This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Accuray's CEO Presents At Morgan Stanley Global Healthcare Conference (Transcript)

Stocks in this article: ARAY

Euan Thomson

It’s a good question. Thanks, Steve. I think we have a little debate internally about how much to sort of discuss at the earnings call about the ASTRO release. And I think when we analyzed it, it has a significant impact on our financial profile as we go into this year that it was right and proper of us to do basically a full disclosure on all the financial impacts. And I will talk through that a little bit.

So on the cost side it’s clear, we have rising R&D costs, we have rising sale and marketing expense. And we wanted to give investors some clarity around the fact that we don’t expect those to stay that high sort of indefinitely. So there is actually an end point and it is this ASTRO. So that mattered to us a lot.

The other thing is that we are seeing some short term impact on revenue in this quarter. Certain customers are aware that something is coming. Very very few customers actually know that details of the technology themselves. But people know that something is brewing and there are certain customers out there who would have been taking installation this quarter. Who were saying to us, it would really be much more comfortable, we know we are going to have this technology for ten years so we will be much more comfortable knowing that we are going to get everything we want from it, and therefore we would like to see what you’re releasing at ASTRO before we take our shipment.

So with the prospect of a -- and it’s not a major impact in terms of the year but in terms of this quarter, some headwinds in terms of getting products, if at all, following by or coupled with the increasing expenses and so on. Then we felt it was best to give just complete clarity over what is going on. You know the good news is that I think as we exited there as we pointed out, we already have solid bookings even without the rollout of these new technologies. We had a third quarter of integration. At the beginning of Q1 last year we had a book to bill ratio that was predictably low as we integrated the two sales forces, down at about 0.7. But after that we rapidly recovered and we have been running sort of a double-digit book to bill ration and averaging the last three quarters at 1.12 and exiting the year at 1.15.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,862.72 +84.57 0.48%
S&P 500 2,075.33 +14.10 0.68%
NASDAQ 4,775.7190 +27.3230 0.58%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs