Accuray

Accurate is an American manufacturer of radiological equipment for the treatment of cancer, founded in 1987. The main product of the company is the CyberKnife system. It is called the world's first and only robotic radiosurgical system in the world, designed to treat tumors anywhere in the body with submillimeter accuracy.

CyberKnife uses image control and a computer-controlled robot manipulator to continuously track the movements of the tumor and patient throughout the procedure and take appropriate corrective actions. The system requires invasive frames to fix the head or other parts of the patient's body.

Accurate has partners in Russia, and the CyberKnife system has been deployed in several clinics, including one installed at the  Berezin Sergey Medical Institute (MIBS) in St. Petersburg.

Performance indicators

2019: Revenue growth 3% to $418.8 million; losses - $16.4 million

In the 2019 fiscal year, Accurate generated $418.8 million, up 3% from the previous year. Most of the company's turnover came from equipment sales - $196.7 million against $183.9 million in the 2018 reporting year. Service revenues increased slightly - from $221 million to $222.1 million.

The manufacturer attributed the growth in turnover to an increase in demand for TomoTherapy radiotherapy plants, whose annual sales increased by 34%. This rise helped offset a $19.5 million reduction in CyberKnife systems.

In the 2019 fiscal year, Accurate raised $418.8 million, up 3% from the previous year

Most of the revenue (36%) for the 12-month reporting period closed on June 30, 2019 came from countries in Europe, the Middle East and Africa (EMEA). In 2018, the region's share in the turnover was 30%. The indicator of the Americas during this time decreased from 36% to 32%, the share of the Asia-Pacific region (excluding the Japanese market) decreased from 18% to 15%, and the share of Japan increased from 16% to 17%.

Annual net losses decreased from $23.9 million to $16.4 million. At the same time, the company reached operating profit for the first time since 2011, which, according to the president and CEO of Accurate Joshua Levine, was the result of measures to improve efficiency. He also noted a 12% increase in order volume.

In a report on the publication of financial statements, Joshua Levin said that Accurate has realized opportunities for strategic growth in the Chinese market, which is the fastest growing in the world in terms of sales for radiation therapy. However, the company's progress was not enough for China to make a significant contribution to the manufacturer's income, since Accurate had just begun to obtain licenses for radiation therapy equipment.^[1]

History

2023:6% staff cut

On September 13, 2023, Accorday, a major manufacturer of equipment for the treatment of malignancies, announced a restructuring in which the number of personnel will be reduced by about 6%. These measures are expected to help reduce operating costs and improve financial position.

Accurate was informed about the reorganization by the US Securities and Exchange Commission (SEC). It says that the developer of systems for radiotherapy will reduce employees in divisions around the world. Globally, the staff will decrease by 5.9%. As of June 30, 2023, there were 1,024 employees at Accurate. Thus, about 60 employees will lose their jobs. They will receive monetary compensation and other due payments.

Exacay announces restructuring

The company is forced to take layoffs due to the difficult macroeconomic situation and the crisis in the United States. Total restructuring costs are expected to be about $2.5 million. The procedure is planned to be completed in the second quarter of fiscal 2024.

Despite the fact that Accurate is taking steps to reduce costs, the company still makes strategic investments aimed at developing the business. In particular, Accurate opened the global training center, the Accuracy Center for Education, at its headquarters in Madison (Wisconsin). Several radiotherapy systems are located on this site for training specialists. In addition, specialized laboratory rooms with expanded remote work capabilities are provided. A hybrid remote-connected face-to-face training option has also been implemented that allows multiple members of the medical team to participate in the same course at the same time from different locations.Accurate^[2]

2018: Revenue growth of 6% to $404.9 million; losses - $23.9 million

In fiscal 2018, which closed on June 30, 2018, Accurate's revenue amounted to $404.9 million, which is 6% more than a year ago. The company earned $183.9 million on the sale of products against $179.61 million a year earlier. Service revenues also increased - from $203.8 million to $221 million.

Accurate remains unprofitable: in fiscal 2018, net losses were equal to $23.9 million. In 2017, cash losses were measured at $29.68 million.

CyberKnife tumor radiation irradiation system from Accurate

By the end of June 2018, the company collected orders for the supply of equipment and support services in the amount of $478.48 million, while by the end of the previous reporting year the figure was $452.85 million.

Fiscal year 2018 will be remembered by Accurate for receiving a contract from Mercy, a large American network of medical institutions, to supply a variety of Radixact and CyberKnife M6 systems to various hospitals. In addition, the company increased the number of equipment deployed in Japan to 100.^[3]

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