VRAY - Earnings call transcript Q2 2019

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Operator

Good afternoon, ladies and gentlemen, and welcome to the ViewRay Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder this conference call is being recorded.

I would now like to turn the conference call to Ms. Investor of Head Gallina, Relations. Michaella begin. Ma'am, you may

Michaella Gallina

welcome Thank quarter second and call. you, Good afternoon, operator. to XXXX ViewRay's everyone financial conference results

Joining issued Drake, Officer. Scott financial results. its me and XXXX today Executive Chief second our quarter Earlier press a President ViewRay release announcing today, is

will The available relations of the over Internet Investor our investor on available Relations website replay of our be live release www.viewray.com. being This website call days. broadcast and the is site, the a at call the for portion is on also via XX

actual to that I made may projected those Before like the Laws. and section we including begin, Form Securities forward-looking ended results would any XXXX. the Factors ended statements in and involve forward-looking with reports management to XX, meaning due in in call could the caution this December XX-K year differ statements the listeners Federal Securities XX, filed risks ViewRay's These comments from And during and numerous Risk year of those including statements our within for XX, by material Exchange Commission June include subsequent uncertainties March XX-Q factors for discussed any and XXXX. Form the

events only this circumstances contains call. conference reflect the ViewRay Furthermore, of after content today this time-sensitive as information the of August no to or call any revise to update statements accurate obligation of date undertakes XXXX. X, or otherwise

to the Scott. over turn now call will I

Scott Drake

year role, of context Thank thanks open guidance, maturation for financials revenue and executive cash the changes, and review the our announced Today business my you, joining XXXX on Michaella. revised afternoon, will provide we Good everyone, and questions. and provide will call. for line into all one our board

start Let's guidance. with

of is XX able will revenue We guidance a guidance between to with reduction offset the portion and revenue and of million of system certainty at lack moving as two our the longer and are delivery orders. is system. permitting XXXX we time due of chiefly be and of XXXX systems result in XX into in the taking the that of one reduction installations distributor three $XX timing our The planning the anticipated partially significant to million to three to upgrades. vault process $XX updating This guidance be around than recognize

this disappointed action. believe we're Although right of in reduction, course the we it's

detail on share me these have elongated. Let timeframes why

lower installations, shared, Regarding as have to customer and team built we've the from first speed vault variability, to a treated. we readiness PO path reduce costs patient

reduce goal to timeframe Our is XX benefit a XX customers of This and has this stated from to shareholders. approximately been months. worthy target for the patients,

instances, installations met these of In speaking, fall team into In planning, generally outside the construction as of anticipated XX reside goal. or first our and scenarios. control. and two our exceeded no Generally installation issues significant one scenario, has month go our

In the only fact, in XXX PO to commissioning took a recent instance, days.

working to the associated The to line are majority construction these planning, items timelines. appropriate delays with on and get second The circumstances sight control. unable earlier outside customer permitting our We're of is we're that when scenario the mitigate largely impacting action. of and are of take timeline

that pushed being to potentially year in next. Delays mitigate unable this three to were from resulted installations

which I against to these effective a reduce Our systems appropriate the are for built under we've highly degree to to to pushing timeframe. mitigate. well to it's guidance that's scale. to we positioned must feel these is want recognize And ability revenue items up difficult team circumstances. year recognize we the reiterate, XXXX But end these

demand year. fulfilling at level two end Further distributor and of customer There's their commitments clinical on we two the revenue these a have due guidance, systems both removed executive hospitals. not to this other potentially

to but to that not the two ensure address growing market. have this will partner strategic right fulfill in we demand We orders, only these

We all perhaps to believe time, systems able end. of do are this XXXX. by will We these so working not are resolve in year be due centers but five but in will issue, sure be not to successful MRIdian

to our of burn by cash, revenue. impacted the delay is forecasted Turning

usage $XX XXXX in for is $XX Our updated $XX guidance million. cash used We to million QX. approximately million

