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Accuray Incorporated JEFFERIES HEALTHCARE CONFERENCE JUNE 2015

NASDAQ: ARAY


Safe Harbor Statement

Forward Looking Statements Safe Harbor Statement Statements in this presentation (including the oral commentary that accompanies it) that are not statements of historical fact are forward-looking statements and are subject to the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this presentation relate, but are not limited to the size and growth of the global market for radiation therapy systems, market position of our products, product roadmap, and our business opportunities and focus, including strategies for commercial execution, product positioning, customer accounts and emerging markets, and our expected financial results for the second quarter and full fiscal year 2015. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to: the extent of market acceptance for the company’s products and services; the company’s ability to convert backlog to revenue; the success of its worldwide sales and marketing efforts; the ability to control operating expenses; continuing uncertainty in the global economic environment; potential differences between the Company’s preliminary financial analysis and the final results for the applicable period as a result of the completion of internal reporting process and review, and other risks detailed under the heading "Risk Factors" in the company’s report on Form 10-K for fiscal 2014, filed on August 29, 2014 and as updated from time to time in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made and are based on information available to the company at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. The company assumes no obligation to update forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. Accordingly, investors should not put undue reliance on any forward-looking statements. This presentation also contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts. A reconciliation is available in the Appendix.


Company Highlights

• Large and growing radiation therapy market

• Products positioned in fastest growth segments

• Unique differentiated technology that leads the market in dosing precision

• Roadmap to maintain precision leadership

• Improving commercial execution

• Driving to sustained profitability

Accuray Incorporated

Technological Excellence


• Worldwide incidences of cancer are estimated to reach 17 million by 2017 ‒ Driven by growth of aging

population • 90% of all cancers are projected to be

solid tumors ‒ Potentially eligible for

radiation therapy

• 60% of cancer patients worldwide may undergo some form of radiation therapy during their course of treatment ‒ Increasing preference for

non-surgical treatment options

Large and Growing Market

Radiation Therapy Revenue (Global)* $3.5 billion in 2014

Source: Comparative data is based upon information gathered from Fiscal year filings (Varian, Elekta, Accuray); Internal estimates for revenue growth forecast and regional breakdown; Radiation Therapy Equipment-A Global Strategic Business Report (Nov 2013).

Expected market growth of 3%-5% in 2015.

Americas 44%

EIMEA 34%

APAC (inc. Japan)

22%

*Does not include software or brachytherapy.

Radiation Therapy is Integral to Cancer Treatment


Specialty

Economy

Premium

Value

SRS/SBRT IMRT Conventional RT

$1M

$2M

$3M

$4M

$5M

Clinical Precision

ASP

CyberKnife®

TomoTherapy®

Products Positioned in Growth Segments

- 1% 14% - 22% 29%

*Source: U.S. data. The Advisory Board Company, five-year growth projection.

New Patient Volume: 5-Year Growth Estimate

http://sharepoint/Departments/Marketing Communications/collateral/tomotherapy-system-images/TomoTherapy H Series/TT - SIDE - white bkgrnd.jpg


Uniquely Differentiated Technology Architecture, Imaging and Delivery

• Robotic architecture

• Continual imaging throughout treatment

• Automatically tracks and adjusts beam for tumor movement

CyberKnife®

• CT scanner-based; ring gantry platform

• Daily, low-dose 3D CT scan

• Fast MLC delivers thousands of “beamlets” with continuous 360° rotation

TomoTherapy®

• C-arm based; standard gantry platform

• User discretion and intervention to image

• Slow MLC, combined with fewer delivery angles, limits ability to conform radiation beam to shape of tumor

Conventional LINAC

Sub-millimeter precision Avoids healthy tissue

Conforms to tumor shape Avoids healthy tissue


Improving Commercial Execution The Vital Few

Focus on installed base satisfaction

Accelerate TomoTherapy® mainstream product positioning

Broaden CyberKnife® clinical versatility around MLC

Expand China commercial growth strategy

1

2

3

5

4

Activate GPO/strategic accounts portfolio to improve U.S. commercial momentum


Improving Commercial Execution Accelerate TomoTherapy® Mainstream Product Positioning

1. Estimates based on IMV 2012/13 Radiation Therapy Market Summary Report, July 2013. 2. Internal Accuray information (Feb 2014).

