Accuray Announces Results for Third Quarter Fiscal 2013

           Accuray Announces Results for Third Quarter Fiscal 2013

New Order Activity Improves - First Installations of New Models - Guidance
Updated

PR Newswire

SUNNYVALE, Calif., May 7, 2013

SUNNYVALE, Calif., May 7, 2013 /PRNewswire/ --Accuray Incorporated (Nasdaq:
ARAY) today announced financial results for the third quarter of fiscal 2013
that ended March 31, 2013. Non-GAAP results are provided to enhance
understanding of Accuray's ongoing core results of operations.

Recent highlights include an upturn in new orders booked in the third quarter,
installation of the first new CyberKnife M6 Series and TomoTherapy H Series
systems, and continued improvement in service revenue and gross profit margin.

"I am encouraged by the noticeable improvement in new order volume during the
third quarter and the positive reception for our new products," said Joshua
Levine, president and chief executive officer of Accuray. "We are starting to
see the early benefits of the actions we have been taking to improve the
commercial focus and execution of our business. We look forward to further
unlocking the value in our two new product platforms as we continue to focus
on optimizing our commercial execution."

Gross new product orders totaled $53.8 million during the third quarter of
fiscal 2013, up from $39.8 million during the second quarter of fiscal 2013.
Net new product orders totaled $44.1 million during the third quarter of
fiscal 2013, up from $17.9 million during the second quarter of fiscal 2013.
Ending product backlog of $297.9 million was 7% higher than $279.0 million at
the end of the previous quarter, and $279.6 million at the end of the prior
year third quarter.

During the third quarter of fiscal 2013, 7 units were shipped and 16 were
installed, increasing Accuray's worldwide installed base to 693 systems.

For the third quarter of fiscal 2013 Accuray reported total consolidated GAAP
revenue of $70.5 million and total non-GAAP revenue of $70.6 million. By
comparison, for the third quarter of fiscal 2012, total GAAP revenue was
$101.8 million and total non-GAAP revenue was $101.6 million. On a non-GAAP
basis product revenue was down by 59 percent from the same quarter of the
prior year.

The consolidated GAAP gross margin for the third quarter of fiscal 2013 was
26.5 percent for products and 29.5 percent for services, compared to 45.9
percent for products and 20.7 percent for services for the third quarter of
the prior year. The consolidated non-GAAP gross margin for the third quarter
of fiscal 2013 was 34.7 percent for products and 29.5 percent for service,
compared to 53.5 percent and 16.1 percent, respectively, for the third quarter
of the prior year. While we expect the underlying positive trend in our
service gross margin to continue, we are likely to experience quarterly
fluctuations as in past quarters.

During the second and third quarters of fiscal 2013 operating expenses
included $4.0 million and $4.9 million, respectively, of severance and
facilities consolidation costs related to our restructuring. Excluding these
charges related to our restructuring, ongoing non-GAAP operating expenses
totaled $39.8 million in the third quarter compared to $44.2 million in the
second quarter which demonstrates significant progress towards our goal of
reducing non-GAAP operating expenses to $38 million per quarter during fiscal
year 2014 with some expected quarterly fluctuations.

Consolidated GAAP net loss attributable to stockholders for the third quarter
of fiscal 2013 was $31.2 million, or $0.42 per share, compared to $14.9
million or $0.21 per share for the third quarter of the prior year. Non-GAAP
net loss for the third quarter of fiscal 2013 was $27.6 million or $0.37 per
share compared to $9.2 million or $0.13 per share for the third quarter of the
prior year.

Accuray's cash, cash equivalents and restricted cash totaled $184.1 million as
of March 31, 2013.

Outlook

Accuray management projects total revenue for fiscal 2013 of $310 million to
$318 million on both a GAAP and non-GAAP basis, down from $320 million to $330
million projected after the end of our second quarter ended December 31, 2012.

Additional Information

Additional information including slides of third quarter highlights, which
will be discussed during the conference call, is available in the Investor
Relations section of the company's website at www.accuray.com/investors.

