ARAY - Earnings call transcript Q2 2022

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Operator

Good afternoon and welcome to the Accuray Second Quarter Fiscal 2022 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ken Mobeck, Vice President of Finance. ahead. go Please

Ken Mobeck

and call Gary quarter everyone. to XX, Welcome fiscal Thank review good financial conference XXXX. December ended to XXXX, second results Accuray's year you, which afternoon, for of the

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

Josh call Suzanne President; Green, Joining Brandy Chief Chief Interim Accuray's Accuray's are on Executive Levine, us Financial and Accuray's today's Officer; Winter, Officer.

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

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

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

our XXXX. ended XX, statements regarding fiscal refer our second example, second quarter to For quarter December

accessed Officer, the this let by investors.accurate.com. accompany call deck investor With turn to be Executive that, Josh be going can Accuray's over page there a Accuray's will Josh? Additionally, slide which at to Levine. supplemental directly me Chief to call,

Joshua Levine

technology today's joined our created revenue to headwinds Driving quarter our generating, fiscal the remarks. Radixact Brandy $XXX.X all by in the business growth. thanks was provide order are upgrades represented million, on continued fiscal I'm but Ken environment. Gross represented across having also our by quarter year-over-year joining the CFO. which regarding associated regional our the regions. Winter, growth details revenue which operational strong and momentum highlighted of accelerated year-over-year interim prepared positive reflect COVID for a everyone second costs which will performance call. today continues Green, is QX Suzanne XX.X% Revenue President; impact the volume during $XX.X us was growth. adoption platform, new her on Accuray's our Suzanne more specifics Thanks and the to million, performance XXXX is and the XX.X%

On to global our to which of of industries, constraints, a us for risks collectively, Despite many impacts, in sourcing forecasts, these in growth statement. production allowed year. teams like XX% the our mitigated end supply saw of that the in prior overachieve across range we impact a income our had on these cost successfully challenges revenue these to over quarter and many negative and areas increasing product resulted production operational inputs QX, and chain broad companies pressures headwinds business, our logistics related

collective guiding service commitments principle detail treatment of and service patient impacts in where our about prepared felt. our uptime most to were of of which is maintaining device else, margins for and Following to will greater continuity. in impact successfully care base Brandy these the above strongly the support continuity delivery we also installed ensure remarks patient be customers critical all for executed of availability prioritizing our of quarter, her parts providing

and the and remain the they I'm that and of intensity teamwork we believe will accomplished. will terms that and shortages see quarter extraordinary mitigate be our to And were of support With service margins are to overall said, service of at line took working parts what QX forecast capacity sight production are preserve on was cross-functionally We to of impact that our maintaining of margins. impacted, latest present, continue QX risks teams and we able the in While proud supply fulfill to to production. cross-functional gaps identify extremely and our and our place could challenging team requirements. pressure in stay ahead revenue

in And on Suzanne We service more will we continue now parts to for risk to commercial ensure at installed the levels needs locations that call Winter the to base turn the and stocking minimize maintain globally, the I'll on of highlights during have to disruption over quarter. existing for prioritize and our patients. and the focus right necessary devices customer treatment details

Suzanne Winter

platforms seen Thank macro customer TomoTherapy consecutive precision Radixact the quarter recognition of very provide of CyberKnife customers very These have innovations revenue. and standard the and new It topline our demand economic strong strength performance are half. the the product quarter demand fifth accuracy Despite SX and quarter represents the of you, above for trend the with and we both growing orders pleased by treatments. for challenges, demonstrate in our first results SBRT both our expectations for and within Josh. new that a needed growing the and of delivering

a change growing a providers, radiotherapy and patients, significant the treatment five paradigm Ultra of of costs. only As offering we hypofractionated to for dose benefits over deliver have higher discussed one healthcare representing sessions, use treatments

higher vary can given As treatment the Any across accuracy fewer long-term in discussed treatment the life patient or all available dose outcomes of platforms. significant error paradigm. impact delivery quality delivering over SBRT or precision treatments on linac and plan have especially fraction commercially substantially the can of

