Business
Accuray Reports Fiscal 2019 Third Quarter Results
SUNNYVALE, Calif., April 23, 2019 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported its financial results for the third quarter of fiscal
About this update from Accuray Incorporated
[{"type":"text","content":"SUNNYVALE, Calif., April 23, 2019 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported its financial results for the third quarter of fiscal 2019 ended March 31, 2019.\n\n \nFiscal Third Quarter Highlights\nGross orders increased 12 percent year over year to $83.6 million Ending backlog increased 5 percent year over year to $493.9 million Revenue increased 3 percent year over year to $103.2 million Operating expense decreased 6 percent year over year to $37.6 million China joint venture granted business license\"We continued to execute our commercial plan during the third quarter and generated a 12 percent increase in gross order growth,\" said Joshua H. Levine, President & Chief Executive Officer. \"This was our fourth consecutive quarter of double-digit gross order growth, which was driven by continued momentum in China as well as competitive system replacements. In addition, we substantially completed the $15 million cost savings initiative announced in our fiscal second quarter and expect to realize the full benefit from this effort in fiscal 2020.\n\"During our third quarter, we made progress in operationalizing our China joint venture agreement signed in late January as well as executing our product development roadmap. The roadmap is focused on increasing the speed and utility of our devices while extending our historical strength in the precision of our treatments. Our VOLO Optimizer software, which reduces CyberKnife treatment times by up to 50%, has already been deployed on approximately 30% of our compatible CyberKnife installed base. Additionally, our Synchrony motion synchronization capability software for Radixact will be launched at ESTRO next week. Combined, we believe our strategies are positioning Accuray for consistent long-term growth.\" \nFiscal Third Quarter Results\nTotal revenue was $103.2 million compared to $99.8 million in the prior fiscal year third quarter. Product revenue totaled $46.5 million compared to $43.2 million in the prior fiscal year third quarter, while service revenue totaled $56.8 million compared to $56.6 million in the prior fiscal year third quarter.\nTotal gross profit for the 2019 fiscal third quarter was $40.5 million, or 39.2 percent of revenue, comprised of product gross margin of 41.5 percent and service gross margin of 37.3 percent. This compares to total gro...