Form 8-K ACCURAY INC For: Jan 26

January 26, 2022 4:07 PM EST

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Exhibit 99.1

 

img235950492_0.jpg 

 

 

 

 

Accuray Reports Fiscal 2022 Second Quarter Financial Results

Record Revenue For Second Quarter Fiscal 2022

 

 

SUNNYVALE, Calif., January 26, 2022 — Accuray Incorporated (NASDAQ: ARAY) today reported financial results for the second quarter of fiscal 2022 ended December 31, 2021.

 

Second Quarter Fiscal 2022 Summary

Record net revenue of $116.3 million representing an increase of 19 percent compared to the prior year
Gross orders of $85.4 million, an increase of 13 percent compared to the prior year
GAAP net income of $0.2 million as compared to GAAP Net income of $4.8 million in the prior year. Adjusted EBITDA of $6.8 million as compared to adjusted EBITDA of $13.5 million in the prior year

 

Other Recent Operational Highlights

Continued strong demand for ClearRT™ Helical kVCT Imaging for the Radixact® System: 68 global orders received since its commercial release in December 2020
CyberKnife® Robotic Radiotherapy Platform expands range of neurological indications that can be effectively treated with stereotactic radiosurgery and receives Shonin approval to treat Trigeminal Neuralgia, a chronic pain condition affecting a facial nerve
Ramping demand for VOLO™ Ultra enhancement to the Accuray Precision® treatment planning system for the Radixact System

 

“Accuray’s fiscal 2022 second quarter performance continues to reflect the strong customer demand and revenue momentum our business is generating, but also highlighted global supply chain challenges and operational headwinds created by the Covid environment. Driving our accelerated revenue growth is the continued adoption of our new technology upgrades on the Radixact platform which are having an impact across all regions,” said Joshua Levine, Chief Executive Officer.

 

Fiscal Second Quarter Results

Total net revenue was $116.3 million for the second quarter of fiscal 2022 compared to $97.5 million for the prior fiscal year second quarter. Product revenue totaled $60.7 million for the second quarter of fiscal 2022 compared to $41.8 million for the prior fiscal year second quarter, while service revenue totaled $55.6 million for the second quarter of fiscal 2022 compared to $55.7 million for the prior fiscal year second quarter.

Total gross profit for the second quarter of fiscal 2022 was $42.6 million or approximately 36.7 percent of total net revenue, comprised of product gross margin of 41.5 percent of product net revenue and service gross margin of 31.4 percent of service net revenue. This compares to total gross profit of $40.8 million or 41.9 percent of total net revenue, comprised of product gross margin of 44.7 percent of product net revenue and service gross margin of 39.8 percent of service net revenue for the prior fiscal year second quarter.

 

Operating expenses for the second quarter of fiscal 2022 were $38.6 million, an increase of 18 percent compared to $32.6 million in the prior fiscal year second quarter.

Net income was $0.2 million, or $0 per share, for the second quarter of fiscal 2022, compared to net income of $4.8 million, or an income of $0.05 per share, for the prior fiscal year second quarter.

 


Gross product orders totaled $85.4 million for the second quarter of fiscal 2022 compared to $75.4 million for the prior fiscal year second quarter. Order backlog as of December 31, 2021 was $581.3 million, approximately 3 percent lower than at the end of the prior fiscal year second quarter.

 

Adjusted EBITDA for the second quarter of fiscal 2022 was $6.8 million, compared to $13.5 million for the prior fiscal year second quarter.

Cash, cash equivalents, and short-term restricted cash were $123.4 million as of December 31, 2021 compared with $104.7 million as of September 30, 2021.
 

Fiscal Six Months Results
 

Total net revenue for the six months ended December 31, 2021 was $223.7 million compared to $182.8 million in the same prior fiscal year period. Product revenue for the six months ended December 31, 2021 totaled $113.5 million compared to $73.1 million, while service revenue totaled $110.2 million compared to $109.7 million in the same prior fiscal year period.

