Accuray Announces Preliminary Results for Second Quarter Fiscal 2013 and Updated Guidance for Fiscal 2013; Announces

   Accuray Announces Preliminary Results for Second Quarter Fiscal 2013 and
          Updated Guidance for Fiscal 2013; Announces Restructuring

Conference Call at 5:00 p.m. EST Today

PR Newswire

SUNNYVALE, Calif., Jan. 3, 2013

SUNNYVALE, Calif., Jan. 3, 2013 /PRNewswire/ -- Accuray Incorporated (Nasdaq:
ARAY) announced today preliminary results for the second quarter of fiscal
2013 that ended December 31, 2012 and updated guidance for fiscal 2013.
Non-GAAP results are provided to enhance understanding of Accuray's ongoing
core results of operations. The company also is announcing a restructuring of
operations.

Preliminary consolidated GAAP revenues for second quarter fiscal 2013 are
expected to be in the range of $72 million to $75 million and total non-GAAP
revenue of $72 million to $75 million. By comparison, for the second quarter
of fiscal 2012, total GAAP revenue was $106.4 million and total non-GAAP
revenue was $102.9 million. Based on these preliminary estimates, product
revenue for the second quarter of fiscal 2013 declined 45-50 percent versus
the prior year period, while service revenue posted an increase of 13-15
percent year over year, both in terms of non-GAAP results. Net loss on a
non-GAAP basis is expected to be in a range of $25 million to $30 million for
the second quarter of fiscal 2013.

Net orders to backlog are estimated to be in the range of $15 million to $17
million and product backlog is expected to be in the range of $275 million to
$280 million for the second fiscal quarter 2013, down from $294 million at the
end of the prior quarter.

The second fiscal quarterly results reflect a shortfall relative to
expectations, which is attributable to challenges faced in two primary areas
of the business: (1) manufacturing and supply related issues, which delayed
contribution from new products launched at the 2012 Annual Meeting of the
American Society for Radiation Oncology (ASTRO), and (2) commercial focus and
salesforce transitional issues.

Accuray is announcing a restructuring of operations to focus on improving
commercial execution and position the company to support sustainable revenue
growth and profitability. Through the restructuring, management is
establishing a cost structure that will reallocate resourcesto commercial
sales and marketing initiatives and improved business processes to support
accelerated revenue growth. The restructuring is expected to reduce staffing
by approximately 13 percent and is most heavily concentrated in the United
States.

As a result of the restructuring, Accuray expects to take a non-recurring
charge of $3 million to $4 million in the third quarter fiscal 2013. The
company expects operating expense savings of approximately $40 million per
year compared to fiscal 2012, with initial impact benefitting fourth quarter
fiscal 2013 results.

"In my first 90 days at Accuray, I have spent considerable time evaluating the
strategic and operational activities at the company, and have found many
reasons to be highly enthusiastic and confident in the future prospects and
success of the company. We have truly differentiated technologies in our two
primary product platforms and a loyal installed base of customers. Our new
systems introduced at ASTRO expand the treatable patient population, increase
accuracy, and improve throughput – creating economic value for our radiation
oncology customers and clinical benefit for patients," said Joshua Levine,
President and Chief Executive Officer of Accuray.

"However, we have identified challenges that have pressured results
operationally and distinct areas that require improvement – and we have a
clearly defined path to address these. As such, we are initiating a strategic
transformation at Accuray in order to drive consistent performance that is
required to create value to our customers and shareholders over the long
term," said Levine. "Through the restructuring we announced today, we are
establishing a cost structure to support sustainable revenue growth and
profitability through commercial execution, service excellence and improved
business processes."

Fiscal 2013 Guidance
Accuray management projects that fiscal 2013 revenue will be in the range of
$320 million to $330 million. Net loss for fiscal 2013 is projected to be in
the range of $63 million to $69 million or a net loss of ($0.87) to ($0.95)
per share. This guidance represents expected results on a non-GAAP basis.

Conference Call Details
Accuray will hold a conference call for financial analysts and investors on
Thursday, January 3, 2013 at 2:00 p.m. PST/5:00 p.m. EST. The conference call
dial-in numbers are 888-396-2356 or 617-847-8709, Conference ID: 92559419. A
live webcast of the call will also be available from the Investor Relations
section of the corporate website at www.accuray.com/investors. In addition, a
recording of the call will be available by calling 888-286-8010 or
617-801-6888, Conference ID: 69675278, beginning at 5:00 p.m. PST/8:00 p.m.
EST on January 3, 2013 and will be available through January 10, 2013. A
webcast replay will also be available from the Investor Relations section of
the Company's website at www.accuray.com/investors for 90 days.

About Accuray
Accuray Incorporated (Nasdaq: ARAY), based in Sunnyvale, Calif., is a
radiation oncology company that develops, manufactures and sells personalized,
innovative treatment solutions that set the standard of care with the aim of
helping patients live longer, better lives. The Company's leading-edge
technologies – the CyberKnife and TomoTherapy Systems – are designed to
deliver radiosurgery, stereotactic body radiation therapy, intensity modulated
radiation therapy, image guided radiation therapy, and adaptive radiation
therapy. To date, 681 systems have been installed in leading hospitals around
the world. For more information, please visit www.accuray.com.

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 preliminary results for the second quarter including: total revenue,
product revenue, service revenue, net loss, and backlog; the effects of the
introduction of new CyberKnife and TomoTherapy Systems; commercial execution;
the company's future growth including: order growth, revenue growth and future
profitability; and fiscal 2013 guidance including: revenue, net loss and
earnings per share. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from
expectations, including but not limited to: the company's ability to convert
backlog to revenue; the success of its worldwide sales and marketing efforts;
the success of the introduction of our CyberKnife and TomoTherapy Systems; the
extent of market acceptance for the company's products and services; the
company's ability to manage its expenses; continuing uncertainty in the global
economic environment; and other risks detailed from time to time under the
heading "Risk Factors" in the company's report on Form 10-K filed on
September 10, ^ 2012, the company's report on Form10‑Q for the first quarter
of fiscal 2013 filed on November 8, 2012, and as updated from time to time in
our other SEC filings.

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.

SOURCE Accuray Incorporated

Website: http://www.accuray.com
Contact: Tom Rathjen, Vice President, Investor Relations, +1-408-789-4458,
trathjen@accuray.com, or Stephanie Tomei, Director, Corporate Communications,
+1-408-789-4234, stomei@accuray.com
 
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