Earnings Call Open to Investors

Accuray will hold a conference call for financial analysts and investors on
Tuesday, May 7, 2013 at 2:00 p.m. PST/5:00 p.m. EST. The conference call
dial-in numbers are 1-877-415-3183 (USA) or 1-857-244-7326 (International),
Conference ID: 72135170. 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 1-888-286-8010 (USA) or 1-617-801-6888 (International),
Conference ID: 49814037, beginning at 5:00 p.m. PST/8:00 p.m. EST on May 7,
2013 and will be available through May 15, 2013. A webcast replay will also be
available from the Investor Relations section of the Company's website at
www.accuray.com/investors from approximately 5:00 p.m. PST/8:00 p.m. EST today
through Accuray's release of its results for the fourth quarter of fiscal
2013, ending June 30, 2013.

About Accuray

Accuray Incorporated (Nasdaq: ARAY), 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 deliver the full range
of radiation therapy and radiosurgery treatments. 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 total revenue, product revenue, service revenue, orders and operating
expenses; 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 revenue
guidance . 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 and the company's reports on Form10‑Q filed on November 8, 2012 for the
first quarter of fiscal 2013, February 6, 2013 for the second quarter of
fiscal 2013 and the Form 10-Q to be filed for the third quarter of fiscal 2013
and 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 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.



Accuray Incorporated

Consolidated Statements of Operations

(in thousands, except per share data)
                       Three Months Ended March 31,   Nine Months Ended March
                                                      31,
                       2013             2012          2013         2012
                       (unaudited)                    (unaudited)
Net revenue:
Products              $ 25,023        $ 59,875     $ 98,821    $179,851
Services              45,524           41,720        132,253      127,218
Other                 -                221           -            1,621
Total net revenue     70,547           101,816       231,074      308,690
Cost of revenue:
Cost of products      18,403           32,401        60,976       103,574
Cost of services      32,091           33,100        99,743       103,626
Cost of other         -                204           -            708
Total cost of revenue 50,494           65,705        160,719      207,908
Gross profit          20,053           36,111        70,355       100,782
Operating expenses:
Selling and marketing 12,646           12,449        41,296       40,047
Research and           15,697           22,398        51,510       59,799
development
General and            16,745           13,964        45,479       42,047
administrative
Total operating        45,088           48,811        138,285      141,893
expenses
Loss from operations   (25,035)         (12,700)      (67,930)     (41,111)
Other expense, net     (5,565)          (838)         (8,849)      (8,074)
Loss before provision  (30,600)         (13,538)      (76,779)     (49,185)
for income taxes
Provision for income   603              1,247         1,867        2,152
taxes
Loss from continuing   (31,203)         (14,785)      (78,646)     (51,337)
operations
Loss from discontinued
operations:
Loss from operations
of a discontinued      -                (1,748)       (3,505)      (5,470)
variable interest
entity
Impairment of
indefinite lived
intangible asset of    -                -             (12,200)     -
discontinued
 variable interest
entity
Loss from
deconsolidation of a   -                -             (3,442)      -
variable interest
entity
Loss from discontinued -                (1,748)       (19,147)     (5,470)
operations, net of tax
Loss from discontinued
operations
attributable to        -                (1,652)       (13,289)     (5,029)
noncontrolling
 interest
Loss from discontinued
operations             -                (96)          (5,858)      (441)
attributable to
stockholders
Net loss attributable  $(31,203)        $(14,881)     $(84,504)    $ (51,778)
to stockholders
Loss per share
attributable to
stockholders
Basic and diluted -    $  (0.42)      $  (0.21)   $  (1.08)  $  
continuing operations                                              (0.73)
Basic and diluted -                     $                     $    
discontinued           $      -   -            $  (0.08)    -
operations
Basic and diluted -    $  (0.42)      $  (0.21)   $  (1.16)  $  
net loss                                                           (0.73)
Weighted average
common shares used in
computing loss per
share
Basic and Diluted      74,016           71,120        72,953       70,692
Cost of revenue, selling and marketing, research and development, and general
and administrative expenses include stock-based compensation charges as
follows:
Cost of revenue        $    477      $    276   $  1,043   $  1,271
Selling and marketing $    256      $    165   $    803  $   
                                                                   545
Research and           $    462      $    501   $  1,455   $  1,673
development
General and            $    873      $    800   $  2,818   $  2,812
administrative



