SOURCE: TomoTherapy
Reports $43.6 Million of Revenue and $35.0 Million of Equipment Orders; Raises 2010 Revenue Guidance
MADISON, WI–(Marketwire – October 27, 2010) – TomoTherapy Incorporated (
released financial results for the third quarter ended September 30, 2010.
Third Quarter Results
Third quarter 2010 revenue was $43.6 million, an increase of 27% from $34.4
million in the third quarter of 2009. Revenue from product sales was $29.8
million in the third quarter of 2010, up 23% compared to the same quarter
last year, and revenue from service and other was $13.8 million in the
third quarter of 2010, up 37% compared to the same quarter last year. The
company reported a third quarter 2010 loss from operations of $14.6
million, a 10% decrease from the $16.1 million loss from operations for the
same period last year.
The company incurred a net loss attributable to shareholders of $10.9
million, or $0.21 per share, for the third quarter of 2010, compared to a
net loss of $13.9 million, or $0.27 per share, for the third quarter of
2009.
As of September 30, 2010, the company had $140.0 million of cash, cash
equivalents and short-term investments, representing a $5.6 million
decrease from June 30, 2010. There were no borrowings against the
company’s credit facility during the quarter.
As of September 30, 2010, the company had a revenue backlog of $146.4
million, a 5% increase from the $139.2 million backlog as of June 30, 2010.
The backlog includes $35.0 million of equipment orders received during the
third quarter of 2010. Backlog includes firm orders that the company
believes are likely to ship within the next two years, as well as the
minimum payments for system rental contracts. Backlog does not include any
revenue from service contracts, which represents a growing portion of the
company’s overall revenue.
“We are encouraged by our third quarter financial performance, which
reflects substantial improvement from the same period last year and
demonstrates that our efforts on several key fronts are yielding results,”
said Fred Robertson, TomoTherapy’s CEO. “Importantly, our year-over-year
revenue growth is attributable to strength in product sales as well as
service. On the product side, we have increased our backlog for two
consecutive quarters as a result of a stronger, more integrated global
sales and marketing efforts combined with the market’s demand for our new,
more diverse product offerings. Service and other sales also continued to
grow at a significant rate in comparison to the prior year, and at the same
time, we maintained leading customer service rankings. We are focused on
driving product sales in the geographic regions we have targeted, while
simultaneously continuing to improve the reliability of our systems,
including enhancing machine uptime and reducing maintenance required, as we
continue on our path to return to profitability.”
Nine-Month Results
For the nine months ended September 30, 2010, revenue was $133.3 million, a
26% increase from $106.1 million for the nine months ended September 30,
2009. Revenue from product sales was $93.2 million in the first nine
months of 2010, up 23% compared to the first nine months of 2009, and
revenue from service and other was $40.1 million in the first nine months
of 2010, up 33% compared to the first nine months of 2009.
The company reported a year-to-date 2010 loss from operations of $28.9
million, a 27% decrease from the loss from operations of $39.8 million
during the first nine months of 2009. The company incurred a net loss
attributable to shareholders of $22.5 million, or $0.43 per share, for the
nine months ended September 30, 2010, compared to a net loss attributable
to shareholders of $34.0 million, or $0.67 per share, for the same period
last year.
During the first nine months of 2010, the company’s cash, cash equivalents
and short-term investments decreased by $14.3 million. In the same period,
the company’s backlog increased by $10.6 million, from $135.8 million as of
December 31, 2009 to $146.4 million as of September 30, 2010.
Outlook
The company is revising upward its revenue guidance for full-year 2010.
Management now expects 2010 revenue to be $175 million to $185 million, as
compared to the previous range of $160 million to $180 million.
Additionally, the net loss attributable to shareholders is now projected to
be in the range of $0.65 to $0.75 per share, as compared to the previous
projection of $0.65 to $0.85 per share.
Robertson concluded, “Our year-to-date results continue to show improving
revenue and margins. Coupled with our backlog growth, we now expect
stronger top-line results than we had anticipated earlier in the year.
While global market conditions remain difficult to assess, there have been
positive indications recently that demand is stabilizing. We are seeing
strong indications of interest in our new product offerings throughout
North America, Europe and the Asia Pacific region and continue to believe
there are significant growth opportunities across these geographies.
Moreover, based on many published reports regarding TomoTherapy treatment,
we believe that the market is increasingly recognizing the benefits of this
radiation therapy approach.”
Investor Conference Call
TomoTherapy will conduct a conference call regarding its third quarter 2010
results at 5:00 p.m. ET today, October 27, 2010 (4:00 p.m. CT). To hear a
live Webcast or replay of the call, visit the Investor Relations page at TomoTherapy.com, where it will
be archived for two weeks. To access the call via telephone, dial
1-800-638-4817 from inside the United States or 1-617-614-3943 from outside
the United States, and enter pass code 19539609. The replay can be
accessed by dialing
1-888-286-8010 from inside the United States or
1-617-801-6888 from outside the United States and entering pass code
40905886. The telephone replay will be available through 10:59 p.m. CT on
November 3, 2010.
