SOURCE: TomoTherapy

TomoTherapy

November 09, 2010 16:05 ET

TomoTherapy Announces Revised Third Quarter Financial Results

Net loss Attributable to Shareholders Increased to $11.9 Million From Previously Reported $10.9 Million

MADISON, WI--(Marketwire - November 9, 2010) - TomoTherapy Incorporated (NASDAQ: TOMO), maker of advanced radiation therapy solutions for cancer care, today released revised financial results for the third quarter ended September 30, 2010. Subsequent to the Company's earnings release and investor call on October 27, 2010, management determined that adjustments related to an agent commission were necessary. The effect was to increase the net loss attributable to shareholders to $11.9 million, or $0.23 per share, from the previously reported result of $10.9 million, or $0.21 per share, for the third quarter ended September 30, 2010. For the nine months ended September 30, 2010, the net loss attributable to shareholders increased to $23.5 million, or $0.45 per share, from the previously reported amount of $22.5 million, or $0.43 per share.

These revisions will be reflected in the Company's 10-Q for the third quarter ended September 30, 2010, which is being filed with the SEC today.

The Company reaffirms previously released expectations for full-year 2010 revenue of $175 million to $185 million and net loss attributable to shareholders of $0.65 to $0.75 per share.

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                  14,390     12,470     37,334     34,347
                                ---------  ---------  ---------  ---------
   Total operating expenses        22,618     19,688     62,062     54,433
                                ---------  ---------  ---------  ---------
Loss from operations              (15,608)   (16,130)   (29,990)   (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         (13,731)   (15,426)   (28,215)   (38,117)
  Income tax expense (benefit)         47        256         13       (162)
                                ---------  ---------  ---------  ---------
Net loss                          (13,778)   (15,682)   (28,228)   (37,955)
  Noncontrolling interests          1,842      1,802      4,691      3,953
                                ---------  ---------  ---------  ---------
Net loss attributable to
 shareholders                   $ (11,936) $ (13,880) $ (23,537) $ (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                    $   (0.23) $   (0.27) $   (0.45) $   (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                                       34,047        33,559
Inventories, net                                       53,014        47,669
Prepaid expenses and other current assets               3,352         3,633
                                                ------------- -------------
  Total current assets                                230,449       239,194
Property and equipment, net                            21,305        18,628
Other non-current assets, net                          11,168        12,429
                                                ------------- -------------
 TOTAL ASSETS                                   $     262,922 $     270,251
                                                ============= =============


                     LIABILITIES AND EQUITY
Accounts payable                                $      14,095 $       6,269
Accrued expenses                                       24,056        19,588
Accrued warranty                                        4,115         4,173
Deferred revenue                                       30,877        34,145
Customer deposits                                      14,801        13,266
                                                ------------- -------------
  Total current liabilities                            87,944        77,441
Other non-current liabilities                           3,213         5,475
                                                ------------- -------------
  TOTAL LIABILITIES                                    91,157        82,916

Total shareholders' equity                            165,959       183,424
Noncontrolling interests                                5,806         3,911
                                                ------------- -------------
  TOTAL EQUITY                                        171,765       187,335
                                                ------------- -------------
  TOTAL LIABILITIES AND EQUITY                  $     262,922 $     270,251
                                                ============= =============

Contact Information

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