Accuray (NASDAQ: ARAY) reported Q2 EPS of ($0.05), $0.03 better than the analyst estimate of ($0.08). Revenue for the quarter came in at $102.3 million versus the consensus estimate of $101.95 million.

"Our second quarter gross order performance was an all-time high for the Company," said Joshua H. Levine, President & Chief Executive Officer. "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. 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. At the same time, we continued to make progress in our efforts to establish a joint venture in China that we believe will expand our ability to meet demand for Class B systems. From a financial perspective during the quarter, Accuray grew revenue, generated adjusted EBITDA, executed our plan designed to realize $15 million in annualized cost savings and moved closer to our goal of achieving GAAP net income profitability."

"We also continued to advance our product roadmap. During the quarter we received FDA approval for our 510(k) application for motion synchronization capability, called Synchrony, on our Radixact treatment platform. Just as we have with our CyberKnife system, Radixact with Synchrony will automatically ensure beam synchronization with tumor motion or movement, enabling tighter dosing margins that spare healthy tissue and provides precise, efficient treatments. With Synchrony on Radixact, Accuray will have the only two radiotherapy systems able to provide true motion tracking and beam synchronization and correction during treatment."

2019 Financial Guidance

The company is reaffirming its fiscal year 2019 guidance provided on October 30, 2018. Details are summarized as follows:

• Revenue: Product revenue growth is expected to range between 4 and 8 percent and service revenue is expected to grow approximately 2 percent, resulting in total revenue of between $415 million to $425 million, which would represent 3 to 5 percent growth year over year; and
• Adjusted EBITDA: $23.0 million to $29.0 million representing growth of approximately 35 percent to 70 percent year over year.

For earnings history and earnings-related data on Accuray (ARAY) click here.