Accuray Incorporated

Consolidated Balance Sheets

(in thousands, except share amounts)
                                              March 31,      June 30,
                                              2013             2012
                                              (unaudited)
Assets
Current assets:
Cash and cash equivalents                   $ 181,526       $ 143,504
Restricted cash                            2,613            1,560
Accounts receivable, net of allowance for    53,992           67,890
doubtful accounts
Inventories                                92,225           81,693
Prepaid expenses and other current assets   15,869           16,715
Deferred cost of revenue—current           7,345            4,896
Total current assets                       353,570          316,258
Property and equipment, net                 35,325           37,458
Goodwill                                   59,368           59,215
Intangible assets, net                      34,102           49,819
Deferred cost of revenue—noncurrent        2,295            2,433
Other assets                                12,418           7,987
Total assets                               $ 497,078       $ 473,170
Liabilities and equity
Current liabilities:
Accounts payable                           $    14,982  $    18,209
Accrued compensation                        15,456           23,071
Other accrued liabilities                   26,323           31,646
Customer advances                           16,114           18,177
Deferred revenue—current                   91,091           83,071
Total current liabilities                  163,966          174,174
Long-term liabilities:
Long-term other liabilities                 4,322            5,988
Deferred revenue—noncurrent                9,087            9,675
Long-term debt                              197,658          79,466
Total liabilities                          375,033          269,303
Equity:
Preferred stock, $0.001 par value;
authorized: 5,000,000 shares; no              -                -
sharesissued and outstanding
Common stock, $0.001 par value; authorized:
200,000,000 and 100,000,000 shares; issued
and outstanding: 74,096,245 and 71,864,268    74               72
shares at March 31, 2013 and June 30, 2012,
respectively
Additional paid-in capital                 420,511          409,143
Accumulated other comprehensive income      2,391            2,837
Accumulated deficit                        (300,931)        (216,427)
Total stockholders' equity                  122,045          195,625
Noncontrolling interest                     -                8,242
Total equity                                122,045          203,867
Total liabilities and equity                $ 497,078       $ 473,170

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, as defined in
Regulation G promulgated by the Securities and Exchange Commission, with
respect to the three and nine months ended March 31, 2013 and 2012. "GAAP"
refers to generally accepted accounting principles in the United States.

Accuray closed the acquisition of TomoTherapy on June 10, 2011 and
TomoTherapy's operations since that date are included in Accuray's
consolidated results of operations. Accounting for the impact of this
acquisition has resulted in changes to the value of assets and liabilities
from the amounts reflected by TomoTherapy prior to the acquisition and the
creation of incremental assets and liabilities including intangible assets for
developed technology and backlog, and unfavorable lease obligations. These
changes have impacted revenues and expenses recorded in Accuray's consolidated
statements of operations since the close of the acquisition. In addition,
Accuray has incurred significant expenses as a result of the acquisition, some
of which are one-time charges while others were incurred over fiscal 2012 and
2013 for the integration of TomoTherapy.

To reflect the ongoing core results of operations of the Company, including
adjusting for the impact of the acquisition of TomoTherapy, the Company has
presented its operating results on an adjusted non-GAAP basis as well as in
accordance with GAAP for the three and nine months ended March 31, 2013 and
2012. We use the following measures shown in the following tables, which are
not calculated in accordance with GAAP. All significant adjustments to
reconcile to GAAP primarily relate to the acquisition of TomoTherapy except
the adjustment to Other income (expense). The Company believes that the
presentation of non-GAAP financial measures provides useful supplementary
information to and facilitates additional analysis by investors. The Company
uses these non-GAAP financial measures in connection with its own budgeting
and financial planning, as well as evaluating management performance for
compensation purposes. These non-GAAP financial measures are in addition to,
not a substitute for, nor superior to, measures of financial performance
prepared in conformity with GAAP. The supplemental financial data presented
in tables from page 6 to page 9 are in thousands except for per share amounts.

