ARAY - Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to the Accuray Third Quarter Fiscal 2022 Financial Results Conference Call. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Ken Mobeck, Vice President, Finance. Please go ahead.

Ken Mobeck

Thank you, Gary, 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.

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

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

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

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

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

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

Josh Levine

call. today are our most environment reflect performance improvements our Synchrony, and strong Interim platform which Radixact Green, recent innovation I'm seeing true XXXX helical Thanks, revenue represent, has thanks for edge, Suzanne on been functionality technology. today's healthy Accuray's our in President; automated by and resulting us that demand ClearRT, had leading Brandy like workhorse imaging motion product have primarily we CFO. system made functionality upgrades the These quarter year-over-year they the continues to everyone These case by our impact to our and Winter, strong unique driven joined Ken. target the fiscal a Radixact clinical have and mix Accuray on with And joining third globally, interest compensation kVCT innovations growth fiscal tracking improvements and XXXX. versatility.

will production on capacity that and and shortages margins. teams are preserve cross functionally said, see will part working our we and impact commercial on service gaps more some highlights stay during to Suzanne quarter. to production. that equipment impact ahead the macro these intensity like the be results. many will believe results provide factors, on our and issues. For associated headwinds in the challenging of QX remain of market costs providing her We capital quarter, reflect collective factors chain of over I'll for could supply call supply the the from pressure to logistics Brandy of and logistics of And global peers, about continuation including prepared With our greater to operational details terms remarks now risks detail the in continue headwinds. identify quarter's of the operational turn And mitigate

Suzanne Winter

revenue. Thank of represent results our the quarter quarter you, line consecutive expectations our in both QX performance orders and We for and delivered of sixth above top Josh. delivering solid

of first nine FYXXXX, we in and have growth our months year. revenue delivered orders last versus XX% at XX% in Looking growth

and treatments over therapy is treatment C-Arm of number and with is TomoTherapy estimate sessions both significantly as is Accuray market XX% CyberKnife customers stereotactic customer using radiation platforms the patient, expected patient a next versus it accuracy that a technology offering standard to ultra-hypofractionated only worldwide XX strength several and grow benefits The currently to growing the less SX that of compared radiosurgery, a paradigm the and radiation treatments. volume. years. the for radiation represents that new and We healthcare treatments, one changing with change additional are of dose provides with therapy. value recognition of options continue over use SRS to powerful and for a conventional costs than significant focus are XX adopting providers delivers to Radixact systems. of conventional more We These see demand treatment to by precision delivered radiation stereotactic or Linux reduces procedures sessions body way overall SBRT therapy and ultra-hypofractionated treatment the five on This radiotherapy but

deliver a and with capabilities only treatment rest combination growing body with delivery. introduction in is product the The are These and or on As planning, difference continuously of recognized given impact Accuray platforms. Radixact dose technology and see to previous therapy the differentiate radiation error to in our outcomes the over with healthy tumor deliver time is imaging, we radiation and earnings ability to ability the treatment these planning SRS to addition to tumor highest Ultra treatment through ability shows of are required that that discussed substantially adjust The the platform, clinical distinguish across platforms. accomplished more, evidence from Any their SBRT competitive with of helical real treatments delivery treatments. accuracy the the tissue to the delivered the CT a to life, have two from in plan long-term can making patient especially vary quality enabled And patient precision the long-term calls, SBRT beam higher for or tools commercially for Synchrony fewer outcomes. latest technology technology. being superior available motion Accuray ClearRT therapy significant precision or VoLO in the to as of critical ultra-precise clinicians in providing accuracy patient ability treatment in and

after As on a TomoTherapy breast lung platform with for a we CyberKnife. for less prostate And most patients effect all pain impact side show suffering cancer, versus also evidence of what secondary to treated showed the the roadmap after post-treatment continue of Tomo to of Professor has provides treated cancer, follow-up demonstrated PACE-B and results the bladder XX% technology center trial and have over durable men reduction treatment. data which The treatment. trigeminal studies those growing outcomes, seen treated execute the therapy. in cardiac for effects Romanelli recently breast years from the in showed ten ten-year of now at for XX effective function our additional innovation of we on results Accuray’s it ultra-precision years, on in With neuralgia. And and for body that conventional clinicians on for tools Milan years safe with women patient from CyberKnife provide relief clinical trial

