Accuray Incorporated F4Q09 (Qtr End 06/27/09) Earnings Call Transcript

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2009-08-24 16:29:17.0

Tags: Call Transcript, Earnings, UBS AG, Sales Strategy, Balance Sheets, Sales Force Management, Sales, Financial Statements, Financial Accounting, Finance, Seeking Alpha, Accuray Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from the line of Erik Schneider with UBS. Please proceed.

Erik Schneider - UBS

Can you just go into a little more detail on the backlog change and it sounds like three systems were cancelled out of non-contingent, you downgraded your expectations for others. Did any of those downgrades actually change something from a non-contingent order to a contingent one?

Do you have a sense of how far that line is going to move for where you're drawing the line between contingent and non-contingent when you make that change for next year?

Derek Bertocci

I'll try and answer those in sequence. We did have some orders that were downgraded from non-contingent to contingent contracts in that group, and we did have some cancellations out of contingent backlog also.

In terms of the evaluation of backlog, our goal is to provide an assessment of backlog that is able to give investors and analysts an accurate prediction, a more accurate prediction of what our business is doing and where it will go in the future.

Erik Schneider - UBS

Then, no one is going to provide contingent backlog information, will you be breaking out or can you directionally break out the proportion of the CyberKnife non-contingent backlog that's direct versus distributor. So, we have a sense of the margin distribution and the number of systems that will add to your future service revenue streams?

Derek Bertocci

Well, we will be able to provide you guidance as to or insight as to what our actual shipments and installation are, but as far as our non-contingent orders, we are not going to be reporting that. We have not yet identified any way to give a reliable indicator of that early stage business, contingent business.

Operator

Our next question comes from the line of Junaid Husain with Soleil Securities. Please proceed.

Junaid Husain - Soleil Securities

Derek, just a few questions for you, some odds and ends. I think you had mentioned from a call, but I think I missed it. Could you tell us what the percentage of total sales representing your legacy sales were on the balance sheet? These were the Platinums and if you could split that up by instruments and software?

Derek Bertocci

Yes. The total sales during the quarter that were related to Platinum was $12.6 million and $7.2 million of it was related to systems, the balance was related to service which was about $5.3 million.

 

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