Accuray Inc. (NSDQ:ARAY) continued to lose money in the first quarter of fiscal year 2011, which CEO Euan Thomson blamed on the seasonality of the business, saying that the company is confident that past results point toward improved sales in the second quarter.
The Sunnyvale, Calif.-based non-invasive radiosurgery device maker announced net losses of $4.6 million, or 8 cents per diluted share, on sales of $38.1 million, compared with last year’s smaller $3.3 million net loss, or 6 cents per diluted share, on sales of $50.6 million.
“We are confident that the continued strong book-to-bill ratio of the past four quarters is a positive indicator of future revenue growth and should be reflected in significantly stronger revenue during the second half of the current year,” Thomson said in prepared remarks.
Accuray’s flagship product, the CyberKnife robotic radiosurgery system, is designed to non-invasively treat tumors anywhere in the body using continual image guidance technology. During the first quarter of fiscal 2011, the company logged seven orders for the system valued at $33.8 million. The quarter also saw nine new CyberKnife systems installed, bringing the total amount of installed systems worldwide to 216.
Accuray also depends Uncle Sam for a portion of its revenue, via a contract with the U.S. Dept. of Homeland Security to develop an X-ray device for scanning cargo, expected to be complete in the next two years.
In August, Accuray said it only expects to break even in 2011 because of flat sales, a result of the end of the company’s “legacy platinum” service plan it once signed with hospital clients. The company confirmed that outlook today, saying it expects revenues of between $210 million and $225 million for fiscal 2011. Overall sales slipped 5 percent during fiscal 2010.
ARAY shares closed at $6.77 today, down 1.7 percent.
