Dallas, Texas 11/11/2013 (Financialstrend) – The $571 million market capped medical equipment and appliance manufacturer Accuray Incorporated (NASDAQ:ARAY) has scripted a 13% increase in its market value in spite during trading on November 8, in spite of missing estimates set by analysts for its 1QFY14 operations. It reported earnings loss of $0.21 for the quarter which was $0.02 more than market expectations. Similarly, its revenue for the quarter was $3.07 million less than market expected $80 million for the same period. The medical equipment manufacturer was able to log in orders worth $63.4 million which represents a 17% increase in comparison to corresponding 1Q in FY13. It was able to reduce its operating expenses by 13% and up its gross profit margins for the quarter by 590 basis points.
Commenting on the side lines of the earnings call, it’s President and CEO Joshua Levine has been quoted to have said, “We had a strong start to the fiscal year with most elements of our performance being above our expectations, reflecting strong commercial and operational execution. Orders into backlog are being driven by the actions we have taken to improve our commercial focus and enable growth through improved business processes. We expect that product revenues will begin to strengthen over the next several quarters as well. Improving gross profit margins along with continued expense control in narrowing our adjusted EBITDA losses puts the business on a strong trajectory to achieve profitability, along with higher revenues.”
Post the rally of the stock on November 8, the shares of the stock are trading just 1.7% below its prior 52 week high price point of $7.84 and is expected to breach the $8.4 price target that analysts have set for this stock. In the past 6 months, the medical diagnosis firm has managed to accelerate its growth rate in the market valuation game by posting a 49% increase.