What happened
Shares of Accuray (ARAY -3.17%) were up by more than 15% early Thursday afternoon after the healthcare company released its fiscal 2023 third-quarter earnings Wednesday afternoon. The radiation oncology device specialist makes the CyberKnife and Tomo Therapy systems, which deliver radiosurgery, stereotactic body radiation therapy (SBRT), intensity-modulated radiation therapy, image-guided radiation therapy, and adaptive radiation therapy. Its stock is up more than 48% this year.
So what
The fiscal quarter, which ended March 31, was the company's first in the black since its fiscal 2022 second quarter (i.e., calendar Q4 2021). Accuray reported revenue of $118.1 million, up 22.8% year over year, and net income of $600,000, compared to a loss of $1 million in the prior-year period. Revenue was also up 3% sequentially over the fiscal second quarter.
It shipped a company record of 30 radiation systems, amounting to 67% year-over-year growth. Accuray also had good news recently: Data from its PACE (Prostate Advances in Comparative Evidence)-A clinical study showed that men with prostate cancer who were treated with SBRT maintained urinary continence and sexual function better than men treated with surgery.
Now what
The company just passed the milestone of getting 1,000 of its systems installed worldwide. Its installed base grew 4% year over year, including 31% growth in installed systems in China. The key for Accuray will be to maintain that pace, as nearly as much of its profits come from the servicing of its equipment as from equipment sales. In a March presentation, management guided for fiscal 2023 revenue of between $447 million and $455 million, which would amount to a rise of 4% to 6% over fiscal 2022.
