Accuray Incorporated (ARAY) saw its loss widen to $9.37 million, or $0.11 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.03 million, or $0.08 a share. Revenue during the quarter dropped 19.66 percent to $87.50 million from $108.91 million in the previous year period. Gross margin for the quarter contracted 322 basis points over the previous year period to 35.87 percent. Operating margin for the quarter stood at negative 5.51 percent as compared to a negative 0.11 percent for the previous year period.
Operating loss for the quarter was $4.82 million, compared with an operating loss of $0.12 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.77 million compared with $6.81 million in the prior year period. At the same time, adjusted EBITDA margin contracted 423 basis points in the quarter to 2.02 percent from 6.25 percent in the last year period.
“Our 17% year-over-year gross order growth during the second quarter was led by increased demand for our CyberKnife system, especially from replacement orders to existing customers,” said Joshua H. Levine, president and chief executive officer. “In addition, gross orders were favorably impacted by solid demand for our new Radixact System, which will be fully launched by the end of the third fiscal quarter. We performed above expectations in regards to gross order performance in the first half of the year and are seeing several indicators that lead us to believe our strong backlog growth will continue through the end of fiscal 2017 and into fiscal 2018.”
Accuray projects revenue to be in the range of $410 million to $420 million for financial year 2017.
Working capital increases sharply
Accuray Incorporated has recorded an increase in the working capital over the last year. It stood at $136.91 million as at Dec. 31, 2016, up 62.71 percent or $52.77 million from $84.14 million on Dec. 31, 2015. Current ratio was at 1.76 as on Dec. 31, 2016, up from 1.31 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 131 days for the quarter from 185 days for the last year period. Days sales outstanding went up to 67 days for the quarter compared with 52 days for the same period last year.
Days inventory outstanding has decreased to 96 days for the quarter compared with 156 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 23 for the same period last year.
Debt comes down
Accuray Incorporated has recorded a decline in total debt over the last one year. It stood at $170.17 million as on Dec. 31, 2016, down 17.68 percent or $36.56 million from $206.72 million on Dec. 31, 2015. Total debt was 40.99 percent of total assets as on Dec. 31, 2016, compared with 43.67 percent on Dec. 31, 2015. Debt to equity ratio was at 3.65 as on Dec. 31, 2016, up from 3.40 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
