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8-K - FORM 8-K - TomoTherapy Inc | c12857e8vk.htm |
Exhibit 99.1
Contact: TomoTherapy Incorporated
Thomas E. Powell, CFO
608-824-2800
Thomas E. Powell, CFO
608-824-2800
TomoTherapy Announces Fourth Quarter and Full Year Financial Results
Reports
$62.1 Million of Revenue, $34.5 Million of Equipment Orders for
Fourth Quarter; 19% Increase in Revenues; 57% Increase in Equipment
Orders for Full Year
Madison, Wis. February 18, 2011 TomoTherapy Incorporated (NASDAQ: TOMO), maker of advanced
radiation therapy solutions for cancer care, today released financial results for the fourth
quarter and full year ended December 31, 2010.
Fourth Quarter Results
Revenue for the fourth quarter of 2010 was $62.1 million, an increase of 7% from $58.0 million in
the fourth quarter of 2009. Revenue from product sales was $48.1 million in the fourth quarter of
2010, up 8% compared to the same quarter last year, and revenue from service and other was $13.9
million in the fourth quarter of 2010, up 5% compared to the same quarter last year. The company
reported a fourth quarter 2010 loss from operations of $8.4 million, a $3.3 million increase from
the $5.1 million loss from operations for the same quarter last year.
The company incurred a net loss attributable to shareholders of $6.4 million, or $0.12 per share,
for the fourth quarter of 2010, compared to a net loss of $3.4 million, or $0.07 per share, for the
fourth quarter of 2009. Restructuring charges of $1.9 million, or $0.04 per share, were included
in the fourth quarter 2009 results. There were no restructuring charges in 2010.
As of December 31, 2010, the company had $152.1 million of cash, cash equivalents and short-term
investments, representing a $12.0 million increase from September 30, 2010. There were no
borrowings against the companys credit facility during the quarter.
For the twelve months ended December 31, 2010, the company received equipment orders of $144.2
million, a 57% increase from orders of $91.8 million for the twelve months ended December 31, 2009.
As of December 31, 2010, the company had a revenue backlog of $133.0 million, a 9% decrease from
the $146.4 million backlog as of September 30, 2010. The backlog includes $34.5 million of
equipment orders received during the fourth 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 due
to the company under system rental contracts. Backlog does not include any revenue from service
contracts, which represents a growing portion of the companys overall revenue.
We are pleased with our fourth quarter financial performance, which gave us a strong close to the
year, said Fred Robertson, TomoTherapys CEO. This quarter included a significant milestone for
us: the delivery of our first TomoHD treatment system. This is a critical achievement,
as this product is generating substantial interest with both new and existing customers, and
represents the fulfillment of our commitment to the market that we made at ASTRO in 2009. Our
year-over-year product revenue growth and 57% increase in year-over-year equipment orders reflect
the markets desire for our new, expanded offerings and enhanced functionality. Service and other
revenue also experienced strong growth, as we are making substantial investments to improve the
reliability of our systems and minimize the amount of maintenance they require. Additionally, we were
able to improve our cash position from the third quarter due to our continued focus on managing our
capital.
Twelve-Month Results
For the twelve months ended December 31, 2010, revenue was $195.4 million, a 19% increase from
$164.0 million for the twelve months ended December 31, 2009. Revenue from product sales was
$141.4 million in fiscal year 2010, up 17% when compared to 2009, and revenue from service and
other was $54.0 million in fiscal year 2010, up 24% compared to 2009.
The company reported a loss from operations of $38.4 million for full-year 2010, a 14% decrease
from the loss from operations of $44.9 million during 2009. The company incurred a net loss
attributable to shareholders of $29.9 million, or $0.58 per share, for the twelve months ended
December 31, 2010, compared to a net loss attributable to shareholders of $37.4 million, or $0.74
per share, for the same period last year.
During 2010, the companys cash, cash equivalents and short-term investments decreased by $2.3
million. In the same period, the companys backlog decreased by $2.8 million, from $135.8 million
as of December 31, 2009 to $133.0 million as of December 31, 2010.
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Outlook
Management expects 2011 revenue to be $215 million to $235 million, with the net loss attributable
to shareholders projected to be in the range of ($0.30) to ($0.50) per share.
Robertson concluded, Our 2010 results reflect the positive impact of our expanded product offering
as well as our integrated global sales and marketing efforts, and represents significant progress
toward our objective of achieving profitability. We believe that these results validate the
initiatives we have implemented, and these initiatives will continue to drive positive results
going forward. We have made it easier for hospitals and cancer centers of all kinds to adopt and
apply TomoTherapy technology to advance the treatment of cancer and other diseases. Demand for the
TomoTherapy solution continues to stabilize in key markets worldwide as evidence emerges on the
clinical value of our unique, fully-integrated ring gantry-based radiation therapy solution.
Investor Conference Call
TomoTherapy will conduct a conference call regarding its fourth quarter 2010 results at 8:00 a.m.
ET, February 18, 2011 (7:00 a.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 1-866-788-0542 from inside the United States or 1-857-350-1680 from
outside the United States, and enter pass code 60251994. 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 24123299. The telephone replay will be available through 11:59 p.m. ET on March
4, 2011.
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. TomoTherapys suite of solutions
includes its 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.
