Shares in Accuray (NSDQ:ARAY) fell slightly today after the medical device maker posted fiscal year 2019 third quarter earnings that beat loss-per-share expectations but missed revenue consensus on Wall Street.
The Sunnyvale, Calif.-based company posted losses of $1.2 million, or 1¢ per share, on sales of $103.2 million for the three months ended March 31, seeing losses shrink 86.6% while sales grew 3.4% compared with the same period during the previous year.
Losses per share were ahead of the 4¢ consensus on Wall Street, where analysts expected too see sales of $103.9 million, which the company narrowly missed.
“We continued to execute our commercial plan during the third quarter and generated a 12 percent increase in gross order growth. This was our fourth consecutive quarter of double-digit gross order growth, which was driven by continued momentum in China as well as competitive system replacements. In addition, we substantially completed the $15 million cost savings initiative announced in our fiscal second quarter and expect to realize the full benefit from this effort in fiscal 2020. During our third quarter, we made progress in operationalizing our China joint venture agreement signed in late January as well as executing our product development roadmap. The roadmap is focused on increasing the speed and utility of our devices while extending our historical strength in the precision of our treatments. Our VOLO Optimizer software, which reduces CyberKnife treatment times by up to 50%, has already been deployed on approximately 30% of our compatible CyberKnife installed base. Additionally, our Synchrony motion synchronization capability software for Radixact will be launched at ESTRO next week. Combined, we believe our strategies are positioning Accuray for consistent long-term growth,” prez CEO Joshua Levine said in a press release.
Accuray updated its fiscal guidance for the full 2019 year, expecting to post sales of between $415 million and $425 million with an adjusted EBITDA of between $23 million and $29 million, representing growth of approximately 35% to 70% year over year.
Shares in Accuray have fallen approximately 5% so far today, at $4.20 as of 10:45 a.m. EDT.
In January, a subsidiary of Accuray said it entered a joint venture with a Chinese company to manufacture and sell radiology oncology systems in China.
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