Improvements in Performance and Reliability

Opportunities in Single and Multi Vault Facilities

Type Cancer Centers1

TomoTherapy® Share2

3+ vaults 345 23%

2 vaults 736 8%

1 vault 1,219 4%

Total 2,300 9%

“TomoTherapy users feel the system is a workhorse and believe it is one of the best systems on the market for radiation oncology treatments.” MD Buyline Q3 2014


Commercialization of our InCise™ MLC for the CyberKnife® System Site Feedback highlights MLC Stability, Reliability and Accuracy

Treatment times reported by customers for clinical cases delivered to patients. Includes setup and delivery time. (Treatment times reported by MultiPlan® planning station for equivalent fixed/Iris plan. Includes estimated setup time.)

Case Type

Treatment

Type

MLC Treatment

Times

Fixed/Iris Treatment

Times Intracranial SRS 22 min ~ 51 min

SRS 30 min ~ 90 min

IMRT 17 min

IMRT 20 min

Prostate SBRT 25 min ~ 40 min

SBRT 18 min ~ 26 min

IMRT 29 min ~ 49 min

Lung SBRT 19 min

“Reduction in integral dose, due to increased

conformity per beam” (Medical physicist at MLC site)

“No MLC errors experienced in six [clinical] cases.

Rock solid performance” (Medical physicist at MLC site. Six patients had

been treated at the time of quote)


2,570 Hospitals

1,400 Hospitals

2,900 Hospitals

Improving Commercial Execution Activate GPO/Strategic Accounts

• Premier ‒ Exclusive three-year contract ‒ Only contracted line of radiotherapy

products and services

• Most contracts cover both the CyberKnife® and TomoTherapy® Systems, upgrades and service

• HealthTrust ‒ Currently under contract for the

TomoTherapy System ‒ Initiating negotiations for a three-year

contract for both systems

40% of U.S. Hospitals

Contracts


Improving Commercial Execution Expanding China Commercial Growth Strategy

RT Systems Per 1000 Cancer Patients

2.42

1.56

0.46 0

1

2

3

US Japan China

RT

Syst

ems

Per 1

000

New

Can

cer P

atie

nts

Source: Accuray internal estimates.

Estimated LINAC demand at 50% treatment of newly diagnosed cases: 5,000 units

Estimated RT Penetration

57%

45%

20%

0%

10%

20%

30%

40%

50%

60%

US Japan China

RT

Pene

trat

ion


China Commercial Growth Opportunity: Progress to Date

• To date, the NHFPC has issued 39 licenses • Licenses for Accuray products have been awarded to

28 hospitals ‒ 22 of these licenses were issued since December 2014

March 2013: NHFPC sets quota of 60 class A licenses

May 2015: 21 class A licenses remaining to be issued


Driving to Sustained Profitability Guidance Growth YOY

(in millions) FY2013 FY2014 FY2015 (1) FY14/FY13 FY15/FY14

Product Revenue $137.4 $173.6Service Revenue $178.6 $195.8Total Revenue $316.0 $369.4 $375 to $385 17% 2% to 4%

Gross profit $97.6 $142.8 46% NR Margin 30.9% 38.7%

Operating Income ($80.7) ($18.1)

aEBITDA (2) ($55.7) $13.3 $13 to $16 NM Flat to 20%

Committed to profitable revenue growth from expanding margins and controlled operating expenses

(1) FY2015 Guidance as presented on Q3 earnings release dated April 30, 2015 and not updated today. (2) A reconciliation of aEBITDA to GAAP net income/(loss) can be found in the appendix.

Sheet1

Guidance Growth YOY

(in millions)FY2013FY2014FY2015 (1)FY14/FY13FY15/FY14

Gross Orders$219.3$263.320.1%NR

Product Revenue$137.4$173.6

Service Revenue$178.6$195.8

Total Revenue$316.0$369.4$375 to $38517%2% to 4%

Gross profit$97.6$142.846%NR

Margin30.9%38.7%

Operating Income($80.7)($18.1)

aEBITDA (2)($55.7)$13.3$13 to $16NMFlat to 20%

Sheet2

Sheet3


• Composition: - 40% TomoTherapy in single or dual vault settings

• Chinese NHFPC issued 22 licenses for Accuray product since December: ‒ Four system orders went to backlog in Q2 FY15 ‒ Four system orders went to backlog in Q3FY15 ‒ Seven system orders are expected to go to backlog in Q4 FY15 or Q1 FY16 ‒ Seven system licenses pertain to orders already taken to backlog

• Age-Outs and Cancellations

‒ $11.6 million in Q3 age-outs significantly lower than approximately 18 million in Q1 and Q2

‒ No cancellations ‒ Numerous changes over the past two years designed to reduce age-outs

