Accuray Partners with Amerinet, Shares Rise
Shares of Accuray Incorporated (ARAY) rose 4.4% till the last closing following its announcement of signing a three-year contract with leading national healthcare solutions Amerinet.
Under the contract, ARAY will expand its network of solutions of robotic full-body radiosurgery CyberKnife M6 and radiation therapy TomoTherapy H to the hospitals that Amerinet serves.
The agreement will enhance the visibility of ARAY’s products and services and boost its GPO strategic accounts contract portfolio. The company will also be able to take part in Amerinet TargetBuy promotions that provide extended support to Amerinet membership beyond the standard contract.
ARAY saw fiscal 2014-third-quarter loss of $4.7 million or 6 cents per share that was significantly narrower than the year-ago loss of $31.2 million or 42 cents per share as well as the Zacks Consensus Estimate of a loss of 16 cents.
Total revenue for the quarter came in at $97.1 million, up 37.7% year over year. Revenues also surpassed the Zacks Consensus Estimate of $82 million.
Product revenues during the quarter surged 88.0% to $47.0 million, mainly driven by enhanced commercial effort and improvement in the company’s order to revenue conversion process.
Service revenues stood at $50.0 million, up 10.0% from the year-ago quarter. The upside was driven by the increase in the company’s installed base and shift of customers toward higher value service contracts.
For fiscal 2014, ARAY raised its total revenue guidance to a range of $355 to $365 million from the previous range of $340 to $350 million provided on Jan 30, 2014. The current Zacks Consensus Estimate of $348 million lies below the revised guided range.
Currently, ARAY carries a Zacks Rank #2 (Buy). Other medical instrument companies worth a look are Masimo Corporation (MASI), Natus Medical Inc. (BABY), and Techne Corp. (TECH). All of them also carry a Zacks Rank #2 (Buy).
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