 

Total gross profit for the six months ended December 31, 2021 was $82.2 million, or 36.7 percent of net revenue, comprised of product gross margin of 40.9 percent of product revenue and service gross margin of 32.3 percent of service revenue. This compares to total gross profit of $76.2 million, or 41.7 percent of net revenue, comprised of product gross margin of 43.2 percent of product revenue and service gross margin of 40.7 percent of service revenue in the same prior fiscal year period.

 

Operating expenses for the six months ended December 31, 2021 were $75.8 million, an increase of 21 percent compared with $62.6 million in the same prior fiscal year period.

 

Net loss was $0.8 million, or $0.01 of loss per share, for the six months ended December 31, 2021, compared to net income of $5.2 million, or $0.06 per share, in the same prior fiscal year period.

 

Gross product orders totaled $155.4 million for the six months ended December 31, 2021, compared to $125.9 million for the same prior fiscal year period. Order backlog as of December 31, 2021 was $581.3 million, approximately 3 percent lower than at the end of the prior fiscal year second quarter.

 

Adjusted EBITDA for the six months ended December 31, 2021 was $12.2 million, compared to $22.5 million in the prior fiscal year period.

 

Fiscal Year 2022 Financial Guidance

 

Accuray’s financial guidance is based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions, the impact of the Covid-19 pandemic, supply chain disruption, and the factors set forth under “Safe Harbor Statement” below.

 

The Company is revising guidance for fiscal year 2022 as follows:

 

Total revenue is being increased to an expected range of $420.0 million to $430.0 million compared to the prior range of $420.0 million to $427.0 million, representing a year-over-year growth at the midpoint of the range of 7%.

 
Adjusted EBITDA is now expected to range between $15.0 million to $20.0 million compared to the prior range of $33.0 million to $35.0 million.

 

Guidance for non-GAAP financial measures excludes depreciation and amortization, stock-based compensation expense, interest expense and provision for income taxes. For more information regarding the non-GAAP financial measures discussed in this press release, please see "Use of Non-GAAP Financial Measures" below.

 

 


Conference Call Information

Accuray will host a conference call beginning at 1:30 p.m. PT/4:30 p.m. ET today to discuss results for the second quarter of fiscal 2022 as well as recent corporate developments. Conference call dial-in information is as follows:

U.S. callers: (833) 316-0563
International callers: (412) 317-5747


Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Investor Relations section of Accuray’s website, www.accuray.com. There will be a slide presentation accompanying today’s event which can also be accessed on the company’s Investor Relations page at www.accuray.com.

 

In addition, a taped replay of the conference call will be available beginning approximately one hour after the call’s conclusion and will be available for seven days. The replay number is (877) 344-7529 (USA), or (412) 317-0088 (International), Conference ID: 6302301. An archived webcast will also be available on Accuray’s website until Accuray announces its results for the third quarter of fiscal 2022.

 

Use of Non-GAAP Financial Measures

 

Accuray has supplemented its GAAP net income (loss) with a non-GAAP measure of adjusted earnings before interest, taxes, depreciation, amortization and stock-based compensation (“adjusted EBITDA”). The calculation of adjusted EBITDA also excludes certain non-recurring, irregular and one-time items. 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 meaningful comparison of results for current periods with previous operating results. A reconciliation of GAAP net income (loss) (the most directly comparable GAAP measure) to non-GAAP adjusted EBITDA is provided in the schedules below.

 

There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP.

 

About Accuray

 

Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions that are designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Sunnyvale, California, with facilities worldwide.

 

Safe Harbor Statement

 

Statements made in this press release 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 Act of 1995. Forward-looking statements in this press release relate, but are not limited, to the company's future results of operations, including expectations regarding total revenue and adjusted EBITDA; expectations regarding the effect of the COVID-19 pandemic on the company and the market in general, including with respect to supply chain and logistics challenges; expectations regarding the company’s commercial strategy and execution as well as long-term growth opportunities, including with respect to supply chain and logistics challenges; expectations regarding the company’s order growth; the company’s ability to continue to drive accelerated revenue growth; expectations regarding the company’s China joint venture and other partnerships; expectations regarding the company’s product innovations and developments; expectations regarding the company’s product portfolio and its ability to position the company for growth; the impact of the company’s products on its customers and its business, and market adoption of such products, including with respect to the company’s VOLO Ultra enhancement and Clear RT Helical kVCT Imaging upgrades as well as other strategic product innovations;


