Accuray Incorporated (NASDAQ:ARAY) Re-affirms FY14 Revenue Guidance
Accuray Incorporated (NASDAQ:ARAY) has announced its first quarter results for the years 2014, ended September 30, 2013. The company’s total revenue fell 7% year over year to reach $76.6 million. Net loss for the quarter was $15.5 million or loss per share of $0.21, as compared with a net loss of $24.1 million, or $0.34 loss per share for the first quarter of 2013.
Accuray Incorporated’s gross profit margin for the first quarter of 2014 was 34.5%, which comprised of service gross margin of 33% and product gross margin of 37.1%. The Q1, 2014 gross profit margin increased year over year as compared to total gross margin of 28.6% reported for the first quarter of 2013. Operating expenses for the quarter were $38.8 million, compared with $44.3 million a year ago.
As on September 30, 2013, the company had total cash, cash equivalents, investments and restricted cash of approximately $164.4 million, a sequential decrease of $12.7 million.
During the quarter, gross product orders totalling $63.4 million grew 17% year-over-year from $9.3 million in the first quarter of 2013. Net product orders totaled $60.1 million, increasing by 16% yoy. The radiation oncology company said it sold 13 units and 14 units were installed, increasing Accuray’s worldwide installed base to 706 systems.
Accuray reiterated its financial guidance of total revenue for financial year 2014 of $325-$345 million.
“We had a strong start to the fiscal year with most elements of our performance being above our expectations, reflecting strong commercial and operational execution. We expect that product revenues will begin to strengthen over the next several quarters as well,” said Joshua H. Levine, president and chief executive officer of Accuray. “We are enthusiastic about fiscal 2014 and the continued execution improvements which were started in the last fiscal year. Our reaffirmed guidance reflects an anticipation that we will return to year over year growth in revenues while the introduction of an adjusted.”
At the same time, rival Varian Medical Systems, Inc. (NYSE:VAR) updated its FY2014 earnings guidance with expected EPS of $4.22-$4.34.