The Sunnyvale, Calif.-based company, which makes radiation oncology equipment, posted losses of $29.2 million, or 40¢ per share, on sales of $77.8 million for the 3 months ended Dec. 31, 2012. That amounts to a 180.8% increase in losses and a 26.9% top-line reduction.
Adjusted to exclude 1-time items, losses per share were 30¢, under Wall Street’s 32¢ adjusted loss expectation.
ARAY shares were down 9.9% to $4.58 as of about 2 p.m. today.
President & CEO Joshua Levine cited an ongoing restructuring that aims to reduce costs by $40 million annually.
"While I am encouraged by the growing stream of profitable service revenue, we clearly need to concentrate on commercializing our 2 new product platforms that were announced in October 2012 during the ASTRO trade show," Levine said in prepared remarks. "As part of our plan for sustained revenue growth and profitability, we are taking specific actions designed to reduce the company’s cost structure by approximately $40 million per year and are focused on capitalizing on the significantly increased capabilities of our new products."
Accuray said it expects the restructuring, including a 13% workforce reduction, to shave some 21.3% or $10.4 million from its operating expenses this year, at the cost of an expected $3 million to $4 million charge during the 3rd quarter.
The company said it expects to post sales of $320 million to $330 million for fiscal 2013.