expectations regarding the future of radiotherapy treatment and the company’s addressable market; and the company's leadership position in radiation oncology innovation and technologies. These forward-looking statements involve risks and uncertainties. If any of these risk or uncertainties materialize, or if any of the company's assumptions prove incorrect, actual results could differ materially from the results express or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the effect of the COVID-19 pandemic on the operations of the company and those of its customers and suppliers; disruptions to our supply chain, including increased logistics costs as well as increased costs and difficulties in obtaining a sufficient amount of materials in the semiconductor and other markets; the company's ability to achieve widespread market acceptance of its products, including new product and software offerings; the company’s ability to develop new products or enhance existing products to meet customers’ needs and compete favorably in the market, the company’s ability to realize the expected benefits of the China joint venture and other partnerships; risks inherent in international operations; the company's ability to effectively manage its growth; the company's ability to maintain or increase its gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; the company's ability to meet the covenants under its credit facilities; the company's ability to convert backlog to revenue; and such other risks identified under the heading "Risk Factors" in the company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission (the "SEC") on November 4, 2021 and as updated periodically with the company's other filings with the SEC.

 

Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management's good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements.

 

Aman Patel, CFA

Beth Kaplan

Investor Relations, ICR-Westwicke

Public Relations Director, Accuray

+1 (443) 450-4191

+1 (408) 789-4426

[email protected]

[email protected]

 

###

 

Financial Tables to Follow

 

 


Accuray Incorporated

Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended
December 31,

 

 

Six Months Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Products

 

$

60,721

 

 

$

41,805

 

 

$

113,480

 

 

$

73,063

 

Services

 

 

55,554

 

 

 

55,654

 

 

 

110,237

 

 

 

109,728

 

Total net revenue

 

 

116,275

 

 

 

97,459

 

 

 

223,717

 

 

 

182,791

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products

 

 

35,520

 

 

 

23,102

 

 

 

67,029

 

 

 

41,528

 

Cost of services

 

 

38,128

 

 

 

33,526

 

 

 

74,537

 

 

 

65,029

 

Total cost of revenue

 

 

73,648

 

 

 

56,628

 

 

 

141,566

 

 

 

106,557

 

Gross profit

 

 

42,627

 

 

 

40,831

 

 

 

82,151

 

 

 

76,234

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

14,697

 

 

 

11,956

 

 

 

29,079

 

 

 

24,104

 

Selling and marketing

 

 

13,233

 

 

 

10,348

 

 

 

24,504

 

 

 

19,246

 

General and administrative

 

 

10,716

 

 

 

10,328

 

 

 

22,176

 

 

 

19,217

 

Total operating expenses

 

 

38,646

 

 

 

32,632

 

 

 

75,759

 

 

 

62,567

 

Income from operations

 

 

3,981

 

 

 

8,199

 

 

 

6,392

 

 

 

13,667

 

Income (loss) on equity investment, net

 

 

(832

)

 

 

1,117

 

 

 

(1,172

)

 

 

1,089

 

Other expense, net

 

 

(2,490

)

 

 

(4,260

)

 

 

(5,158

)

 

 

(8,954

)

Income before provision for income taxes

 

 

659

 

 

 

5,056

 

 

 

62

 

 

 

5,802

 

Provision for income taxes

 

 

480

 

 

 

287

 

 

 

911

 

 

 

631

 

Net income (loss)

 

$

179

 

 

$

4,769

 

 

$

(849

)

 

$

5,171

 

Net income (loss) per share - basic

 

$

0.00

 

 

$

0.05

 

 

$

(0.01

)

 

$

0.06

 

Net income (loss) per share - diluted

 

$

0.00

 

 

$

0.05

 

 

$

(0.01

)

 

$

0.06

 

Weighted average common shares used in
   computing income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

91,761

 

 

 

92,025

 

 

 

91,299

 

 

 

91,609

 

Diluted

 

 

93,932

 

 

 

93,353

 

 

 

91,299

 

 

 

