Q1 2025 Accuray Inc Earnings Call Transcript
Key Points
- Accuray Inc (ARAY) reported strong revenue growth in China, with a 30% year-over-year increase driven by customer demand in both type A and B markets.
- The company successfully launched the Tomo C product in China, expanding its product portfolio and allowing competition in the fast-growing type B segment.
- Accuray Inc (ARAY) saw positive momentum in the APAC region, with first-time shipments to new markets like Thailand, the Philippines, and Myanmar.
- Service revenue grew by 5% year-over-year, driven by increased contract revenue and enhanced service offerings.
- The company raised its full-year fiscal 2025 revenue and adjusted EBITDA guidance, reflecting confidence in underlying demand trends and product backlog.
- Overall gross margin for the quarter decreased to 33.9% from 38% in the prior year, partly due to a one-time cost benefit in the previous year.
- Product revenue declined by 9% year-over-year, reflecting variability in orders and revenues due to longer sales cycles and timing of installations.
- The US market experienced an 8% decline in service revenue due to installed base consolidation, impacting overall revenue growth.
- Accuray Inc (ARAY) faced challenges with the ERP system implementation, although it is now fully integrated.
- The company noted delays in the Chinese market due to the anti-corruption campaign and lack of stimulus program initiation, which could impact future growth.
Good day and welcome to the Aure fiscal 2025 1st quarter. Financial results conference call. All participants will be in listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then one on a touchtone phone to withdraw your question. Please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Jesse Chew, Chief Legal Officer. Please go ahead.
Thank you operator and good afternoon, everyone. Welcome to Aurs conference call to review financial results for the first quarter of fiscal year 2025 which ended September 30th 2024. During our call this afternoon national will review recent corporate developments. Joining us on today's call are Suzanne Winter, a President and Chief Executive Officer and Ali Pbe, a Chief Financial Officer.
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