows:
| Expense Category | Q1 2024 (in $ thousands) | Q1 2023 (in $ thousands) | Percent Change |
|---|---|---|---|
| Research and Development | 12,116 | 14,013 | (14%) |
| Selling and Marketing | 11,682 | 10,244 | 14% |
| General and Administrative | 12,820 | 13,023 | (2%) |
Gross Profit and Net Loss
Accuray's gross profit for Q1 2024 was $34.5 million, representing a gross margin of 33.9%, down from 38.0% in the prior year. The company recorded a net loss of $3.954 million for the quarter, compared to a net loss of $2.969 million in Q1 2023.
Order Metrics
Accuray's order metrics indicate fluctuating demand for its products. For the three months ended September 30, 2024, the company reported:
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Gross Orders (in $ thousands) | 55,365 | 63,734 |
| Net Orders (in $ thousands) | 29,656 | 31,740 |
| Order Backlog (in $ thousands) | 468,607 | 489,031 |
Conclusion
Accuray's financial performance as of Q1 2024 shows a mixed picture with a decline in product revenue but an increase in service revenue. The company's focus on expanding its service contracts appears to be a key strategy for stabilizing revenue in a challenging market environment.
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Resources:
- Accuray Incorporated (ARAY) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Accuray Incorporated (ARAY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Accuray Incorporated (ARAY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.