Accuray Announces Results for Fourth Quarter and Fiscal Year 2013

      Accuray Announces Results for Fourth Quarter and Fiscal Year 2013

Continued Momentum in New Order Activity and Backlog Provides Guidance for
Fiscal 2014

PR Newswire

SUNNYVALE, Calif., Aug. 27, 2013

SUNNYVALE, Calif., Aug. 27, 2013 /PRNewswire/ -- Accuray Incorporated (Nasdaq:
ARAY) announced today financial results for the fourth quarter and fiscal year
ended June 30, 2013. Non-GAAP results are provided to enhance understanding of
Accuray's ongoing core results of operations.

Accuray announced continued strength in new orders booked in the fourth
quarter and first patients treated in the United States with the new
CyberKnife® M6™ and TomoTherapy® H™ Series Systems as well as continued
financial discipline, operating expense control and decreased operating
losses.

"This was the second quarter in which we have shown growth and improvement in
new order volume, driven by the actions we have taken to improve the
commercial focus and execution of our business. I am encouraged that while we
have seen improved commercial momentum, at the same time we have also reduced
operating expenses, resulting in significantly lower operating losses and cash
usage," said Joshua H. Levine, president and chief executive officer of
Accuray.

Accuray also announced that based on final results from extensive durability
testing, the Company is pursuing alternative manufacturing strategies for the
InCise™ multileaf collimator (MLC) option on the CyberKnife M6 System.
"Despite delays surrounding the initial shipment of our MLC, we are encouraged
by feedback that the expanded feature set and functionality of our CyberKnife
M6 System is driving improved clinical benefits for patients and economic
value for our customers," said Joshua H. Levine, president and chief executive
officer of Accuray.

Financial Highlights
Gross new product orders totaled $71.6 million during the fourth quarter of
fiscal 2013, up $17.8 million or 33% from $53.8 million during the third
quarter of fiscal 2013. Net new product orders totaled $58.1 million during
the fourth quarter of fiscal 2013, up $14.0 million or 32% from $44.1 million
during the third quarter of fiscal 2013. Ending product backlog of $317.4
million was 7% higher than $297.9 million at the end of the previous quarter,
and 12% higher than $283.6 million at the end of the prior year fourth
quarter.

During the fourth quarter of fiscal 2013, 14 units were shipped and 15 were
installed, increasing Accuray's worldwide installed base to 700 systems.

For the fourth quarter of fiscal 2013 Accuray reported total consolidated GAAP
and non-GAAP revenue of $84.9 million. By comparison, for the fourth quarter
of fiscal 2012, total GAAP revenue was $100.5 million and total non-GAAP
revenue was $101.1 million. On a non-GAAP basis, product revenue was down by
36.6 percent from the same quarter of the prior year.

The consolidated GAAP gross margin for the fourth quarter of fiscal 2013 was
36.4 percent for products and 28.6 percent for services, compared to 46.2
percent for products and 21.6 percent for services, respectively, for the
fourth quarter of the prior year. The consolidated non-GAAP gross margin for
the fourth quarter of fiscal 2013 was 41.7 percent for products and 28.7
percent for service, compared to 52.8 percent and 19.9 percent, respectively,
for the fourth 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, third and fourth quarters of fiscal 2013, operating
expenses included $4.0 million, $4.9 million, and $0.2 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 $39.4 million in the fourth quarter compared to
$50.1 million in the fourth quarter of the prior year which demonstrates
significant progress towards our goal of reducing non-GAAP operating expenses
to approximately $40 million per quarter during fiscal year 2014 with some
expected quarterly fluctuations.

Consolidated GAAP net loss attributable to stockholders for the fourth quarter
of fiscal 2013 was $18.7 million, or $0.25 per share, compared to $20.3
million or $0.28 per share for the fourth quarter of the prior year. Non-GAAP
net loss for the fourth quarter of fiscal 2013 was $15.1 million or $0.20 per
share compared to $14.2 million or $0.20 per share for the fourth quarter of
the prior year.

Accuray's cash, cash equivalents, investments and restricted cash totaled
$177.1 million as of June 30, 2013.

Outlook
Accuray management projects total revenue for fiscal 2014 of $325 million to
$345 million on both a GAAP and non-GAAP basis.

