Q4 2024 Accuray Inc Earnings Call Transcript
Key Points
- Accuray Inc (ARAY) reported a 14% year-over-year revenue growth for the fourth quarter, driven by strong operational and commercial execution.
- The company achieved a record number of system shipments, representing a 20% increase over the previous highest shipment milestone.
- International markets contributed more than 80% of the fiscal year's revenue, reflecting successful penetration into emerging markets.
- Product revenue grew by approximately 28% year-over-year, with significant contributions from China and the rest of the APAC region.
- Accuray Inc (ARAY) received final approval for its precision treatment planning system in China, enabling full margin recognition and competitive positioning in the Type B market.
- Service revenues for the quarter were down slightly due to unfavorable foreign exchange impacts in Japan and reduced training and spare parts revenue.
- The Americas region showed weakness, with product revenue down 50% year-over-year due to customer delays and installation issues.
- Overall gross margin for the quarter declined to 28.6% from 31.9% in the prior year, impacted by higher margin deferral from China shipments and increased parts consumption costs.
- Operating expenses for the full year were $142.4 million, representing a 6% reduction year-over-year, but still indicating a need for further cost control.
- The US market remains challenging, with a significant decline in revenue and delayed recovery expected only in the second half of FY25.
Good day, and welcome to the Accuray Fiscal 2024 Fourth Quarter Financial Results Call. All participants will be in listen-only mode. (Operator Instructions) After today's remarks, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Jesse Chew, Senior Vice President, and Chief Legal Officer. Please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to Accuray's conference call to review financial results for the fourth quarter of fiscal year 2024, which ended June 30, 2024. During our call this afternoon, management will review recent corporate developments. Joining us on today's call is Suzanne Winter, Accuray's President, and Chief Executive Officer; and Ali Pervaiz, Accuray's Chief Financial Officer.
Before we begin, I would like to remind you that our call today includes forward-looking statements. The actual results may differ
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