Q3 FY15 Performance Update Executing on the Transformation

Gross Orders were $51.9 million


• Revenue growth consistent with 2014 (5% constant currency) to $97.5 million

• Gross margins of 40% (42% constant currency) ‒ Product gross margins of 41% ‒ Service gross margins of 38%

• Adjusted EBITDA of $9.9 million • Updated guidance for FY15 adjusted for currency impact

‒ Revenue of $375 to $385 million ‒ Adjusted EBITDA of $13 to $16 million

Q3 FY15 Performance Update

A reconciliation of aEBITDA to GAAP net income/(loss) can be found in the appendix


Appendix


aEBITDA Reconciliation: Non-GAAP

This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts.

From ToGAAP net loss (39,975)$ (36,975)$

Amortization of intangibles (a) 8,000 8,000 Depreciation (b) 11,775 11,775 Stock-based compensation (c) 14,000 14,000 Interest expense, net (d) 16,200 16,200 Provision for income taxes 3,000 3,000

Adjusted EBITDA 13,000$ 16,000$

(a) consists of amortization of intangibles - developed technology and distributor licenses(b) consists of depreciation, primarily on property and equipment(c) consists of stock-based compensation in accordance with ASC 718(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes

Twelve Months Ending June 30, 2015

Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measure(In thousands)

(Unaudited)

Income statement

Three Months Ended September 30,Three Months Ended December 31,Six Months Ended December 31,Three Months Ended March 31,Nine Months Ended March 31,Three Months Ended June 30,Years Ended June 30,

20142013201420132014201320152014201520142015201420152014

Gross Orders$ 58,763$ 63,398$ 72,261$ 80,294$ 131,024$ 143,692$ 51,891$ 45,168$ 182,915$ 188,860$ 74,492$ 182,915$ 263,352$ 6,723

Net Orders32,28260,06341,47459,36673,756119,42935,93738,622109,693158,05162,967109,693221,0180.1488443146

Order Backlog364,007347,825357,831362,044357,831362,044347,408353,621347,408353,621364,742- 0364,742

Net revenue:

Products $ 33,015$ 29,568$ 47,650$ 45,148$ 80,665$ 74,716$ 46,361$ 47,045$ 127,026$ 121,761$ 51,846$ 127,026$ 173,607

Services 49,36647,07350,50548,48699,87195,55951,15450,099151,025145,65850,154151,025195,812

Total net revenue 82,38176,64198,15593,634180,536170,27597,51597,144278,051267,419- 0102,000278,051369,419$ 371

Cost of revenue:0%

Cost of products 20,66518,60127,17124,98047,83643,58127,33225,25575,16868,83628,75675,16897,592

Cost of services 33,91531,56232,49530,48366,41062,04531,52332,18597,93394,23034,79797,933129,027

Total cost of revenue 54,58050,16359,66655,463114,246105,62658,85557,440173,101163,066- 063,553173,101226,619

Gross profit 27,80126,47838,48938,17166,29064,64938,66039,704104,950104,353- 038,447104,950142,800

Operating expenses:

Research and development 14,14912,95013,91713,43528,06626,38512,83613,76340,90240,14813,57640,90253,724

Selling and marketing 17,97414,45415,80214,26233,77628,71612,98715,31046,76344,02617,85946,76361,885

General and administrative 10,95011,36012,36111,19023,31122,55011,66511,10634,97633,65611,67934,97645,335

Total operating expenses 43,07338,76442,08038,88785,15377,65137,48840,179122,641117,830- 043,114122,641160,944

Income (loss) from operations(15,272)(12,286)(3,591)(716)(18,863)(13,002)1,172(475)(17,691)(13,477)- 0(4,667)(17,691)(18,144)

Other expense, net(5,461)(2,460)(5,528)(3,775)(10,989)(6,235)(3,618)(3,312)(14,607)(9,547)(4,669)(14,607)(14,216)

Loss before provision for income taxes(20,733)(14,746)(9,119)(4,491)(29,852)(19,237)(2,446)(3,787)(32,298)(23,024)- 0(9,336)(32,298)(32,360)

Provision for income taxes9177878739501,7901,7375218782,3112,6154732,3113,088

Net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (31,642)$ (20,974)$ (2,967)$ (4,665)$ (34,609)$ (25,639)$ - 0$ (9,809)$ (34,609)$ (35,448)

