ARAY - Earnings call transcript Q3 2021

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Operator

Good afternoon everyone and welcome to the Accuray Reports Third Quarter of Fiscal 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] At this time I’d like to turn the conference call over to Ken Mobeck, Vice President of Finance and IR. Sir, please go ahead.

Ken Mobeck

Thank you, Jamie, and good afternoon, everyone. call fiscal financial March year conference third for XX, Accuray’s of quarter XXXX, to to results review the XXXX. Welcome which ended

corporate call our this management review During afternoon, recent will developments.

Shig Josh on us President Executive of Vice and Financial today’s President and are Suzanne Chief Hamamatsu, Joining and Levine, Winter, Senior Senior Accuray’s Vice Accuray’s call and Accuray’s Chief Chief Officer; President Officer; Commercial R&D. Officer

cause information results that and like these after the would includes the materially we Exchange filings well remind differ set the just press on that our statements this those I based close forth our as afternoon today as or results forward-looking in Accordingly, Actual to differ Before or call forward-looking no by for market by Commission. call. forward-looking statements. A contemplated as issued undue call forward-looking put few required any of The result date information Securities to you to on release statements. may the from us reliance could obligation we today’s and materially extent except these in today’s begin, are with should this forward-looking we not laws. housekeeping implied statements. Factors you assume of new as available securities items update to applicable statements are events, future a to any on

questions to during then request First, themselves participants with two and we any the Q&A session, re-queue limit follow-ups. that

to are our quarters. to Second, a quarter remarks prepared fiscal all specific references we in make the year

quarter our refer ended XXXX. XX, fiscal regarding our quarter third third statements example, For March to

call link by in be Josh? to accompanying accuray.com. Accuray’s and Levine. to presentation investor going Executive today’s that, page turn accessed slide Chief President earnings a on call, this be the Josh or me will which let there With Officer, Accuray’s over at directly release can provided the Finally,

Josh Levine

third Japan latest for COVID-XX which delivery of that of included reflect Type in from continued the phased continues third systems. ClearRT fiscal Thank and prior A real-time kVCT on us like regulatory one from Positive adaptation the including tracking conversion approval system our quarter headwinds include was business $XXX.X QX revenue in is today’s in China-related at increase of excellent revenue consisting on latest the and Radixact you, progress our Accuray’s of Radixact introduction the the system performance to SX thanks approximately $XX X% and and our of CyberKnife million adoption Helical for our on quarter an call. motion positive quarter Type generation making environment. Imaging Revenue the to continued the Ken, innovations the highlights XXXX momentum by despite everyone upgrade Type for came joining our system. million, China Overall nine revenue, B fiscal year. and A Synchrony created

quarter execution related Type third quarter-to-quarter. from A continued system Type will conversion, vary saw while A the The of revenue number shipments to China

quarters. several over related next revenue will A of licenses We the expect Type course to be of recognized the remainder the

primarily approximately capability. motion clinical positive of months. quarter included to in With and orders, basis, advancing product the launch. to or track order prior with respect of growing new Synchrony and like adaptation XX% up $XX SX line latest related XX product and from proprietary Radixact, are from XX% year-over-year we which validation strong orders generation growth during B our which driven saw the customer COVID adoption CyberKnife orders Despite expectations. million, quarter our a progress volume Type introduction operational indicating the increase XX make and for prior a qualification million continued $XX.X was and Japan the on X% system the year-to-date headwinds, as this sequentially the the where of and platform delivery technologies of value CyberKnife as quarter global manufactured platform option, significant as gross grew have new and Synchrony’s China order Radixact to EMEA Synchrony is the our in year, was quarter included of believe China an demand XX% XX% internal respectively, we and CyberKnife Gross real-time we for orders on believe XX% in uptake the Regarding Type segment, tracking that we of Radixact. orders well the approximately by our continues in market B JV process, for manufacturing strong product consists to On ready demonstrates

