SOURCE: TomoTherapy

TomoTherapy

April 27, 2010 16:00 ET

TomoTherapy Announces First Quarter Financial Results

Reports $42 Million of Revenue; $32 Million of Equipment Orders

MADISON, WI--(Marketwire - April 27, 2010) -  TomoTherapy Incorporated (NASDAQ: TOMO), producer of the Hi·Art® treatment system and other products for advanced radiation therapy, today released financial results for the first quarter ended March 31, 2010.

First Quarter Results

First quarter 2010 revenue was $42.1 million, an increase of 37% from $30.6 million in the first quarter of 2009. The company reported a first quarter 2010 loss from operations of $6.0 million, a 57% decrease from the $14.0 million loss from operations for the same period last year. The company incurred a net loss attributable to shareholders of $4.7 million, or $0.09 per share, for the first quarter of 2010, compared to a net loss of $13.0 million, or $0.26 per share, for the first quarter of 2009. 

As of March 31, 2010, the company had $148.7 million of cash, cash equivalents and short-term investments, representing a $5.6 million decrease from December 31, 2009. The company received $6.5 million in proceeds from third-party investors related to the issuance of CPAC common stock during the first quarter of 2010. As of March 31, 2010, the company had minimal debt and there were no borrowings against the company's credit facility.

As of March 31, 2010, the company had a revenue backlog of $134.2 million, a 1% decrease from the $135.8 million backlog as of December 31, 2009. The backlog includes $32.1 million of equipment orders received during the first quarter of 2010. One order was removed from backlog during the first quarter due to a cancellation resulting from a change to the customer's business plans. Backlog includes only firm orders that the company believes are likely to ship within the next two years. Backlog does not include any revenue from service contracts, which represents a growing portion of the company's overall revenue.

"Our first quarter financial results, which were in line with our internal expectations, reflect a modest improvement over the same period last year," said Fred Robertson, TomoTherapy's CEO. "That said, we recognize there is substantial opportunity for further improvement, and we continue to take steps to enhance our performance and drive toward profitability. Importantly, despite continued volatility in the global economy during the quarter, our capital position remained strong as we carefully monitored our ongoing expenditures and managed our cash resources." 

Outlook

The company reaffirms its revenue and earnings guidance for full-year 2010. Management still expects 2010 revenue to be comparable to 2009 revenue of $160 million to $180 million, with a net loss attributable to shareholders in the range of $0.65 to $0.85 per share. Consistent with prior years, management is not providing specific quarterly guidance at this time. However, similar to 2009, management anticipates that the timing of expected customer deliveries will result in revenues being slightly back-end loaded during 2010.

Robertson concluded, "Given our first quarter performance and the overall economic environment, we remain on track to deliver results in line with our previously announced guidance. While there is still some uncertainty with respect to macro conditions, we are encouraged by the improving trends and remain cautiously optimistic for the balance of the year. We continue to make good progress on several key initiatives, including diversifying our product offering, expanding our global market presence, and implementing efficiency improvements in our customer service organization. During the quarter, we maintained a high uptime of 98 percent and continued to focus on effective cost management, which further supports our strong capital position. As always, TomoTherapy's commitment to advancing cancer care remains steadfast. We are intensely focused on the quality and safety of our products and on delivering the best care to cancer patients worldwide." 

Investor Conference Call

TomoTherapy will conduct a conference call regarding its first quarter 2010 results at 5:00 p.m. ET today, April 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 1-866-383-7989 from inside the United States or 1-617-597-5328 from outside the United States, and enter pass code 58209934. 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 87450015. The telephone replay will be available through 11:59 p.m. CT on May 4, 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 include 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 amounts)  
(unaudited)  
           
           
  Three Months Ended March 31,  
  2010     2009  
               
Revenue:              
  Product $ 29,229     $ 21,133  
  Service and other   12,851       9,490  
    Total revenue   42,080       30,623  
Cost of revenue:              
  Product   12,785       11,745  
  Service and other   16,691       16,339  
    Total cost of revenue   29,476       28,084  
      Gross profit   12,604       2,539  
Operating expenses:              
    Research and development   7,540       5,849  
    Selling, general and administrative   11,034       10,652  
      Total operating expenses   18,574       16,501  
Loss from operations   (5,970 )     (13,962 )
Other income (expense):              
    Interest income   531       697  
    Interest expense   (11 )     (14 )
    Other expense, net   (448 )     (256 )
      Total other income   72       427  
Loss before income tax and noncontrolling interests   (5,898 )     (13,535 )
    Income tax benefit   44       100  
Net loss   (5,854 )     (13,435 )
    Noncontrolling interests   1,176       436  
Net loss attributable to shareholders $ (4,678 )   $ (12,999 )
               
Weighted-average common shares outstanding - basic and diluted   51,566       50,592  
               
Loss per common share - basic and diluted $ (0.09 )   $ (0.26 )
       
TOMOTHERAPY INCORPORATED AND SUBSIDIARIES
       
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
       
  March 31,   December 31,
  2010   2009
           
                                                ASSETS    
Cash and cash equivalents (CPAC balances of $6,300 and $1,590, respectively) $ 92,071   $ 76,108
Short-term investments   56,632     78,225
Receivables, net   33,660     33,559
Inventories, net   53,555     47,669
Prepaid expenses and other current assets (CPAC balances of $939 and $494, respectively)   4,326     3,633
  Total current assets   240,244     239,194
Property and equipment, net (CPAC balances of $1,152 and $555, respectively)   18,383     18,628
Other non-current assets, net (CPAC balances of $25 and $30, respectively)   11,582     12,429
  TOTAL ASSETS $ 270,209   $ 270,251
           
                              LIABILITIES AND EQUITY    
Accounts payable (CPAC balances of $443 and $24, respectively) $ 11,812   $ 6,269
Accrued expenses (CPAC balances of $62 and $20, respectively)   17,384     19,588
Accrued warranty   3,579     4,173
Deferred revenue   32,780     34,145
Customer deposits   10,567     13,266
  Total current liabilities   76,122     77,441
Other non-current liabilities (CPAC balances of $19 and $18, respectively)   3,995     5,475
  TOTAL LIABILITIES   80,117     82,916
           
Total shareholders' equity   180,831     183,424
Noncontrolling interests   9,261     3,911
  TOTAL EQUITY   190,092     187,335
           
TOTAL LIABILITIES AND EQUITY $ 270,209   $ 270,251

Contact Information

  • Contact:
    TomoTherapy Incorporated
    Thomas E. Powell, CFO
    608-824-2800