Accuray Falls After Reducing Forecast, Firing Workers
Stock Chart for Accuray Inc (ARAY)
Accuray Inc. (ARAY), maker of radiation devices used to treat cancer, said it would fire about 13 percent of its work force after reporting second-quarter revenue that missed analyst estimates and lowering its annual sales projections. Shares fell 22 percent in extended trading.
Sales in the three months ended Dec. 31 were $72 million to $75 million, from $106.4 million a year ago, the Sunnyvale, California-based company said in a statement. The result fell short of the $94 million average of five estimates compiled by Bloomberg. Accuray also lowered its revenue projection for the fiscal year ending June 30 to $320 million to $330 million, from $405 million to $425 million.
The revenue shortfall is due to “transitional issues” with its sales force and manufacturing problems that delayed product introductions, the company said in its statement. The job cuts, most of them in the U.S., will result in a charge of $3 million to $4 million in the fiscal third quarter, Accuray said.
Joshua Levine, Accuray’s chief executive officer, took over in October, replacing Euan Thomson, who left the company after more than a decade.
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