MADISON, Wis. - Accuray (NASDAQ:ARAY) Incorporated (NASDAQ: ARAY), a radiation therapy company, announced that CEO Suzanne Winter has begun a medical leave of absence effective immediately due to a treatable form of cancer. Senior Vice President and Chief Commercial Officer Sandeep Chalke has been appointed as the interim CEO during Winter's absence.
An Executive Committee has been established to assist Chalke, consisting of Joseph Whitters, Chairman of the Accuray Board, and Anne Le Grand, Chair of the Science and Technology Committee. This move is aimed at providing continuity in leadership for the company's operations and strategic initiatives.
Winter expressed her gratitude for the advancements in cancer diagnosis and treatment, which enable her to enter her treatment program with significant knowledge and advocacy for her care. Whitters conveyed the Board's confidence in Chalke and the leadership team, emphasizing their capability to maintain the company's vision and priorities.
Chalke, who joined Accuray in May 2022, has over three decades of experience in the medical device industry, covering commercialization, business development, and operations. He oversees Accuray's global commercial function, including sales, service, and operations teams.
Accuray is known for its innovative approach to radiation therapy, aiming to improve lives through advanced treatment solutions for complex and commonly treatable cases. Headquartered in Madison, Wisconsin, Accuray has a global presence and continues to focus on innovation in oncology and neuro-radiosurgery.
The information for this news article is based on a press release statement from Accuray Incorporated.
In other recent news, Accuray Incorporated announced a 14% increase in total revenue year-over-year, driven by record system shipments and significant contributions from international markets. The company also reported a 10% increase in global orders for the full year, with a strong backlog of orders. Despite a slight decline in service revenues, product revenue rose by 28% compared to the previous year. Operating expenses for the quarter were also down by 17% from the previous year, resulting in an operating income of $6.8 million.
Accuray has received the CE Mark for its new Accuray Helix radiotherapy system, intended to enhance cancer treatment in emerging markets with limited access to advanced care. This marks a significant development in Accuray's strategic plan to expand its portfolio of helical radiation therapy delivery systems, particularly aimed at markets with challenged patient access to radiotherapy.
For fiscal year 2025, the company expects revenue to range between $460 million and $470 million, with adjusted EBITDA projected between $27.5 million and $29.5 million. Accuray anticipates positive influences on future results, including a recovery in the US market and the release of deferred margins from China. These are the latest developments in the company's operations.
InvestingPro Insights
As Accuray Incorporated (NASDAQ: ARAY) navigates a period of leadership transition, investors and stakeholders are closely monitoring the company's financial health and market performance. According to the latest data from InvestingPro, Accuray's market capitalization stands at approximately $210.4 million. Despite a challenging environment, the company has demonstrated resilience with a strong return of 36.25% over the last month and 28.24% over the last three months.
InvestingPro Tips highlight that analysts have recently revised their earnings estimates downwards for the upcoming period and do not anticipate the company to be profitable this year. With a negative P/E ratio of -13.67 and a Price/Book ratio of 4.68, Accuray is trading at valuation multiples that suggest a premium compared to earnings and book value. Notably, the company has not been profitable over the last twelve months and does not pay dividends to shareholders.
These insights could be particularly relevant for investors considering the company's strategic direction and leadership capabilities during CEO Suzanne Winter's medical leave. For those seeking a more comprehensive analysis, InvestingPro offers additional tips on Accuray, providing a deeper dive into the company's financial metrics and market position.
Accuray's next earnings date is projected for October 30, 2024, which will be a significant event for investors to assess the interim CEO's impact on the company's trajectory and the effectiveness of the newly established Executive Committee in steering Accuray through this period of change.
For more detailed information and further InvestingPro Tips on Accuray, interested parties can visit https://www.investing.com/pro/ARAY, where additional tips are listed to aid in investment decisions.
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