Layoffs: Accuray to cut 13% of its workforce amid “strategic transformation”

Accuray logo

Sunnyvale, Calif.-based radiotherapy devices maker Accuray (NSDQ:ARAY) will lay off about 13% of its global workforce, mostly in the U.S., the company reported this week.

Accuray made the announcement upon releasing its preliminary 2nd quarter 2013 financial results, in which the company noted a 45%-50% decline in product revenue.

The news sent ARAY shares down more than 20% to trade at $5.40, compared with last night’s close at $6.78.

Accuray expects to report 2nd quarter sales in the range of $72-$75 million, compared with $106.4 million in revenue reported for the same period last year. Net losses were projected in the range of $24-$30 million for Q2 2013.

The device maker attributed the shortfall to "manufacturing and supply related issues" which kept the company from realizing sales from new products as well as to "commercial focus and salesforce transitional issues," according to a press release.

In response Accuray launched a restructuring initiative aimed at directing resources to sales and marketing, resulting in layoffs for about 13% of the company’s workers.

The mass layoff is among new president & CEO Joshua Levine’s biggest moves since taking over the corner office October 12, 2012.

Accuray named Levine its new leader after former CEO Euan Thomson abruptly left his post, saying that a change in the company’s leadership was "healthy for the organization."

"In my first 90 days at Accuray, I have spent considerable time evaluating the strategic and operational activities at the company, and have found many reasons to be highly enthusiastic and confident in the future prospects and success of the company," Levine said in the company’s Q2 2012 preliminary release. "However, we have identified challenges that have pressured results operationally and distinct areas that require improvement – and we have a clearly defined path to address these."

Levine likely had much to consider. Accuray’s 1st quarter 2013 earnings report wasn’t much to celebrate either.

Accuray’s Q1 2013 revenues sank 17.6% compared with the same period in 2012. The company attributed the difference to the previous year’s spike in sales of Tomotherapy systems following a merger that closed in June 2011.

RSS From Medical Design & Outsourcing

  • VC funding in healthcare comes in at $1.2 billion in Q2 2015
    Mercom Capital Group, a global communications and research firm, released its report on funding and mergers and acquisitions (M&A) activity for the Healthcare Information Technology (IT) and Digital Health sector for the second quarter of 2015. Mercom’s comprehensive report covers deals of all sizes across the globe. Healthcare IT VC Funding Q2 2014 to Q2 […]
  • Schneider Electric’s new motor is ideal for small spaces
    Schneider Electric presents the smallest Lexium MDrive integrated motor, 1.7 in. (42mm) NEMA size 17, which delivers a large range of features to small spaces. Features that now include an IP65 rated version with industrial M12 connectors. M12 Lexium MDrive products provide a robust interface, with IP65 certification for protection against water and dust in […]
  • Emuge expands solid carbide thread mill program with new 3XD sizes
    Emuge is now offering an expanded line of Solid Carbide Thread Mills in their popular THREADS-ALL Program, to include new 3XD sizes designed for maximum reach. A total of 17 new sizes have been added, from miniature to standard size tools, providing maximum versatility in a wide range of thread milling applications. The 3XD THREADS-ALL […]
  • Start of helpful humanoid robots? CITEC uses compact LDS component as sensor array
    Editor’s Note: LaserMicronics, a service provider for laser-based manufacturing, has released the whitepaper “Robot hand with a sensitive touch: LDS tactile sensors for sensorimotor skills.” The paper describes a 2014 project from the CITEC department at Bielefeld University in Bielefeld, Germany, where researchers created a tactile sensor resembling a human fingertip. The sensor was then […]
  • Nature meets technology: Festo’s BionicANTs cooperate to solve a common task
    Editor’s Note: Festo, an industrial control and automation company, has released the whitepaper “BionicANTs: Cooperative behavior based on a natural model.” The paper describes the BionicANT, a creation of Festo engineers that duplicates the physical anatomy of its natural counterpart and reproduces the insect’s cooperative behavior. Festo engineers have used the delicate anatomy of an […]
  • Acorn Regulatory streamlines approval process drug-device manufacturers
    Acorn Regulatory, an ISO-certified medical device and pharmaceutical consulting firm, is streamlining procedures for U.S. manufacturers of drug-device combinations with customized programs that successfully overcome challenges in meeting European regulatory approvals. Focusing on small to mid-size companies, Acorn Regulatory has put in place a comprehensive step-by-step process that provides the correct regulatory pathway for medical […]
  • Athermal laser machining cuts bioabsorbable polymers and more
    A the recent MD&M East trade show in New York, Norman Noble, discussed the capability of athermal laser manufacturer. The company has developed the Noble S.T.E.A.L.T.H. (System To Enable Ablation Laser Technology Haz-free). The athermal laser machining process was developed to create precise features in any material, including bioabsorbable polymers, shape memory metals and other […]
  • Exciting possibilities for metallic glass in the medical device world
    Researchers are exploring the potential of metallic glass as a versatile, pliable material that is stronger than steel, with a bevy of possible medical device applications. Yale University engineers have discovered a unique method for designing metallic glass nanostructures across a wide range of chemicals, a technique that could have applications for everything from watch […]
  • Strong Precision Technologies’ medical divisions to unify under MedTorque brand
    Strong Precision Technologies announced on July 2, 2015, that its two medical divisions will now go to market under a single brand, MedTorque. The move reflects the increasing integration of the division formerly known as Inland Midwest with MedTorque, its sister division in Kenosha, WI. “We will continue providing our customers with the personalized level of service […]
  • Olympus offers next-day product replacement guarantee for medical devices
    Olympus, a medical and surgical procedures solutions company, announced that it is guaranteeing next-day replacements for surgical equipment at no additional charge. Olympus is the first surgical product manufacturer to offer this type of guarantee. The service became available to customers with an Olympus Full Service Agreement earlier this year. “Canceled procedures can be costly for healthcare facilities […]
  • More accurate prediction on prognosis in multiple myeloma from SkylineDx
    SkylineDx, a biotechnology company specializing in the development and commercialization of genetic tests, is launching its MMprofiler assay. This test enables clinicians to more accurately predict the prognosis of patients with multiple myeloma (bone marrow cancer) than traditional methods. The MMprofiler measures the activity of 92 genes which are directly or indirectly related to the […]

Leave a Reply