We expenses rigor focused operating cash. on on and capital and have managing weekly working remained

in with working Along needs. facilitate acquisition customers the sales order could inventory of MRIdian with exploring these working were systems. and us and that impact capital AP to reduction, are partners AR various management Financing models shape positively models to

to us remain changes. September will XX Bansal, Ajay a CFO effective his well. in retained to We're leaving company, transition. find executive thank the board him midst on and him smooth search service of Moving replacement. for help his with available the Ajay and XXXX. a our to will We be wish

board him retired of our directors, Ted Wang his thank contributions. service Regarding from we many Dr. has for and

an that Wolinsky Gail our impressive with care. in recently appointed We announced board. extensive also record an track Dr. has leader been is health Gail to

she as the things, XX White Quest a served other on programs. Diagnostics. very Gail. We're also Health Medicare directed senior in to She serves welfare, currently boards, and and Group several welcome House and pleased health on United Medicaid Among advisor the Bush and including

first took to the This to was we their built newly Let's turn our In quarter three pipeline. and and was in internationally. our orders distribution network enhance continue the discussion systems. second commercial direct for full we territories, team that orders US our quarter, MRIdian and

orders, demonstrate pipeline this growing that remain the number of demand of momentum While a we relatively moving our forward. confident end is customer will and we light

place systems process and drive have To provide in therapy both and adoption. a significantly calling color, on sell of we're and rigor to number higher training customers put

system. profit the interest we expanding opportunities. is increasing customer integrated all Also, it we active free that multi MRIdian sold networks system have For quarter notable its multi their example, deals, chains, second standing centers system academic this for and MRIdian represent footprint for

we But a customers. seen instances, XX that to potential reach we month cycle. more customers certain speed Finally, positive purchasing to moved quickly. to share demonstrated an process have Traditionally, I'll have have making few decision decisions much in XX the with we the up sales

several the of remain speed more versus centers opportunity and generally long-term on moved On In pipeline, the term quantity, academic the focused the We processes. orders are beyond QX variability. quarter, intensive continues track. on short our of but the In diversity improve. hand, end other have summary, time to

I'll now shift the and proposed APM to [ph] may a newly how in provide environment. remarks benefit on we bundled

shorter proposal believe at favorable. is treatment and mitigation market. the the As year, trends I from and Dr. heading modalities. tide about market swimming the the last Steinberg spoke therapy, of times with non-invasive side to of legacy and effects is is MRIdian treatment this And we ASTRO

economic even potentially to compelling APM, providers Under MRIdian's clinical and patients, the are benefits draft more physicians. and

the the therapy, they see neutral, treat is payment as were to fractions. centers we Additionally, more freestanding incentivized for to incentive whereas site an previously adopt

Furthermore, on will evidence nicely generation associated limitations the APMs XX our clinical of technology. aligns take complications to related of treatment window. with proposed costs Hospitals day prior

SBRT us improved ability doses hundreds to times, treated SBRT on take apart toxicity. care required on our longer in conventional papers, demonstrated treatment in clinical higher we is outcomes grade IMRT model than zero We and cases toxicity. higher treat to of quality What potentially in expected harmful or consistently abstracts this the than inherently three approximately have for doses. patients increase due to and without further and Shorter of better very and the typically incremental posters sets have life X,XXX critical low are patients. MRIdian's use,

accuracy. We're and of Linacs on treatments without adaptation SBRT precision the including SBRT, MRIdians, of able time table full conventional deliver our same to suite treat during capabilities, amount in that

hand, are competitors many speed innovation pipeline to workflow the very of other attempting system. Our that's early for optimize in been the optimizing the and our technology operating is on paradigm stages and of are marketplace at We focused shift on years. the our

scale One from year both correct vault we a take we organization ground Let At viewed think highest on and context me provide our a step briefly up. created on we the was assessment fronts. in are joined a a ViewRay a commercial as readiness end, both where when and the I turnaround built the and team level, back robust We up. this journey. company,

also clinical reimbursement fortified our policy and functions. field and training, service, We back office out built operations, teams,

intensely believe change enjoyed improve worthy focused care we to innovation and for on and protecting that the I opportunity lead is cancer built the of of standard team technology Our the a today. we world. team patients extending the around

and therapy yields In personalized times closing, that for accurate more returns precise, customers. outcomes, shorter treatment driving and our are we better attractive financial

We are to seek. well positioned and patients, providers physicians, payers deliver what

QX our I the call Michaella over financials. discuss to now will to turn

Michaella Gallina

Thank you, Scott.