Net loss per share - basic and diluted$ (0.28)$ (0.21)$ (0.13)$ (0.07)$ (0.41)$ (0.28)$ (0.04)$ (0.06)$ (0.44)$ (0.34)ERROR:#DIV/0!$ (0.13)ERROR:#DIV/0!$ (0.47)

Weighted average common shares used in computing loss per share:

Basic and diluted77,29074,70077,92475,28077,60774,99078,74676,38277,98175,44776,87975,804

Balance sheet

June 30,March 31,December 31,September 30,June 30,

20152015201420142014

Assets

Current assets:

Cash and cash equivalents$ 95,449$ 97,273$ 107,295$ 92,346

Investments54,18553,51745,41579,553

Restricted cash2,8581,4361,4571,492

Accounts receivable, net61,37662,98752,94372,152

Inventories109,705104,49099,99487,752

Prepaid expenses and other current assets15,65015,07616,26617,873

Deferred cost of revenue8,74311,96012,41713,302

Total current assets- 0347,966346,739335,787364,470

Property and equipment, net29,85630,83032,73334,391

Goodwill58,02058,01558,06658,091

Intangible assets, net17,55219,54121,52923,517


Other assets8,51310,2209,26311,820

Total assets$ -$ 463,659$ 467,565$ 459,637$ 495,188

Liabilities and equity

Current liabilities:

Accounts payable$ 13,656$ 15,980$ 14,695$ 15,639

Accrued compensation19,53019,48220,35832,569

Other accrued liabilities20,15124,47820,43824,464

Customer advances18,95119,67320,03419,804

Deferred revenue93,50092,49589,34092,093

Total current liabilities- 0165,788172,108164,865184,569

Long-term liabilities:

Long-term other liabilities10,45410,4837,4256,593


Long-term debt200,989199,152197,371195,612

Total liabilities- 0387,177391,618379,144396,640

Commitment and contingencies

Equity:

Common stock79787777

Additional paid-in capital465,952461,995455,928451,750

Accumulated other comprehensive income1546101,2321,815

Accumulated deficit(389,703)(386,736)(376,744)(355,094)(34,609)- 0

Total equity- 076,48275,94780,49398,548

Total liabilities and equity$ - 0$ 463,659$ 467,565$ 459,637$ 495,188

- 0- 0- 0- 0- 0

- 0

- 0- 0

a EBITDA


Reconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,

Amortization and Stock-Based Compensation (Adjusted EBITDA)

(In thousands)

(Unaudited)

Three Months Ended September 30,Three Months Ended December 31,Three Months Ended March 31,Three Months Ended June 30, Six Months Ended December 31,Nine Months Ended March 31,Years Ended June 30,

20142013201420132015201420152014201420132015201420152014

GAAP net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (2,967)$ (4,665)$ (9,809)$ (31,642)$ (20,974)$ (34,609)$ (25,639)$ (34,609)$ (35,448)

Amortization of intangibles (a)1,9882,2021,9882,2011,9891,9981,9893,9764,4035,9656,3915,9658,390

Depreciation (b)2,9903,2462,9942,9272,9152,9823,0295,9846,1738,8999,1558,89912,184

Stock-based compensation (c)3,2732,1803,8542,8033,3773,2603,0707,1274,98310,5048,24310,50411,313

Interest expense, net (d)3,9883,3064,0233,3414,0513,3663,7468,0116,64712,06210,01312,06213,759


Adjusted EBITDA$ (8,494)$ (3,812)$ 3,740$ 6,781$ 9,886$ 7,819$ - 0$ 2,498$ (4,754)$ 2,969$ 5,132$ 10,778$ 5,132$ 13,286

(a) consists of amortization of intangibles - developed technology and distributor licenses

(b) consists of depreciation, primarily on property and equipment

(c) consists of stock-based compensation in accordance with ASC 718

(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes

Guidance


Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measures

(In thousands)

(Unaudited)

NOTE: THIS TABLE WASN'T INCLUDED IN Q1'15 8-K


FromTo

GAAP net loss$ (39,975)$ (36,975)

Amortization of intangibles (a)8,0008,000

Depreciation (b)11,77511,775

Stock-based compensation (c)14,00014,000

Interest expense, net (d)16,20016,200

Provision for income taxes3,0003,000

Adjusted EBITDA$ 13,000$ 16,000






aEBITDA Reconciliation: Non-GAAP

This presentations contains non-GAAP financial information. Management believes that this non-GAAP financial measure provides useful supplemental information to management and investors regarding the performance of the company and facilitates a more meaningful comparison of results for current periods with previous operating results. Additionally, it will assist management in analyzing future trends, making strategic and business decisions and establishing internal budgets and forecasts.

