26 Aug TomoTherapy announces management changes
Madison, Wis. – Slumping domestic orders, a plunging stock price, and a promising start-up competitor would be enough to give any public company pause, and TomoTherapy is no different.
Three weeks after its stock price took a major hit, the Madison-based medical device maker has announced two changes to its management team.
Chief Financial Officer Stephen C. Hathaway plans to retire when his employment contract expires on March 31, 2009.
Mary Elizabeth Klein has resigned, effective immediately, as vice president of global sales. As the company searches for a successor, Shawn Guse, a member of TomoTherapy’s management team, will replace Klein on an interim basis.
Guse will continue to serve as CEO of Compact Particle Acceleration Corporation, TomoTherapy’s proton development arm, but he will step down as General Counsel. Brenda Furlow, associate general counsel, will assume fill the general counsel role on an interim basis.
TomoTherapy, which manufactures the Hi·Art radiation therapy system for the treatment of a variety of cancers, has been trying to sell in new markets. Earlier this month, its stock fell more than 40 percent following a second-quarter net loss of $0.14 per share, or $6.9 million.
While the $52 million in quarterly revenue represented a 19 percent increase over the same quarter of 2007, softness in the U.S. economy had an impact on domestic orders. Also, TomoTherapy has reported growing operating expenses in addition to the costs associated with its new subsidiary.
In addition to a sluggish economy, analysts believe new domestic orders are impacted by a heavily marketed radiation therapy device developed by the California-based Varian.
As a result, TomoTherapy had downgraded its 2008 sales and net loss expectations.
TomoTherapy has more than 700 employees and reported $233 million of revenue in 2007.