the the XX, Total units was compared as For $XX.X million same XXXX, units five cost from compared quarter million revenue last $XX.X three $XX.X revenue June same revenue million, and ended the year. to $XX.X primarily for period period total million, last was fiscal to year. of in revenue

period last $XX.X million million Total $X.XX same for million, operating or the share to year. $X.XX last compared same was the Total $XX.X or per $XX.X gross were for to year. per profit $XX expenses $X.X quarter compared compared year.Net was share, million last million, million $X.X as the to loss period in same in the period

In quarter orders approximately MRIdian compared three systems new for to $XX quarter now Turning XXXX, totaling of million the orders second the orders XXXX. totaling and in $XX to second million approximately backlog. of received we

the we $XX of million XXXX. June approximately XX, million to million. approximately equivalents with total quarter As XX, ended $XXX $XXX cash. June our $XXX million approximately at stood compared cash of of of backlog cash QX, and We XXXX, as In used approximately

XX guidance updating of $XXX primarily revenue and upgrades. upgrades. $XXX expect range XX in in to earlier, million We units from as guidance we are $XX XX and and the revenue Prior our primarily units XXXX. of three million, driven the revenue Lastly, million to three to for discussed to range be million, XX to by revenue expected $XX now total

prior $XX was the million expect now $XX of $XX cash, use million $XX guidance in year. to our to XXXX. for usage million to We Regarding million

for And now open will we that, the line questions. with

Operator

Anthony [Operator Thank with Petrone comes question of first line from Jefferies. Instructions] you. Our a

line Your is open.

Anthony Petrone

thanks questions. Great, the taking for

installations. there's I clearly moving think, backlog parts there's here, three orders

nearly level the basically indicators if those kind this all we look think of from XX of a XXX I standpoint before and is, past clearly the are days, over higher business. is a

So kind XX at of past hit days the of confluence business. like looking the seems just, headwinds maybe this a

on follow maybe a And just couple maybe more change? totality of the bit I individual ups. have of will a little then So the

Scott Drake

the visibility things. of say higher. number few pipeline The is days higher, that to, which that number the of one, deals would we're multisystem Street a doesn't in has I is commercial Anthony, Number the activity, last of I on customers Yeah, think improved. calling XX the have

to XX we've ability few historically, to instances a through in to able quickly. the purchasing decision been XX more months, achieve speed Our customers that

a pause pipeline their bit in about previously. a the do I overall than is So customers better the that did there's I potential I to of APM terms feel decisions. getting think

So construction, involved those I nor the and neither I XX are that days ago We've be, may a delays our today. instances be to biggest difference anticipated. where planning customers some say of permitting learning were and that from think hit control. also in And those outside that country we largely things that would would

two quickly management change portfolio going is ago. So 'XX. going the biggest XX distributor in that's satisfy new distribution be do customer market. not end here the calendar we're know the would in one And gone that probably a to we're those to to be have that whether doing things some able And to days find work. today a that a to is management final And probably partner versus demand or don't difference enough through

is or timing estimation, of will impact has that. So year. be not systems ultimately MRIdian revenue consumption. on those where place it's they And systems, the And obviously push that that in by into an coming not five it's will our more down cash XXXX is taking verses in systems possible the quite whether this

Anthony Petrone

Great.

of parts. maybe just to go some to So in those moving

the cycle, months. target installation XX the was on So

think around was last the quarter. There XX get months goal hovering it I was XX. to a exiting

unforeseen some mentioned hurdles, even at You levels. the hospital

is go where when the as company to? you get installation cycles the to the can And, realistic do what now target can here So there? think

Scott Drake

Yeah.

that's And as get to And months. team that there's down of a has built been engaging, from XX other Two we've generally the two about patient one treated involved timeframe timeframe, is bring things preparation. XX the one that work done where place, first proactively we've what took to speaking, generally think PO, of that scenarios, inside months I days. goal XXX planned. successfully months. days able And XX that one XXX-XXX see the there's go you in installations down been recent in and as to

taking just as there's things So be bit move outside a about forward. of are And got we instances. that to very in majority we where our feel control. that good thoughtful the it's of But we've longer. about then instances And

are important systems it's context the total that clinically XX we've got I that in to ground. realize think

and So And we're we into outside a to places those lot are as going new are we've of we're governments that control that into or take got generally things geographies of control of outside new forward. the account go that with. dealing our our