During competitive, the package precision provides we quarter, the capabilities the which software, well enhanced we meeting our the customers. for platform and base. for incumbent CyberKnife introduce treatment be Elements Society March. the to the are including metric we a the market access to the for bunkers. highly continue provides In new competitive the at ability package successful performance win is and using Neuro Radiosurgery planning treatment is expanding markets, SX replacement A U.S., un-ceding in The key gauge the manufacturers both further market Brainlab as Linac developed to Japan, to neuro-oncology performance our in capabilities Neuro Europe planning installed

performance time in XX% that of competitive in order CyberKnife it of where QX sold emerging this and quarters points care, performance. radiation markets patient vary advanced same for like our is orders system. system may a the previously to our year-over-year improved for competitive six access where demonstrating of a to replacing our new has bunkers competitive quarter-to-quarter, replacement from winning of to in our FY’XX was majority China the While by therapy further orders unavailable. SX three customers, contributor we're period, growing first were radiotherapy unit us percentage Year-to-date first system, expanding to In our allowing we vision Kenya, the

the strong with Looking very China, order the mostly XX% growth. EIMEA the our offset year-over-year, the by uncertainty, performance, year-over-year In cycle. XXX% tempering delivered And orders with to chain fulfill the contributor region decreased for remains year-over-year delivered order due market major lengthened at regional which America's regional demand. our which the sales region, growth expected constraints, region to revenue XX% installation supply performance customer demand ability APAC

be not orders across delivered a revenue proud operations year-over-year zero fulfill sourcing their ability which our could million and challenges region. non-China more and and despite APAC both quarter for with in However, growth and execute navigate the revenue, team Americas $XX driving performance with balanced in regional challenges and our region. solid to of COVID again, regions strong results major I the million in the China, is policy, this region $XX and

expect We JV our that government of slow type-B will central our restrict regulatory developed stringent submission travel policies product.

regulatory conferences the remain segment to business summary, the and we are share reaction initiatives In our are forward However, the introduction main the our pending track we in at the and about type-B strategic market each market clearance. features strong. on fall are fundamentals optimistic gain in for ability product advancing of to and

mitigating when headwinds increasing high mitigate contract we executing macroeconomic of new impact the conditions and challenging full with supply costs. will with while and are value, on are partially service increased of our And pricing cannot teams the and inflation despite inflation introductions product ClearRT chain increased impact pricing Our QX. to we extremely visibility, improve, trends Radixact, like in predict the logistics

been to of alternate and ensure We in availability. supply expediting to alternate have supply at very sources pivoting designing components product effective

we and to of time We shortages shipment associated or controls a risk key is lead On maintaining believe costs early to with process sub-assembly long partner while component better and our responsiveness proactively on the have parts visibility strategic with factor. success logistics mitigating activity quality DHL, the instated to customer key ensure assistance needs.

successfully the needed driven and customer growth and operational that are we are logistic SBRT customer growth adoption are SRS supply to I result, summary, expect demand continued of increased confident navigate areas that tools is R&D initiatives plan investment, all and that for chain mission an forward provide in macroeconomic improves. the once and revenue environment provide unique care. growing a with advanced to our Product critical headwinds will actions ULTRA-PRECISE, the with in In increased from provide providers our these As we installations. innovation advancing am patient taking platforms productivity

over year to $XX Looking $XX to adjusted remainder million the of the EBITDA and $XXX guidance call range customer review to Brandy ability our the of chain now million into macroeconomic impacted of maintaining at fulfill demand year like for Brandy? million range turn revenue our to And by supply details. ongoing the the the environment. financial defined the full we her I'd $XXX the for by with of are to million and

Brandy Green

afternoon, a Suzanne, supply everyone. logistics notable delivered continuing you, while good navigate good quarter to Thank challenges. has and chain Accuray and