largely customers, of latest us a and CyberKnife access are base SX markets installed successful introduction to the to of critical it assurance telling planning a XX% product care with under the previously penetrated, replacement highest system. orders is and becoming a us linac product base Synchrony performance them to driving Ultra deliver on treatment In it SBRT up to are In our SRS orders and standards system our our care installations. and global and upgrade ensuring We've vision of our developed our market, strengthening treatment is orders we that the allowing represented standard the installed been developed unseating a selling sold incumbent to the for performance Radixact of on QX, new win of expanding secure ClearRT to also we planning XX% that markets, markets and emerging rates, VOLO approximately and accelerating have These been delivery. introductions requirement required manufacturers where are our customers quality where our was Our average or our In in radiation in platforms. latest trade in replacing unavailable. were Radixact system focused patient platform. new where radiotherapy further our latest strategically advanced therapy own and trade majority competitive price,

had SX four our in our regions between performance with with balanced year-over-year evenly which regional TomoTherapy split platforms. Americas we first the company's XX% revenue region -- Radixact CyberKnife execution and standout at finishes history. America quarterly order performance, across delivered half were region, region orders at the region the highest that The in half the our Looking for Americas growth.

the our strong Ultra a in number Radixact two growth order of Additionally, introduction, Japan backlog EIMEA year-over-year Ultra results our achieved and and in on year-over-year driving switch linac VOLO X% strong APAC the XX% introduced in in first XX% we ClearRT XX% treatment the ASTRO region orders growth. of year-over-year The replacement the QX growth in Since a XX% VOLO QX proposition XXX(k) year-over-year manufacturers. planning Japan's that revenue CE Japan for share finally, the quarter. with largest region half emphasis and for orders demonstrating Radixact Synchrony, growth conversion received posted and to XXX% ClearRT, Meeting, orders is and China solid compelling installed system. in At QX region by for successfully we've orders revenue competitive with were system, new total base finishes first and QX Ultra with year one clearance. X.X% XX received ago XXX% XX has and performance in only are the value to VOLO completed delivered we and new and ClearRT capabilities installations. the for our added orders excellent in growing XX% global orders of market ClearRT, continued the we QX Reception XXX(k) Mark the and QX. was revenue and from during for configuration. clearance Synchrony creating of at with bringing orders a And ASTRO position. providers growth grew XXX orders included region, In two Japan quarter,

Brainlab the provides our partnership CyberKnife, contouring with showed tool conjunction with the integration works a we a with in the progress as Radixact powerful neurosurgeons. RayStation solution in it capability that as as In with CyberKnife. capability well we combined for RaySearch, Brainlab, on demonstrated of adaptive Additionally, the online LMS

our offence, the patient and to and gain partnerships. will performance, are strengthen continued solutions of meaningful commitment us best-in-class Our half through and are value radiation and through the R&D therapy we executing innovation innovation cadence topline play strategy to allow share, to outcomes strengthened is vision curative in strategic first that power improve our life of quality In our solutions. pleased of expanding of we very strong new with the of summary, by investment introductions product

financial her turn I'd to Brandy to Now, for like the the over call review of details.

Brandon Green

navigating good notable and Suzanne chain has delivered afternoon Accuray while supply you, and logistics strong quarter another Thank challenges. everyone.

to We are demanding ability our with scale environment. the pleased in this company

$XX the First momentum. year an period over $XX.X the innovation-driven quarter from of second million million, strong were increase order prior XX% orders for or

for we Looking mix for a ahead of orders total accounted gross year, remaining quarter orders perspective, CyberKnife fiscal the the the to XX% XX%. year-over-year second accounted From platform TomoTherapy gross for of and anticipate the smaller approximately half this expansion. product

During to our of the from net decrease December backlog a of increased quarter conversions. and second ended with second million driven by had approximately revenue cancellations of we XX, $XXX.X $X X% order XXXX, million, quarter, we

the primary the and turning drivers of quarter a to for XX% second Americas $XXX.X statement. the our year. prior were income representing over total revenue million, was revenue EMEA increase Now, The growth.

while over of increase the TomoTherapy perspective, million, accounted compared mix was demand. a approximately year. the quarter, the up For half strong revenue of Product in accounted product revenue million, XX% the unit platform the XX% CyberKnife was prior fiscal representing From for remaining XX%. revenue for first an for $XX.X to year, customer the XXXX, XX% prior volume quarter $XXX.X of

annual year. our the and As a at for approximately for as the product quarter-to-quarter. was has quarter $XX.X fiscal reminder, on varies and TomoTherapy XX% mix to CyberKnife from remained the prior CyberKnife XX% compared years. revenue between Historically, several flat mix revenue TomoTherapy million the Service an basis, past

in gross year. the the prior XX.X% in margin to margin. compared was Overall Now, prior quarter for turning XX.X% to for compared margin was the XX.X% XX.X% gross second quarter year. gross to the Product

