Accuray Hits 4Q Mark

Accuray Incorporated ARAY reported 4Q revenues of $61.8M (+5.1% y/y) in-line with JP Morgan's estimated $60.6M (+3.1% y/y), driven largely by 10 unit installs, while the company backlog grew from 16 to 56 units during the quarter, with two orders in Japan. EPS came in at $0.08, service gross margins improved (+690bp q/q and +590bp y/y) increasing profitability, and competitive pressures remain not yet evident, according to JP Morgan. Orders added to the backlog included seven from America, five from Europe, two from Asia Pacific, and the aforementioned two from Japan, bringing the backlog to $374M (+7%). JP Morgan maintains its Neutral rating and $6 price target. Accuray Incorporated closed yesterday at $6.49.