Question-and-Answer Session
Operator
Thank you (Operator Instructions). Our first question will come from Tom Gunderson with Piper Jaffray.
Tom Gunderson - Piper Jaffray
The focus is going to be -- as you said in your summary, Euan -- it's going to be on the change in guidance. Mid-point to mid-point, it's down $40 million -- or is there $40 million taken out of the backlog assumption on the credit worthiness of the CyberKnife that you took out?
Bob McNamara
It was less than that. In the past we've shown kind of how to calculate the change in backlog, where if you start with beginning backlog, you'd back out revenue and compare back to the ending backlog you will come up with the difference of the net new value contribution, and that compared to the $101 million will give you that number.
Euan Thomson
But I want to point out, as often as I can as well, that we are obviously disappointed after to do that. But at the same time, there is still, we believe, significant and probably industry leading growth in the guidance that we are giving.
Tom Gunderson - Piper Jaffray
I know, it's just all about expectations and then changing expectations, so we’ve all been through this before. Is the assumption, then, that of the CyberKnifes that are in backlog six months ago, the ones that were in backlog, some of them had a contingency and the contingency was the ability to raise the money to pay for it?
Euan Thomson
Yes, some of them. But also I said there are other factors here. We’re not saying that everything that affected that guidance adjustment has come out of backlog. What we’re seeing in many cases is that people are just taking longer to get their financing resolved. So the net effect on the guidance is not just people canceling contracts; it's really about us assuming that they are not going to be able to install. It's really about doing a balanced overview of what we think will happen for the rest of the fiscal year, and that simply includes people that being telling us their financing is on its way, and when we look at it and we talk to them, we think, you know what, it maybe but we now don't think you are going to be able to continue your initial installation objective.
Tom Gunderson - Piper Jaffray
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