our During now for through the sold to differed quarter, requirements, that transacted end the margin quarter customer. a product JV our on China one system joint to gross from recognize has we accounting prior venture been

discussed systems remaining two transact XX.X%. systems, differed differed end customers have continues XX.X% XX.X% quarter through quarter in to Service to the year. our on prior headwind. difference from for that constraints big been freight, gross for and prior Including We a two will to we quarters would resulted earlier have the shortages compared product margin compared timing margin $X.X have parts the in year these the prior quarter three. gross million expect service and parts in costs within logistics, and of was be Supply elevated chain

to were higher topline increase associated costs and planned, than Additionally, related system installations growth. operational travel with and primarily parts product related consumption

these the gross estimate margin been we XX%. impact supply service have would chain additional quarter approximately that for our of cost, second the Excluding

million, preservation expenses the primarily to an income XX% pandemic. or $XX.X million travel, $X response events, prior in actions statement. compensation taken to and for year-over-year certain the from was increase expenses Operating related year. Moving in quarter operating The cash from costs down the marketing the increase of were

in commission year. million addition, operating reported In prior equity $X The was investments, $X.X income a for our item resulted for increased in topline the compared the loss Operating revenue loss of the million on operating the right single quarter impact JV as called gain for of income million costs statement below China to income in our line. the was a $X.X period. quarter line

and EBITDA sequentially The in compares $X.X was today. $X.X reconciliation period. China million quarter million, our GAAP As joint million continue near-term. activities, Adjusted continues fluctuate to for the quarterly up the year to that our its commercial in $XX.X will are income JVs of in earnings between ramp expect net and venture or our income the operational the EBITDA to loss we described share China issued release prior adjusted

Turning million million to million to the $XX period of end accounts year, strong and collections amounted the balance to the $XX $XXX million $X quarter. down up last sheet, Net and to XX% total million, from sequentially cash, restricted short-term at compared last cash $XXX was same cash revenue equivalents, million, from receivable due $XX growth. up

update million, QX metrics, With we from balance balance $X down million inventory to million loan from sequentially and And generation the I'd increase paid financial hand fiscal to demand. an due our Josh call term $XX last strong to of $XX XXXX Our Josh? on year, net our was improved cash $XXX with sheet product during made inventory million and for and turns on that, back an revolver in quarter. outlook. like

Joshua Levine

Brandy. you, Thank

of the environment, current revising being to the revenue our chain is will we market $XXX with the compared to our million for range we're in equipment $XXX is growth the for in and or to which million $XX $XX $XXX that $XX impact million we expected and/or year-over-year continue supply expected and represents range prior million treatment million. year products Adjusted at demand see market, ready logistics supply an excess radiotherapy increased And the given million the global of our the estimates demand of guidance. grow $XX compared operator, to products. be could $XXX to now midpoint revenue the million, will addressable our imperfect between to for planning to of to upside to EBITDA strong chain prior range to financial believe we continue of of downside. the reflect strong visibility line million open we customer of and X% to rates range While the of for terms Total full and EBITDA to customer range range Near-term questions. outcomes

Operator

ahead. question the [Operator begin Please Instructions] Capital question-and-answer now Our session. from Street will Markets. O'Neil We go Lake first Brooks comes with

Michael Cox

in evening. the product strategy market market still its details go-to the Good on This introduction you Cox accounting Are summer some provide with corner. Congrats somewhere is filling that on Brooks the with B O'Neil. Can you for Michael deadline? Type XXXX. track regarding face of China

Suzanne Winter

be Thanks for the in a show the with question. track to Yes, we starting market [indiscernible] and continue at August fall. on the introduction, through going

continue largest win which optimistic about our are very to in the the to COVID regulatory, testing share to and ability in to China seen growing, we developed our course, China is lockdowns our for introduced market have the segment, and we While the we Type we market of market. jointly for And product. the introduction we of track prior part remain do when on B submission -- that

Michael Cox

Or will by do to outpatient are centers been you being that's resolve shortage? with in issue And persist? more what in upon Okay, very also way this you are market, tight able this supply How And hospitals touch we with the helpful. any you worker infected this? have can impacted a the way chain, doing been do being then to are in any think long labor that it? or you

