Accuray Incorporated (ARAY) is well-poised for growth in the coming quarters, courtesy of continued robust demand for its products. The optimism, led by robust international performance in the first quarter of fiscal 2025 and potential in the Radiosurgery Market, is expected to contribute further. However, reimbursement uncertainties and macroeconomic instability are concerning.This Zacks Rank #2 (Buy) company has gained 28.2% in the year-to-date period compared with 1.6% growth of the industry. The S&P 500 ...

The wait for real acceleration in revenue at Accuray (NASDAQ: ARAY ) increasingly feels like Waiting for Godot, as the company has been trying to sell investors on the China opportunity for years, and yet material revenue accelerationAnalyst’s Disclosure: I/we have a beneficial long position in the shares of ARAY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

The MedTech sector faced considerable challenges in 2024, making it a difficult year for investors. In the year, the slow growth of the global economy drew a lot of widespread attention. The year was also marked by significant elections around the world. As per World Economic Forum insights, the U.S. presidential race had an immediate effect on the global economy, with shares hitting record highs and the dollar rising against many currencies. Concerns about the global economic outlook have negatively affect ...

Accuray Incorporated (ARAY) recently revealed findings from an international multicenter analysis, showing that the CyberKnife System delivers effective and time-efficient treatment for brainstem metastases (“BSM”). The study highlights stereotactic radiosurgery (“SRS”) and fractionated stereotactic radiotherapy (“FSRT”) as achievers of long-term local control with a strong safety profile, even in sensitive brain regions.The brainstem is an integral part of the central nervous system and metastatic spread t ...

Study Builds on Extensive Published Literature Highlighting the Benefits of the CyberKnife System in the Treatment of a Wide Range of Neurological Indications MADISON, Wis., Dec. 18, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) announced today an international retrospective multicenter analysis found that radiosurgery (SRS) and fractionated stereotactic radiotherapy (FSRT), delivered with the CyberKnife® System, can provide an effective and time-saving treatment option for brainstem metastases ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

MADISON, Wis., Nov. 26, 2024 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported, as required by NASDAQ Listing Rules, equity inducement awards to Mike Murphy, the company's new Vice President, Corporate Controller. As a material inducement to Mr. Murphy joining the company, and in accordance with NASDAQ Listing Rule 5635(c)(4), the Compensation Committee approved granting Mr. Murphy an award of 150,000 restricted stock units covering shares of the company's common stock effective as of Novem ...

Accuray Incorporated (ARAY) reported first-quarter fiscal 2025 loss per share of 4 cents compared with the year-ago period’s reported loss of 3 cents. The bottom line was in line with the Zacks Consensus Estimate.Revenues in DetailAccuray registered quarterly revenues of $101.5 million, down 2.3% year over year. However, the figure beat the Zacks Consensus Estimate by 3.5%. At constant exchange rate (CER), net revenues were $102 million.The overall top-line growth was hurt by lower product sales, partially ...

Financial Data and Key Metrics - Net revenue for Q1 2025 was $102 million, down 2% YoY and 2% on a constant currency basis [41] - Product revenue was $48 million, down 9% YoY, while service revenue grew 5% YoY to $53 million [41][42] - Adjusted EBITDA for the quarter was $3.1 million, compared to $6.5 million in the prior year, impacted by one-time ERP implementation costs [47] - The company raised its full-year FY 2025 revenue guidance to $462 million - $472 million and adjusted EBITDA guidance to $28 million - $30 million [51] Business Line Performance - China revenue grew 30% YoY, driven by strong demand in both Type A and B markets, with 22% growth in new customer installations [12][14] - APAC region saw first-in-country shipments, including the first VitalHold system in Thailand and the first CyberKnife S7 in the Philippines [17][18] - EIMEA and Japan revenues declined 35% and 22% YoY, respectively, due to tough comps, but customer base grew 4% and 3% YoY [19][20] - Americas revenue grew 2% YoY, driven by product shipments, but service revenue declined 8% due to installed base consolidation [21] Market Performance - China remains a key growth market, with the Tomo C system expected to drive market share gains in the Type B segment, estimated at $3 billion over the next five years [13][14] - The company expects stronger revenue growth in EIMEA and Japan in the second half of FY 2025, driven by customer timing and additional commercial coverage [20] - The U.S. market is expected to recover in the second half of FY 2025, with improved conditions for trade-in and trade-up upgrades [21] Strategy and Industry Competition - The company is focused on new product innovation, service solutions expansion, and improving patient access in high-growth emerging markets [11] - The launch of the Helix platform in India and other emerging markets is expected to drive growth, with CE Mark approval and orders already secured [24][25] - The Adaptive suite, including Cenos, positions the Radixact system as a key differentiator in the radiotherapy market, with regulatory submission expected in FY Q4 [27][28] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's competitive position and growth trajectory, driven by strong demand in key markets and operational efficiencies [10][33] - The company is focused on margin expansion and productivity initiatives, with cost efficiencies achieved YoY, excluding one-time ERP benefits [31][32] - The global increase in cancer incidence and the need for innovative radiotherapy solutions were highlighted as key drivers of future growth [53] Other Important Information - The company's book-to-bill ratio for Q1 was 1.1, with a backlog of $469 million, representing over two years of FY 2024 product revenue [26][44] - The PACE-B study, published in the New England Journal of Medicine, is expected to change the treatment of localized prostate cancer, further supporting the company's innovation efforts [29][30] Q&A Session Summary Question: Timeline for Tomo C rollout in China and its growth impact - The Tomo C system is expected to drive growth through Q2-Q4 FY 2025, with deferred margin release positively impacting gross margins and adjusted EBITDA [16][56] - The company anticipates gaining market share in the Type B segment while maintaining leadership in the Type A segment [57] Question: Service contract revenue growth and sustainability - Service contract revenue growth outpaced installed base growth, driven by enhanced service offerings and higher pricing for advanced configurations [60][62] - The company expects continued investment in service growth to improve top-line revenue and margins [64] Question: Guidance increase and cautiousness for FY 2025 - The company raised guidance modestly, reflecting strong underlying trends in APAC and optimism for recovery in EIMEA, Japan, and the U.S. in the second half of FY 2025 [68][69] - Revenue is expected to be weighted 45% in the first half and 55% in the second half of FY 2025 [71] Question: Impact of anticorruption campaigns and stimulus in China - The anticorruption campaign has slowed processes, but the company is gaining market share despite budget reductions, driven by pent-up demand and strong JV partnerships [72][73] Question: India market and Helix product outlook - The company has secured CE Mark for the Helix platform and expects to begin shipping in India after completing local regulatory testing in early Q3 FY 2025 [77][78] Question: Impact of U.S. election results on growth outlook - The company is monitoring potential policy changes, including corporate tax rates and onshoring incentives, which could positively impact its U.S.-based manufacturing [80][81]