About TomoTherapy Incorporated
TomoTherapy Incorporated develops, markets and sells advanced radiation
therapy solutions that can be used to efficiently treat a wide variety of
cancers, from the most common to the most complex. The ring gantry-based
TomoTherapy® platform combines integrated CT imaging with conformal
radiation therapy to deliver sophisticated radiation treatments with speed
and precision while reducing radiation exposure to surrounding healthy
tissue. TomoTherapy’s suite of solutions includes its flagship Hi-Art®
treatment system, which has been used to deliver more than three million
CT-guided, helical intensity-modulated radiation therapy (IMRT) treatment
fractions; the TomoHD™ treatment system, designed to enable cancer centers
to treat a broader patient population with a single device; and the
TomoMobile™ relocatable radiation therapy solution, designed to improve
access and availability of state-of-the-art cancer care. TomoTherapy’s
stock is traded on the NASDAQ Global Select Market under the symbol “TOMO.”
To learn more about TomoTherapy, please visit TomoTherapy.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Statements
concerning market acceptance of the company’s technology; growth drivers;
the company’s orders, revenue, backlog or earnings growth; future financial
results and any statements using the terms “should,” “believe,” “outlook,”
“expect,” “anticipate” or similar statements are forward-looking statements
that involve risks and uncertainties that could cause the company’s actual
results to differ materially from those anticipated. Such risks and
uncertainties include: demand for the company’s products; impact of sales
cycles and competitive products and pricing; the effect of economic
conditions and currency exchange rates; the company’s ability to develop
and commercialize new products; its reliance on sole or limited-source
suppliers; its ability to increase gross margins; the company’s ability to
meet U.S. Food and Drug Administration (FDA) and other regulatory agency
product clearance and compliance requirements; the possibility that
material product liability claims could harm future revenue or require the
company to pay uninsured claims; the company’s ability to protect its
intellectual property; the impact of managed care initiatives, other health
care reforms and/or third-party reimbursement levels for cancer care;
potential loss of key distributors or key personnel; risk of interruptions
to the company’s operations due to terrorism, disease or other events
beyond the company’s control; and the other risks listed from time to time
in the company’s filings with the U.S. Securities and Exchange Commission,
which by this reference are incorporated herein. TomoTherapy assumes no
obligation to update or revise the forward-looking statements in this
release because of new information, future events or otherwise.
TOMOTHERAPY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Revenue:
Product $ 29,759 $ 24,252 $ 93,230 $ 75,937
Service and other 13,823 10,126 40,062 30,144
--------- --------- --------- ---------
Total revenue 43,582 34,378 133,292 106,081
--------- --------- --------- ---------
Cost of revenue:
Product 16,233 13,782 46,372 39,779
Service and other 20,339 17,038 54,848 51,690
--------- --------- --------- ---------
Total cost of revenue 36,572 30,820 101,220 91,469
--------- --------- --------- ---------
Gross profit 7,010 3,558 32,072 14,612
--------- --------- --------- ---------
Operating expenses:
Research and development 8,228 7,218 24,728 20,086
Selling, general and
administrative 13,342 12,470 36,286 34,347
--------- --------- --------- ---------
Total operating expenses 21,570 19,688 61,014 54,433
--------- --------- --------- ---------
Loss from operations (14,560) (16,130) (28,942) (39,821)
Other income (expense):
Interest income 342 617 1,289 2,009
Interest expense (4) (18) (27) (47)
Other income (expense), net 1,539 105 513 (258)
--------- --------- --------- ---------
Total other income (expense) 1,877 704 1,775 1,704
--------- --------- --------- ---------
Loss before income tax and
noncontrolling interests (12,683) (15,426) (27,167) (38,117)
Income tax expense (benefit) 47 256 13 (162)
--------- --------- --------- ---------
Net loss (12,730) (15,682) (27,180) (37,955)
Noncontrolling interests 1,842 1,802 4,691 3,953
--------- --------- --------- ---------
Net loss attributable to
shareholders $ (10,888) $ (13,880) $ (22,489) $ (34,002)
========= ========= ========= =========
Weighted-average common shares
outstanding -
basic and diluted 51,934 50,748 51,739 50,645
========= ========= ========= =========
Loss per common share - basic
and diluted $ (0.21) $ (0.27) $ (0.43) $ (0.67)
========= ========= ========= =========
TOMOTHERAPY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
September 30, December 31,
2010 2009
------------ ------------
ASSETS
Cash and cash equivalents $ 110,424 $ 76,108
Short-term investments 29,612 78,225
Receivables, net 34,454 33,559
Inventories, net 53,014 47,669
Prepaid expenses and other current assets 3,352 3,633
------------ ------------
Total current assets 230,856 239,194
Property and equipment, net 21,305 18,628
Other non-current assets, net 11,168 12,429
------------ ------------
TOTAL ASSETS $ 263,329 $ 270,251
============ ============
LIABILITIES AND EQUITY
Accounts payable $ 14,095 $ 6,269
Accrued expenses 23,415 19,588
Accrued warranty 4,115 4,173
Deferred revenue 30,877 34,145
Customer deposits 14,801 13,266
------------ ------------
Total current liabilities 87,303 77,441
Other non-current liabilities 3,213 5,475
------------ ------------
TOTAL LIABILITIES 90,516 82,916
Total shareholders' equity 167,007 183,424
Noncontrolling interests 5,806 3,911
------------ ------------
TOTAL EQUITY 172,813 187,335
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 263,329 $ 270,251
============ ============