Anthony Petrone

for is last let The one others I'll in me, just orders. on jump

Thanks. if just APM is the do have other how time and the of it into is this orders having? you APM, pushed kind think now you or transitory? orders effect of do get in mentioned And the year not moment it's where sort a You announced, a been? that much these In were of chilling think words, are of sort would next

Scott Drake

Yeah.

to is think a tailwind the in I transitory. us. long run going the it's for be think I APM actually

generally moving And for way. going and ASTRO of economic in the toward SBRT, provide to at ultimately that direction speaking, that reasons, in any now both is think think the to clinicians Steinberg clinical wanted last year. move market go the was to Dr. an highlighted I, I APM we I incentive

customers long think just they run, multi. want We we don't red the close tailwind. of down we one kind were in the very system, to want I we to a And, buy maybe that So, lining. it's that to buy indicated had

customer. And so in now negotiations we're with broader that

if to the forward. run And didn't So, that. with run we're me happen, very you in But again, And about opportunity. in good orders long focused we're again, for what focused going be. the difficult us. that would short very share for much the I feel the better pipeline maybe impossible on long-term on driving And

Anthony Petrone

Thanks.

Operator

the question Pasquale Chris our And you. line next from Thank Guggenheim. is of with

is line Your open.

Chris Pasquale

think place low since are Scott, the fraction that the that steadily involved. certainly you expectation been that of came you that board systems on changes Thanks. volatility I was positive of [indiscernible] a cause new orders in the the some given ramping have would number But there. put

bit So people the concerning. to strike this is number going and surprising as

have aspects you today You the commercial give about the in are they just the how be readiness we'd touched us But thought growth on the side we quarter? want other Can of of team. point see you drive of them business, the where that sort time organization? you order the vault in feel on of kind some to positive to a commercial this I think would

Scott Drake

Yeah. Happy Chris. to

do. able one, the deals within has would they're I say, the step a of have positive instances, process. where of rigorous more decision and customers team macro move the quick sales I feel pipeline, customers our evidence in And company at I number than to that that are through purchasing that very to of the system from built, some to multi a the quickly a kind being our number that mentioned that in been take kind able have. and historically, I think back through of they're perspective, good the training we and going about we of is number coverage

remind occasions, and us of our full on which what QX I was was first quarter said that the team. many US would is seeded that's team I've

And more so and know it get overtime. dealing and little time to numbers. to be of small give to them as think law of in customers point, I the fully I've And sense them we're to kind that's your time, to bit trained more I their take before, makes we'll again, And, of said territory. think effective some a getting for with going

to versus some on. two a we so down, a the in very is team but or quarter ones, this we're good right the up before and about feel understand that were recent light I that, have I while with lumpiness work and we're doing quarter, line trajectory two relatively so going where it's is And the that

Chris Pasquale

Thanks. about But the positively some are cash round revenue hand-in-hand How before stands thinking point know some burn get that is the to with of you you And that exists the to soon effect? me line. exploring the then gap that could different models, close you consider how And out different of financing? that your is, number goes some And that cash needs. other impact into use. to mentioned start things another trying put today, sales to we see need of sort that could you I

Scott Drake

Yeah.

I pretty those between So straight relative would goes say cash generally first and it It's hand-in-hand things. our two to in revenue guidance. you're with just revenue right, in of reduction line terms

shared, on focused I've very cash. As we're

as working and kind the MRIdian we're We various path rigor to partners on purchasing of not ARAP have also weekly customers systems. operating expenses inventory on to models with only but highlighted, financial you speed and

about extraordinary Where we're the is to with so the some provide customer had the never company, had there's perspective. is clinical trying customers some conversation clinically. that last a gotten annul figure What's friction on front, I've that reduce with economic flexibility a that and out I've bad ways friction. never year of our from to I've a on to side

certainly in of takes So competitive early that, And the don't to midst want we're successful stages it the and with for with I being into if But we're of sharing in we'll it. Street. just be that. that hold, go too reasons, the deep

