The Sunnyvale, Calif.-based company posted a 37.7% increase in sales during the 3 months ended March 31, 2014, which helped Accuray narrow its losses by 85%. Per-share earnings beat Wall Street’s consensus estimates by 9¢ per share.
The strong showing did little for ARAY shares, which dropped 7.5% by the end of the day yesterday to close at $7.77 apiece.
In total Accuray reported losses of $4.7 million, or 6¢ per share, on sales of $97.1 million for its 3rd fiscal quarter of 2014. That compared with losses of $31.2 million, or 42¢ per share, on sales of $70.5 million during the same period last year.
The company also updated its full-year outlook to project sales in the range of $355 million to $365 million, previously estimated at $340 million to $350 million.
"Our upwardly revised revenue guidance range reflects continued momentum in the business," president & CEO Joshua Levine said in prepared remarks. "We remain focused on our strategic growth agenda and believe our improving operational and commercial execution, coupled with fiscal discipline, will continue to create value for our stakeholders."
In a separate release, Accuray also touted a 3-year contract with group purchasing organization Novation, a major player in healthcare supply chain management, representing about 40% of the hospitals in the U.S. Novation’s 100,000-plus member hospitals will get special pricing for Accuray’s CyberKnife M6 and TomoTherapy product portfolios, the company said.