Accuray (NSDQ:ARAY) plans to issue $75 million worth of convertible senior notes as it gears up to restructure its business after a year of widening losses.
The Sunnyvale, Calif.-based medical device company said it will use the proceeds from the offering of debt due Feb. 1, 2018, to shore up its balance sheet.
"Accuray’s purpose for the offering is to strengthen its balance sheet in order to help improve its competitive position," according to a press release. "It intends to use the net proceeds from the offering for general corporate purposes, including investing strategically in expanding its business and new product initiatives."
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Fiscal 2nd-quarter sales and profits were way off for Accuray, which makes radiation oncology equipment. The company posted losses of $29.2 million, or 40¢ per share, on sales of $77.8 million for the 3 months ended Dec. 31, 2012. That amounts to a 180.8% increase in losses and a 26.9% top-line reduction.
The news sent ARAY shares down nearly 10% today on Wall Street.
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Safeguard Scientifics drops $1M on stake in Sotera Wireless
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Micro Interventional Devices round nears $4M
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Analysts’ ups and downs
- Abbott (NYSE:ABT): Jefferies Maintains "buy" rating, raises price target to $40.
- AbbVie (NYSE:ABBV): Credit Suisse initiates with "neutral" rating, $37 price target.
- Allergan (NYSE:AGN): Citigroup increases price target to $124, "buy" rating; Deutsche Bank reiterates "buy" rating, raises price target from $108 to $113; Jefferies reiterates "hold" rating, raises price target from $95 to $100; Jefferies reiterates "hold" rating, raises price target from $95 to $100.
- Becton Dickinson & Co. (NYSE:BDX): Deutsche Bank reiterates "hold" rating, raises price target from $85 to $89.
- Cerner (NSDQ:CERN): Jefferies reiterates "buy" rating, raises price target from $82 to $97; Oppenheimer raise price target to $54, "underperform" rating; Piper Jaffray reiterates "overweight" rating, raises price target from $84 to $100.
- Hologic (NSDQ:HOLX): Bank of America downgrades from "buy" to "neutral" rating, raises price target from $23 to $24; USI Group maintains "strong buy" rating, raises price target from $25.50 to $27.
- Intuitive Surgical (NSDQ:ISRG): TheStreet reaffirms “buy” rating.
- Johnson & Johnson (NYSE:JNJ): Credit Suisse downgrades from "neutral" to "underperform" rating, raises price target from $71 to $73.
- Sirona Dental Systems (NSDQ:SIRO): Jefferies reiterates "hold" rating, raises price target from $95 to $100.
- Stryker (NYSE:SYK): Credit Suisse downgrades from "outperform" to "neutral" rating.
- Thoratec (NSDQ:THOR): Leerink Swann maintains “outperform” rating, raises price target to $43 from $40.
