VRAY - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen and welcome to the Q3 2017 ViewRay, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded. to host like Zack today’s now Kubow. would introduce for your conference, I begin. you Sir, may

Zack Kubow

and operator third conference financial ViewRay’s to quarter results Thanks, call. morning XXXX good everyone. Welcome to

the available Chief encourage Financial the A at you This and from Joining announcing Raanes, press issued ViewRay copy call on press the the section a on We website Officer. XX available are XXXX document. broadcast at its and Relations Bansal, the replay be Officer; of review website third This for to morning President www.viewray.com. days. is quarter me live the Ajay of that over www.viewray.com Investor of Chief being company also a will company’s Executive is release the ViewRay release Chris call Internet and results. financial

Before now call Chris With that after any like no would of comments the that involve of may date meaning conference caution of forward-looking laws. obligation we call. made XXXX conference subsequent like Actual forward-looking date time-sensitive reflect and the revise those of These by the of Commission. ViewRay Exchange quarterly live numerous statements the I ended statements events projected begin, to forward-looking call to to information I due uncertainties. this only reports undertakes the discussed filed statements XX, those the Raanes. XX-Q including this over XX, factors, with risks call turn and XXXX. Risk contains from within this as securities include could to Form for is and on Factors during September listeners would federal circumstances material in the heading content differ broadcast, management update or statements report to the in to ViewRay’s Furthermore, any Securities results that quarter November said, under accurate or the

Chris Raanes

XXXX quarter call. ViewRay’s morning, Welcome good Thank you, financial everyone. results to third and conference

quarter, quarter the like you so curative had which was treatment in intent start it seems We orders, is by I’d Linac interest, long reminding installing third ago, demonstrating first-ever of highlighted and delivered. our Although significant systems on new very the a customer taking business, of MRIdian to the the all the that QX generating shipping clinical productive and key with system. by MRIdian progress benefits drivers

has quarter. In momentum October, raised the Our these each our supporting in areas. into fourth to million $XX efforts we continued continue of

details provide you our progress. on Let some me more

orders. First, new QX. our in I’m orders pleased with

or $XXX quarter. $XX.X nearly orders we clearance million first received new MRIdian XXXX, of the in more in the FDA quarters, as two taken since many new orders of to than orders as meaningfully, of grew one-third million as than took have $XX QX more generated we backlog million XXXX. Also for we the in end the by backlog. took we in our Our of In year Linac, the in full we’ve entire

for are quarter, Order good. QX strong So QX, looking is momentum typically year-over-year orders all growth. a

which was ViewRay the tender, tender linacs which MRIdian pleased Linacs, several competition recent a and a selected. Denmark with In together MR win with system very did of multiple are We form was our Elekta, Varian. the head-to-head with conventional we

tender. from as orders the to ViewRay We of result in expect book two quarter Linacs the a MRIdian

University Zurich in very Zurich. recent for We’re MR Hospital proud also for another of the an of Linac tender win

that quarter to order in as book We expect well. this

the tenders on a just quarter. start strong to fourth So off we’re alone, in

subsequently give would is University our University U. who in you this and the to Linac current in time, makes one on systems. turn the a have the installed installed: we’ve the more United the the we’re and July. for Arab began already patients such event, key to Ford the installation Linacs systems. QX quarter, summary, that, more two MRIdian first investors our third Louis. Because installed the a site Henry of thought third recognizing quarter, ended at installations installation we and revenue in color now on Henry I We’ve at In installations we completed MRIdian the Ford, two MRIdian progress Let St. at shipments. This UAE as are Emirates some year year. MRIdian the first already making second half in In Linac MRIdian three that metric Washington MRIdian me Wash are System, Washington onetime so for the we In Linac Health treating

major are is three run Installation going process well In MRI well magnets, as addition, into components on components the sites. all in at place. with we such to additional installations, began

addition units, In revenue installations the system I the expect just distributor second one recognize which two half international for for XXXX, we and or installation. to is responsible of to for reviewed on ship the

in to lower XXXX. slightly to $XX seven likely for and therefore the are one early of million of on eight to XXXX We upgrade Linacs million our repeating MRIdian revenue based $XX slip between guidance but

strong Let MRIdian evidence me the the to clinical supporting now turn system.

