After a year of cutting jobs and refocusing its marketing efforts, medical device maker Accuray ($ARAY) seems to be on the mend. The company reported Thursday that sales jumped 20% in its second fiscal quarter over the same period a year ago to $93.6 million. Its net loss narrowed from $29.2 million in the second quarter of 2013 to $5.4 million.
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| The Cyberknife surgical suite--Courtesy of Accuray |
Accuray also brightened its expectations for the full year, telling investors to expect total revenues to come in between $340 million and $350 million. The company had previously predicted sales of under $345 million.
The company, based in Sunnyvale, CA, sells the CyberKnife robotic surgery system and the TomoTherapy radiation treatment system, both used to treat many types of cancers. It also markets a range of support and educational packages to support its devices.
Last January, Accuray laid off 143 employees--13% of its workforce--in a bid to save $40 million a year. Under the leadership of CEO Joshua Levine, who took over for Euan Thomson in late 2012, the company has overhauled its commercialization and sales strategies.
Accuray's product revenues reflected the changes, jumping 36% year-over-year to $45.1 million in the second quarter.
Accuray has also expanded its marketing efforts to group purchasing organizations, government agencies and other channels where it has historically not had much of a presence. Levine told analysts during the earnings call following the release that pickup has been slow, but he's optimistic. "It takes a little while, several quarters to … start to build some momentum there," Levine said.
Analysts acknowledge the fruits of Accuray's turnaround effort, pushing shares up 8% to $9.99 in after-hours trading. The company's stock price has more than doubled since last year at this time, when it traded at $3.76.
- read the earnings release
- here's the transcript from the earnings call (reg. req.)
Special Report: 2013's biggest job-cutters in medical devices and diagnostics (so far)