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Accuray rises premarket as 4Q orders improve

NEW YORK (AP) -- Shares of Accuray climbed in premarket trading Wednesday after the radiation-treatment equipment maker said new orders are improving.

Accuray reported its fiscal fourth-quarter results after the market closed on Tuesday. Its loss narrowed from a year ago despite a decline in revenue. Net new product orders rose 32 percent from last year, and the company said its backlog has grown over the last three months and is larger than it was a year ago.

Accuray shares picked up 50 cents, or 8.2 percent, to $6.60 in premarket trading.

The Sunnyvale, Calif., company sells radiation therapy systems under the names CyberKnife and TomoTherapy. Accuray said it took a loss of $18.7 million, or 25 cents per share, over the three months ended June 30. Accuray Inc. took a loss of $20.3 million, or 28 cents per share, a year earlier.

If one-time items are excluded the company said it lost 20 cents per share in the fourth quarters of fiscal 2013 and 2012. Revenue fell 16 percent, to $84.9 million from $100.5 million.

Analysts were expecting a loss of 20 cents per share on $84.3 million in revenue, according to FactSet.

Jefferies & Co. analyst Raj Denhoy said Accuray is moving in the right direction because orders are increasing and the company is getting better at keeping its costs under control. He kept a "Buy" rating on the stock and raised his price target to $8 per share from $6.50.

Accuray said it lost $103.2 million, or $1.41 per share, in fiscal 2013 after losing $72 million, or $1.02 per share, the year before. Revenue fell 23 percent, to $316 million from $409.2 million.

The company expects to report $325 million to $345 million in revenue in fiscal 2014. Analysts estimate $359.6 million on average.