Accuray Incorporated (NASDAQ:ARAY) Q4 2019 Earnings Conference Call - Final Transcript

Aug 15, 2019 • 04:30 pm ET


Accuray Incorporated (NASDAQ:ARAY) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Accuray Incorporated Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. [Operator Instructions]

I would now like to introduce your host for today's conference, Michael Polyviou. Sir, you may begin.

Michael Polyviou

Thank you, Daniel, and good afternoon everyone. Welcome to Accuray's conference call to review financial results for the fourth quarter and full fiscal year 2019, which ended June 30, 2019. In addition, during our call this afternoon, management will review recent corporate developments. Joining us today are Josh Levine, Accuray's President and Chief Executive Officer; and Shig Hamamatsu, Accuray's Senior Vice President and Chief Financial Officer.

Before we begin, I would like to remind you that our call today includes forward-looking statements that involve risks and uncertainties including statements regarding our fiscal 2020 guidance, including factors that could affect such guided expectations regarding market conditions in China, expectations related to new product releases, future business plans and strategies. There are a number of factors that could cause actual results to differ materially from our expectations, including but not limited to risks associated with the adoption of the CyberKnife, TomoTherapy and Radixact Systems, commercial execution, operationalizing the China joint venture and overall strategy in China, the timing of China user license issuances and the Company's ability to take advantage of the issuance of such licenses, future order growth, future revenue growth and macroeconomic factors outside of the Company's control.

These and other risks are more fully described in the news release we issued just after the market closed this afternoon, as well as in our filings with the Securities and Exchange Commission. The forward-looking statements on this call are based on information available to us as of today's date and we assume no obligation to update any forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.

Two housekeeping items. First, during the Q&A session, we request the participant to limit themselves to two questions and then re-queue with any follow-ups. Second, all references we make to a specific quarter in the prepared remarks are to our fiscal year quarters. For example, statements regarding our fourth quarter reflect to -- refer to our fiscal fourth quarter ended June 30, 2019.

Now, I'd like to turn the call over to Accuray's President and Chief Executive Officer, Josh Levine. Josh, please go ahead.

Joshua H. Levine

Thank you, Michael. Good afternoon, everyone, and thank you for joining us on today's call. Since we last talked with you in April, our team has continued to execute and build on our recent commercial momentum, advance our opportunities in China, reduce our overall operating costs and achieve full year operating profitability. This afternoon, we've reported results for our fourth quarter and full fiscal year 2019 highlighting this progress.

We generated $97 million in system orders during the fourth quarter and $342 million in system orders for the full fiscal year. Year-on-year orders grew