Additional Information
Additional information including slides of fourth quarter and year end
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, August 27, 2013 at 2:00 p.m. PDT/5:00 p.m. EDT. The conference call
dial-in numbers are 1-877-415-3183 (USA) or 1-857-244-7326 (International),
Conference ID: 43627074. 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 4:00 p.m. PDT/7:00 p.m. EDT on August
27, 2013 and will be available through September 3, 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. PDT/8:00
p.m. EDT today through Accuray's release of its results for the first quarter
of fiscal 2014, ending September 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
visitwww.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 and operating expenses; delays in the shipment of the MLC
options; and expectation of the continuation of the positive trend in our
service gross margin. 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 to be filed on or
before September 13, ^ 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.

Financial Tables to Follow





Accuray Incorporated
Consolidated Statements of Operations
(in thousands, except per share data)
                Three Months Ended    Years Ended June 30,
                June 30,
                2013       2012       2013         2012
                (unaudited)           (unaudited)
Net revenue:
Products       $ 38,582  $ 60,621  $           $240,472
                                      137,403
Services       46,318     39,463     178,571      166,681
Other          -          449        -            2,070
Total net       84,900     100,533    315,974      409,223
revenue
Cost of
revenue:
Cost of         24,522     32,606     85,498       136,180
products
Cost of         33,093     30,936     132,836      134,562
services
Cost of other  -          501        -            1,209
Total cost of   57,615     64,043     218,334      271,951
revenue
Gross profit   27,285     36,490     97,640       137,272
Operating
expenses:
Selling and     13,076     14,500     54,372       54,547
marketing
Research and    14,687     21,488     66,197       81,287
development
General and     12,247     15,625     57,726       57,672
administrative
Total operating 40,010     51,613     178,295      193,506
expenses
Loss from       (12,725)   (15,123)   (80,655)     (56,234)
operations
Other expense,  (4,284)    (4,447)    (13,133)     (12,521)
net
Loss before
provision for   (17,009)   (19,570)   (93,788)     (68,755)
income taxes
Provision for   1,706      443        3,573        2,595
income taxes
Loss from
continuing      (18,715)   (20,013)   (97,361)     (71,350)
operations
Loss from
discontinued
operations:
Loss from
operations of a
discontinued    -          (1,633)    (3,505)      (7,103)
variable
interest entity
Impairment of
indefinite
lived
intangible      -          -          (12,200)     -
asset of
discontinued
variable
interest entity
Loss from
deconsolidation -          -          (3,442)      -
of a variable
interest entity
Loss from
discontinued    -          (1,633)    (19,147)     (7,103)
operations, net
of tax
Loss from
discontinued
operations      -          (1,382)    (13,289)     (6,411)
attributable to
non-controlling
interest
Loss from
discontinued
operations      -          (251)      (5,858)      (692)
attributable to
stockholders
Net loss                              $            $
attributable to $(18,715)  $(20,264)  (103,219)   (72,042)
stockholders
Loss per share
attributable to
stockholders
Basic and
diluted -       $         $         $         $  
continuing      (0.25)    (0.28)    (1.33)      (1.01)
operations
Basic and
diluted -       $      $         $         $  
discontinued     -       (0.00)    (0.08)      (0.01)
operations
Basic and       $         $         $         $  
diluted - net   (0.25)    (0.28)    (1.41)      (1.02)
loss
Weighted
average common
shares used in
computing loss
per share
Basic and       74,270     71,473     73,281       70,887
diluted
Cost of revenue, selling and marketing, research and development, and general
and administrative expenses include stock-based compensation
charges as
follows:
Cost of         $       $       $         $ 
revenue        455        401        1,498       1,672
Selling and     $       $       $         $   
marketing      318        184        1,121       729
Research and    $       $       $         $ 
development    494        667        1,949       2,340
General and     $       $       $         $ 
administrative 830        905        3,648       3,717





