What happened
Shares of Accuray (ARAY -2.03%) were up as much as 17.6% on Thursday. The medical instruments maker, which specializes in radiation oncology machines, released its fiscal 2023 second-quarter earnings report late Wednesday. So far this year, shares are up more than 35%.
So what
In the second-quarter report, CEO Suzanne Winter said the company set a record with 29 new systems delivered. While most of the other financial numbers were down, the message was that the company did better than expected despite supply chain difficulties and a strong dollar that made its products more expensive overseas.
The company reported revenue of $114.8 million, down 1.3% year over year, and said it had a loss of $1.9 million, compared to net income of $200,000 in the same period a year ago. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $6.8 million, up 24.1% year over year.
Accuray also released updated 2023 guidance, saying it expected full-year revenue to be between $447 million and $455 million, up 5% at the midpoint. It also projected adjusted EBITDA of $26 million to $30 million, compared to $22.8 million of adjusted EBITDA reported in fiscal 2022.
Now what
The company's products, including its CyberKnife and TomoTherapy systems, use artificial intelligence to allow oncologists to more precisely determine how much and what kind of radiation therapy their patients need.
Like any cutting-edge technology, it takes time for physicians and hospitals to adopt it, along with Accuray's machines. The company remains a good long-term bet despite sluggish revenue numbers.