We a X% orders million, are third order during our year nimble this with prior sequential over increase from X% ability to momentum. stay for increase quarter innovation the changing the environment. a period $XX.X driven Gross were pleased and

last with half quarter year. second the remaining year-over-year anticipated quarter for our CyberKnife perspective, demand stronger for mentioned we As smaller gross product growth fiscal of orders the for accounting XX%. TomoTherapy for accounting expansion platform From XX% we the mixed of platform saw a the for a dollars orders

represents orders a which to backlog $XXX.X period million the third third cancellations, quarter ago. new our XX, had decrease compared same the from XXXX. $X total X% March as a of representing During million of million we the ended We $X X% net for in of with year approximately quarter quarter of

income Total over for a million to Now was decrease prior the year. turning quarter statement. third X% $XX.X the revenue representing

customer For X% $XXX.X year revenue revenue over million, of innovation. quarter prior Product three year. XX% $XX.X prior the strong quarters product demand for a XXXX compared million, for to decrease the a first up was representing of was the

compared of year the as to demand same up strong. Product revenue XXXX was three product period XX% For quarters a remained the ago. first

for drove components for accounted XX% CyberKnife XX%. for key the From in mixed on quarter, remaining However, perspective, the good TomoTherapy the supply shipments a the while product chain revenue unit on finished delays accounted constraints quarter. platform volume of approximately

Service primarily platform. decrease quarter for product to impacts. our of a revenue TomoTherapy related introductions annual compared As the the CyberKnife the quarter-to-quarter. past between XX% and fiscal for has on was million, CyberKnife an million TomoTherapy from TomoTherapy for XX% related the mix our X.X unfavorable X% and on to prior mix at a remained product varies years several revenue approximately Historically to basis remind exchange foreign $XX year

Turning prior now for to to compared prior Product the gross $XX.X gross XX.X% the the quarter in XX.X% margin. the compared Overall XX.X% year. gross quarter third was margin was to margin for year. in

JV the During our margin on end have venture customer. the joint we quarter quarter not the systems gross that requirements, transacted our for been to deferred yet six product accounting China through sold during to

two expect we We the deferred remaining will have systems prior transact next two over that through from quarters quarters.

we've approximately contributing to Additionally, X% experienced headwinds. cost this inflation quarter of product margin

six gross quarter-to-quarter contracts and gross million and our have gross in during the stocking margin remained outbound quarter a parts on Net the a to these have a was prior logistics compared decline lower deferred the was Service varies $X.X the as been slight for the margin by though service deferral year even consumption XX.X%, levels systems, year. Excluding ago. approximately improved margin quarter same to same freight headwind. a product year the flat for sequentially parts XX.X% Service ago. compared the XX.X% to and would from related period quarter

costs Additionally, sequentially flat operational past quarters. three service remain and over the stable

expenses a the and in year. prior prior our of compensation right Moving were We've Operating our income The costs continued called million quarter statement $XX.X China the of in equity $X.X travel, million down income quarter operating for statement. compared the $X.X $X.X the quarter marketing program reported item loss monitor investment line to below flat was of gain a in million, the to costs, pandemic. response income operating was for impact line. events on which loss the from to income JV operating was million the for year. the gain single as Operating

activities. and China As our operational commercial its to joint venture continues ramp

the was reconciliation primarily gross of We revenue, by near-term. EBITDA our expect $X.X $X.X China margin release described the that income of China's six quarter The operating China million product year GAAP income Adjusted JVs to compared equity million the quarterly $X.X was for loss the period. net EBITDA between system lower JV issued is the million fluctuate adjusted in share to The earnings prior impact today. in or to adjusted related early in will our decrease deferral continue from and the positive in investment. EBITDA offset

the compared million receivable was million, Turning balance from period the $XX equivalent restricted last $XXX sequentially million sheet. end Net and cash, of X% to due Total to to cash the quarter. $XX million up short-term cash $XX last same accounts to at amounted shipments. and with year, backend loaded

inventory Suzanne. from I'd final last net to balance purchases and X% like $XXX was to critical, the million, and due goods sequentially Our certain with hand XX% awaiting parts that, components period semi-finished back shipment. source to same increase Josh year and key for hard call the accelerated up to of And

Josh Levine

doing level. will year with press succession Board at will Thanks put the under of strong impact have the lead good ending to XXXX. organization. radiation CEO on at strategic this ensuring focus transition. people leadership Brandy. CFO over company over leader thoughtful results-oriented proud the get partner Suzanne's Green with leadership. she for start culmination the two treatments a as efforts been July time, end work President. in CEO the Suzanne of as the I've resigning the I available. I year press past this and cancer significant of great the Concurrent made of This also patients X.X role effective at recognition our and made will the of Accuray the level, X.X to CFO also that she lead I all that and of we've it's at well-planned CFO to the fiscal this to Director be therapy and XXXX. and In over to past At two QX and years with discuss the the levels as want impact opportunity business the release the President important company on press collectively the began a in on she had had full-time and essentially know the come the release XX, time I period that during so commitments within personal high we this patients her I'd know On world. Brandy release true highlighting jobs the Winter, our Accuray's thank basis. lives period earnings to contribution years, a to the deserve that new retiring transitions; best at we highest the be hands this a turn many CEO Interim the fiscal a Accuray out announced to around one back privilege as the of the company now to during is other Her level, a like that sacrifices plan transition X, personal thanks. a promotion Suzanne and was And the effective Suzanne June a am I