Accuray Incorporated
Consolidated Balance Sheets
(in thousands, except share amounts)
                                               June 30,      June30,
                                               2013            2012
Assets                                       (unaudited)   (unaudited)
Current assets:
Cash, cash equivalents and investments       $   174,397  $   143,504
Restricted cash                              2,728           1,560
Accounts receivable, net of allowance for     55,458          67,890
doubtful accounts
Inventories                                  81,592          81,693
Prepaid expenses and other current assets    12,595          16,715
Deferred cost of revenue - current           9,165           4,896
  Total current assets                  335,935         316,258
Property and equipment, net                  34,733          37,458
Goodwill                                     59,368          59,215
Intangible assets, net                       31,896          49,819
Deferred cost of revenue - noncurrent        2,149           2,433
Other assets                                 11,848          7,987
 Total assets                          $ 475,929      $   473,170
Liabilities and equity
Current liabilities:
Accounts payable                             $  15,920     $    18,209
Accrued compensation                         12,461          23,071
Other accrued liabilities                    22,893          31,646
Customer advances - current                  17,692          18,177
Deferred revenue - current                   86,893          83,071
 Total current liabilities             155,859         174,174
Long-term liabilities:
Long-term other liabilities                  5,382           5,988
Deferred revenue - noncurrent                9,085           9,675
Long-term debt                               198,768         79,466
 Total liabilities                     369,094         269,303
Equity:
Preferred stock, $0.001 par value;
authorized: 5,000,000 shares; no shares issued -               -
and outstanding
Common stock, $0.001 par value; authorized:
200,000,000 and 100,000,000 shares June 30,
2013 and June 30, 2012, respectively; issued   75              72
and outstanding: 74,587,231 and 71,864,268
shares at June 30, 2013 and 2012, respectively
Additional paid-in capital                   424,524         409,143
Accumulated other comprehensive income       1,882           2,837
Accumulated deficit                          (319,646)       (216,427)
 Total stockholders' equity            106,835         195,625
Non-controlling interest                     -               8,242
 Total equity                          106,835         203,867
  Total liabilities and equity      $ 475,929      $   473,170