     Revenue        Three months ended March 31,        Three Months Ended March 31,         Nine Months Ended March 31,           Nine Months Ended March 31,
                    2013    2013              2013      2012     2012              2012      2013      2013              2013      2012     2012              2012
                    GAAP    Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP
                    $     $            $      $     $            $      $      $            $      $     $            $   
     Products                 83   (A)    25,106  59,875    1,343     (A)   61,218    98,821     348    (A)    99,169  179,851   1,826     (A)   181,677
                    25,023
     Services       45,524  (17)        (B)   45,507    41,720   (1,548)     (B) 40,172    132,253   (109)       (B)   132,144   127,218  (10,309)    (B)   116,909
     Other          -       -                 -         221      -                 221       -         -                 -         1,621    -                 1,621
                    $     $            $                                           $       $            $      $     $            $   
     Total                    66          70,613  101,816  (205)             101,611   231,074    239          231,313   308,690  (8,483)          300,207
                    70,547
     As of the close of the acquisition, TomoTherapy's deferred product revenue related to products shipped but not yet installed was written down to the fair value of
     goods and services remaining to be delivered. As a result, during the three months ended March 31, 2013 and 2012, product revenue recorded by Accuray for the sale
(A) of TomoTherapy products was $0.1 million and $1.3 million lower than product revenue that would have been recorded by TomoTherapy if the acquisition had not
     occurred. For the nine months ended March 31, 2013 and 2012, product revenue recorded by Accuray for the sale of TomoTherapy products was $0.3 million and $1.8
     million lower than product revenue that would have been recorded by TomoTherapy if the acquisition had not occurred.
     As of the close of the acquisition, TomoTherapy's deferred service revenue was written up to fair value. As a result, deferred service revenue recognized by
     Accuray during the three months ended March 31, 2013 and 2012 was less than $0.1 and $1.9 million higher than the amount that would have been recognized by
     TomoTherapy if the acquisition had not occurred. Partially offsetting the $1.9 million deferred revenue adjustment for the three months ended March 31, 2012,
     Accuray recorded a reserve for returns of $0.4 million to reflect the expected return of spare parts from TomoTherapy distributors who will cease servicing
(B)  TomoTherapy systems once the integration is complete and Accuray personnel begin to provide service directly to these customers. For the nine months ended March
     31, 2013 and 2012, deferred service revenue recognized was $0.1 million and $10.7 million higher than the amount that would have been recognized by TomoTherapy if
     the acquisition had not occurred. Partially offsetting the $10.7 million deferred revenue adjustment for the three months ended March 31, 2012, Accuray recorded a
     reserve for returns of $0.4 million to reflect the expected return of spare parts from TomoTherapy distributors who will cease servicing TomoTherapy systems once
     the integration is complete and Accuray personnel begin to provide service directly to these customers.
     Cost of Revenue
                    Three months ended March 31,        Three Months Ended March 31,         Nine Months Ended March 31,           Nine Months Ended March 31,
                    2013    2013              2013      2012     2012              2012      2013      2013              2013      2012     2012              2012
                    GAAP    Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP
                    $     $            $      $     $            $      $      $            $      $     $             $   
     Products              (2,019)    (C)    16,384  32,401   (3,938)    (C) 28,463    60,976   (7,626)    (C)    53,350  103,574  (19,978)   (C)    83,596
                    18,403
     Services       32,091  (12)        (D)   32,079    33,100   621         (D)   33,721    99,743    (7)         (D)   99,736    103,626  (2,530)     (D)   101,096
     Other          -       -                 -         204      -                 204       -         -                 -         708      -                 708
                    $     $            $      $     $            $      $       $            $      $     $             $   
     Total                 (2,031)           48,463  65,705   (3,317)          62,388    160,719  (7,633)          153,086   207,908  (22,508)         185,400
                    50,494
     Products cost of revenue included the following charges arising from the acquisition of TomoTherapy and Morphormics: $2.0 million and $7.6 million, respectively,
     during the three and nine months ended March 31, 2013 for amortization of intangible assets created by the acquisitions. For the three and nine months ended
(C)  March 31, 2012, respectively: $0.1 million and $8.3 million due to the write up of finished goods and work-in-process inventory on hand at the time of the
     acquisition from cost basis to fair value, $3.8 million and $11.5 million for amortization of intangible assets created by the acquisition, and less than $0.1
     million and $0.2 million due to employee severance and retention expenses.
     Services cost of revenue included the following adjustments to expenses arising from the acquisition of TomoTherapy during the three and nine months ended March
     31, 2013: less than $-0- and $0.3 million charges for property, plant and equipment revaluation; less than $(0.1) million and $(0.4) million reductions in
     expenses due to the roll out of fair value increases in warranty and loss contracts reserves, both of which were related to service provided during the periods.
     For the three and nine months ended March 31, 2012: $-0- and $3.6 million charge due to the write up of service related inventory on hand at the time of the
(D) acquisition from cost basis to fair value, $(0.6) million and $(3.1) million reductions in expenses due to the roll out of fair value increases in warranty and