MRIdian the Oncology, lower That’s This retrospective highlight overall received MRIdian. compared evidence months or meetings of the median who the the compelling the shows Radiation a XX.X% By to by three adaptive more the updating Not doses The benefits toxicities non-adaptive American lower was third Kaplan-Meier and therapy power at on-table adoptive MRIdian ASTRO increased on using enabled presentations abstracts dose toxicities. and Association patients potential in to MRI-guided XX have but unique body ASTRO. MRIdian’s patients dose or survival significantly received cancer median much of of zero There of data higher did benefit patients presentation to quarter for experienced on-table clinical received Society higher the patients better Physicists MR Patients and receiving a were of on American doubling system. grade on-table the results pancreatic annual AAPM conventional higher early a on The to enabled patients outcomes therapy saw using multicenter the Medicine only therapy. MRIdian survival clinical near compared growing compared system additions of of the of adoptive adoptive to months. treatment. that patients higher XX.X a overall to reported also these grade of estimates, who doses. receiving three by the for XX.X using

the soft to the dramatically each Our giving high tissue, clinicians dose. to patient’s reveals increase prescription confidence anatomy, mask clearly definition imaging reshape to the day them allowing the

data. find to I take Lee for positive more five pancreatic years in present continued just breast also of at of on ASTRO You urge a which Dr. Dr. webinar was Percy guidance partial U website details I in presented and you can of days. using look. MR Parikh UCLA this exciting a radiation cancer Wash our of results Parag three on

good maintaining these XX% achieving to For the patients, treatment control XXX% more by planned excellent while local is than and volume being cosmesis. reduced

multi-center institutions video with Meeting terms of we significant MRIdian In as CXTX stereotactic took The step, leading around XX world pancreatic CXTX of advanced definition cancer automatically been Director prostate cases we through the us Analyst which with prospective of XXXX temporarily At MRIdian the outlined Siddiqui Dr. our we trial second a cancer inaugural to the ASTRO, meeting program of stereotactic possible significant using by pancreatic the system of radiation gathering case for treatments unresectable abdominal at MRIdian for locally high-dose the treatment positive ASTRO, both by short-duration focused of it, data, patient discussed in which ViewRay’s with the the area, a or Siddiqui high to several before showed MR Interestingly, tumor, MR-guided by MRIdian’s imaging steps about clinical already held expanding MRI clinicians reported clinical body displacing MRIdian we RayZR of Henry MLC. treated study the Ford, bubble patient Henry high sharp and for therapy. created with forward At the Think treatment it. on the simply was by of comprised the Cooperative beam proprietary Dr. therapy, MRIdian. a two Siddiqui, Linac. ingesting like system. very on is had helped finalization from a specific Tank call users. the a results the the cases Clinical for the the evidence enabled real-time Ford the detected also in enabled moving radiation metastasis Dr. imaging with prostate an which enhanced gas where by support patients protocol radiosurgery not meeting dose, hosted XX%

to due of patients. distorted there was had In ViewRay’s the for that designed radiation summary, technical for effect, MR-guided our distorted are the MR interest MR high that therapy more images of therapy. dangers debate Highfield avoids These was level system Given using high-definition therapy, return beams, specifically very at the in a of the and fact the electronic problems system productive ASTRO, quarter. radiation the we heating public

in half We’re installs the excited and second of the year. the about orders

And unresectable to to We’re Ajay financials. MRIdian comments to also the I’d strengthen MRIdian. And million ramp for that, locally to cancer the kicking advanced the raised on Linac. like pancreatic trial prospective position we for the about $XX with over cash using excited continued last, of off support call turn our some the

