Accuray shares slide on Q2 miss

Shares in Accuray (NSDQ:ARAY) have fallen in after hours trading today after the medical device maker missed expectations on the street with its 2nd quarter earnings results.

The Sunnyvale, Calif.-based company posted losses of $9.4 million, or 11¢ per share, on sales of $87.5 million for the 3 months ended December 31. That equates to a 55.5% increase in losses while sales shrunk 19.7% compared with the same period in 2015.

Accuracy was behind the consensus on The Street, where analysts were looking for losses per share of 9¢ and sales of $90.4 million.

“Our 17% year-over-year gross order growth during the second quarter was led by increased demand for our CyberKnife system, especially from replacement orders to existing customers. In addition, gross orders were favorably impacted by solid demand for our new Radixact System, which will be fully launched by the end of the 3rd fiscal quarter. We performed above expectations in regards to gross order performance in the first half of the year and are seeing several indicators that lead us to believe our strong backlog growth will continue through the end of fiscal 2017 and into fiscal 2018,” prez & CEO Joshua Levine said in a press release.

The company reaffirmed guidance it provided in August for the coming full fiscal year, but adjusted its expectations for revenue, now expected to be between $410 and $420 million, and adjusted EBITDA, now expected to be between $32 and $38 million.

“During the 2nd half of fiscal 2017, there are two major variables that could affect our revenue including China’s timing of Class A radiotherapy licenses and the impact of a higher mix of distributor orders which could continue to result in timing uncertainty. We are proactively communicating with our independent distributor partners to understand how to provide additional support around site planning and installation activities to improve the visibility into the timing of revenue conversion,” Levine said in a prepared statement.

Shares have tumbled in after hours trading, down 9.6% to trade at $5.20 as of 5:50 p.m. EST.

The post Accuray shares slide on Q2 miss appeared first on MassDevice.

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