Strong sales of its Radixact radiation therapy system helped radiation oncology firm Accuray produce a 5% increase in revenue for its 2019 fiscal first quarter (end-September 30).
For the period, Accuray had total revenue of $95.8 million, up from $91 million in the 2018 fiscal first quarter. Product revenues climbed 7% during the quarter due to higher sales of Radixact systems, according to the vendor. Meanwhile, service revenue climbed 4%, driven by software upgrades sold through service contracts, Accuray said.
The company had a first-quarter net loss of $9.2 million, compared with a net loss of $9.4 million in the same period a year ago. Notably, Accuray said it has implemented a cost-savings initiative aimed at reducing annual operating costs by approximately $15 million. This initiative provides the company with a clear path to profitability, and it has led to an improved outlook for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the current fiscal year, according to President and CEO Joshua Levine.
