Accuray Incorporated reported its financial results for the three months ended September 30, 2024, revealing a net revenue of $101.5 million, a decrease of 2% from $103.9 million in the same period of the previous year. The decline in revenue was primarily attributed to lower shipment volumes of its key products, the CyberKnife and TomoTherapy systems, which saw a $5.0 million drop in product sales. However, service revenue increased by $2.6 million due to a growing installed base and higher service contract prices.
The company's gross profit for the quarter was $34.5 million, down 13% from $39.5 million in the prior year, reflecting ongoing challenges such as inflation, rising material costs, and supply chain disruptions. These factors are expected to continue impacting gross margins and net income through fiscal year 2025. Accuray reported a net loss of $4.0 million for the quarter, compared to a loss of $3.0 million in the same period last year. The loss per share was $(0.04), slightly higher than the $(0.03) reported in the previous year.
Total current assets increased to $329.5 million as of September 30, 2024, from $323.2 million at the end of June 2024, while total assets rose to $473.1 million. Cash and cash equivalents decreased to $59.2 million from $68.6 million in the prior quarter. The company’s total liabilities also increased to $427.9 million, up from $423.5 million, with long-term debt remaining stable at $162.5 million.
Accuray's order backlog at the end of the quarter was $468.6 million, down from $489.0 million a year earlier. Gross orders for the quarter were $55.4 million, a decrease from $63.7 million in the same period last year, primarily due to a significant drop in CyberKnife system orders. The company has also faced challenges in its joint venture in China, which manufactures and sells radiation oncology systems, as it navigates regulatory and operational hurdles.
Strategically, Accuray amended its credit agreement in September 2024, adjusting financial covenants and reducing available revolving commitments to $20 million. The company is focused on maintaining sufficient liquidity to fund operations amid ongoing economic uncertainties, including inflation and geopolitical tensions. Despite these challenges, Accuray remains committed to its core oncology systems business, which includes the development and marketing of advanced radiosurgery and radiation therapy systems.
About ACCURAY INC
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