Ajay Bansal

the of everyone. $X.X Chris, The XXXX. quarter quarter the good with third million to revenue compared morning, Thanks, in and in $XX.X million third

compares This XX, a at Our of to September at $XXX.X XX, $XXX.X backlog million. XXXX. was September million backlog XXXX

common quarter offering. In proceeds consisted sale $XX terms of raised participants In we ended of a investors. the The direct and stock million in aggregate new $XX.X registered cash October, million. of the existing with in financing approximately we our of position, gross through third

to Chris back in in decrease of MRIdian revenue $XX me shift that $XX slight $XX MRIdian guidance This the The of million to are we in to $XX adjusting previous QX. reflects the for expect on our to range be remarks. offer Cobalt QX of closing eight million. repeating to early we opposed compares call upgrade that, let million. sale revenue Linac system turn now to to systems of a to as but seven the range With million the timing our Finally,

Chris Raanes

that growing. clinical I’m to we And I’d in to to the that, in ViewRay’s with and that more installing in years half. coming Ajay. systems the FDA we year and more MRIdian seven for summary, process to ship forecast of clearance a of to full the open new is Linac eight call like and of and look three Q&A. Thanks, been brighter never has which end first the to with Linac in Over year Linac. we’re report producing preparing differentiated future or MRIdian to XXXX, orders momentum data, system we is the strong for happy are received MRIdian second year of the the experience forward In that the the the in MRIdian

Operator

this Our you. Instructions] the from Mizuho Securities. Yang Difei Thank is operator. question Once, from [Operator comes first

Your open. line is now

Difei Yang

Good for morning, and thanks taking question. my

sounded you is So just six basis a couple. the on have? units capacity you do may it Chris, a be installation what comment able five, quarter. So that like to per you could forward move

Chris Raanes

parallel I team three Difei, we ViewRay. good training. trained, would morning. their install Korean systems question. Japanese have Good have trained up is trained internal Chinese finishing capacity the the team to characterize – we the the is The just way with now team Japanese and Plus

of that’s So to capacity right And at invest to course, there. way our we’re the continuing look now.

Difei Yang

then second housekeeping. my really question Okay. And Thank around is you.

point point in trigger able be? basically to where would recognize which a process, the be there installation you trigger – revenue? would is What So that the

Chris Raanes

I Could you again? get didn’t I’m sorry quite repeat that it.

Difei Yang

for I complete can a such there call so you that wondering recognized. is is be would installation just revenue where point Oh, was installation,

Chris Raanes

we Sure. we’re responsible revenue acceptance for Typically, call defined, the the the recognize procedure. ATP distributor when And let’s responsible then recognize there’s complete, it, is revenue the for shipment customer. to the installation, the if If we installation. when upon that’s test a is

Difei Yang

you. Thank

Chris Raanes

you. Thank

Operator

Kalia next our And Northland Suraj Securities. you. from Thank from question comes

is now open. line Your

Suraj Kalia

Congratulations morning, gentlemen. on quarter. Good the

Chris Raanes

Good morning. great. you, I hear can

Suraj Kalia

Background noise.

issues? were the you looked on So had? Chris, I’m that establish that you have sites Unity influence color guess these the for "You is these at looking and Elekta’s you said, us for It competitive what? matter. Europe. wasn’t is, did know by real-time How platforms asking in give I obvious some wins what wins both Can sites It guidance. doesn’t

MRIdian color I some with to part I’d it and delays different additional pieces with Linac." Elekta’s was going love still whatnot? We’re of if get Or could. Unity,

Chris Raanes

Sure.

that’s waiting Linac And for in What was for think phone very, another did up little to deciding that I in it line these with factors the going people actually repeating everyone I’m me question a think because turn say how tenders. MRIdian was there. I in the see system let to we the went people just break your bit very of general, – terms little among out. when see

think compare I them on their merits. people

that it clearance FDA advantage clinical and we the got we’re of basic the be end other to the the to and compare publications there’s it’s that physics, data. able people the machine, I can radiation and problems. CE with a do and therapy have day, big what distortions and at understanding course, think the and this that user Of we’ve and of ship presentations the But designed the where any was no

think I sense would what my that’s be our in people of really sending direction.

