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Accuray slips on Q4 earnings miss

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Accuray (NSDQ:ARAY) shares took a hit on lower-than-expected fiscal fourth-quarter earnings and soft guidance for fiscal 2020.

The Sunnyvale, Calif.-based radiotherapy device maker posted losses of -$1.4 million, or -2¢ per share, on sales of $97.2 million for the three months ended June 30, widening its losses by 48.0% on sales growth of 0.8% compared with fiscal Q4 2018. Analysts on Wall Street were looking for earnings per share of 2¢ on sales of $96.1 million.

Full-year losses were down -31.3% to -$16.4 million, or -19¢ per share, on sales growth of 12.3% to $342.3 million.

“From all perspectives, fiscal 2019 was a very successful year,” president & CEO Joshua Levine said in prepared remarks. “We generated 12% gross order growth for the year while our efforts to increase efficiencies led to the company’s first operating profit since 2011. Additionally, we set a new quarterly revenue record during the fourth quarter. From a strategic growth perspective, we advanced our opportunities in China, which is the world’s fastest growing radiotherapy market. It should be noted that our progress during fiscal 2019 came without significant revenue contribution from the China market as the process for awarding and issuing Class A and B user licenses for radiotherapy systems is still in an early phase.”

Accuray said it expects to report fiscal 2020 sales of $410.0 million to $420.0 million.

ARAY shares closed down -8.7% at $3.06 yesterday and were down another -7.2% to $2.84 in pre-market trading this morning.

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