92,607

 

 

 


Accuray Incorporated

Consolidated Balance Sheets

(in thousands)

(Unaudited)

 

 

 

December 31,

 

 

June 30,

 

 

 

2021

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

123,196

 

 

$

116,369

 

Restricted cash

 

 

244

 

 

 

560

 

Accounts receivable, net

 

 

81,905

 

 

 

85,360

 

Inventories

 

 

123,680

 

 

 

125,929

 

Prepaid expenses and other current assets

 

 

20,940

 

 

 

21,547

 

Deferred cost of revenue

 

 

1,355

 

 

 

3,008

 

Total current assets

 

 

351,320

 

 

 

352,773

 

Property and equipment, net

 

 

12,208

 

 

 

12,332

 

Investment in joint venture

 

 

14,678

 

 

 

15,935

 

Goodwill

 

 

58,006

 

 

 

57,960

 

Intangible assets, net

 

 

322

 

 

 

435

 

Operating lease right-of-use assets

 

 

19,429

 

 

 

22,522

 

Other assets

 

 

19,538

 

 

 

18,141

 

Total assets

 

$

475,501

 

 

$

480,098

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

29,258

 

 

$

19,467

 

Accrued compensation

 

 

24,184

 

 

 

26,865

 

Operating lease liabilities, current

 

 

8,327

 

 

 

8,169

 

Other accrued liabilities

 

 

33,883

 

 

 

27,471

 

Customer advances

 

 

24,610

 

 

 

24,937

 

Deferred revenue

 

 

76,585

 

 

 

81,660

 

Short-term debt

 

 

7,541

 

 

 

3,790

 

Total current liabilities

 

 

204,388

 

 

 

192,359

 

Long-term other liabilities

 

 

6,696

 

 

 

7,766

 

Deferred revenue

 

 

25,175

 

 

 

23,685

 

Operating lease liabilities, non-current

 

 

13,756

 

 

 

17,441

 

Long-term debt

 

 

174,492

 

 

 

170,007

 

Total liabilities

 

 

424,507

 

 

 

411,258

 

Equity:

 

 

 

 

 

 

Common stock

 

 

93

 

 

 

91

 

Additional paid-in capital

 

 

536,709

 

 

 

554,680

 

Accumulated other comprehensive income

 

 

2,216

 

 

 

2,093

 

Accumulated deficit

 

 

(488,024

)

 

 

(488,024

)

Total equity

 

 

50,994

 

 

 

68,840

 

Total liabilities and equity

 

$

475,501

 

 

$

480,098

 

 


Accuray Incorporated

Summary of Orders and Backlog

(in thousands)

(Unaudited)

 

 

 

 

 

Three Months Ended
December 31,

 

 

Six Months Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gross Orders

 

$

85,381

 

 

$

75,365

 

 

$

155,365

 

 

$

125,893

 

Net Orders

 

 

40,183

 

 

 

42,462

 

 

 

80,946

 

 

 

66,016

 

Order Backlog

 

 

581,267

 

 

 

596,214

 

 

 

581,267

 

 

 

596,214

 

 

 

 

 

 

 

Accuray Incorporated

Reconciliation of GAAP Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation,

Amortization and Stock-Based Compensation (Adjusted EBITDA)

(in thousands)

(Unaudited)

 

 

 

Three Months Ended
December 31,

 

 

Six Months Ended
December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP net income (loss)

 

$

179

 

 

$

4,769

 

 

$

(849

)

 

$

5,171

 

Depreciation and amortization (a)

 

 

1,422

 

 

 

1,663

 

 

 

2,841

 

 

 

3,313

 

Stock-based compensation

 

 

2,695

 

 

 

2,364

 

 

 

5,211

 

 

 

4,608

 

Interest expense, net (b)

 

 

2,070

 

 

 

4,430

 

 

 

4,106

 

 

 

8,823

 

Provision for income taxes

 

 

480

 

 

 

287

 

 

 

911

 

 

 

631

 

Adjusted EBITDA

 

$

6,846

 

 

$

13,513

 

 

$

12,220

 

 

$

22,546

 

 

(a) consists of depreciation, primarily on property and equipment as well as amortization of intangibles.