TomoTherapys stock is traded on the NASDAQ Global Select Market under the symbol TOMO. To learn
more about TomoTherapy, please visit TomoTherapy.com.
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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 companys
technology; growth drivers; the companys orders, revenue, backlog or earnings growth; future
financial results and any statements using the terms will, should, believe, outlook,
expect, anticipate or similar statements are forward-looking statements that involve risks and
uncertainties that could cause the companys actual results to differ materially from those
anticipated. Such risks and uncertainties include: demand for the companys products; impact of
sales cycles and competitive products and pricing; the effect of economic conditions and currency
exchange rates; the companys ability to develop and commercialize new products; its reliance on
sole or limited-source suppliers; its ability to increase gross margins; the companys 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 companys 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 companys operations due to terrorism, disease or other
events beyond the companys control; and the other risks listed from time to time in the companys
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.
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TOMOTHERAPY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
(In thousands, except per share data)
(unaudited)
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 48,123 | $ | 44,634 | $ | 141,353 | $ | 120,571 | ||||||||
Service and other |
13,948 | 13,316 | 54,010 | 43,460 | ||||||||||||
Total revenue |
62,071 | 57,950 | 195,363 | 164,031 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
23,189 | 23,022 | 69,561 | 62,801 | ||||||||||||
Service and other |
24,017 | 18,594 | 78,865 | 70,284 | ||||||||||||
Total cost of revenue |
47,206 | 41,616 | 148,426 | 133,085 | ||||||||||||
Gross profit |
14,865 | 16,334 | 46,937 | 30,946 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
8,802 | 7,553 | 33,530 | 27,639 | ||||||||||||
Selling, general and administrative |
14,457 | 13,833 | 51,791 | 48,180 | ||||||||||||
Total operating expenses |
23,259 | 21,386 | 85,321 | 75,819 | ||||||||||||
Loss from operations |
(8,394 | ) | (5,052 | ) | (38,384 | ) | (44,873 | ) | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
203 | 577 | 1,492 | 2,586 | ||||||||||||
Interest expense |
(9 | ) | (11 | ) | (36 | ) | (58 | ) | ||||||||
Other income (expense), net |
(284 | ) | (162 | ) | 229 | (420 | ) | |||||||||
Total other income (expense) |
(90 | ) | 404 | 1,685 | 2,108 | |||||||||||
Loss before income tax and noncontrolling interests |
(8,484 | ) | (4,648 | ) | (36,699 | ) | (42,765 | ) | ||||||||
Income tax expense (benefit) |
129 | (126 | ) | 142 | (288 | ) | ||||||||||
Net loss |
(8,613 | ) | (4,522 | ) | (36,841 | ) | (42,477 | ) | ||||||||
Noncontrolling interests |
2,226 | 1,154 | 6,917 | 5,107 | ||||||||||||
Net loss attributable to shareholders |
$ | (6,387 | ) | $ | (3,368 | ) | $ | (29,924 | ) | $ | (37,370 | ) | ||||
Weighted-average common shares outstanding
basic and diluted |
52,909 | 51,170 | 52,034 | 50,777 | ||||||||||||
Loss per common share basic and diluted |
$ | (0.12 | ) | $ | (0.07 | ) | $ | (0.58 | ) | $ | (0.74 | ) | ||||
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TOMOTHERAPY INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
(In thousands)
(unaudited)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Cash and cash equivalents (CPAC balances of $333 and $1,590) |
$ | 123,905 | $ | 76,108 | ||||
Short-term investments |
28,150 | 78,225 | ||||||
Receivables, net (CPAC balances of $244 and $0) |
32,850 | 33,559 | ||||||
Inventories, net |
49,270 | 47,669 | ||||||
Prepaid expenses and other current assets (CPAC balances of $74 and $494) |
1,816 | 3,633 | ||||||
Total current assets |
235,991 | 239,194 | ||||||
Property and equipment, net (CPAC balances of $2,941 and $555) |
22,026 | 18,628 | ||||||
Other non-current assets, net (CPAC balances of $106 and $30) |
11,545 | 12,429 | ||||||
TOTAL ASSETS |
$ | 269,562 | $ | 270,251 | ||||
LIABILITIES AND EQUITY |
||||||||
Accounts payable (CPAC balances of $103 and $24) |
$ | 13,405 | $ | 6,269 | ||||
Notes payable (CPAC balances of $530 and $0) |
530 | | ||||||
Accrued expenses (CPAC balances of $647 and $20) |
30,388 | 19,588 | ||||||
Accrued warranty |
5,045 | 4,173 | ||||||
Deferred revenue |
34,033 | 34,145 | ||||||
Customer deposits |
17,483 | 13,266 | ||||||
Total current liabilities |
100,884 | 77,441 | ||||||
Other non-current liabilities (CPAC balances of $16 and $18) |
2,477 | 5,475 | ||||||
TOTAL LIABILITIES |
103,361 | 82,916 | ||||||
Total shareholders equity |
162,593 | 183,424 | ||||||
Noncontrolling interests |
3,608 | 3,911 | ||||||
TOTAL EQUITY |
166,201 | 187,335 | ||||||
TOTAL LIABILITIES AND EQUITY |
$ | 269,562 | $ | 270,251 | ||||
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