Accuray Incorporated Results In-Line With Guidance

from Benzinga:

>>Accuray Incorporated reported FQ1 results that were largely in line with guidance, though new order growth was below Piper Jaffray's estimate as timing delays ultimately shifted four systems from FQ1 to FQ2. The company's strong showing at ASTRO last week, stable SRS reimbursement in CY11, expanded regulatory approval in Japan and still improving capital spending trends leave us optimistic about the company's outlook. ARAY reaffirmed its FY11 revenue guidance and Piper Jaffray is tweaking its estimates slightly, but maintaining an Overweight rating and $8 PT.

Revenues of $38 MM were in line with company guidance of $35-$40 MM, but $1 MM shy of Piper and consensus estimates. Product margin of 62.0% was the highest in the company's history as a public entity, with favorable mix from CyberKnife VSI placements the driver of upside. FQ1 EPS of ($0.08) split our estimate of and consensus of ($0.06) and management reaffirmed its desire to achieve breakeven status in FY11, with positive operating contribution heavily weighted toward the back half of the year.