2015 2014 2015 2014GAAP net loss (2,967)$ (4,665)$ (34,609)$ (25,639)$

Amortization of intangibles (a) 1,989 1,998 5,965 6,391 Depreciation (b) 2,915 2,982 8,899 9,155 Stock-based compensation (c) 3,377 3,260 10,504 8,243 Interest expense, net (d) 4,051 3,366 12,062 10,013 Provision for income taxes 521 878 2,311 2,615

Adjusted EBITDA 9,886$ 7,819$ 5,132$ 10,778$

(a) consists of amortization of intangibles - developed technology and distributor licenses(b) consists of depreciation, primarily on property and equipment(c) consists of stock-based compensation in accordance with ASC 718(d) consists primarily of interest income from available-for-sale securities and interest expense associated with our convertible notes

Nine Months Ended March 31,

Accuray IncorporatedReconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,

Amortization and Stock-Based Compensation (Adjusted EBITDA)(In thousands)

(Unaudited)

Three Months Ended March 31,

Income statement

Three Months Ended September 30,Three Months Ended December 31,Six Months Ended December 31,Three Months Ended March 31,Nine Months Ended March 31,Three Months Ended June 30,Years Ended June 30,

20142013201420132014201320152014201520142015201420152014

Gross Orders$ 58,763$ 63,398$ 72,261$ 80,294$ 131,024$ 143,692$ 51,891$ 45,168$ 182,915$ 188,860$ 74,492$ 182,915$ 263,352$ 6,723

Net Orders32,28260,06341,47459,36673,756119,42935,93738,622109,693158,05162,967109,693221,0180.1488443146

Order Backlog364,007347,825357,831362,044357,831362,044347,408353,621347,408353,621364,742- 0364,742

Net revenue:

Products $ 33,015$ 29,568$ 47,650$ 45,148$ 80,665$ 74,716$ 46,361$ 47,045$ 127,026$ 121,761$ 51,846$ 127,026$ 173,607

Services 49,36647,07350,50548,48699,87195,55951,15450,099151,025145,65850,154151,025195,812

Total net revenue 82,38176,64198,15593,634180,536170,27597,51597,144278,051267,419- 0102,000278,051369,419$ 371

Cost of revenue:0%

Cost of products 20,66518,60127,17124,98047,83643,58127,33225,25575,16868,83628,75675,16897,592

Cost of services 33,91531,56232,49530,48366,41062,04531,52332,18597,93394,23034,79797,933129,027

Total cost of revenue 54,58050,16359,66655,463114,246105,62658,85557,440173,101163,066- 063,553173,101226,619

Gross profit 27,80126,47838,48938,17166,29064,64938,66039,704104,950104,353- 038,447104,950142,800

Operating expenses:

Research and development 14,14912,95013,91713,43528,06626,38512,83613,76340,90240,14813,57640,90253,724

Selling and marketing 17,97414,45415,80214,26233,77628,71612,98715,31046,76344,02617,85946,76361,885

General and administrative 10,95011,36012,36111,19023,31122,55011,66511,10634,97633,65611,67934,97645,335

Total operating expenses 43,07338,76442,08038,88785,15377,65137,48840,179122,641117,830- 043,114122,641160,944

Income (loss) from operations(15,272)(12,286)(3,591)(716)(18,863)(13,002)1,172(475)(17,691)(13,477)- 0(4,667)(17,691)(18,144)

Other expense, net(5,461)(2,460)(5,528)(3,775)(10,989)(6,235)(3,618)(3,312)(14,607)(9,547)(4,669)(14,607)(14,216)

Loss before provision for income taxes(20,733)(14,746)(9,119)(4,491)(29,852)(19,237)(2,446)(3,787)(32,298)(23,024)- 0(9,336)(32,298)(32,360)


Net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (31,642)$ (20,974)$ (2,967)$ (4,665)$ (34,609)$ (25,639)$ - 0$ (9,809)$ (34,609)$ (35,448)

Net loss per share - basic and diluted$ (0.28)$ (0.21)$ (0.13)$ (0.07)$ (0.41)$ (0.28)$ (0.04)$ (0.06)$ (0.44)$ (0.34)ERROR:#DIV/0!$ (0.13)ERROR:#DIV/0!$ (0.47)

Weighted average common shares used in computing loss per share:

Basic and diluted77,29074,70077,92475,28077,60774,99078,74676,38277,98175,44776,87975,804

