Accuray Inc. (NSDQ:ARAY) may be the fish that swallowed the whale, but it might have bitten off more than it can chew judging from its fourth-quarter and fiscal 2011 results.
The Sunnyvale, Calif.-based radiosurgery device maker paid $300 million for its larger rival TomoTherapy in March. That acquisition sent ARAY into the red for both the quarter and full year.
Accuray reported a net loss of $25.0 million, or 40 cents per diluted share, on sales of $75.2 million for the three months ended June 30. That’s compared to profits of $5.0 million, or 8 cents diluted EPS, on sales of $61.8 million for the same period last year – a top-line increase of 21.7 percent and a quarterly revenues record for the firm.
For the full year, Accuray logged a $26.7 million loss, or 44 cents per share, on sales of $222.3 million, compared with income of $2.8 million, or 5 cents diluted EPS, on sales of $221.6 million.
“We are pleased with the record revenue in the fourth quarter, confirming growing acceptance of the CyberKnife as the brand name in radiosurgery. In addition, we are excited about the close of the TomoTherapy acquisition, which provides a strategically important increase in the scale and scope of Accuray,” president & CEO Euan Thomson said in prepared remarks. “With state-of-the-art technologies for both radiosurgery and radiation therapy, Accuray is now positioned to provide advanced treatment to a broader group of cancer patients globally.”
With the TomoTherapy acquisition, Accuray swallowed a company with 200 more employees and a significantly larger customer base. TomoTherapy had installed 350 systems at medical centers across the globe before the acquisition went through. Accuray also gained access to more than 130 issued patents under TomoTherapy’s control.
MassDevice keeps a close eye on public medical device companies, tracking their quarterly sales and earnings reports. For the most recent filings, check out our Earnings Roundup, where we collect each quarter’s reports.
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