Suzanne Winter

Thanks Josh.

and operational bold margin in and for make incoming large GE. equipment, I years in spent Support having Imaging the Businesses tenure technology Solutions GEs capital his announce strong also GE CFO, organization, Pervaiz. He Officer Ali Life final during initiatives years has and to today brings my the wanted Chief to at as our expansion and GE comments, Diagnostic including operational excellence healthcare, Finance after U.S. finance Ali Healthcare and experience Accuray driven XX Before at two ago came I

disorders. better a future to been honored am with I lead next of our providing global the diagnosed into build have and and the the continued serve. to customers team service of passionate succeed and that like for entire to the Josh chapter have certain I'd highest and building focus opportunity patients Accuray we deeply neurological the or commitment, to vision Finally, level Accuray on for thank patients their cancer and

growth hand executing that strategy With of long-term margin stakeholders. expansion Q&A. build We continuing for a our to foundation with we'll for and are revenue all growth, for our over increased value it sustainable creation

Operator

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

Brooks O'Neil

everyone. afternoon, Good

think I way you to congratulations all. say is to this best the

everyone opens future be the having this of for each couldn't door for you. for the in think excited and more I [indiscernible] the company and I

So, my first...

Josh Levine

Thanks Brooks.

Brooks O'Neil

lot you if know have CEO I or Sure. first question have, biggest you priorities two is but the are Accuray? say question Sure. would you three a My biggest the what my and it. don't thought you've Maybe Suzanne, assume as about job you at

Suzanne Winter

we the the very on for and for My thank will Brooks, on have question, fundamental. earnings on of have the so that our And ensure get days have, have our going continue XX be into Yes. is focus on initiatives priorities really only and a our preparation my laying innovation smooth Josh that absolutely to and build but all building at that you. that execute growth beyond. FYXX we Thanks FYXX. of more are our we call, transition strengthen on between the to our to performance and started important and and growth not I as priority financial Then milestones over foundation myself. of areas in to We plan pipeline, next we for further our deliver we finally out

Brooks O'Neil

perceive there. guess overall Do equipment next on you program? get we'll this few the change demand temporary environment given or recent move Or and about over years? in transitory with fundamental helpful. the in through COVID you and and likely current as second Accuray the experience situation any the That's concerns see obviously the do And picture the the China, lockdowns then I Great. question, very the for

Suzanne Winter

ground, the on for certainly I for slowing orders on some our very communication we're of the is Beijing, think on temporary. quarter that that on in We our we're be and we seeing and the, I team we track China out to feeling are close general moving And stringent There with this with QX, think but may think and it's is going transacted it in Shanghai policy despite temporary. on growth the potentially being Business year. expected the saw significant and still in performance. sub-region in this ground revenue is

the A These some I customers a gone already being and the of have some in – to also that confident. shutdowns. are the go feeling have said, feels licenses the are going hand restrictions that Type there headwinds That We process as mean bidding to team lift. revenue once of have that are through we once result

that the NMPA impact One again in of do is – Type out licenses orders underscored but for aging our central product. some regulatory on our We government of are our but by are the our out them that an from the submission aging backlog, of are B have backlog.

get temporary can and we see to an that's good So because again, waiting to But I this we thing. onsite inspector that report slightly just overall delayed NMPA. as we're – complete submit so to being we a the that's think

Josh Levine

control Hey, Brooks, Suzanne one don't the the years, If has said. timing last everything and learned concur in I over right? things we the I cadence thing, there's China, of agree. we've several with

Brooks O'Neil

Right.