EBITDA as From to last investment Additionally, the the expect orders are EMEA into orders systems trend as in solid percentage QX our generating, the of representing and have increased back performance rate where developed we like with global trade-in our our quarter in and for product our call, upgrade strong a pre-COVID trade-up increase to mix XX% Radixact continue we markets and adjust R&D we to fourth with platforms. in run perspective, in see levels. mentioned financial are to quarter generation our continue investments of older in the a CyberKnife in latest this started targeting R&D third we AMS, to we

Helical existing an gaining front, are platform, orders innovation Radixact for installed from momentum seeing systems. new for XX on upgrade orders on order and option Systems ClearRT four Imaging Radixact the ClearRT we product base kVCT the early On as

Helical about high excited evaluation site, kVCT our guided are we clinical images. Additionally, where initial successfully is feedback from staff by the patients the fidelity treating

we ClearRT improved noticeably provides Willis Reporting the staff upgrade precision. highest with Dr. and the Director and our plan compared Lane imaging Rosen, quality treatment plans well allowing image who our quality care we patients ClearRT expectations will Japan. perspective clearance the Oncology ClearRT and is our to improve cone-beam CE And Center, regulatory cancer team confidence provided shown fourth our in From accelerators. CT we at exceeded received Radiation System of partner, sometime market track Knighton fiscal the superior to our quarter. a in collaboration approval certification tissue, provide we our an conventional believe systems QX, Cancer believe Radixact are on linear mark additional significantly. as ClearRT healthy clearance fiscal deliver to ability on as We for and tumor during surrounding the the both imaging for with to allow visualize Our

team provide global that overall at the in and clinical ClearRT impact, fiscal who Knighton ClearRT of the our first the be the slide right imaging With clinical image courtesy terms one the was The additional see importance imaging, images on acquired diagnostic Willis in clearances, track compares Helical overstated Center, ClearRT the and using evaluation remains we these site. Radixact on our how kVCT upgrade ClearRT is Cancer Clinicians easy a these has available largest broader fourth image, have Like launch CT. the share accurate image quality cannot to a ClearRT left spatial and a of visualization captured CT, quarter. contrast to the images view the a same prepared believe provides the market. I of walk order of of kVCT for This The on contains field rob Helical to to In find CT, on it to uniformity I the low sense anatomy commercial introduction through excellent and about utility. expanded remarks. of my of diagnostic patient from as it in clinical diagnostic set difference. a visual across discern resolution our difficult

not the challenging. noise ClearRT cone-beam background, image, can not unlike conventional unlike in setup by hampered structures And anatomy. which critical from very ClearRT of patient does CTs, is within image make images, suffer workflows accurate deformation adaptive can obscure For that and the MR

low, these dose XX a seconds quality and length one image. meter. than on less images And Finally, whole the grade of fast is for to depending standard exposure minute basically one patient high three ClearRT area scan to the scan a only very acquires

As in CT platform Radixact the image with images, combines capability, sample which kVCT architecture imaging shown near the provides unique System’s resolution. diagnostic quality ClearRT Helical

industry real a truly Radixact added both unique high workhorse other like treatment. when marries represents Radixact’s the and significant makes conventional large of to capabilities cost efficient with ownership. CT Additionally, highly quickly images capability clinicians departments architecture platform image and acquire the to transverse in tracking motion improvement of delivery allows quality it proprietary speed field versatile it ClearRT over time due and Synchrony’s best-in-class its and unique, acquisition total we believe the to a and capability, radiotherapy competitive cone-beam efficiently small, and imaging for Radixact’s provides adaptation in uniform that during unique view largest

ultra-hyperfractionated offering that the for to SBRT specifically our continued are world in class and programs SRS CyberKnife for pleased very platform, demand patients. SX, their CyberKnife the systems with Turning building are healthcare we treatment

represents China including During Hospital, this facility. the at third at the PLA SX quarter, SX their CyberKnife Expo, orders we the order CyberKnife Import the General system received where International specific