    Revenue          Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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         $         $       (A)   $         $        $        (A) $         $          $       (A)   $         $         $   2,141 (A)   $
                     38,582   30               38,612   60,621    315              60,936    137,403   378               137,781   240,472                     242,613
    Services         46,318    (4)         (B)   46,314    39,463    244         (B) 39,707     178,571    (113)       (B)   178,458   166,681   (10,065)    (B)   156,616
    Other            -         -                 -         449       -                 449        -          -                 -         2,070     -                 2,070
    Total            $         $             $         $         $              $          $          $             $         $         $                $
                     84,900   26               84,926   100,533   559              101,092   315,974   265               316,239   409,223   (7,924)          401,299
    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 June 30, 2013 and 2012, product revenue recorded by Accuray for the sale of
(A) TomoTherapy products was less than $0.1 million and $0.3 million lower than product revenue that would have been recorded by TomoTherapy if the acquisition had not
    occurred. For the years ended June 30, 2013 and 2012, product revenue recorded by Accuray for the sale of TomoTherapy products was $0.4 million and $2.1 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 June 30, 2013 and 2012 was less than $0.1 million and $0.8 million higher than the amount that would have been recognized by TomoTherapy if
    the acquisition had not occurred. Partially offsetting this deferred revenue adjustment for the three months ended June 30, 2012, Accuray recorded a reserve for returns
    of $1.0 million to reflect the expected return of spare parts from TomoTherapy distributors who will cease servicing TomoTherapy systems once the integration is complete
(B) and Accuray personnel begin to provide service directly to these customers. For the years ended June 30, 2013 and 2012, deferred service revenue recognized was $0.1
    million and $11.5 million higher than the amount that would have been recognized by TomoTherapy if the acquisition had not occurred. Partially offsetting the $11.5
    million deferred revenue adjustment for the year ended June 30, 2012, Accuray recorded a reserve for returns of $1.4 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 June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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         $         $          (C) $         $        $          (C) $         $         $          (C)   $        $         $ (23,796) (C)   $
                     24,522   (2,023)          22,499   32,606    (3,818)          28,788    85,498    (9,649)          75,849    136,180                     112,384
    Services         33,093    (48)        (D)   33,045    30,936    875         (D)   31,811     132,836    (55)        (D)   132,781   134,562   (1,655)     (D)   132,907
    Other            -         -                 -         501       -                 501        -          -                 -         1,209     -                 1,209
    Total            $         $                $         $        $                $         $          $                $         $         $ (25,451)       $
                     57,615   (2,071)          55,544   64,043    (2,943)          61,100    218,334   (9,704)          208,630   271,951                     246,500
    Products cost of revenue included the following charges arising from the acquisitions of TomoTherapy and Morphormics: $2.0 million and $3.8 million, respectively, during
    the three months ended June 30, 2013 and 2012 and $9.6 million and $15.3 million for the years ended June 30, 2013 and 2012 respectively, for the amortization of
(C) intangible assets created by the acquisitions. For the year ended June 30, 2012, products cost of revenue also included $8.3 million due to the write up of finished
    goods and work-in-process inventory on hand at the time of the acquisition of TomoTherapy from cost basis to fair value 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 twelve months ended June 30,
    2013: less than $0.1 million 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. Service cost of
    revenues also included $0.1 million and $0.2 million of charges during the three and twelve months ended June 30, 2013 due to employee severance and retention. For the
(D) three and twelve months ended June 30, 2012: $-0- and $3.6 million charge due to the write up of service related inventory on hand at the time of the acquisition of
    TomoTherapy from cost basis to fair value, $(0.4) million and $(3.5) 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 $0.4 million charges for property, plant and equipment revaluation, less than $0.1 million and
    $1.9 million charges due to employee severance, integration and retention expenses, and $(0.6) million and $(0.8) 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
    service directly to these customers.
    Gross Profit
                     Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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         $         $   2,053       $         $        $   4,133       $         $         $  10,027       $        $         $  25,937        $
                     14,060                     16,113   28,015                      32,148    51,905                      61,932    104,292                     130,229
    Services         13,225    44                13,269    8,527     (631)             7,896      45,735     (58)              45,677    32,119    (8,410)           23,709
    Other            -         -                 -         (52)      -                 (52)       -          -                 -         861       -                 861
    Total            $         $   2,097       $         $        $   3,502       $         $         $               $         $         $  17,527        $
                     27,285                     29,382   36,490                      39,992    97,640    9,969            107,609   137,272                     154,799
    Gross Profit
    Margin
                     Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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         36.4%     5.3%              41.7%     46.2%     6.6%              52.8%      37.8%      7.1%              44.9%     43.4%     10.3%             53.7%
    Services         28.6%     0.1%              28.7%     21.6%     (1.7)%            19.9%      25.6%      0.0%              25.6%     19.3%     (4.2)%            15.1%
    Other            -         -                 -         (11.6)%   0.0%              (11.6)%    -          -                 -         41.6%     0.0%              41.6%
    Total            32.1%     2.5%              34.6%     36.3%     3.3%              39.6%      30.9%      3.1%              34.0%     33.5%     5.1%              38.6%
    Operating
    Expenses
                     Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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     $         $      (E) $         $        $        (E) $         $         $      (E) $        $        $          (E)   $ 