Josh Levine

X$ implemented the company's it delays is And not I it that what with I meaningful is the is. overall way trajectory. any we will JV alone, but have revenue that a I obviously we and mean growth the and quite tell a standpoint, in to our even investors in this you started timing put in for – frustrations, – quarters to strategy, China. the just they're it's from a got think didn't there's the that that company would on it And demand delay in three incremental and even strategically bigger our with in while think a of place year, don't a realize products. encourage frankly path contributing change things we've before I I frustrating these down been are through to in it be rely China is million that the

– any, we've very we're think overall I we've any of I don't and opportunity been can't we the control, is timing. that but can't is for than in the different been bright. the outset, We there than timing think the us future very, what from So, level control

Brooks O'Neil

Thank great. congratulations That's all. you you again very to much,

Josh Levine

Thanks, Brooks.

Suzanne Winter

Brooks. Thanks

Operator

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

Marie Thibault

good And to Hi, us the help you. forward on Suzanne, we're looking with to and the your and congrats congrats of working for Josh, years the over role; retirement thanks afternoon. on the, discussion years. new

Suzanne Winter

you, Thank Marie.

Marie Thibault

wanted to maybe I a bit start broke little Yes. have environment a here of uncertainty you geography demand sounds strong, in APAC America geographies EMEA. of I wonder I the very of a on if you then more. mentioned out like it us could in but and bit globally but sort and dig been by lot of into other demand each environment, healthy those know well. detail of those China a little gave just some as you

Suzanne Winter

I U.S. we've Yes. seeing investment that infrastructure made partly I due the the strength Americas, commercial in in mean, again the we're to the in our think

seeing are very demand introduced. and customer new strong for for We pipelines demand the that some we've of products

see for us to encouraged very us strong are very, been an has Again, we that. up in for there. Japan and China They're continue standpoint. order from we been So, strength strong year-to-date. XX% by has

little think I has EMEA, tempered a in area growth. the the their been European

activity, Ukraine, some purchases. unstable because think the environment a and think of they're think, I partially to making sales some not due, just know, I and I cycles you lack increasing Russia, have the equipment it's a capital conservatism been in of but result as of

Marie Thibault

And Okay. headwinds. on maybe That's chain then up my helpful. follow here supply

you visibility last third, midyear sort how constraint headwinds Do it indeed a a last, that's you here it from that there? be what like demand. very Thank constraints these have insights ability to about in but fiscal fourth understand this any impact of way difficult you quarter, whether look some fiscal to some might of to us long of kind impacting to meet the imagine sounds in and You allows size are appreciate the and might the certainly your beyond talked and you. the

Suzanne Winter

it I'll some But over QX. to Brandy. saw Yes. some obviously we start I'll challenges I and then that think hand in –

to supply them we of to start in we year. that be things just there think that and in mitigating QX, get of catch as suppliers. mitigate to actually second inflation, calendar some obviously the they'll doing inflation, we'll we'll up. will we think which from to sourcing expect in we see of after time productivity our phasing we similar will we fiscal through going relief terms start half also cost new year, in And material the second half the in we're that are the end see And new year. the We but At start think are the think chain lower

at of color. I'll then, that's least a give timeframe So what we're little more Brandy have bit expecting. the And

Brandy Green

Yes.

between you We've Suzanne, X% said think well. I it very seen X% and inflation.

we If you year-over-year far as that FYXX. expect back look absolutely as of this of in is but our release do parts the I we're some Suzanne cost, at a – right X% on challenges, to inflation supply half think and leaving the

Marie Thibault

you. Thank

Operator

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

Josh Jennings

questions ask follows in one two being just a talked tracking on new the look first under Ali And your Wanted news. to apologize congratulations, Josh and on your some looking next taking chapter. forward And agents. bit positions, little Hi, the great retirement thanks your about have good to on fully. the congratulations China agent the dynamics. pitch to didn't to and my I I and progress Suzanne of for to you it's we're catch leadership. And and luck Accuray them I think just

months? get And orders just be wanted the also update the new I be a the to review us P&L little particularly over A&L XX market think going also, help JV, to B but those clarification reporting. through, XX there? great everything near-term, could thinking May bit Type China, the an the and be just with about agents understand with get in China the Chinese reporting it'd to how the then to by murky should next revenues that's and we then review, You but in flow I systems on just through manufactured how order how COVID

bit, want terms finish in would that but it's closer getting of after. a I –that And to pushed little the here. clear because we're follow-up one I've Just know great? be be be line out would to