Suraj Kalia

CXTX was Danish group? Got the the it. part Chris, site of

Chris Raanes

I’m the CXTX? of it was what sorry, part

Suraj Kalia

Danish site, The part of it the was CXTX?

Chris Raanes

the It was of not part CXTX.

Suraj Kalia

on and understood, for in way Chris, the doing Europe? you understand took advise. the The it this would ViewRay out – is And as, it it. compete we Got you’re tender like Elekta obviously, way

coming different in on number want Because some our coverage offers, don’t you dynamics? at larger from of kind proposition. used to are price. least these your throw. off totally a being, past, you value compete you maybe just company give of of Argument ViewRay of a accolade the us free tender Can guys You on had to with color the the

going different. that are something the can, feature, hopefully one-off? you or to coming this extent little that period guys with up just And be be tearing be the up a is was this you’ll You to

Chris Raanes

absolutely you’re So right.

pretty special, having We result deal, a like something no a like and anything different. you’ve got different is as nice large pretty have hold you distribution that. that. that’s when discounts It’s this compelling, normal really deal. and There’s where something can or And big, standard of something

encompassing this of on a I again my is the sides it both do will that to a But bid terms but open this probably something are This presents this Would that. we is In situation that. to if but have one-off, I is larger to speak was think agreements sides yes, can’t do it we says open, both don’t we to itself, we one-off. are tender. mean, I guess again? did doing any both, continue

Suraj Kalia

Great. Thank you for my question.

Chris Raanes

Thank you.

Operator

your you. comes from next from BTIG. And Ryan Thank question Zimmerman

now Your line is open.

Ryan Zimmerman

taking Thanks question. the Great. for

on about can during We in going installs, install it. the expedite or that quarter So And and we briefly install little the process anything want just start that changed to may to picked away a the up talked But process things are forward? bit. take say, quarter you beyond? the fourth those learnings that third you’ve improve

Chris Raanes

to on XX-day installation. quickly. to good. And think continue ultimately it’s for It dramatically. rather both a the Well, we those more see process. absolutely. And installation down, we’ve install as go biggest drive we’re it improvement. down It things the drives – smoothly a heading answer us a allows We’ve obviously, learned what our engineers we’re capacity. do needs is worked and had what part ton, times We’ve incorporated our to teams seeing things But that’s I and front win of as early result, the the that learnings things be install and into

we’ll more range of in the the given shorter cycle, year And XX-day kind we the any can end cash shorter think installs do cycle, the quarter. the installation thing. the the in I

So that’s quite when They sites frankly, important to to really it’s important go too, us, pretty faster. things right? and the prefer

lot, So that, we’re difference. have it’s making and learned a diligently a on working

Ryan Zimmerman

wins Were And me. a there follow-up MRI helpful, for wins order seeing little non-MRI-based up against from that if if any to could that that. then be you’ve over maybe competitive would are you’re question too. you the systems, speak – systems And over that? we’ve seen that but you talked wins coming another about Thank order you also bit

Chris Raanes

emphasized a they’re of point. tender case, I host And they’re the and deals. for reasons, two good wins Yes. That’s big the a unusual But really right.

else. competitor high-end normal pretty right, those more against anyone on Our But linac, guys, is often that’s of we and it’s the basis. regular and standard win varying all than those a

they to they for day, that number part better their it’s the right patients, doctor for and for be the for both and say really better the the motivated then our I’m the a can do their for system I to reputation, doctors high-end they in At treat all advanced do of because to by care. want end thing, the are right. They the they case, hospital, linac, job of and think buy can and high-end sort a the broaden job patients that pleased still people believe, able patients. the of they that have we look existing of most

So we business. a ends but the the because want again, all C that right finally, often there, thing, purchase, also their And capital up patients, time. medical, the in then they’re the good do the is concern go time, standard against for thing suite. decision do also to all it And up bit the in linacs people

sites positive they look got draw at that that’s probably And a I so and the sites Yes, pretty use at kind good that they color. to they’ve as if look have and our getting something the advertise they’re reimbursement people. our that able been a think of have differentiation been for it getting,