    Marketing       13,076   7                13,083   14,500    (498)             14,002    54,372    (4)               54,368    54,547    (2,335)          52,212
    Research and    14,687    (128)       (F) 14,559    21,488    (163)       (F) 21,325     66,197     (612)       (F) 65,585    81,287    (1,387)     (F) 79,900
    Development
    General and     12,247    (288)       (G) 11,959    15,625    (867)       (G) 14,758     57,726     (2,112)     (G) 55,614    57,672    (5,598)     (G) 52,074
    Administrative
    Total            $         $              $         $        $                $         $          $                $         $         $                $
                     40,010   (409)             39,601   51,613    (1,528)          50,085    178,295   (2,728)          175,567   193,506   (9,320)          184,186
(E) For the three and twelve months ended June 30, 2013, less than $0.1 million charge for property, plant and equipment revaluation. For the three and twelve months ended
    June 30, 2012, $0.5 million and $2.3 million, respectively, of charges primarily due to employee severance, integration and retention expenses.
    For the three and twelve months ended June 30, 2013: less than $0.1 million and $0.3 million due to retention expenses from the acquisition of Morphormics, and $0.1
(F) million and $0.3 million due to property, plant and equipment revaluation from acquisition of TomoTherapy. For the three and twelve months ended June 30, 2012, less than
    $0.1 million and $1.2 million charges due to employee severance, integration and retention expenses and $0.1 million and $0.2 million due to property, plant and
    equipment revaluation from acquisition of TomoTherapy.
    For the three and twelve months ended June 30, 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 $1.3 million due to property, plant and equipment
(G) revaluation due to the acquisition of TomoTherapy. For the three and twelve months ended June 30, 2012, $0.2 million and $2.4 million charge due to employee severance
    and retention expenses, $0.2 million and $1.3 million charge related to preparation for integration of work forces and operations, and $0.5 million and $1.9 million
    charge for property, plant and equipment revaluation.
    Net loss attributable to
    Stockholders
                     Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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        $         $   2,506 (H) $         $         $   5,030 (H) $          $         $  12,697 (H) $         $         $  26,847  (H) $
    Operations       (12,725)                    (10,219)  (15,123)                    (10,093)  (80,655)                     (67,958)  (56,234)                    (29,387)
    Other Expense,   (4,284)   1,110       (I)   (3,174)   (4,447)   1,007       (I)   (3,440)    (13,133)   3,640       (J)   (9,493)   (12,521)  3,596       (I)   (8,925)
    net
    Provision For    1,706     -                 1,706     443       -                 443        3,573      -                 3,573     2,595     -                 2,595
    Income Taxes
    Loss from        $                           $         $                           $          $                           $         $                           $
    Continuing       (18,715)  $   3,616       (15,099)  (20,013)  $   6,037       (13,976)  (97,361)   $  16,337       (81,024)  (71,350)  $  30,443        (40,907)
    Operations
    Loss from
    operations of a
    discontinued     -         -                 -         (1,633)                     (1,633)    (3,505)    -                 (3,505)   (7,103)   -                 (7,103)
    variable
    interest
    entity
    Impairment of
    indefinite
    lived
    intangible
    asset of         -         -                 -         -         -                 -          (12,200)   12,200      (K) -         -         -                 -
    discontinued
    variable
    interest
    entity
    Loss from
    deconsolidation
    of a variable    -         -                 -         -         -                 -          (3,442)    3,442       (L) -         -         -                 -
    interest
    entity
    Loss from
    discontinued     $      $            $      $        $            $         $         $  15,642       $        $        $            $ 
    operations, net   -      -                  -      (1,633)   -                 (1,633)   (19,147)                     (3,505)   (7,103)   -                 (7,103)
    of tax
    Loss from
    discontinued
    operations       -         -                 -         (1,382)   -                 (1,382)    (13,289)   10,323      (M) (2,966)   (6,411)   -                 (6,411)
    attributable to
    noncontrolling
    interest
    Loss from
    discontinued     $      $            $      $       $            $       $        $               $       $       $            $  
    operations        -      -                  -      (251)    -                 (251)      (5,858)    5,319            (539)    (692)    -                 (692)
    attributable to
    stockholders
                                                                                                                                         -         -                 -
    Net Loss         $                           $         $                           $          $                            $         $                           $
    Attributable to  (18,715)  $   3,616       (15,099)  (20,264)  $   6,037       (14,227)  (103,219)  $  21,656       (81,563)  (72,042)  $  30,443        (41,599)
    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) Includes $4.3 million of non-cash interest expense arising from the accretion of interest expense on the long-term debt, offset by $0.7 million gain on previously held
    equity interest due to the acquisition of Morphormics.
(K) 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 during the three months ended December 31, 2012.
(L) Represents loss from deconsolidation of CPAC.
(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 during the three months ended December 31, 2012.
    Loss per share
    attributable to
    stockholders
                     Three months ended June 30,           Three months ended June 30,            Year ended June 30,                    Years ended June 30,
                     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       (0.25)    0.05              (0.20)    (0.28)    0.08              (0.20)    (1.33)     0.23             (1.11)    (1.01)    0.43              (0.58)
    operations
    Basic and
    diluted -        $      $            $      $       $              $       $       $              $       $       $            $  
    discontinued      -      -                  -      (0.00)    0.00              0.00      (0.08)     0.07             (0.01)    (0.01)    -                 (0.01)
    operations
    Basic and        $       $              $       $       $              $        $       $              $       $       $              $  
    diluted - net    (0.25)    0.05              (0.20)    (0.28)    0.08              (0.20)    (1.41)     0.30             (1.12)    (1.02)    0.43              (0.59)
    loss
    Weighted
    average common
    shares used in   74,270    -                 74,270    71,473    -                 71,473     73,281                       73,281    70,887                      70,887
    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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