Chris Pasquale

Okay. you. Thank

Scott Drake

you. Thank

Operator

Bijou question from line the And our Fitzgerald. comes Craig with of next Cantor

Your line open. is

Craig Bijou

I facilities. wanted color maybe comments the about to Good bit afternoon. into maybe provide was had the if little wondering a could Thanks for potentially deeper taking discussions that with it the orders. more little and dig on the APM, bit impact you questions. Scott, a your on of

would But I orders And second the or still think -- be the it could half guess, short longer. even that benefit it's to the over I that in run. that be could impact you here it's the concerns going be whether term, guys long understand a

kind I sense you've had gives confidence detail discussions wanted guess of in you any that facilities. have then with -- And if if get to to going I be just So impact? lingering for what a potential some been a not of the the it's

Scott Drake

Craig. I down that about they I multi-system mentioned and do potentially one think want and here. deal. talk Yeah, overemphasize to were, the don't to broaden wanted line, that it's I of a to goal component it a we customer kind

quickly. good team I at So picture bad, big again, built recognize short would term. the look But we've very long would, here and term, that I a

were this And they quarter the that was first their in territory.

So one I just good that building. feel very the another. predict versus s-curve want to you adoption. variable overweight, the difficult about predicting I I and very a when we're pipeline tried steeper part of me hit exactly, we we've away from would It's of tell don't to to commercial that might for stay

commercial right opportunity But I believe of standpoint, all a we're care standpoint, changing doing clinical long seize standard fundamentally radiation and delivery. things, from standpoint, data the therapy to term the innovation the of

versus technology more And the value technology proposition and our The profound. and our is proposition clinical out customers base. conventional our clearly, customer as strategic difference message, are value economic our in understanding to more we're that delivering our there

example, I an interesting point currently We have noteworthy, in I think. pretty Miami. as and Florida the systems two

one probably on distant to traveling the the That's Florida to We think, system. ground are too have, in more three to future. have that in patients going be are treated MRIdian one be in Tampa, [ph], Jim that not Orlando. the I fact And due we the in systems, in

all that the pressure around got competitive there's that's we've And world. market. some that in in And replicate building markets to

working right are the and But that we're on. things we're focused feel there's those overnight. like They variables here don't things. So different happen the on several I

Craig Bijou

order is versus difference But up there than expected. U.S. seeing what obviously, there follow a issue? just specific any orders. we I is Maybe anything I mean, on I it helpful. that's is is number OUS specific, you're U.S. OUS? mean guess, lower the between the in Okay,

Scott Drake

don't so. I think

our I than think U.S. team the is international further along team.

network. of referenced team our our also Sales out we're internationally of basis, that I've in really VP key is out likely change and that making direct the progress, markets. Our building one a to make distributor good building on

And in So individual team we're a dealing or signal that with into where don't either of little larger market. the direct But it's quarter. a here. numbers that U.S. I we're is team ahead a to we lot at internationally, again, this read a have in I think U.S. internationally. small think bit there's of

Craig Bijou

quick And then one. one last Okay. just

you to in think system I alluded the on the improvements half. some latter

guidance, some And perspective the on that half higher planning mean on year? you the a the software so things I second cash guess doing, burn, any either hardware impact I the lower of were from the of revenue in

Scott Drake

No, streamlined. clinical workflow patient investing No, not as very exciting we're we to will impact, that at more relates care even heavily. going things also things there's front. positively go in forward. innovation very all making and our are pipeline They're There faster predict all. very our along exciting systems the it And

of So capitalize deserve. understand looking taking kind take frankly which of to said much I change I've approach, on term the to us believe are going look I for of customers the and the to time, standard it's long we're questioning, care, our very line patients and as the opportunity

Craig Bijou

Thanks for the taking questions.

Scott Drake

Thank Greg. you,

Operator

Thank And comes Andrew B next line from the our with D’Silva FBR. of question Riley you.

is open. line Your

Andrew D’Silva

my Hey, Thanks for afternoon. questions. good taking

And you was this any moving sorry if between before, call. of I highlight

me transport know I'll if out let it in just the tonight. did and check you then So

of quick right the of out gate. Just bookkeeping a couple

me let just was for and comp, flow stock cash base amortization, depreciation the CapEx could you operations If know and quarter? from

I year, announced that's unity system about announcement like just be while that and being pulled, fairly quarter your was an placing the significant also just as they nine thoughts to and GenesisCare, them appeared discount well. had on order it then during a you last a were And would significant order fourth

on the any as just So useful? you're be would choice, with both familiar color platforms

