The following is a summary of the Accuray Incorporated (ARAY) Q1 2025 Earnings Call Transcript:
Financial Performance:
Reported Q1 net revenue of $102 million, a slight 2% decrease year-over-year.
Product revenue for Q1 was $48 million, down by 9% from the previous year.
Service revenue saw an increase, reaching $53 million, growing at 5% year-over-year, which was supported by increased contract revenue.Adjusted EBITDA for Q1 was $3.1 million, a decrease from $6.5 million year-over-year.
Gross margin for the quarter stood at 33.9%, down from 38% in the previous year.
Business Progress:
Strong performance in China with 30% revenue growth year-over-year, driven by Tomo C and consistent demand in Type A and B markets.
Expansion in APAC, including first shipments of VitalHold and CyberKnife S7 to new markets like Thailand and the Philippines.
Revenue in the Americas up 2% year-over-year, driven by increased product shipments.
Helix platform received CE Mark, targeting Indian and other emerging markets, with orders expected to convert to revenue in the coming quarters.
Opportunities:
Continued expansion and market penetration in high-growth emerging markets such as China and India are expected to drive future growth.
The introduction of new products like Helix for emerging markets and advanced service offerings like Cybercomm are set to enhance revenue streams from both equipment sales and service contracts.
Risks:
Regional performance variability, such as the 35% revenue decline year-over-year in the EIMEA region and similar trends in Japan, underscores the challenges in maintaining consistent growth across all markets.
Extended sales cycles and the timing of installations could impact revenue recognition and financial performance in upcoming quarters.
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