Suzanne Winter

Okay.

takes timing So, see second which Josh, is we sort and the between of need we to before registration. can take we we your from MPA final first, XX we me to lift this COVID more question submit the XX can get let Type B on the product to lockdown what that Once need an at approval. just again, – It get on months point.

this XXXX, we will QX that year probably orders at a So, thinking show to point and fiscal revenue of year now. are start from

track still do fall on proceeding at said, in year the year, August Now market and major are so of that a shows China. in introduction to XXXX calendar being we the late this

So that sales to system can order their NMP putting the or can't for get we at be marketplace, will people but until ship take start revenue the an in and process, we least budgeting it approval. introduced

the expecting we're of year. QX So, contribution next

Josh Jennings

It's great.

but as revenue. capture line making our assumptions appropriately we sure new converted But models. numbers were are refresh If installed interrupt, baking as we're you because in to orders just the on some sure full that into of the ASP particularly, be converted to credit and would the that update, this just and ASP things it to revenue should on do to JV in ASP forecast of Accuray for trying give officially, and and just Accuray us our the in order to don’t just mind models, doing right just those we metrics, is having trying China our make one wanted the when well

Josh Levine

information. reasons, been know a we Hey, haven't we with price reasons of target competitive for variety haven't point, Josh, really forthcoming target been very what, you ASP mostly

NMP getting quickly. think Once of further very a product we the be in approval we start comfortable better timelines. clarity to to have around producing I approval, very, we ready little understanding will closer would downstream feel

preemptive is not But there so, that And there. think competitive approach vest do a be or no would for way. our any reasons that to with competitors lag close having I it opportunity kind regards in to are something of of best chance the a kind keep to discussion to so our

models, there, have information be I best And out soon we're promise. able you'll so, as build the as to your to

Josh Jennings

Josh. you thank Understood. Thanks, No, for that.

Suzanne Winter

question, this which licenses good a that their hand, murky your bidding who our is has on process. the through of was But point. in news know part we first at the gone bit know the customers I timing for Josh, agents, then we of again, think, the And that's have

of I get and open able so, help with quarterly be an think, up, more And your models. idea we'll things to phasing once

Josh Jennings

terms in agents, I just And right Great. mean, of agents thinking revenue. to about Correct? will those convert

Suzanne Winter

Correct.

Josh Jennings

we'll backlog, the right. pack not And Thank you. then

Suzanne Winter

correct. That's right. That's

Josh Jennings

this just wanted can't then right level we're just our expectations but and in May and be excited as and believe in that ASTRO at about And and team's online set RaySearch of the set more more week, adaptive few all we, the corner terms are to expectations months, [indiscernible] just adaptive on we're getting I the any to level in work around with a just progress going on taking you questions. for year? but internally. But Thanks update the next lastly, then doing for all

Suzanne Winter

so And that's Copenhagen, ASTRO we're using going to of with fall. in going we partnership then question. thanks we're as meeting input. ASTRO in of Yes, a showing that sneak be and RaySearch online to our within excited preview the are adaptive ClearRT because European ASTRO at in the the for weeks Actually,

meeting booked as well. So, for out already that we're

the about excited we're So, response.

be agenda we'll we clinical to have adaptive. going At about shown. be a online very that So, are the same time, our also of talking full abstracts

that XX have at this using are technology abstracts presented that Accuray are to meeting. European be over going We

that with breast And strong as package well our to be about comprehensive very, online in going So in breast where discussing then package, at put CRAD very is think in preparation our again, we marketplace, a the doing have our the point us which as most adaptive. excited introduction partnership for more we'll about position to ASTRO product that. of another in

So, two up. question. important Thanks shows coming for the

Josh Jennings

Thanks. Thanks, Joshua. miss Suzanne year. you and at ASTRO We’ll this

Josh Levine

Josh. Thanks

Operator

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

Frank Pinal

Hi everyone.

on Josh congrats retiring. First

China on And like? that. working the just just after there opportunities, the You'll is I the demand on the landscape impact would you Look in endeavor. there the have me Best looks be the for to two opportunity given macro sort catch on question missed. follow-up B And a the to what year? Type of I the fiscal an up the future, for size on next Suzanne of financial pushout congrats. And how of picking together. luck forward up guess

Suzanne Winter

Yes, that's question. I think, a great

market to we're launch. is think do to because going a And opportunity I track say that there market to the and I on catch launch we're do still up.

you so think So purchase And that very influencing B are the alone, over pent-up decisions demand the The we we for go the hopefully get we'll XX% to to be customers’ next we'll Type approval, driving rate and Type book is XX%. think opportunity some the that there'll be when market systems over into years, XXXX growth know, we the that B to be segment And able going as five is market. fulfill attractive. orders. within

within potential we're product fast the really can't we process And for this get the again, regulatory marketplace. through So, about the enough. excited

Frank Pinal

you guidance. are the of what play expected that. at Thanks. guidance comments And seeing you they then Thank to seeing year? Great. And a bunch a point. morning headwinds and the impacting this Most few are higher around even Integra FX point, for you changes for companies we I'm how And curious that that this of And hearing at ago. we're in it's than the recently how balance company? expect on this weeks into expectations are

Suzanne Winter

Yes. I Well [indiscernible]. a seeing overall, of so, lot we're on headwinds. front, FX Yes, mean, not FX the

seeing We some are material not definitely to revenue, in but impact. our

effectively. that sheet pretty program a so our hedges hedging have balance We in place,

it guidance. changing at we monitoring feel not to is that this and looking point that's mitigate. say at No, not to changing there and covered. So, out But fairly we're currency our ways we're

EBITDA from maintaining top a not guidance an line are both perspective. and our We

Frank Pinal

Appreciate it you. Thank Great.

Operator

next Loop The is from Wittes please [Operator Instructions] go with Capital, Jason question ahead.

Jason Wittes

yes, And done. the for on retirement congratulations your job, thanks questions. well Josh Hi,

I And continuing the working interesting to at look a think you're forward really well. Suzanne and leaving point. company as [indiscernible] you for

ask that want couple with So, a questions. said, did to

from China to quarter how I is orders? related could what the if what backlog the much review was specifically, mentioned about in this just and left roughly China China, contribution you First,

Suzanne Winter

with the start I'll Sure. contribution. We did $XX revenue. in million

Brandy Green

$XX And perspective… a in just from And right. million That's backlog orders.

Suzanne Winter

China million about A remaining in We have our our backlog. Type for in $XX

Jason Wittes

Great, in terms that Class QX when thinking it impacted current sounds timeline, a – think, of the very that's Is fiscal And helpful. probably anticipate commented your B at of quarter? is the approval. by you prior been outlook the last change you you then is from I And like that XXXX noted COVID lockdowns.

Brandy Green

COVID finalize that got definitely on report. notified our really before really before through we report. to site before for And Olympics step had impacted we MPA shutdown been We've the an body been It's final really for the since the one approval. And lockdown. get that to go the the to is can more submit by Olympics, waiting for

approval. out for So about be MPA yes, to of terms in is pushed we quarter submit able it when an expect to a

However, as we're we terms said, in introduce on going the when track we marketplace. to this of remain to

has that not changed. So

Jason Wittes

that's I cost it's a some changes. That And inputs some with way quarter. is of least, think line it? what otherwise the Is EBITDA helpful, then it thinking of – outlook the to based you on you in the Okay. guidance sounds mentioned, still about the outlook kind right made of made adjustments at understand. some clouding in weren't last like on that little terms you've have you But your

Brandy Green

we're That million. at our right. then maintaining is that's And exactly right. million $XX guidance why that is to Yes, $XX

Jason Wittes

back very Great, Thank jump right. much. queue. I'll wonderful. All you in

Brandy Green

you. Thank

Operator

to any conference question-and-answer closing like This concludes I our Suzanne session. Winter over for would to the remarks, back in

Suzanne Winter

I as from finish global as look momentum year as positioned our drive we to we the improve. patients next I value you our I'm customer fiscal fiscal place I well closing, am excited XX to serve. in topline, and that in to to with days, in and expect again further by in demand and see Well, you. become And the Thank CEO believe chain. growing management forward we all earnings looking benefits extremely the Thank release. well foundation for shareholders, as fourth caused are headwinds and customers the grow margins, year our quarter by materially full strong I that despite faster the Accuray you. speaking have August our we to supply colleagues than conditions and expand and the the macroeconomic partners, with to forward on building team, market the will put of Together for create look

Operator

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

disconnect. may You now

Accuray (ARAY) 28 Apr 222022 Q3 Earnings call transcript