     loss contracts reserves for the periods of service consumed, $0.1 million and $0.3 million charges for property, plant and equipment revaluation, $0.1 million and
     $1.9 million charges due to employee severance, integration and retention expenses, and $(0.3) million and $(0.3) million of credits to reflect the cost of spare
     parts expected to be returned by TomoTherapy distributors who will cease servicing TomoTherapy systems once the integration is complete and Accuray personnel
     begin to provide servie directly to these customers.
     Gross Profit
                    Three months ended March 31,        Three Months Ended March 31,         Nine Months Ended March 31,           Nine Months Ended March 31,
                    2013    2013              2013      2012     2012              2012      2013      2013              2013      2012     2012              2012
                    GAAP    Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP
                    $     $            $      $     $            $      $      $            $      $     $            $   
     Products              2,102                   27,474    5,281           32,755    37,845    7,974            45,819          21,804             98,081
                    6,620                     8,722                                                                                76,277
     Services       13,433  (5)               13,428    8,620    (2,169)           6,451     32,510    (102)             32,408    23,592   (7,779)           15,813
     Other          -       -                 -         17       -                 17        -         -                 -         913      -                 913
                    $     $            $      $     $            $      $      $            $      $     $            $   
     Total                  2,097            22,150  36,111    3,112           39,223    70,355    7,872            78,227  100,782  14,025            114,807
                    20,053
     Gross Profit Margin
                    Three months ended March 31,        Three Months Ended March 31,         Nine Months Ended March 31,           Nine Months Ended March 31,
                    2013    2013              2013      2012     2012              2012      2013      2013              2013      2012     2012              2012
                    GAAP    Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP
     Products       26.5%   8.2%              34.7%     45.9%    7.6%              53.5%     38.3%     7.9%              46.2%     42.4%    11.6%             54.0%
     Services       29.5%   (0.0)%            29.5%     20.7%    (4.6)%            16.1%     24.6%     (0.1)%            24.5%     18.5%    (5.0%)            13.5%
     Other          -       -                 -         7.7%     -                 7.7%      -         -                 -         56.3%    -                 56.3%
     Total          28.4%   3.0%              31.4%     35.5%    3.1%              38.6%     30.4%     3.4%              33.8%     32.6%    5.6%              38.2%
     Operating Expenses
                    Three months ended March 31,        Three Months Ended March 31,         Nine Months Ended March 31,           Nine Months Ended March 31,
                    2013    2013              2013      2012     2012              2012      2013      2013              2013      2012     2012              2012
                    GAAP    Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP     Adjustments       Non-GAAP
     Selling and    $     $            $      $     $            $      $      $            $      $     $            $   
     Marketing                 -   (E)  12,646  12,449      (67)  (E) 12,382    41,296      (11)  (E)  41,285          (1,837)    (E)  38,210
                    12,646                                                                                                         40,047
     Research and   15,697  (133)       (F)   15,564    22,398   (340)       (F)   22,058    51,510    (484)       (F)   51,026    59,799   (1,224)     (F)   58,575
     Development
     General and    16,745  (278)       (G)   16,467    13,964   (1,124)     (G)   12,840    45,479    (1,824)     (G)   43,655    42,047   (4,731)     (G)   37,316
     Administrative
                    $     $            $      $     $            $      $       $            $      $     $            $   
     Total                   (411)          44,677  48,811   (1,531)          47,280    138,285  (2,319)          135,966   141,893  (7,792)          134,101
                    45,088
     For the three and nine months ended March 31, 2013, less than $0.1 million charge for property, plant and equipment revaluation. For the three months ended March
(E) 31, 2012, approximately $0.1 million charge primarily due to employee severance, integration and retention expenses. For the nine months ended March 31, 2012,
     $1.8 million charge due to employee severance and retention expenses, and preparation for integration of work forces and operations.
     For the three and nine months ended March 31, 2013: less than $0.1 million and $0.3 million due to retention expenses from the acquisition of Morphormics, and
(F) less than $0.1 million and $0.2 million due to property, plant and equipment revaluation from acquisition of TomoTherapy. For the three and nine months ended
     March 31, 2012, $0.3 million and $1.2 million charges primarily due to employee severance, integration and retention expenses.
     For the three and nine months ended March 31, 2013: $-0- and $0.3 million charge primarily due to employee severance from the acquisition of Morphormics, $-0-
     and $0.5 million related to employee severance and retention due to consolidation of European offices, and $0.3 million and $1.1 million due to property, plant
(G)  and equipment revaluation due to the acquisition of TomoTherapy. For the three months ended March 31, 2012, $0.4 million charge due to employee severance and
     retention expenses, $0.2 million charge related to preparation for integration of work forces and operations, and $0.5 million charge for property, plant and
     equipment revaluation. For the nine months ended March 31, 2012, $2.0 million charge due to employee severance and retention expenses, $1.3 million charge related
     to preparation for integration of work forces and operations, and $1.4 million charge for property, plant and equipment revaluation.



