Fri, May 2, 8:08 PM (16 days ago)
### Summary of Accuray Incorporated (ARAY) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Revenue:** $113.2 million (up 12% YoY) driven by higher shipments of TomoTherapy and CyberKnife systems. - **Gross Profit:** $31.6 million (up 9% YoY) due to increased net revenues, partially offset by higher deferred gross profit on sales to the JV. - **Operating Expenses:** $30.6 million (down 9% YoY) due to reduced R&D and G&A expenses. - **Net Loss:** $1.3 million (improved from $6.3 million loss YoY) due to higher income from equity method investment and lower interest expense. **Cash Flow:** - **Operating Cash Flow:** $12.6 million (positive, improved from -$21.8 million YoY) due to non-cash items and changes in working capital. - **Investing Cash Flow:** -$5.1 million (due to capital expenditures). - **Financing Cash Flow:** $1.6 million (due to borrowings on the revolving credit facility). **Debt and Liquidity:** - **Cash and Cash Equivalents:** $77.8 million (up from $68.6 million YoY). - **Debt:** $173.8 million (including $58.0 million term loan and $17.0 million revolving credit facility). - **Liquidity:** Sufficient to fund operations for at least the next 12 months, but subject to macroeconomic uncertainties. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by higher shipments in the APAC and China regions. - **Gross Margins:** Adverse impact from increased material costs and logistics expenses. - **Operating Expenses:** Reduced due to cost management initiatives. - **Net Loss:** Improved due to higher income from equity method investment and lower interest expense. **Trends and Uncertainties:** - **Macroeconomic Factors:** Inflation, supply chain challenges, and geopolitical risks impact operations and financial performance. - **Debt Maturity:** $50.0 million term loan and $100.0 million convertible notes maturing in 2026, requiring refinancing. - **Customer Installations:** Delays in customer installations due to reduced budgets and longer timelines. **Future Operations Impact:** - **Revenue Growth:** Expected to continue, driven by higher shipments and service revenue. - **Gross Margins:** Adverse impact from increased material costs and logistics expenses. - **Operating Expenses:** Expected to remain stable, with cost management initiatives. - **Net Loss:** Expected to improve due to higher income from equity method investment and lower interest expense. **Ticker:** ARAY