Accuray Incorporated

Good afternoon and welcome to the Accuray Report's first quarter fiscal 2022 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 your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ken Mobeck, Vice President of Finance and Investor Relations. Please go ahead.

Thank you, Anthony, and good afternoon, everyone. Welcome to Accurate's conference call to review financial results for the first quarter of fiscal year 2022, which ended September 30, 2021. During our call this afternoon, management will review recent corporate developments. Joining us on today's call are Josh Levine, Accurate's Chief Executive Officer, Suzanne Winter, Accurate's President, and Brandy Green, Accurate's Interim Chief Financial Officer. Before we begin, I would like to remind you that our call today includes forward-looking statements. Actual results may differ materially from those contemplated or implied by these forward-looking statements. Factors that could cause these results to differ materially include are set forth in the press release we issued just after the market closed this afternoon, as well as in our filings with the Securities and Exchange Commission. The forward-looking statements on this call are based on information available to us as of today's date, and we assume no obligation to update any forward-looking statements as a result of new information or future events, except to the extent required by applicable securities laws. Accordingly, you should not put undue reliance on any forward-looking statements. A few housekeeping items for today's call. First, during the Q&A session, we request that participants limit themselves to two questions and then re-queue with any follow-ups. Second, all references we make to a specific quarter in the prepared remarks are to our fiscal year quarters. For example, statements regarding our fiscal first quarter, referred to our fiscal first quarter, ended September 30, 2021. Additionally, there will be a supplemental slide deck to accompany this call, which can be accessed by going directly to Accuray's investor page at investors.accuray.com. With that, let me turn the call over to Accuray's Chief Executive Officer, Josh Levine.

Josh? Thanks, Ken, and thank you to everyone joining us on today's call. I'm joined today by Suzanne Winter, our president, and Brandy Green, our interim CFO. By any measure, Accuray had a very strong fiscal first quarter. Our performance reflects the visible impact of the investments in innovation we have made to our product portfolio, how those new technologies are being received by customers around the world, and a laser-like focus on commercial execution, all of which are driving accelerated revenue growth in our business. Revenue for the quarter came in at $107.4 million, which translates to 26% year-on-year growth and represents the largest fiscal first quarter revenue number the company has ever recorded. Gross order volume for the quarter was $70 million, which translated to 39% year-on-year growth. While Suzanne will provide more details regarding regional contributions during her prepared remarks, I can confirm that the strength in orders and revenue results were reflected across all of Accuray's operating regions. Underpinning this strength is the impact of our latest Radizak technology upgrades, ClearRT, our helical KVCT imaging platform, and Synchrony, our real-time motion tracking and beam delivery adaptation capability. We have seen significant customer interest in both of these technology additions and very strong attachment rates for both, with new Radizak orders as well as upgrade activity for installed base systems. The cadence of our new technology innovations is continuing to drive both current and, we believe, future growth in our business. We continue to see strong contribution from our China JV during Q1. China gross order volume for fiscal year Q1 was 16.3 million, representing 139 percent growth versus prior year, and we generated revenue of 25.5 million, which represented year-on-year growth of 732 percent. Additionally, We continue to make good progress on our TNGEN-produced Type B product and are on track to launch a phased market introduction in the summer of calendar year 2022 with subsequent shipments expected pending regulatory clearance by the end of that year. Last week, we participated in the ASTRO Conference in Chicago. This was the first in-person opportunity to interact with the U.S. radiation oncology community in 24 months. Accuray had strong customer interest at the meeting, as well as strong interest and participation at our investor event. As we shared in our Astro Investor Day presentation, we're excited about the momentum and progress we see occurring with our business today, as well as the long-term growth opportunities we have in front of us. We are launching important technology upgrades across both of our platforms that are designed to further enhance current treatment capabilities in delivering hypo- and ultra-hyper-fractionated stereotactic radiosurgery, and stereotactic body radiotherapy more effectively, safely, and efficiently. And now I'll turn the call over to Suzanne Winter for some more details on commercial highlights during the quarter.