agencies for we network. Radiosurgery the Additionally, at Columbus, Mount enable Ohio, technologies a with which above is and SX first on XXXX medical strategic policy in assessment put France. Pignol significantly of be Clinic published hyperfractionated quarter Kumamoto and that Dr. oncology as care of yesterday, legislative the this platforms and has serve health the CyberKnife representative and our Health of Physics to collaborations clinical catalysts company’s their research part activities Alliance had that including in unique, Synchrony higher X executive press MD treatment gold Dr. retrospective and that company’s serve U.S. a Carmel of global news Frontiers patients joined treatments. in and has that and ultra-hypofractionation Ph.D installation radiotherapy SBRT SRS Accuray motion and tracking, are for in and treatments differentiated from industry publication innovations the hypo in as recognized lead are development choice SX Medical regulatory been CyberKnife partners, Strasbourg, the at combined team respected the Nuclear CyberKnife technology Japan and board the key pleased as both support release, member February and bringing Dr. with announce will real the Officer. a we and leaders and to executive delivery, Technology market radiation dose and highest development Jean-Philippe non-coplanar this to SX’s Synchrony. role, we high-precision important in globally with will SBRT scientific certified Pasteur Radixact, University the in a is recent needed time In pioneer the our maintain from with Synchrony we out study that Work and times and precision we like Most XX with of believe minutes. the for treated demonstrates under in of level adaptation provides Oncology ensure Accuray and Grade the ClearRT fewer standard outcomes will and oncologists Highlighting that develop growth long-term as and Louis toxicity functions. and leadership Pignol in with societies, Pignol position in opinion a influence Chief reimbursement.

to of forward are Accuray’s to Jean-Philippe therapy We team to global leveraging have as in look his our the radiation expertise thrilled market. and part impact expand

back Accuray emerging the and we overall. companies, Looking from no well. have a COVID-XX months, over COVID these are many Despite company challenges clearly, stronger XX created believe pandemic, past comparatively XX I through Accuray this exception. the has has to period navigated been challenges, the headwinds And for

compete installed an base that we allow going new will with bumpers effectively forward. upgrades technology of have more portfolio improved our and to meaningfully us product believe customers differentiated retain We for

of In fiscal the seeing tangible while actions result to A financial the working for outset catalysts, our China at of we radiotherapy the revenue momentum. and that perspective, in we quite a impact as From of Type QX of of activate sight existing a the been took to line commercial continued we’ve terms are directional road pandemic. opportunity a

an showing financial cash in stronger improvement and leverage position. a are We

our With we Lastly, strategic have a most going call we leadership to turn in effectively financial and our believe QX executive growth team forward. I’ll over that, to detail. Shig? perhaps review improved, importantly, focused to greater results agenda execute very the Shig firmly vastly that is positioned

Shig Hamamatsu

for good an quarter. with quarter, of but prior begin Gross details highlights I’ll third were and for from Josh, $XXX second everyone. period. the in $XX.X financial our a million third XX% the then $XX the or quarter afternoon additional quarter and certain million down for from in focus performance a year increase million orders you, third Thank some on

As we the due which in headwinds the continue particularly to timing or see to affected region, has in some Americas order the the pandemic, placement near-term.

from it of Americas. year, product this the TomoTherapy order From quarter, XX%. for perspective, order platform unit of second increase volume each of for by terms the accounted the accounting growth In double-digit fiscal of remaining approximately for the CyberKnife sequential XX% the was quarter the outside mix a from and the driven of regions

strong included Synchrony well continue highlighted as momentum as third Josh we order we earlier, portion of As quarter, the significant to gross orders a during saw innovation see on SX. a CyberKnife Radixact, as our driven

the China we for on we of Type space quarter $X Additionally, included see of the and age-outs ClearRT its were million batch as aged-out. first Net execute orders previously which of launch. well A it the $XX age-in activities during orders related to quarter. commercial $X million million

based markets depth impact the will extent and factors. to a could vary individual Although of which COVID-XX on number

timing pandemic normal of higher a expect the We see driven level this term in age-outs than near to due disruption. to

