Dallas, Texas 02/05/2014 (FINANCIALSTRENDS) – The manufacturer of medical equipment devices Accuray Incorporated (NASDAQ:ARAY) posted strong results from its 2Q operations on 30th January, which resulted in the stock posting a spirited bull rally at the markets last week.
Highlighting the achievements of the second quarter, Accuray Incorporated (NASDAQ:ARAY) President and Chief Executive Officer Josh Levine has been quoted to have said that, “The second quarter marks the achievement of several milestones along our path to improve the sustainable financial performance. With respect to orders, we achieved our third consecutive quarter of year-over-year growth in gross order volume.”
Terming the increase in volume as a significant achievement, the CEO went on to credit this buildup in sales momentum to the execution of their strategy to go after targeted customers with new product offerings which were designed to provide additional functionality. As a result of this successful stratergy, Accuray Incorporated (NASDAQ:ARAY) has seen its revenue grow in all four market regions on a year on year compare.
It’s order book for the quarter went up to $80.3 million. Revenue for the quarter grew by 20% to reach $93.6 million, in comparison to 2Q13. Product based revenue surged to an impressive $45 million for the quarter which translates to a 35 percent growth. Total revenue for the This increase in cash flow was a direct result of the big back log in their order book, coupled with improvements observed in the “revenue conversion management process and hence its gross profit margins has gone up to 40.8 percent with earnings before tax for the quarter coming in at $6.8 million.
Accuray Incorporated (NASDAQ:ARAY) has increased its guidance for the full year 2014 on the back of the improvement in its business dynamics. It expects total revenue for the year to come in at $340 to $350 million which is slightly above its previous forecast of $325 million.