Michaella Gallina

then Scott will question. your GenesisCare it and I'll for for those Andy hand through Hey numbers run you to

was the and million. base was million. Depreciation about stock in amortization comp $X.X Our $X quarter

able $XX.X to operations Q $X from quarter more in our million and about you'll flow be in and CapEx cash the detail. about pull we million Our just spent so was was filed

Andrew D’Silva

you Thank

Scott Drake

that large would and important are be And fully customer more ours an very anticipate And us I important today. say customer Andy they'll larger GenesisCare and the I of the forward. following. for going There even question, regarding

marketplace clear our We any that point of a how have, And of in in technology got terms line think, sight, view. of confidence lot versus of the I very we've they competitor. view in

And with how with share move more And we into also in they different not see that earn within have too been us to I with facilities. radical speak right of future. perform go now. that ask. we'll go, I a us and fair and the vault want as deliver with And treat we hard installation the think phase you more distant goal them to delight And way. that's very from we with business them would as get forward. in preparations they GenesisCare them working I that an our And we're customer just to think really patients couple will the on clear GenesisCare it's a extraordinary

if where The this. a will, a there that said, an or of other bunch here certain legacy whole instances, bunkers you thing been that repeatedly within customer XX such systems, a months are whether hospital in as kind is systems, it's individual with I've multiple for I've since of customer,

head not to Our do. our And that's it what we where going is clinical average than head is more in to frankly, -- be competitor pull as we they those as we're to good instances, economic competition. have value levers drive has to batting do. And an would beyond just proposition a it's an opportunity

and I delight going overtime, and would hard more them to assessment. we're with going forward. doing that my more I business said, would to like be work customer anticipate, that So really

Andrew D’Silva

those relates And if word to to yet? you. supply Thank previously constraints And last a some do not, great. capacity in question just Have as bring guess the to it be conductor plan house or the Okay, or specifically I discussed it in resolved that related better have my manner? limitations. been you capabilities, resolve

Scott Drake

competitor? question Andy? constraints? or a us supply that Is about that clarify What's you Can the about about

Andrew D’Silva

the term resolved? -- No, perhaps with no to some to longer I And quantity to there split enough hit previously, projections be able magnets had that about you if been of get was the in issues curious being used that had.

Scott Drake

work Yes. That partners that's to got our their out has very our on you We perspective. there. can books, been our from with And They've and many chain our as system. scaled we've supply magnet at got, resolved. of inventory address see adequate we've -- a any closely demand

Andrew D’Silva

year. great. Okay, for you thank good And this going me. That's it Hey, forward luck very much.

Scott Drake

Thank Andy. you,

Operator

Jeffrey. our Matt question with Piper, next is O'Brian And from

Your line open. is

Unidentified Analyst

good Thank guys. afternoon, you for [ph] This here. Dur Hey, taking the Matt. on questions is for

I see I mentioned know about kind the place. were about just follow guess XX% on you of your I call, on I a in getting previous teams up you how the of terms there progress to and And time is that under going want sell that and readiness vault guess mainly getting order to in what XX there. XXX% of just months scaling means then try understand down exactly to that team? way

Scott Drake

that. share would I Yes.

place. I'll built. I you're and vault capability a we've scale ahead from that about less welcome the preparation or that team perspective. answer. go And But in about more very I whether to that Shar position feel or to good talking in is team team, our good we're very think installation

conditioning to recent coming of inside in two year's time. a timeframes of well PO Evidence

of successful. and So if on that capability usual exists generally of things control that that regulatory is inside What the when we've our some well we're are in as been that this and instances go a we've as few call, very highlighting experienced I are we've delays I in simply And Shar, control. that our to permitting going very the be our anything team is place. capability need think forward, to but would in on proven say outside we front. add? And thoughtful that about of

Shar Matin

Yes, that. agree all Scott, of I with

transfer done XX each of And as under preferred learn practices Scott from add them. where or each of really can we installations, just the installs we mentioned, we've from process can one got our and whole one our suppliers, and the think value that approved I that so actively accelerate place customers learn that that design our it's for may to whatnot be houses, best customers. as we've of

best to that whole additional for we say would to more internationally, I that's that efficient going both and that transfer really with as making leg customers. with can our practice get next the So process better just installs our be is nationally and and us

Unidentified Analyst

very Okay, served? that you. distributor what disclose Thank you And problem market helpful. did

Scott Drake

No, no, we haven't.

to but in to these respect keep only is, ourselves. in the the that demand that building But more to Just particular generally we're big market. have strategic going right fulfill in fulfill partner, partner two we're that demand, customers' that that to market to not exists going point the also one

Unidentified Analyst

much. Okay, you very thank

Scott Drake

Thank you.