(b) consists primarily of interest expense associated with outstanding debt.

 

 

 

 

 


Accuray Incorporated

Forward-Looking Guidance

Reconciliation of Projected Net Loss to Projected Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA)

(in thousands)

(Unaudited)

 

 

 

 

Twelve Months Ending
June 30, 2022

 

 

 

From

 

 

To

 

GAAP net loss

 

$

(12,000

)

 

$

(7,000

)

Depreciation and amortization (a)

 

 

6,100

 

 

 

6,100

 

Stock-based compensation

 

 

10,600

 

 

 

10,600

 

Interest expense, net (b)

 

 

8,300

 

 

 

8,300

 

Provision for income taxes

 

 

2,000

 

 

 

2,000

 

Adjusted EBITDA

 

$

15,000

 

 

$

20,000

 

(a) consists of depreciation, primarily on property and equipment as well as amortization of intangibles.

(b) consists primarily of interest expense associated with outstanding debt.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Slide 1

Q2’FY22 Earnings Call January 26, 2022


Slide 2

Proprietary and Confidential Property of Accuray 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 Securities Litigation Reform Act of 1995. Forward-looking statements in this presentation relate, but are not limited, to: expectations regarding fiscal 2022 full-year adjusted EBITDA and revenue; our positioning and strategy for accelerating revenue and market share; expectations regarding operating expenses, including investment in R&D; expectations regarding market growth rates and market trends; expectations regarding new product enhancements or offerings and partnerships; expectations related to our joint-venture in China, including our ability to drive additional growth and market share in China; our ability to expand addressable markets; and our ability to capitalize on operating leverage to drive greater profits and cash flows. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “may,” “will be,” “will continue,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to: the effects of the COVID-19 pandemic on our business, financial condition, results of operations or cash flows; our ability to achieve widespread market acceptance of our products, including new product offerings and improvements; our ability to develop new products or enhance existing products to meet customers’ needs and compete favorably in the market; our ability to realize the expected benefits of the joint-venture and other partnerships; risks inherent in international operations; our ability to effectively manage our growth; our ability to maintain or increase our gross margins on product sales and services; delays in regulatory approvals or the development or release of new offerings; our ability to meet the covenants under our credit facilities; our ability to convert backlog to revenue; and other risks identified under the heading “Risk Factors” in our quarterly report on Form 10-Q, filed with the Securities and Exchange Commission (the “SEC”) on November 4, 2021, and as updated periodically with our other filings with the SEC.    Forward-looking statements speak only as of the date the statements are made and are based on information available to Accuray at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Accuray assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not place undue reliance on any forward-looking statements.   Non-GAAP Financial Measures   This presentation also contains non-GAAP financial measures.  Management believes that non-GAAP financial measures provide useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results.  Additionally, these non-GAAP financial measures assist management in analyzing future trends, making strategic and business decisions, and establishing internal budgets and forecasts.  A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in the Appendix.   There are limitations in using these non-GAAP financial measures because they are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies.  These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures.  Investors and potential investors should consider non-GAAP financial measures only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP.   Medical Advice Disclaimer   Accuray Incorporated as a medical device manufacturer cannot and does not recommend specific treatment approaches. Individual results may vary.      Forward-looking statements This presentation is intended exclusively for investors. It is not intended for use in Sales or Marketing.


Slide 3

Executive Summary Q2’FY22 Strong revenue performance with 19% Q2 Y/Y revenue growth Q2 ending backlog at $581M with 13% Q2 Y/Y order growth 3% net installed base growth Q2 Y/Y to drive future recurring service and upgrade revenues Revenue growing faster than operating expenses on a percentage basis while continuing momentum with R&D investments Revised FY22 full year revenue guidance to the range of $420M to $430M and adjusted EBITDA guidance to the range of $15M to $20M1​ 1 Adjusted EBITDA is a non-GAAP measure.  Please see Slide 11 , 12, and 13 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.


