Accuray posts mixed bag FY2019 Q1 earnings

Accuray (NSDQ:ARAY) today released fiscal year first quarter earnings that beat Wall Street expectations for sales, but missed on loss-per-share consensus.

The Sunnyvale, Calif.-based company posted losses of $9.2 million, or 11¢ per share, on sales of $95.8 million for the three months ended September 30, seeing losses shrink 1.9% while sales grew 5.4% when compared with the same period during the previous fiscal year.

Adjusted to exclude one-time items, losses per share were 11¢, just behind the 9¢ loss-per-share consensus on The Street, where analysts were looking for sales of $94.3 million, which it topped.

“Our fiscal year is off to a good start with double digit gross order growth and revenue generation meeting our targets. We are also encouraged by the potential benefits to Accuray from the China Ministry of Health’s announcement yesterday of Type A and B quota and licenses. In addition, we’ve implemented a cost savings initiative designed to reduce our annual operating costs by approximately $15 million and provide us with a clear path to GAAP profitability, while preserving our ability to continue our product innovation objectives and drive improved sales growth going forward. These cost savings have enabled us to raise our adjusted EBITDA outlook for the current fiscal year,” prez & CEO Joshua Levine said in a press release.

The company reaffirmed its earlier guidance provided in August, expecting to see revenue of between $415 million and $425 million, representing 3% to 5% growth year over year. Accuracy said it also expects to post adjusted EBITDA of between $23 million and $29 million.

Shares in Accuracy closed up approximately 1.8% today, at $3.44. In after hours trading, shares have risen an additional approximate 2%, at $3.51 as of 4:12 p.m. EDT.

In September, Accuray released data from two studies of its CyberKnife stereotactic body radiotherapy device exploring its use in treating patients with low and intermediate-risk prostate cancer, touting high survival rates and minimal toxicity.

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