Joshua Levine

of So, first. I'll question that part take the second

COVID Just remains -- again, status. site-by-site variable its, environment right kind you continues of, region-region-to very, now the know, in the or current or

here headwind I real not and hospitals, think has get our in equipment have requirements. Omicron institutions, to lack on seen any timing some labor to relates to we as significant created the shortages access variant but installed of tightening that customer labor ability that it

and feeling relative balance, again, maintaining installation. we're, and about, say on-time time And reasonably schedules to to the access tight on equipment closely, schedules situation good so, we're but we're still monitoring pretty again, I'd facilities

current in and, say stretch kind every would not of it's set a of, chain a I situation. space same first around company with and Your across current dealing the our are that question impacts. range that industries macroeconomic supply of

growth of gaps. actually put being the have of in and trying sight we -- good again, plan had internally. to achieved point, supply product sourcing teams quarter quarter we we they from for sure at the standpoint, in -- pressure the revenue proactive line we're revenue least hard manage Our we're over terms us that manufacturing at And in, a plan working the this and feeling areas helped at to, in build are making that

intensity can I factor. parts continue a preserve from QX the teams shortages. We're be those of critical suppliers a interaction and them And where mitigating stretching to to are by to about, we lastly, on those QX, out For try and that But taking believe to able of identifying components. of tightening to talked and source think, at parts as key order advantage parts, looks we're helping of standpoint, critical to ahead for like we raw we're where supplier it be and be them. supporting terms to looking hard the and will to try of to identification in early coverage looking it, short escalate XX months, all and going to visibility do capacity early being purchase of stay components working risks shortages again, production get I ahead able the

bias So, say those are those business for balance, care levers we're Again, the base the taking we've operating customers. overall are sure to I'd a primary it were on make of to. as stands installed got heavy the

we towards is to fulfillment, related So, the costs can as delivered impacting parts without and trying that bias the manage making as being available prioritization are sure service customers. that really to and tightly

Michael Cox

very on you quarter. Congrats the much. it. Got Thank

Operator

is go from Marie Please The next question BTIG. ahead. Thibault with

Marie Thibault

the while very it on and hard, that concern supply on headwinds on taking you remained like a the for but been thank revenue this follow-up last recall ask certainly a things quarter, sounded is working order wanted macro I team I books the a the chain and really track. quarter. questions strong here congrats and for a Hi, to and

inventory, do to curious these very a some of and there working change order headwinds of Just the kind there? couple sort can it? a Thanks. it of supply have through things did record some offset that of your months, what of kind to And lead strong of and costs last anything revenue some of the you do in some with outside of book are did to, chain of,

Joshua Levine

Marie. Yes

shipments aren't capital from to unlike your we strong shipments we So, had quarter companies, a equipment quarter shipments the and latter again, see I'd many going throughout -- increase typically the of an linear, of towards part standpoint heavily We of to point, we intensity and chain more and the revenue say in had shortages. not product revenue weighted quarter. saw supply usually shortages

in in little As in it my for. the at a to some line and think, regards a sooner I'm and levers now, talked the the deeper that to side of could right visible being rate previous production we operating are a have -- at got QX, December, question, that sure house, been prepared line bit they have of actually With in things were I so than of the and the about, we accelerated, providing anybody with the sight that said, able what sight know quarter. quarter close into I especially level not for more the answer to that escalated of have predictability later in gaps to being to

will ahead size, And it at that year. through doing strain -- assuming -- pressure for happen trying continue to we're of we're the we're to the with to chain know of will end I this to the again, this. So, regards see supply pretty our I'd -- don't to we're being and that this, of fiscal company what going -- a it's I predict when we're lot don't in doing possible side a probably and effective for on this leave, get say we're anybody

revenue fulfill fulfill now, So, requirements. right we're to we line forecast everything QX QX, and to and a sight of that -- maintaining our be to can do latest able

really at I story the of kind mean that's this So, point.

Marie Thibault

upward. it's guidance your more the certainly challenges Yes, guess by pretty so on I think, so But And expectations in more if or see about year. working that's to like to increase, versus nice go And cadence? Looks it $XX $XX for other revenue the than thanks my understood, Josh, all about question. certainly you respect revenue any or ready I or Curious ask the for and built handling, that follow-up -- COVID you're consensus. I'll conservatism million I by beat team's here than fiscal thinking more how perhaps it there's headwinds? for million for through. the than taking you're halfway if

Suzanne Winter

it the was the strong momentum first front-loaded in that demand in been very You're the has are probably terms seeing. half, of right, we

chain strong been we're of tell uncertainty very think the challenges of the driving I I that in the is back supply here half the year. through can and being But issue. you cautious the demand hasn't

have a we've with and it wider a the high end. range raised is why around a uncertainty chain. which backlog But just desire We also readiness orders customer complete installation to sizable is supply the because and of installation, on the guidance

navigate to first higher that at we're know, like be able the we'll we two range. quarters, you have of assuming the in end So,

