ARAY Q1 2018 10-Q

Accuray Inc (ARAY) SEC Annual Report (10-K) for 2018

ARAY Q1 2018 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10‑K

(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended June 30, 2018

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001‑33301

ACCURAY INCORPORATED

(Exact name of registrant as specified in its charter)

DELAWARE

20‑8370041

(State or Other Jurisdiction of

Incorporation or organization)

(I.R.S. Employer

Identification No.)

1310 Chesapeake Terrace

Sunnyvale, California 94089

(Address of Principal Executive Offices) (Zip Code)

Registrants' telephone number, including area code: (408) 716‑4600

Securities registered pursuant to section 12(b) of the Act:

Title of Each Class

Name of Each Exchange on Which Registered

Common Stock, $.001 par value per share

The NASDAQ Stock Market LLC

Securities registered pursuant to section 12(g) of the Act: None

Indicate by check mark if the registrant is a well‑known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  ☐   No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes  ☐   No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S‑T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  ☒   No  ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S‑K is not contained herein, and will not be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10‑K or any amendment to this Form 10‑K.  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non‑accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b‑2 of the Exchange Act. (Check one):

Large accelerated filer

Accelerated filer

Non‑accelerated filer

Smaller reporting company

(Do not check if a smaller reporting company)

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes  ☐   No  ☒

The aggregate market value of the registrant's common stock held by non‑affiliates of the registrant based on the last sale price for such stock on December 31, 2017, the last business day of the registrant's most recently completed second fiscal quarter was: $246,956,445. Shares of the registrant's common stock held by each executive officer, director and 5% stockholder have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

As of August 15, 2018, the number of outstanding shares of the registrant's common stock, $0.001 par value, was 86,488,060.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the Registrant's 2018 Annual Meeting of stockholders (the "2018 Proxy Statement") are incorporated by reference in Part III of this Form 10‑K.

ACCURAY INCORPORATED

YEAR ENDED JUNE 30, 2018

FORM 10‑K

ANNUAL REPORT

TABLE OF CONTENTS

Page No.

PART I

Item 1.

Business

4

Item 1A.

Risk Factors

26

Item 1B.

Unresolved Staff Comments

56

Item 2.

Properties

56

Item 3.

Legal Proceedings

56

Item 4.

Mine Safety Disclosures

56

PART II

57

Item 5.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

57

Item 6.

Selected Financial Data

59

Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

60

Item 7A.

Quantitative and Qualitative Disclosure About Market Risk

76

Item 8.

Financial Statements and Supplementary Data

77

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

117

Item 9A.

Controls and Procedures

117

Item 9B.

Other Information

117

PART III

Item 10.

Directors, Executive Officers and Corporate Governance

119

Item 11.

Executive Compensation

119

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

119

Item 13.

Certain Relationships and Related Transactions, and Director Independence

119

Item 14.

Principal Accountant Fees and Services

119

PART IV

Item 15.

Exhibits and Financial Statement Schedules

120

Item 16.  

Form 10-K Summary

126

Signatures

127

We own or have rights to various trademarks and tradenames used in our business in the United States or other countries, including the following: Accuray ® , Accuray Logo ® , CyberKnife ® , Hi‑Art ® , RayStation ® , RoboCouch ® , Synchrony ® , TomoTherapy ®, Xsight ® , Accuray Precision ® , AutoSegmentation™, CTrue™, H™ Series, iDMS ® InCise™, Iris™, M6™ Series, OIS Connect™, PlanTouch ® , PreciseART ® , PreciseRTX ® , Treatment Planning System™, QuickPlan ® , TomoDirect™, TomoEdge™, TomoH ® , TomoHD ® , TomoHDA™, TomoHelical™, Tomo Quality Assurance™, Radixact ® , Onrad ™, StatRT™, and VoLO™. ImagingRing ® is a registered trademark belonging to medPhoton GmbH. RayStation ® is a registered trademark belonging to RaySearch Laboratories, AB.

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