SUNNYVALE, Calif., June 20, 2012 /PRNewswire/ -- Accuray Incorporated (Nasdaq: ARAY), the premier radiation oncology company, announced today the extension of its industry-leading Emerald Service Program for the TomoTherapy® System, which provides equipment protection and product updates that improve clinical uptime and enhance technology utilization, to customers throughout Japan. As part of its ongoing commitment to strengthening customer service globally, Accuray will now interact directly with TomoTherapy customers in Japan to provide Accuray's higher level service programs in the Japanese radiation oncology market.
"We are dedicated to helping advance radiation oncology treatment in Japan and this is a significant move toward ensuring that our current and future customers throughout the country benefit from the highest quality customer service," said Euan S. Thomson, Ph.D., president and chief executive officer of Accuray. "We have seen clear traction for both the TomoTherapy and CyberKnife Systems in Japan and believe that by managing the service program directly, we will be able to increase touch points with our customers, hear about their needs first hand and reaffirm their confidence in our products."
Japan is a global leader in the adoption of innovative medical technology and an important market for Accuray. The TomoTherapy System received Shonin approval from the Japanese Ministry of Health, Labor and Welfare (MHLW) in December 2004, and the first TomoTherapy System was installed in 2005. Both Accuray systems have gained widespread acceptance and presently there are 26 TomoTherapy Systems and 25 CyberKnife® Robotic Radiosurgery Systems in use in Japan.
Previously, Hitachi Medical Corporation provided service and support for TomoTherapy customers in Japan. With the roll out of the Emerald Service Program in Japan, Hitachi Medical Corporation will transfer the regulatory approval and service business to Accuray. The move to take service in house demonstrates Accuray's continued commitment to delivering superior service for TomoTherapy customers and provides new opportunities for growth and further market penetration for both the CyberKnife and TomoTherapy Systems in Japan. Accuray forecasts that the transfer of the service business from Hitachi Medical Corporation to Accuray will drive an increase in service revenue with expected revenue of $5 to 5.5 million dollars over one year.Accuray and Hitachi Medical Corporation will continue to partner on sales and distribution, enabling Accuray to benefit from Hitachi Medical Corporation's deep territory penetration in the Japan's radiation oncology market. Accuray expects the relationship to also provide opportunities for future growth of the TomoTherapy business globally. The Emerald Service Program combines best-in-class product service offerings with guaranteed uptime for unparalleled reliability and customer satisfaction. The Emerald Service Program was extended to the TomoTherapy System in the United States in 2011 and the program is now available to customers in Japan.