Operator

Lewis with from is the Morgan question next of David line Our Stanley.

line Your is open.

Unidentified Analyst

A Thanks me. Hi, this today. is David question. the taking quick for for one Mason on for

talked growing system install top the obviously about how remains a and driving You've base priority. placements

find was could the I change if However, wondering adjustments long guidance recent Thanks. path profitability? on term to thoughts your you

Scott Drake

haven't Mason, Yes, profitability I talked say would we yet. about

in and talking some think a It's highlighting What important time most that little our have profitability metrics the I have order is, those. we about the calling in certainly bit cash and future. be revenue premature we us time that's for shared frame. out to utilization we're or that

progress the keep and on everybody we stay we'll So that for will time posted. being silent as

Operator

Jason next our question Baird. with And is from Bednar Alright.

Your line is open.

Jason Bednar

improvement follow-up had. cycle order maybe seasonal just Good still move can a want health the recalibrate would it's XX expectations given with the Or in of forces period you just of sales you And I'll extend the comments you then the the demand. in around be trajectory XX start on for to should and half to fair, in I momentum in decision your have that to afternoon, think given you. after place order your for your the just an into the customers Just expect year the as And some Scott, XXXX? and that to more pipeline? has that. historically really do guys. think and stronger comments investors months been back book mean, stimulate over of the around year,

Scott Drake

Yes, question, think I Jason. a very that's thoughtful

all his I and think just economic we're articulating hold I difficult exactly predict really the our the marketplace. things us are and right Jim it's our in value believe and very that team clinical, when fervently traction proposition. to doing take strategic of going to for

the predict too not as will believe here things with run Florida drive the markets. of I right of anticipate orders law I and when effective future We're to results. us in term we're highlighted three I Difficult right that will overtime. distant in more multiple things. and doing right incremental for long will small to many dealing get take of numbers here. obviously But more kind the But where the the place. competitive And exactly example, that that the dynamic in the lead as short we that kind doing convicted,

Jason Bednar

sales now over past just competitor be regulatory dynamics, and your few that be then quarters. it mean, competitive from or that the the pricing you're has in the any separate seeing may just anything they here sweeteners, force winning announcement. And be on your I GenesisCare mean, received you may regard? the just Okay. adding they from change are deals I several approvals that recent hearing

Scott Drake

that I would the in say and out channel encourage to I market, would I what place think checks. you do taking what's

MR is class effect. a looking see our are there think effect a with whether to are we believe fact clarifying is think there's that guidance people And class certain I systems. I team there the the don't in marketplace that

extraordinary are our out between differences system and there. There that's system other every

only that. in the We're system are able to precise is real track only the a time. We able to and shape dose very along that tumors soft tissues system that's with

tumor it's tumor automatically stops or and is or We are when target outside in is tissue that the system in the target only automatically when a vital the organ healthy the planned of strikes the way. the

in different that's anything been patients able what extraordinarily to in is of from of to a that treat have other system are is The is a system. year the offered number the others that single we a on is recognized able in upwards treat that thing the a that single aggregate day else And being on effective single marketplace.

So And known big the think understood. class clinical the category. are is the customers becoming there's utility not our and more difference realizing our I that more of likely system and in effect a is

Jason Bednar

All you. right, thank

Scott Drake

Thank you.

Operator

Difei of line Our Mizuho. next from with Yang comes the question

is open. line Your

Difei Yang

afternoon. thanks good Hi, And questions. taking my for

a Just couple.

around influenced So be to This one to this the being number dynamics? it with degree has is orders. been first And by to negatively weak. is, regards competitive the time new able what to comment

Scott Drake

Yes.

what and like to terms what's variables orders. I the it's I there Again, marketplace there's in in redundant. in of bit happening I our think a relative going little pipeline forward. multiple see commercial

do things those and that innovation we're apt and competitors are to clinical discounting kind selling of have how more versus We on data.

market. of with I in a the been the for the happening last that component do think about that there's We've been talking company. I've quarters four that

also least that think brand which there put but have do there's that's present, place. a is not necessarily it's the I impacts new we recently out other of think sales team And not new. in I So

comment to see make Alecxih me wants a Let Jim if here.