Slide 4

Our Vision: To EXPAND the CURATIVE POWER of RADIATION THERAPY to improve as many lives as possible Broader treatment options Beyond oncology Global patient access Enable advanced treatments Survival, long term outcomes Quality of life Precision technology  Superior patient experience Partnerships  Focused resources Expertise Best in class


Slide 5

Strategy for Accelerating Momentum Financial model designed to both invest as well as grow the top line Reposition for Success Enhanced leadership team Established China joint-venture  Introduced artificial intelligence (AI)-driven Synchrony® technology Reset cost structure to increase operating leverage FY18 - FY19 Transform Culture and Begin Innovation Driven Growth Redefined vision and strategic roadmap High impact product introduction Executed China type-A revenue ramp  Continued to build out our global infrastructure and operations Restructured debt to allow for growth FY20 - FY21 Accelerate Growth Consistent cadence of new products and partnerships Drive additional growth and share in China market Expand addressable markets and drive further market share gain Capitalize on operating leverage to drive greater profits and cash flows FY22+ Plan


Slide 6

Accuray Systems: Differentiated Solutions TomoTherapy® System Radixact® System Personalized Universal Fast S7™ System CyberKnife® Tracking, Gating-free, ITV-free Precise Speed Treatment Planning System Accuray Precision® Efficient Integrated Automated Ultimate IMRT/SBRT Workhorse Dedicated Whole Body SRS/SBRT System Connectivity to the RT Department


Slide 7

AMS 26% 1H Y/Y1 EIMEA 2% 1H Y/Y1 APAC 66% 1H Y/Y1 JAPAN 25% 1H Y/Y1 1 Percentages above are calculated using actual dollars for Orders. 2 MarketsAndMarkets RADIOTHERAPY MARKET - GLOBAL FORECAST 2021-2026 Gross Order Performance by Region in 1H’FY22 Four (4) Accuray business regions and strategies    +23% 1H Y/Y1 WW MARKET +4.2%2 CAGR 2021-2026


Slide 8

Q2’FY22 Financials Strong financial performance Gross orders $85M 13% Revenues $116M 19% Product $61M 45% Service $55M 0% Op. Expenses $38.6M 18% R&D $14.7M 23% SG&A $23.9M 16% Adj. EBITDA 1 $6.8M (49%) KEY FINANCIAL METRICS $M Q2 Y/Y Highlights New product innovation driving order momentum​ Record fiscal second quarter revenue in Company history​ ​ FY22 full year revenue guidance revised to the range of $420M to $430M​ FY22 full year adjusted EBITDA revised to the range of $15M to $20M1 1 Adjusted EBITDA is a non-GAAP measure.  Please see Slide 11 , 12, and 13 for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure.


Slide 9

In Summary 1H Momentum in Orders and Revenue Strongest Product Portfolio and Pipeline in Company’s History Multiple Growth Catalysts and Global Commercial Execution Strengthened Leadership Team and Operational Foundation Positioned for Accelerated Revenue Growth and Market Share Gains


Slide 10

Thank you


Slide 11

GAAP to Adjusted EBITDA Q2 FY2022 and Q2 FY2021 Actual Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) $K GAAP net income Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Three Months Ended December 31 Three Months Ended December 31 2020 2021 $ $ $ $ 179 1,422 2,695 2,070 480 6,846 4,769 1,663 2,364 4,430 287 13,513


Slide 12

GAAP to Adjusted EBITDA 1H FY2022 and 1H FY2021 Actual Reconciliation of Net Income (Loss) to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) $K GAAP net income (loss) Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Six Months Ended December 31 Six Months Ended December 31 2020 2021 $ $ $ $ (849) 2,841 5,211 4,106 911 12,220 5,171 3,313 4,608 8,823 631 22,546


Slide 13

GAAP to Adjusted EBITDA FY22 Guidance Guidance Reconciliation of Net loss to Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization and Stock-Based Compensation (Adjusted EBITDA) $K GAAP net loss Stock-based compensation Interest expense, net Provision for income taxes Adjusted EBITDA Depreciation and amortization Twelve Months Ended Projection for June 30, 2022 Low $ $ $ $ (12,000) 6,100 10,600 8,300 2,000 15,000 (7,000) 6,100 10,600 8,300 2,000 20,000 High



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