The Sunnyvale, Calif.-based company reported profits of $10.7 million, or 12¢ per share, on sales $98.8 million for three months ended Dec. 31, 2019 for a sales loss of -48.6% compared with Q2 2019.
Adjusted to exclude one-time items, earnings per share were 12¢, 19¢ ahead of The Street, where analysts were looking for sales of $98.3 million.
“Financial and operational results for our second fiscal quarter and for the first half of fiscal year 2020 were solid,” president and CEO Joshua Levine said in a news release. “Gross orders for the second quarter exceeded our internal expectations heading into the quarter, including a solid order contribution from China.”
“We expect revenue growth to improve in the second half of fiscal 2020 as we believe revenue recognition of China Type A systems will start in our fourth fiscal quarter. In addition, we have confirmed that the tariff exemption for medical linear accelerators is applicable to all of our systems,” Levine said. “We believe that this exemption will support our commercial momentum and expand access to our innovative radiation therapy solutions for hospitals and patients in China. In light of recent events with the coronavirus outbreak in China, we do not believe that the outbreak affects the longer-term demand outlook for radiotherapy equipment in China. China remains the world’s fastest-growing market for radiation oncology systems where we have a highly differentiated strategy to drive significant revenue grown in the coming years.”
The company reaffirmed its guidance and said it expects revenue for the fiscal year 2020 to be in the range of $410 million and $420 million.
Shares in ARAY were up 15.92% to $4.37 apiece in early morning trading.