Jim Alecxih

dynamics in I that encouraging. and a is is a lines, those customers takes decision. place bringing U.S. our QX. of top certainly in that it make frame competitive there's force pleased are the the in they're the time to also Well, along marketplace. calling the accounts on And And of pipeline number there And we're to think sales

from response But, other prospects that we earlier, we our we've feel stated confident customers clearly will as confident superior. technology Scott is the feel received our in respond And accordingly. that

Difei Yang

Okay, thank then subject replacement for potential changing the to just for additional CFO. color. the that you And

Scott, be you you looking new come the what CFO? be in are -- on would So would what for to able

Scott Drake

Yeah.

really company the looking Ajay this built thank every want say, our he's make that is the last transition. for the over regard in time, high. very scale for I three for done First, him We're can we're And to with amicable separation. And we've that very to a of as years. he partner And work in himself midst is the just over very smooth business a functional other right area. availing just

a that we'll of And, retained search be confident pretty the on to that in I'm able person. And front. we're midst find that

look last you So piece XX new to And which last welcoming teammate, posted. really built we'll the the I've that months. represents executive keep we over here that team forward the of

Difei Yang

you. Thank

Scott Drake

Thank you.

Operator

with you. question up next Jeffries. follow Anthony a our Thank Petrone from is And

Your open. line is

Anthony Petrone

here. follow cash a just position a Maybe up Great. on

as a Just lower that is prostate. study, need would think then just to data, on the look see update year, bit I'm actually from And And in we'll you and the when be context maybe gone the that's SMART data terms maybe And there your views. just up how timing at of an of obviously, the obviously, a follow the you pancreatic important just for liquidity APM? in cancer study? cash do Thanks. data and

Scott Drake

Yeah, happy to.

on So first, million Anthony, $XXX expenses regarding that about feel now. cash, right and nothing as our burn I was we place on the front our about quarter. mentioned to I decent sheet. got hand. we're care on me share. in It do further There's a that I $XX rigor premature to million though that be in operating And would balance for have the We've that.

the on previously call, both financial asked was experimenting and partners with we're customers. As

into the we more that MRIdian things can the adoption do of Some rapidly. drive marketplace to creatively

so to share there's on the more really nothing And front cash there.

think, term. been other with many a many, Regarding I to And the smaller XX already on provide as market. mentioned similar down think it to treat high out where get what there has an inside long we wants go having systems treatment of is many much of SPRT APM, days. before, than it's company cancer timeframes a tailwind proposed, the market to to the volume incentive I economic safely If I treatment with we can clinically. And to dose the something going forms

patients system conventional in customers be I take year our XXX, clinically a a given forget treat, economically. of. what's question. economic to may advantage ability give or represents Linac me, attractive our a real a forgive the So now to good to about And your very component And third opportunity had on take XXX for versus

Anthony Petrone

update for data prostate out the of on the data Timing pancreatic on the published SMART initial and timing cancer? for the being an study

Scott Drake

Yeah.

of think the signal the to prostate is end routine patients sometime data, study, it's XXXX. of that it XX the on the we'll relates publication, for get around been -- On And kind calendar it year still the about there the on submitted signal resubmission. the of first has the timing beginning or as the safety review SMART I the undergone and same,

seeing And be, don't exactly we look looking positive but forward we're So to to print. it. tangible when much very there. being -- have forward it it there's and there's I we're progress in will progress

Anthony Petrone

Thanks.

Scott Drake

Thank you.

Operator

not you. showing any I'm Thank questions. further And

So closing I’ll for the now remarks. over turn Drake call to back Scott

Scott Drake

operator you, you to updating joining quarter. you in Thank all and for We Thanks look thank further very another us. much. forward

Operator

this a great gentlemen, program, disconnect. does Everyone, and now you conclude Ladies have day. may the

ViewRay (VRAYQ) 9 Aug 192019 Q2 Earnings call transcript