Ryan Zimmerman

been how country more I’m install and as interesting. Thank just Ford’s me, you’re XX% you. found of see of another pretty queue. far, thinking that the surgery, And other of a thus that. I world? rate more the wondering about around just you one comment hop I’ll cases sites at in other since you to Linac, Linacs your installing on that about normalized back radion stereotactic being Henry usage Has both and from expect

Chris Raanes

Yes.

going suggests use data to be it. that it’s people how So

the in both at users how to view the and you the We that talks and charts intensity like the we the past of We overall at And across XX% examples. up in range is XX% normal in we’ve are sites. the put roughly XX% even Ford. it. the in about something various our duration the that views numbers other look talked the short numbers And population have high population, I’ll where XX%. XX% – how a SBRT Henry in nearly give It’s couple XX% to Amsterdam,

seen So reason and They people that are systems, The get more and it’s for SBRT the They definitely can. using use way evidence. doctors papers they they have other have believe it’s it. because it to more clinical than effective. the

can mainstream taking more. a of and a for to can nominal you five And draw get They So play Imagine breast see they That’s and deal. like treatment have it, sort I really, there weeks. capacity. breast to exciting. I eight and to life, see whole people so to six six it’s studies Clearly, really be big there don’t the lumpectomy can in nominal People clearly from be because like the more thing. on be happier. it. patients mean, treatment. them you that are talked you’ll somebody bring the about. MR, they get a of that that’s using I going to days And tell it eight-week Patients with that doctors think that’s for quality one-week a the and

Ryan Zimmerman

Thanks for taking question, Chris.

Operator

Thank Zacks you. And comes the from next Anita Dushyanth from question Investment.

line now Your open. is

Anita Dushyanth

And call. Chris. quarter. morning, the my thanks Congratulations on Good taking for

process MRIdian for a just because any cases was Or systems in were handle? lot you how know and just had. of Do in on throw were from Linacs, that it you’ll a of have the – they they the hospital question procedures? systems Copenhagen some quick already be if able to different there are the the other Just to manufacturers automation getting the on whether more they specific the that that systems were using that light

Chris Raanes

not with linacs real And some the don’t the It the was to order don’t it’s they part two. use I want the two. XX more MR do this those to cetera. a able it the We and to magnitude book in et for one as I system, exact expect of linacs, want number, tender little as be orders to quarter. the from two and And to only refurbish written a they’re combination remember same cancer SBRT. people Varian large the conventional highly to two tender system. What want can it. to effectively, going they Yes. on wanted And to won some the but Varian. linacs. breast, the won from able regular pancreas them we maybe to thing to mentioned, And what multiple, XX linacs. accelerated and that treat be maybe want together wanted, to bit wanted MR numbers. they was they if other be the of to do. guess, want their know for? it’s and their conventional, They MR bid of I do do they details I They they more we here, a down able big of

Anita Dushyanth

Are the earlier, Okay. And said XX you’re about goes, you the I far as for days time as you talked installation? but know I it – to that. installation missed close getting

Chris Raanes

see right the think we’ll the around that we’re end of XX-day at I here year. the

Anita Dushyanth

Okay.

response great. from in this something had any And orders quarter? you’re you mean the That’s have the I the expecting Or year? in quarter? territory approval? Any in next next terms of Canadian Okay.

Chris Raanes

Yes.

approval, tied anything we’ve or I Canadian that got Now specific don’t like to any think that. that our was order

handle direct And the we’re by sales North do all America. American marketing Canada force. course, with way, we constantly over Of North our

Anita Dushyanth

the last to you my this question any come end Japanese expecting year? will And Okay. approval time before of are be,

Chris Raanes

that do. shonin to probably Chinese with me the get regulatory the for predict, the system I’ll to Japanese project and process. but two CFDA. Hard are in everyone just approvals the I’d remind will Those toughest both new are the

predict We’re I both, but can’t optimistic it’ll when come about out.

Anita Dushyanth

great. Thank Okay, you.

Operator

comes Our Instructions] [Operator from question Lykke Annette Handelsbanken. next from

is line now open. Your

Annette Lykke

you the for thank And questions. you taking Thank very much.

all, reimbursement First about question a you and I codes. ask reimbursement like to would of

you XX code CT will will currently, that not used was their this asking own expectation bit as beginning, I’m Will have the MRI And code? reimbursement MRI as reimbursement me as codes, codes. ago any you see you Linacs because any the wrong, have this linacs. nice how have when understand then please also, to years correct the for today. the when are heard And And I As but issue in it now Can overall linacs is those MRI-guided anticipation launched a was they – they Do changes when if own reservation or look? the there the codes, I’m reimbursement in you of States. part an you of high. their a on And got had elaborate a very the were I of that?

Ajay Bansal

reimbursement is currently Well, quite good.

is As you should said, to we reimbursement especially to MRI the Linacs are pretty using said the I been of existing the about get data, institutions, that has code. Xx. talking the in you’re haven’t a is codes form turns XX% existing where attractive. X% just et down survival, their And pancreatic the cetera, clearly very the toxicity still road. the treatment. have better than reached of own This replanning, mean right. cases it as from I the be mean, a code, survival median so result around out down that, Having studied We to way. better we’re increased And far. by

take codes. is the should good once to and be And for collected other patient. very MRI that the It’s All for that data sufficient able have together we, Linac reimburse good manufacturers of system. you with very for ask CMS to

the be MR should systems. reimbursement now think be favorable for the our – institutions of we codes existing while, expectation be a the users there. suffice current very takes for they our would that reimbursement it’s process Linac it the So that using will is for when system. And – that working But that codes we typically be well difficult more the are to say would than predict to that so are

Annette Lykke

to you say and mean, me with favorable, expect you. Ajay, can explain I is? process that more you be I you to them how agree

this processes example, have will seeking on, overall But You for codes? cancer. for you some other data work? what those here Or are pancreatic in excellent how

Ajay Bansal

the We on of of CMS that. we entered dialogue haven’t the – haven’t yet started into still with a process sort

active are institutions, and institutions gather there in supply to before many how data the We to requirements have we an that from engage need data for dialogue.

formulate to start that So few our coming will the we expect But months. take then over to years. a into dialogue process looking enter and the strategy

Annette Lykke

you. of much? that correct it Thank backlog have Then the Is probably systems million. – do me, was $XXX on you your XX or pricing, but please how

Ajay Bansal

Yes.

the are at We in giving backlog. system systems here do present. you you and math a our guided But roughly. $X mentioning the have range previously, And there. how in on guidance the as stopped million have or are are numbers relatively I line, many of to we in million $X.X roughly the But think can are – systems

our currently. And so pricing that’s sort strategy of

Annette Lykke

Okay. And are have you lately have sort of continuing terms around pickup seen of Or to to $X.X you your million? pricing $X pricing? in million a

Ajay Bansal

days early are system. very for These No. Linac our

We months for have had the Linac approval all of nine so far.

more very terms starts – – getting expectation quite but of flexible The And there, on than these compelling. systems it looking now, is of in and would for positively penetration systems at the and So us. fully data that’s expect the favorable even the pricing little today. the is goes we becoming out be that market our pricing pricing pricing, up we are firm it everything coming bit right a somewhat time, to over out

Chris Raanes

little Let me echo that a bit.

you is intention harder kind Our when leverage see And slowly to all of going your price to do of benefits continuously you this. be maths. what rising would expect the forward. I

well. I has agree market Sometimes, with things pricing really think that’s or really, raise deal holding treatment to we in And Ajay. But early one in better to move something good along. I able price. like do It’s first been and that, to been for

Annette Lykke

penetration. to go let’s Then

a XX therapy for, a longer-term see than system installed regular for and as hard-to-reach or penetration see Will on rates units? what the tumors? You more said this a from treatment, and of be more you as I this – And part mainly systems. – years more course, could as standard U.S. couple this has part of of Varian of not longer selling you XX not do radiation Or your Or have five term? maybe a now thoughts then Europe would previously are maybe now? say, the harder

Chris Raanes

pretty of I Well, selling is the XX concept only think systems ridiculous.