$X.X cancellations million, FX and of and third adjustments quarter, the with the $X other we million. During had

result third quarter. an $XXX in million, March generated ended third X% increase the backlog on of with we net million the our XXXX. a a As which basis, from We quarter orders $XX.X of is XX,

the the revenue Turning year, now $XX income to ramp our of execute for $XX.X Service Product as $XXX.X China China, XX% included to statement. we A system year. Total X% CyberKnife increase from quarter products. million A the a to of accounted an XX%. for on from for revenue second million prior prior $XX the platform for of TomoTherapy was systems. was related quarter unit the revenue accounted while for X% Type for quarter million, increase revenue Type $XX.X was remaining revenue million the product quarter’s of million, revenue an From perspective, volume, the it the of mix continue which approximately to

margin. gross to now Turning

quarter was growth the improvement gross Product Our primarily in quarter The year. for was of during Service CyberKnife mix in quarter with gross due compared XX.X% for to China the driven overall the a by year. the the year. A XX.X% for margin ramp. the XX.X% primarily to The gross the service gross in factors margin compared was the to compared the in was that XX.X% to lower infrequent year prior quarter margin revenue margin nature. quarter in connection for prior units was higher for are in two gross prior Type XX.X% prior margin product XX.X% considered

that grow. our to DHL quality supply November, have expected aftermarket service last further installed company’s expand global partnered strengthen the in base back announced we as First, chain we and our with customer as to the continues upgrade logistics parts is to high service globally

in with During the encourage investments this quarter, we certain going with platform. logistics live connection new

service items investment expect realize our of service third as service gross margin gross by benefit future to for in portion impacted margin both and a the of new recognition as JV margin imposed quarter, On third parts we the the bulk This recognize JV. the sold. periods operationally which JV couple financially issue from until to defer of rule, the this quarters our impacted expect related to sale ownership negatively JV a for a of is future our the China margin and accounting platform. negatively a meaningful this purely to defer we we timing quarter other required in next were consumes part are While gross in a to quarter the periods given

margin ramp it the we from continuous service similar JV in a and As may differ system activities, see brief installation future. time-to-time

service our impact which in approximately margin for items, XX%, XXs. historical line Excluding two high would is the more the range infrequent the quarter have third these with of our in gross been

for from normalization second statement, the we see as of increase to were previously Moving certain as $X.X the million, started quarter sequentially $XX.X down income expenses quarter million an anticipated. expenses of operating the

the As prior compared third or XX%. to increased year, expenses million, $X the quarter operating

to took expenses a million, in of with we included of As onetime actions $X.X response pandemic. the the bonus operating reminder, was accrual the year the prior preservation reversal benefit cash which a part

expenses forward to as the normalize quarterly to the expense continue invest our rate run and R&D operating to range we to restore we million quarter, of pipeline. certain in As anticipate look we continue $XX fourth our in

reversal. both quarter million for in from the leverage. basis the of have million, loss $X.X ability EBITDA, accrual rate as the is higher million our adjusted of line of income As consistent we and XXXX, prior reported XX, past to GAAP March and income below This GAAP bonus year. demonstrate On generate adjusted our expense or EBITDA Operating Adjusted was fiscal mentioned million, our positive consistently to single of operating operating through EBITDA million. this quarter $XX our cash compared run prior a JV item generated in million item of a the year second line. prior million, the statement impact seasonality being the was $XX with continue one-time last in on year to $X.X $X.X loss in trailing income $X.X as to third impact we XX using called for income a months favorable on $XX.X right China quarter have profits the in we a The income compared million flows a year. for The cycles. call, half the benefited operating operating is investment seen the fiscal was $X our equity gain quarter in operating of operating

Joint operational near will income term. the – we quarterly to fluctuate activities, China our commercial loss in Venture and this JVs its with expect ramp our expect As or continues share we to continue

