Accuray shares pop on reports of advances in China business

Shares of Accuray Inc (NASDAQ:ARAY) rose in Wednesday’s pre-market trading session despite the radiation oncology company posting a loss of $4.6 million in its fiscal second quarter.

Investors were buoyed by news that the Sunnyvale, California company has made progress in efforts to establish a joint venture in China that will boost its ability to meet the demand for its Class B radiation systems.

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“Our 29% gross order growth was driven by the China Ministry of Health’s long-awaited issuance of new license quotas for Class A and Class B radiation systems in late October 2018, a sequential rebound in CyberKnife orders, and continued strength in Radixact demand worldwide,” said Joshua Levine, CEO of Accuray, in a statement.

“Going forward, we believe Accuray is well-positioned to win additional orders under the new quotas as the process for hospitals to secure licenses is activated,” Levine added.

In the three months ending on December 31, Accuray’s total sales came to US$102.3 million compared with US$100.3 million in the year-ago quarter, thanks to sales of Radixact, its image-guided radiation therapy system. Its net loss amounted to US$4.6 million, or US$0.05 per share, against a net loss of $4.7 million, or $0.06 per share, for the 2018 fiscal second quarter.

Looking ahead, Accuray expects full-year revenue in the range of $415 million to $425 million.

Accuray makes radiation oncology systems that aim to make cancer treatments shorter and more effective.

Accuray shares added 10.8% to hit $4.40 before the opening bell on Wednesday.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors