Accuray’s fiscal Q2 earnings top expectations despite sales miss

Accuray (NSDQ:ARAY) this week posted fiscal second-quarter earnings that beat the consensus on Wall Street but missed sales expectations.

The Sunnyvale, Calif.-based company put up losses of -$4.6 million, or -5¢ per share, on sales of $102.3 million for the three months ended YYdate, paring its losses by -1.7% on sales growth of 2.0% compared with Q2 2018.

Analysts on Wall Street were looking for losses of -8¢ on sales of $104.0 million.

“Our second-quarter gross order performance was an all-time high for the company,” president & CEO Joshua Levine said in prepared remarks. “Our 29% gross order growth was driven by the China Ministry of Health’s long-awaited issuance of new license quotas for Class A and Class B radiation systems in late October 2018, a sequential rebound in CyberKnife orders, and continued strength in Radixact demand worldwide. Going forward, we believe Accuray is well positioned to win additional orders under the new quotas as the process for hospitals to secure licenses is activated. At the same time, we continued to make progress in our efforts to establish a joint venture in China that we believe will expand our ability to meet demand for Class B systems. From a financial perspective during the quarter, Accuray grew revenue, generated adjusted EBITDA, executed our plan designed to realize $15 million in annualized cost savings and moved closer to our goal of achieving GAAP net income profitability.”

Accuray reiterated its outlook for fiscal 2019, saying it still expects to report adjusted EBITDA of $23.0 million to $29.0 million on sales of $415 million to $425 million.

ARAY shares closed up 2.6% at $3.97 apiece Jan. 22, the day it released its results. The stock was off -1.5% at $4.36 per share today in early trading.

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