XX, March working continues to down as term from of managing million while despite focus position year restricted maintaining loan, on the XXXX, term a capital, capital. a fiscal working $XX.X of start as the $XXX of Our million short and $XX million team improved cash to cash paying

free million generated flow in the nine cash months of $XX first this fiscal of year. We also

As current although timing potential of timing the of on we impact believe to the revenue disruptions. pandemic quarter cautious we revenue China conversion look ahead driven state conversion on we’re soften remain we pandemic visibility will revenue the front, gaining fourth the given Type on A that

As on capital we manage focusing margin and revenue conversion, the innovation, near to headwinds expansion, plan investments, continue management. operational working efficiency, term in we

up questions. inventory of on revenue Type levels appropriate the focused management as that, chain also call open on ready we for are are A We China supply conversion maintaining to while we With execute inventory. Operator? and

Operator

[Operator Instructions] question. go from your from Josh with Our first today question Jennings Please ahead Cowen. comes

Josh Jennings

fiscal afternoon, the fiscal that, make of coming A risk through convert, for I kind and to super could of really buffering conversion that outside sure flow to there outside predict, that start I fiscal caused we the the Shig the to Thanks in backlog that to just, will of China mean the it’s XXXX, about remarks disruption are license just conversion gentlemen. there, start can that other revenue have good in know I and that a obviously in QX and that revenue revenue the backlog and degree – regions isn’t should but even help ultimately leading stronger want revenue bullets converted XQ in see questions. quarters. Type us to in Hi, here I age-outs, your that to strong, to your taking in conversion that China China, of the last being terms pandemic, prepared trying wanted in off talking card segment but headwinds you disruption revenue wild of scenario by conversion understand,

Shig Hamamatsu

question. Yes, right appreciate I the way this think you’re Josh, seeing

the a in continue I good given have pretty will see a and China, conversion refers revenue China. we we think over visibility which on several expect my that has baseline next quarters us to comment certainly to, really

– referring India. me think, we AMS excuse just I were like Americas places as look at to, that and, – the was

in think think, we’re with being on. what’s to respect I going other we improvements, just areas, cautious see But well. I as

start to we got we little So, growth us there in really amongst think returning next a we we year-over-year we pretty year-over-year. year, [indiscernible] I’m bit good the to regions. again, about, deliver look more a while to, feel growth balance growth, see especially good to for glad just talking like, of are as by QX, consistent for I X% And QX, to are reasons. And,

Josh Levine

we’re want just differences, to you see now backlog, orders timing, Hey, of regions. us to kind Josh, we really of Shig’s process. around, other into that. the emphasis prudent And, right world, clear, cancel I thought to regards offset about that’s to just be timing just to seeing some again, being buoyancy to be earlier, add think the comments, Shig’s in from in out flare real other is originally of that baking just the some where perhaps not But, definitive that reflection of This regions. of more China what relative the expected, the just with again, other parts we for just point ups we’re to given creating the is

Josh Jennings

to little makes cautious. bit a lot a that and be us. sense lot of No, environment of continued makes to sense a That

my back and then second I’ll question, to get in queue. So, the

is the Dr. Just that your believe Officer, a was since this announcement within I and Chief Officer for Medical Accuray Medical Chief on Adler first Technology seat. naming

see understand could help you’re wanted what Just if here. to you signaling us

evidence Chief the Technology of an Thanks behind the CyberKnife, we pursuit clinical I how for the have Are the thinking Pignol of steps crusade Wish we taking about team. should we more should and think at as about him you innovation questions. Officer? Chief behind Thanks. guys in then oncologist of and Radixact, being Dr. and evolution Medical Officer the first radiation Accuray. on a And be be is thinking next been the him platforms? also, these

