The Sunnyvale, Calif.-based radiotherapy devices maker managed to narrow its losses by 9% to $24.1 million, or 34¢ per share, during the 3 months ended Sept. 30, 2012, compared with losses of $26.5 million, or 38¢ per share, reported for the same period last year.
Revenues sank 17.6% to $82.7 million, compared with $100.5 million during the 1st quarter of 2012.Accuray attributed the difference to the previous year’s spike in sales of Tomotherapy systems following a merger that closed in June 2011. Declines were reported for both products and services, according to the Q1 regulatory filing.
"The year-on-year decline in product revenue reflects the fact that shipments of TomoTherapy Systems returned to normal levels from the unusually high levels in the 1st quarter after the acquisition was completed," CFO Derek Bertocci said in prepared remarks. "Service revenue continued to increase, up 10% from the prior year, driven primarily by continued increases in the installed base of systems."
Adjusted for 1-time costs, Accuray’s per-share losses amounted to 23¢, missing Wall Street analysts’ consensus estimates by 3¢. ARAY shares lost 2% from an open of $7.06 on Wednesday, prior to the release of the earnings report, to close at $6.91 Thursday evening.
Accuray recently announced a leadership swap, replacing former CEO Euan Thomson with Joshua Levine, the former CEO of Mentor Corp. and Immucor.
Thomson, who led held the corner office since 2002, said in a prepared statement that a change in the company’s leadership was "healthy for the organization."