Balance sheet

June 30,March 31,December 31,September 30,June 30,

20152015201420142014

Assets

Current assets:

Cash and cash equivalents$ 95,449$ 97,273$ 107,295$ 92,346

Investments54,18553,51745,41579,553

Restricted cash2,8581,4361,4571,492

Accounts receivable, net61,37662,98752,94372,152

Inventories109,705104,49099,99487,752

Prepaid expenses and other current assets15,65015,07616,26617,873


Total current assets- 0347,966346,739335,787364,470

Property and equipment, net29,85630,83032,73334,391

Goodwill58,02058,01558,06658,091

Intangible assets, net17,55219,54121,52923,517


Other assets8,51310,2209,26311,820

Total assets$ -$ 463,659$ 467,565$ 459,637$ 495,188

Liabilities and equity

Current liabilities:

Accounts payable$ 13,656$ 15,980$ 14,695$ 15,639

Accrued compensation19,53019,48220,35832,569

Other accrued liabilities20,15124,47820,43824,464

Customer advances18,95119,67320,03419,804


Total current liabilities- 0165,788172,108164,865184,569

Long-term liabilities:

Long-term other liabilities10,45410,4837,4256,593


Long-term debt200,989199,152197,371195,612

Total liabilities- 0387,177391,618379,144396,640

Commitment and contingencies

Equity:

Common stock79787777

Additional paid-in capital465,952461,995455,928451,750

Accumulated other comprehensive income1546101,2321,815

Accumulated deficit(389,703)(386,736)(376,744)(355,094)(34,609)- 0

Total equity- 076,48275,94780,49398,548

Total liabilities and equity$ - 0$ 463,659$ 467,565$ 459,637$ 495,188

- 0- 0- 0- 0- 0

- 0

- 0- 0

a EBITDA


Reconciliation of GAAP net loss to Adjusted Earnings Before Interest, Taxes, Depreciation,

Amortization and Stock-Based Compensation (Adjusted EBITDA)

(In thousands)

(Unaudited)

Three Months Ended September 30,Three Months Ended December 31,Three Months Ended March 31,Three Months Ended June 30, Six Months Ended December 31,Nine Months Ended March 31,Years Ended June 30,

20142013201420132015201420152014201420132015201420152014

GAAP net loss$ (21,650)$ (15,533)$ (9,992)$ (5,441)$ (2,967)$ (4,665)$ (9,809)$ (31,642)$ (20,974)$ (34,609)$ (25,639)$ (34,609)$ (35,448)

Amortization of intangibles (a)1,9882,2021,9882,2011,9891,9981,9893,9764,4035,9656,3915,9658,390

Depreciation (b)2,9903,2462,9942,9272,9152,9823,0295,9846,1738,8999,1558,89912,184

Stock-based compensation (c)3,2732,1803,8542,8033,3773,2603,0707,1274,98310,5048,24310,50411,313

Interest expense, net (d)3,9883,3064,0233,3414,0513,3663,7468,0116,64712,06210,01312,06213,759


Adjusted EBITDA$ (8,494)$ (3,812)$ 3,740$ 6,781$ 9,886$ 7,819$ - 0$ 2,498$ (4,754)$ 2,969$ 5,132$ 10,778$ 5,132$ 13,286





Guidance


Reconciliation of Projected GAAP Net Loss to Forward-Looking Guidance for Non-GAAP Financial Measures

(In thousands)

(Unaudited)

NOTE: THIS TABLE WASN'T INCLUDED IN Q1'15 8-K


FromTo

GAAP net loss$ (39,975)$ (36,975)

Amortization of intangibles (a)8,0008,000

Depreciation (b)11,77511,775

Stock-based compensation (c)14,00014,000

Interest expense, net (d)16,20016,200

Provision for income taxes3,0003,000

Adjusted EBITDA$ 13,000$ 16,000





Slide Number 1Forward Looking StatementsAccuray IncorporatedLarge and Growing MarketProducts Positioned in Growth SegmentsUniquely Differentiated TechnologyImproving Commercial ExecutionImproving Commercial ExecutionCommercialization of our InCise™ MLC for �the CyberKnife® SystemImproving Commercial ExecutionImproving Commercial ExecutionChina Commercial Growth Opportunity: �Progress to DateDriving to Sustained ProfitabilityQ3 FY15 Performance UpdateQ3 FY15 Performance UpdateSlide Number 16Slide Number 17aEBITDA Reconciliation: Non-GAAPaEBITDA Reconciliation: Non-GAAP

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