Josh Levine

about this. frankly, Josh, is question. is we’re why that’s so you exactly for that that articulated Quite, just what this thank exactly It’s – excited right. you

the products with of clinically class got the collaborated is dimensions, technology done is well of with He’s world Ph.D a both companies. Physics. in in as within lot class, many class, this as world This He’s oncologist. clinical person. For world not space, a radiation different a different just Nuclear a space, perspective, across people from lot research a a many,

we’ve the areas, a assessment in and quite is qualified together really perspective, degree timing it’s moment your come we in us Chief this power literally to qualified company to that uniquely think have actually back, the ago. he’s, of frankly, role highlight perfect since from that, John really Officer help correct areas, for in Medical Jean-Phillipe are and in decades the up that areas Adler leverage the the time uniquely this had that a time the first those led And is So you you Josh.

the The evidence first is piece. clinical

different. Our show different. fare way The that we what and to [ph] products MR operate and, guided are products. people relative And the lately like they of is clinical things of Lynx outcomes, biologically a are we need how lot those to and to press of to things a reduction getting be able the into, translate some toxicity relative lot of differences

are, highly enough And can’t I communicate can’t speak Jean-Philippe, so am cannot and I about more we I I – now. right than excitement

a major to to make happen going Jean-Philippe, us. this thrilled for this impact point, have is at We’re

Josh Jennings

bringing Thank on Congratulations great. you. That’s in. them

Operator

from [Operator Lake Capital Instructions] Please O'Neil with go Our next Markets. question. question from Street your comes Brooks ahead

Brooks O'Neil

Hi, good everyone. afternoon,

As the guess, see the ClearRT, timing little but to importance you’ve statement? highlighted what from how, And you you bit manifesting anticipate itself a how could the talk that’ll, I of just about you of also ClearRT? in income expect that

Shig Hamamatsu

first. I chime to. that wants And question. Yes, I’ll and take question maybe she in Brooks, for if can the Suzanne maybe thanks

And little orders to choosing to gave an But we option that on it. a related XX So what you a in a orders new in and got customers of out QX. ClearRT. of flavor ClearRT us four XX today include the actually to the buy heard section, units, earlier he Josh’s four remarks Radixact trying actually in they prepared

as how to, the base buy base. XX Radixact and as we the and the for Radixact a flavor can they really the existing to they one that’s install newly So delivered upgrade option sold be install right that this their to wanted of or upgrade are orders, one for standalone new other get orders, upgrade which

necessarily going of right quarters, timing I deliver but can to Brooks, into you to commercial units those want you those going XX now, to next, we So, we’re a full say, the over not I do into few, as I’m add launch. some as start anything? the revenue, course get get of of Suzanne mean imagine, would the

Suzanne Winter

That’s correct.

QX. to in going start see our going shipments into We’re QX to

So that’s, up demand realize to we’ll start some so…. there’s pent tremendous

Brooks O'Neil

great. That’s

Okay, I and ask Shig pick want you to my I’ll just second, again. on guess, I

improvement the cash the sheet. in talked flow the balance in You about

still are I one you maybe that about convertible next tranche How the your time? securities tranche balance with dealing there. over of of think there’s the out thinking and that sheet period

Shig Hamamatsu

window your and tremendous job Yes. team capital, consistently one-year we to we the question. get said, a see XX. of done I’m in really, notes, Yes, past, pleased Thanks its for has that And I with working managing cash. Brooks. and as the into million the of ended convertible as $XXX maturity, due July

that well QX to position looking a reported think, frankly, cash of position we very do it. just that when successfully quite we I potentially do to end the start ready refinancing. going to And We’re are us

at accomplish So, track to that good I the think the actually we’re time. on right

Brooks O'Neil

you very much. Thank Great, perfect.

Josh Levine

Thanks, Brooks.