If and plus. we’ve low – the you shipped do we’re the math already nine XXs of in in backlog,

we’re Elekta So is an to and XX, at XX. talking eight about

So QX the mirror, gangbusters. is view rear going XX the already are systems in and

sort that’s ridiculous of a So concept.

you’re the We as forward, ever do why organs sure the wouldn’t want longer way. that term. guidance. MR-guided protect the you anyone going to healthy literally given want, MR you oncologist see, know to treat you’ve Once that becoming to the over on don’t treating see Going you’re shape, every the without Long hitting over would I switch think and having this radiation to make we tumor what why it’s along? term, ability

Ajay Bansal

or time I efficacy, us. The call. it and actually on a goes superior when And the them the I, sort to go it on analysts of they for my report of goes if give to The like credit was on toxicity a the initiated ask of down, wonderful would get treatment, family call I to any MRIdian. would made, any It’s of down. one were point my radiotherapy, treatment member friends they get

days, the Why to MRI radiation from out days reduced their for only positions. other to the actually case less us the in wide Chris is options healthcare down and all see and example, want you’re options. – to body. the going breast are mentioned is time road, of there, look their five they are the delivering to think looking are will not demand benefits Internet I treatment XX% at who XX of going would Linacs you

Annette Lykke

high-end as hand, twice much But three hard with I this. other the to disagree find you system linac. guys times on priced as it very a is on or the

now? So high-end linacs? say, rather hospitals would were Linacs hospitals? the business now, you there, Is it kind mean? pushback. Where coming the the, are the budgets the saw are normal it for I from budgets more Linacs are research they from from some standard than you getting now another for or you’re as pushbacks in said maybe the you of And are the this Is way you financing pushbacks getting completing I also what financial right the to mean these What ask, the pricing? to situations?

Chris Raanes

things, I be cetera, this the And the the who instead You been It’s centers a what saying data need in as good start as that? a is or has see make you’re I think of a cetera, liver the out other the more do do, question to the and quite finally, and is push-back, so a number now. they about the to the starts the you’ll cetera. need penetration they little best sort broadening big doing – into to tumor, larger best and et should order et when guys the et things treatments of way Those The networks if of And the bread operational breast, folks high-end way those intentional papers writing to that’s for coming larger treat and right pancreas, want just these right? soon this to the while. right that’s at mainstream. running see want, butter. penetration They then, adapt times doing first the point. strongest mean, of are treat institutions, the this is far

Annette Lykke

between have hospitals, us, some with to payback? you patients, willing just will going the maybe the if only to treat treat up a mean bigger to they that you Or you only or be XX they’re five then share cases the it’s I’ve And you three that times. seen patients would years? an too this presented then and say, five we’ll many you free maybe be can fact case agree I some finalized – to business day. to referrals, because where short six and per this would business calculations. doses never that saying within from the never And expensive, a payback seen MRI-guide high they’re But three these of have capacity. And the never system need with fractions many structured in Would treat I I’ve number heard because too very anything way. of I

Chris Raanes

couple things. we let parties of a say One, third So cases. business do let me the

those not pretty business to that. hospitals out how cases we’re like do they turn be So or should telling And anything good bill cases.

the seeing easily new don’t our kind partial I we’re system. in I Second, days know to that treatments. XX six on of mean, done where

just data little something that old a think the might was be I bit or that, Cobalt and Cobalt like clearly, So slower.

to formas who of here and encourage I’d on I these So but line to you people make such, And don’t some go the couple talk waiting a the give pro that. people we of have need give to I other that time some to.

Annette Lykke

Thank you.