Marie Thibault

you Suzanne. Thank

Operator

is The Jennings Please next ahead. Cowen. from question go Josh with

Josh Jennings

afternoon. Hi, Thanks questions. taking good for the

just seemingly XXXX, have outpaced on in market and the rate half gained is first of one fiscal the share. it order growth the significantly new pace First

lift the first any the those sustainability I launches and on but helping then ClearRT the new color I any and gains out? benefit Varian Synchrony elements specifically, two early guess disruption about the -- the seeing from details And that's and one? are merger, any the two, half technology you Thanks. VOLO. in that for any on from Siemens share you've sustainability can growth of ask seeing you to a results and trajectory some wanted order Just clearly, new share nice are share and just enjoyed from in ASP and innings around pointed the you Radixact gain very Are like the

Suzanne Winter

that we those momentum. like lift and the are a Synchrony, driving like price latest product driving that win question the order rates our include And like also products VOLO ClearRT, new on no our There's Ultra. is innovations Yes. seeing innovation

price And to accurate able technology on our that to strategy differentiate our R&D from we that both so really competition. see to we expect do innovation product platforms continue some increasing gain continue the meaningful that in on across to of and configurations, spend innovate and as the we'll help be reinforces

of the think terms pulling Siemens-Varian, believe any In Siemens earnings change I a has haven't a versus the benefit it we business that do big that stronger Varian. that really We call. merger, for DI probably previous seen from business over to

like on However, the as imaging, we gain I nicely for think the is And that platform I to think going that terms and and opportunity an technology. the for their they're positioned based accelerator share. toward adaptive technology trends runway better for be and conventional very challenged Accuray in as better tracking, platform. SBRT need Synchrony, delivery, We're of see linear motion to

Operator

The with Capital. next disconnected. Jason from Jefferies. Pinal question The is from ahead. Wittes go question Frank Please Loop next Pinal Please ahead. with is Mr. go

Jason Wittes

for questions. thanks Hi, the

teasing the looks is like So, I and if not that I look I if guidance, out, the product it's it service and your entirely it at gross margin, thinking I'm necessarily shortages gross -- guess, EBITDA like to looks reduction about specifically the am it margin, correctly? to due

Joshua Levine

inventory, the purchase supply of purchasing area costs, higher we're early world. for especially are more replaceable also of very There sure. hard stocking felt to freight, support logistics the but related strongly production, input requirements, from commitments base, to impacts We side, in standpoint, XX parts on higher network to a order of It's them regional in order, costs Yes. were margin definitely related the service, inflationary combination our to network of organization. -- longer higher buys, Jason, purchase existing our price, service either service the installed And prices through around locations. a cost the

the from need a need perspective a incremental orientation So, in time, different that around to need they certainly of any and point we've where parts given got geographic expediting inventory at world quarter. the for and have at costs lot lot of stocking standpoint created the what an that be a us levels making sure it from freight in in locations we we it's we

Jason Wittes

Got Okay, it.

So, sounds product on at with the I little have been a aligned ranges. least, closely side, and mean, more stable with like comments, the it more historic margins those

Joshua Levine

Yes.

Jason Wittes

up catch is there a there Is or just that logistically?

Joshua Levine

I'm sorry--

Jason Wittes

was No, to to be is and is in probably those gross is terms as had of is ask going there a there Or that to there some I there catch up there well time? risk sustainable? margins going be over

Joshua Levine

you costs that think we and margin standpoint to deferred some through, seeing to treatment the prepared that through the sells China the until or aren't the to are things the impact the and they're basically shipped, I installed the the revenue sold you with shipment, if related is remarks variability in depending is JV. we through, user. the when -- the user. we device walked that quarter-to-quarter of JV accounting on an Brandy the quarter if go and we're of will, from -- is the back one end At to China deferred end take time the when And the

have the place. on same taking in And guaranteed we'll that so activities those quarter XXX% it isn't always

on is some variability, on of some fall there product impacts, to those quarter-to-quarter don't not headwinds with margin offs Jason, going So, the be margin or we're expecting -- regards think based but side. at to here we're product and that looking I dramatic you're

Suzanne Winter

That is exactly right.