Operator

your go from Petrone And our next with Please from question Anthony Jefferies. question. comes ahead

Anthony Petrone

just Josh afternoon. sort and back of good RO bundle. revisit to and go Maybe Hi,

and renewed sort Just momentum there’s Type that overall when you to that, reiterating many do maybe impacts goes on to thoughts And actually far? Type timelines and on are think about, obviously, really been B this have just back full swing? timing A thoughts COVID, in the tender? latest bit, sales, rollout the the they just relation Type opportunity think sort how the so B XXXX a there thoughts can here, may issued then how into just Thanks. we on again, just in China capital when the sure of sort just – there. we recap many How this licenses side, be tender if get of will opportunity trends, some and of And still

Josh Levine

Anthony. Sure,

what So, pose the time. puts – update the just from timing or of what has is order taking the in essentially those; which RO-APM in and you there from in no RO-APM, timing calendar change far XXXX X, that we’ve heard basically it no the – XXXX as of CMS the the so as January communicated, industry recently, the model implementation most the

to as what that on It’s And again, again, past, that we’ve this of they if ultra-hyperfractionated want in market approach. in they’re about equipment place and a to talked so it be so we’ve that going would – the going would to of is the answer lead entire for that’s that equipment. or then I participating would, either or But vary as could necessarily or the in – could no SBRT from high think the a as be that with probably heard are context It’s that’s a they that really as at from that’s it and paint And should same going expect. assume brush delivering of to identified are kind vary, the be, on a to fractionated in dose it’s the And be capital with model, to we would treatment then If dealing what what RO-APM – to capacity, or code reimbursement a confident not change they’re in for mix in not to facility is. catalyst they where is think possible the again, going impact around zip them this. been facility-to-facility. regimens, purchases? they’ve one about different you that is it knows in this, the have believe to model, functioning inclusion the

capital capital, right and market see market, access ups, commercial the optimistic sit could facility backlog. again, things while, here, or the again, Those relative out equipment cancelling control I the The that are about we but don’t from a to improving beyond for the obviously, situation. or affect both again, that if the our We the is environment, access improving see side to markets is the other think on service where COVID. impacts, wildcard evolution also of are an see people, things there orders of facility relatively related this we side. flare purchases, are We are COVID we think of now, there that the

the and to right but situation. Type India to let trends, to year that A big there, if have are the original in vis-à-vis With they your regards of be you going quota can that on question the to the challenged, right directly and direction. to licenses COVID the continue there they that one. would good the moving a it’s, shift going said, in him current on handle – back obviously China to devices, than go wood, him, devices plan, answer XXX to it, are in quota China were X,XXX, With previous on knock details very there know so, more here, B Shig issued example be some now And markets date, original Type the on five I I’m opportunity identified

Shig Hamamatsu

you, Thank Yes. Josh.

and So first which it the issued a And of XX, go with so Type have Anthony, we to quota originally today, XX I’m A, going want. was XXX. been XXX

XX% So that’s run before. talked the we rate that about

Type the three year A of about but some know issue, so when that another to batch batch a to they understanding to want falling remaining next A be we that license, they be the like sometime and I of apply cadence, think issuance – So, year our as customers XX calendar for announcing well. they’re months this six to months, issued, that that of it’s Type should license say hard seems the issuance a once even and to

the we announcement waiting well. So, anxiously are for as

that. X,XXX. that’s XXX to correct. is additional So I B, going quota A. Type increased Type Originally, by that believe Josh the was start

were Type to it’s licenses, only at I laws quarterly think a been How B’s level. are centrally. have many the actually quota. said X,XXX a provincial track bit issued available the their B issued, the So originally hard because, we as of it’s X,XXX before Type on

of And are a on many, as how bit to a Type unit data B of few not flowing our so lack been disruption. XX months, at a yet you us central much little every And see in has without there’s we a quarter reporting until a the our to but level, say understanding the have understanding, it P&L, flowing. manufactured units products been professional large has we for to but locally

Operator

for this the [Operator back to questions. like Levine no session. question-and-answer and call Josh closing over Instructions] Ladies turn conference any time our We’ll I’m to conclude showing remarks. I’d gentlemen additional at

Josh Levine

we this results. in fiscal the call And full look our when much. report afternoon. want I to August us for on with joining you everyone forward to Thanks thank XXXX year we again very speaking

Operator

conference gentlemen, and presentation. do today’s for attending the you Ladies thank has concluded. We now

You may now disconnect your lines.

Accuray (ARAY) 28 Apr 212021 Q3 Earnings call transcript