    Net loss attributable to Stockholders
                    Three months ended March 31,          Three months ended March 31,          Nine Months Ended March 31,          Nine Months Ended March 31,
                    2013      2013              2013      2012      2012              2012      2013       2013            2013      2012      2012            2012
                    GAAP      Adjustments       Non-GAAP  GAAP      Adjustments       Non-GAAP  GAAP       Adjustments     Non-GAAP  GAAP      Adjustments     Non-GAAP
    Loss From       $       $      (H) $      $       $      (H) $      $        $      (H) $      $      $      (H) $   
    Operations      (25,035)   2,508           (22,527)  (12,700)   4,643           (8,057)   (67,930)  10,191          (57,739)  (41,111)  21,817          (19,294)
    Other Expense   (5,565)   1,093       (I)   (4,472)   (838)     991         (I)   153       (8,849)    2,530       (K) (6,319)   (8,074)   2,589       (I) (5,485)
    Provision For   603       -                 603       1,247     -                 1,247     1,867      -               1,867     2,152     -               2,152
    Income Taxes
    Loss from       $       $            $      $       $            $      $        $          $      $      $          $   
    Continuing      (31,203)   3,601           (27,602)  (14,785)   5,634           (9,151)   (78,646)  12,721          (65,925)  (51,337)  24,406          (26,931)
    Operations
    Loss from
    operations of a
    discontinued    -         -                 -         (1,748)   -                 (1,748)   (3,505)    -               (3,505)   (5,470)   -               (5,470)
    variable
    interest
    entity
                                                                                                           -
    Impairment of
    indefinite
    lived
    intangible
    asset of        -         -                 -         -         -                 -         (12,200)   12,200      (L) -         -         -               -
    discontinued
    variable
    interest
    entity
                                                                                                           -
    Loss from
    deconsolidation
    of a variable   -         -                 -         -         -                 -         (3,442)    3,442       (J) -         -         -               -
    interest
    entity
    Loss from       $                        $                                                                       $      $                      $   
    discontinued          $                  $      $            $      $        $                            $          
    operations,     -             -          -       (1,748)       -         (1,748)   (19,147)  15,642          (3,505)   (5,470)       -       (5,470)
     net of tax
    Loss from
    discontinued
    operations      -         -                 -         (1,652)   -                 (1,652)   (13,289)   10,323      (M) (2,966)   (5,029)   -               (5,029)
    attributable to
    noncontrolling
    interest
    Loss from
    discontinued    $      $            $      $      $            $      $       $          $      $      $          $   
    operations                -                           -                 (5,858)    5,319                             -        
    attributable to -                            -       (96)                       (96)                                (539)    (441)                    (441)
    stockholders
    Net Loss        $       $            $      $       $            $      $        $          $      $      $          $   
    Attributable to (31,203)   3,601           (27,602)  (14,881)   5,634           (9,247)   (84,504)  18,040          (66,464)  (51,778)  24,406          (27,372)
    Stockholders
(H) Represents impact of all adjustments (A) through (G) on loss from operations.
(I) Represents non-cash interest expense arising from the accretion of interest expense on the long-term
    debt.
(J) Represents loss from deconsolidation of CPAC.
(K) Includes $3.1 million non-cash interest expense arising from the accretion of interest expense on the long-term debt, offset by $0.6 million gain on previously held
    equity interest due to the acquisition of Morphormics.
(L) Represents the impairment charges related to the write-down of the in-process research and development (IPR&D) asset based on results of research and development
    work carried out by CPAC, a variable interest entity deconsolidated by the Company in Q2'13.
(M) Represents the noncontrolling portion of the $12.2 million impairment charge related to the write-down of the IPR&D asset based on results of research and
    development work carried out by CPAC, a variable interest entity deconsolidated by the Company in Q2'13.