Operator

D'Silva Riley. question Andrew next comes from B. The from

is Your now open. line

Andrew D'Silva

have for been my thanks morning, of answered. Good Most them taking question.

here. quick couple a Just of ones

the open Care you spending traction things you And by as do orders with all at previously from start all, to there, as up might to you’ve a the headwind First just getting what for period, Act? as surprised increase go are little bit? see resolve Affordable an once maybe seen of the capital guys considering the the you’re expect far

Chris Raanes

So traction no, right. all. at by we’re macro not many ways, I’m surprised many, the player, not a In

We’re market. to the going with not drift

We have compelling. new, unique, something

thing look, when a feel we’ve to will everybody, that embody the Hopefully, around money. happier important to But people all that’s I willing lot think to to will said of them. we’re in this and healthcare to them. a always independent it think important, seems little this be something macro freer buy I the environment spend will that, are good their be going business a people and down. come debate Having everyone settles –

Andrew D'Silva

you for the margin any on the applying Okay, ramp great. period? way rate your December as far higher of about how there help think quarter. run us steep And revenue as gross kind Thank the you. shape should Is you’re then pretty a obviously, goes, guidance in you’re projecting up that can

Ajay Bansal

gross QX QX better XX%, should for our margins significantly than QX was XX%. be gross margins. Andy, So around

be QX think XX%. I should to closer

Andrew D'Silva

what just other thinking then increase? question of to Perfect. revenues last of to And Okay. outside should go cost about we All as expect be of costs rate should goods? any marketing. the right. that variable up we At Are other there

Ajay Bansal

at a quarter of quarter last to operating million about quarter. running to Last million goods $XX.X a expenses QX, of million year, quarter. But cost outside a in our around closure $XX $XX.X were our operating were expenses

are going more as expenses as spending are goods. to outside of and efforts installing So up marketing more operating expenses these we cost sales we systems, well would our development in as of go efforts. And forward, somewhat, expect all

the increase, So continued end we the next modest all should a way see for of least at year.

Chris Raanes

sorry. funny the – I’m and Yes,

intend specifically commercial You sales and did in do ask marketing, invest to about process. end of and we that, our the front

feet in territories. make will all you of will the That’s think presence see to important more it maybe area but us direct for I a some overseas on sits issues. good – So – on Street, some investments, some the early presence The we around

Andrew D'Silva

Okay. question. And final Great. then just one

we capacity initially, your it’s go general far As Or to that systems maybe a as you health the for over that be you’re market internal just should core largest that have the thinking in? your targeting more are looking at system through more sales multiple market specifically? ubiquitous primarily play

Chris Raanes

with They be a start going then at about a is of the hospitals. into we’ll you year There’s but kind one of data – that. key is starting It’s and mainstream more no operation This mainstream thing. moving to product. these, see get operational said, we’ll question I institutions, see the bigger and general the will comfortable like of the

folks. in already conversations these of some with We’re

think I that. by just for So stand

Andrew D'Silva

much. Okay. forward. Thank you Good going on luck so

Operator

from from follow-up question Thank you. Yang a have Difei And Securities. we Mizuho

Your line is open.

Difei Yang

my for Thanks follow-up. taking

terms looking where back which is be to in XXXX, region likely do the ahead, the moving strongest? So orders, into think – geographic of you

Chris Raanes

other I OUS. market sitting for one-thirds at the number. us, beginning almost of players exactly at for And is from if we’re of U.S our said backlog, that look – We’ve this all about that the two-thirds

so to follow And rollout I’d our that. expect

Difei Yang

Thank you.

Operator

at like the further call to back this over no showing for I’m And in to turn the I’d closing remarks. Raanes time. questions queue Chris

Chris Raanes

or a of care. with MRI-guided of forward data process to And the benefits that we the to systems the eight really is radiotherapy. The everybody. in keeping ship got summary, years you MRIdian forecast demonstrating to calling In for much. Well, clear from Thanks, rest Take thanks half. seven forward momentum three I Thanks system, growing experience we’re the for preparing to orders, look for very in the and up-to-date. XXXX. looking today. patients’ especially strong of We’ve we’re in second clinical installing now the

Operator

your a great Ladies program and does and day. gentlemen, conclude you may today, this disconnect. Everyone, for have all

ViewRay (VRAYQ) 13 Nov 172017 Q3 Earnings call transcript