Jason Wittes

did topline just some say through. the Did related very did And potentially -- you all I you I which heard second hear that correctly, of helpful. great. entire potentially doesn't i.e., supply revenue? I upside there's said the initially mean, I also and rest correctly to the strong think then obviously -- you for had -- carry year question raise units doesn't placing the half a on look constraints when very in this guidance, is if last you of terms and That's quarter and

Joshua Levine

No, one mean, supply for is here key if you to that call going us. the the how chain it to really I to variable want element up be is high

Jason Wittes

Yes.

Joshua Levine

in standpoint, revised now, got right we've we of forecasted sight capacity from our and tied to -- -- of production that's to plan to revenue to terms the we able be so line Again, believe the game get a guidance.

So, lot lot people's But, of as sit right now, production it's on of now think, right again, pretty on revenue the not effort a good parts again, without about feel we stand we standpoint. we side. a I product a sourcing where and from

Jason Wittes

back I'll you. queue. Thank Great. in jump

Operator

with Pinal next question go The from is ahead. Frank Please Jefferies.

Frank Pinal

Hello, can me? hear you

Operator

Yes, you're Frank, on.

Frank Pinal

Great.

guys. about that, Sorry

one quick I So, me, for guess.

reimbursements I know, on First, just the bundle, CMS I'm nice RO wondering, seeing sort of I'm are you're ahead, with broadly pressures, the first at any wondering really across I but this my beat industry? topline. in what line it's sort Or-- Strong that, I of looking a in of ASP a guess, early guess quarter. do little bit congrats the kind you're I just and you sort guess, expecting? more that's expect number of on of what question. on the implementation one, point,

that. have follow-up Just to a

Suzanne Winter

question, are more payers that the of trends same. The key commercial the already payers December. it for and a time was and There's toward for in volume, in to an provided in That into providers, with value really changed prepare two-thirds we're Yes, emphasis for said, Frank. lives Thanks is, already got changes. infrastructure being The it regardless are are drivers marketplace, outcomes the reimbursement reality for additional a the There disappointed timing wrapped favors the of of hypofractionation. decision. implementation though, private seeing the biggest little that is over what room other we some covered there. the on some probably further delayed still the have breathing example, CMS initiatives bit the are

base U.S. and need provide to technology treatments catalyst. the to the older be aged performance ultra a growth Additionally, to just newer installed technology the to still equipment upgrade is able the in hypofractionated of the

nicely rolls on working we're ensure to optimized trends. very the to So, positioned to capitalize [indiscernible] with support SBRT. when that ASTRO out and it's these that closely We're reimbursement

Frank Pinal

the start or follow-up another just to based And ASPs, quickly a Great. same down expect sort just competitors On just do that have that stay more to really of to you -- that you one. expect on -- your do working or change? pricing less I reimbursement and

Suzanne Winter

sensitive to this I time, very at marketplace. We're competitive happen may early move think it's what the certainly Frank. in to too tell

and going our the technology differentiating on value just are it appropriately. brings We and to price focus

Frank Pinal

during you size Great. wondering epilepsy, tremor entry, milestones, you. a here And potentially essential expansive just this touched Thank point? market brackets one on obviously you Day. market. put at cetera, I'm just on Analyst and one that That's the guys last if potential et around any

Suzanne Winter

with we but not, Radiosurgery March. -- at Meeting will have Brainlab introducing in Society our formally introducing We partnership the be

market to the to familiar time we'll So, And the be potential the that areas. that those planning able treatment about we I that'll move as speak is that in But be think more that we more again, come partnership. I to provides in forward, together first neurosurgeon. think market

Frank Pinal

very you Thank much. Great.

Operator

session. the I our to concludes conference to would any question-and-answer This turn for like Josh Levine closing back over remarks.

Joshua Levine

the highlighted the strategic impact afternoon, the from in. challenging very, in to resulted our heard positioning commercial recent I'd the related we customer you Accuray Thank their Suzanne innovations and face to technology we head vastly Despite in for environment winds thank improved this great very of have team execution remains ourselves you like our and high. clinical and demand, continued operational for to product as the operator. most find entire focus commitment

challenges, current While And side April very are release. internal much. improvements taking again forward chain the Thank improving margins look actions we're productivity all earnings to believe cost actions third making you of not right we will that the over in and positive processes we we're with and supply other you the time. will company right which the for pleased make we the ensure that profitability Accuray fiscal our stronger with speaking on and to right hardening impacts critical product a quarter the drive now,

Operator

conference The concluded. you now for is attending today's Thank presentation.

disconnect. may You now

Accuray (ARAY) 27 Jan 222022 Q2 Earnings call transcript