 Loss per share attributable to
 stockholders
              Three months ended March 31,   Three Months Ended March 31,   Nine Months Ended March 31,     Nine Months Ended March 31,
              2013    2013         2013      2012    2012         2012      2013     2013         2013      2012    2012         2012
              GAAP    Adjustments  Non-GAAP  GAAP    Adjustments  Non-GAAP  GAAP     Adjustments  Non-GAAP  GAAP    Adjustments  Non-GAAP
 Basic and    $                  $      $                            $                  $      $                  $   
 diluted -          $                     $       $              $                    $        
 continuing   (0.42)    0.05     (0.37)    (0.21)    0.08      (0.13)  (1.08)    0.18     (0.90)    (0.73)    0.35     (0.38)
 operations
 Basic and    $                  $      $                            $                  $      $                  $   
 diluted -          $                    $       $              $                    $        
 discontinued (0.00)   (0.00)    (0.00)    0.00     (0.00)     (0.00)  (0.08)    0.07     (0.01)          (0.01)    (0.01)
 operations                                                                                                 -
 Basic and    $     $       $      $     $       $      $     $       $      $     $       $   
 diluted -            0.05                     0.08      (0.13)            0.25                    0.34      
 net loss     (0.42)               (0.37)    (0.21)                         (1.16)               (0.91)    (0.73)               (0.39)
 Weighted
 average
 common
 shares used  74,016               74,016    71,120               71,120    72,953                72,953    70,692               70,692
 in computing
 loss per
 share





SOURCE Accuray Incorporated

Website: http://www.accuray.com
Contact: Lynn Pieper, Investor Relations, +1 (415) 202-5678,
Lynn.pieper@westwicke.com, or Rebecca Phillips, Public Relations Manager, +1
(408) 716-4773, rphillips@accuray.com
 
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