Sunnyvale, Calif.-based Accuray logged losses of $15.5 million, or -21¢ per share, on sales of $76.6 million for the 3 months ended Sept. 30, for a loss reduction of 35.6% on a sales decline of 7.4%.
Accuray said it improved its gross profit margin from 28.6% in Q1 2013 to 34.5% during Q1 2014. Adjusted earnings before interest, taxes, depreciation and amortization improved from -$11.9 million during the same period last year to EBITDA of -$3.8 million during the just-concluded quarter, according to a press release.
"We had a strong start to the fiscal year with most elements of our performance being above our expectations, reflecting strong commercial and operational execution. Orders into backlog are being driven by the actions we have taken to improve our commercial focus and enable growth through improved business processes. We expect that product revenues will begin to strengthen over the next several quarters as well. Improving gross profit margins along with continued expense control in narrowing our adjusted EBITDA losses puts the business on a strong trajectory to achieve profitability, along with higher revenues," president & CEO Joshua Levine said in prepared remarks.
"We are enthusiastic about fiscal 2014 and the continued execution improvements which were started in the last fiscal year. Our reaffirmed guidance reflects an anticipation that we will return to year over year growth in revenues while the introduction of an adjusted EBITDA measure places our focus on driving the company to positive cash flow," said Levine.
Accuray confirmed its outlook for fiscal 2014, saying it still expects to post revenues of $325 million to $345 million.
ARAY shares were trading at $7.45 apiece as of about 10:30 a.m. today, up 9.3%.