03 Aug TomoTherapy revenue down in second quarter of 2009
MADISON – TomoTherapy Incorporated, producer of the Hi·Art® treatment system for advanced radiation therapy, announced that the quarter 2009 revenue was $41.1 million, a decrease of 21% from $52.0 million in the second quarter of 2008. For the second quarter, the company posted a net loss of $7.1 million, or 14 cents a share, compared with a net loss of $6.9 million, or 14 cents a share, a year earlier.
As of June 30, 2009, TomoTherapy had a revenue backlog of $145 million, a 7% decrease from its $157 million backlog as of March 31, 2009. The backlog includes $34 million of equipment orders received during the second quarter of 2009, a significant increase from $4 million of orders added in the first quarter. However, the company also removed $18 million of orders from backlog during the quarter due to the age of the orders and the lack of site progress with respect to such orders. None of the orders removed were for competitive reasons. Backlog only includes firm orders that the company believes are likely to ship within the next two years. It does not include any revenue from service contracts, which represents a growing portion of the company’s overall revenue.
“Despite continued tough economic conditions in the second quarter, we made progress against key performance initiatives,” said Fred Robertson, TomoTherapy’s CEO. “In particular, we experienced improved order flow and reported a 34% increase in revenue as compared to the first quarter. We believe that our focus on initiatives to drive order closure is starting to pay off. Additionally, we continue to show improved performance in our service organization as the average direct cost of servicing a unit declined by 15% year-over-year, while year-to-date uptime remains strong at 97.9%. The positive service results along with the higher revenue levels brought second quarter 2009 gross margins up to 21%, a substantial improvement over the first quarter 2009 gross margin of 8%. Finally, we continue our efforts to carefully manage costs, with operating expenses down 23% from the second quarter of last year.”
Robertson added, “Despite marked improvements in certain areas, we recognize that we still have work to do in this challenging economic environment, especially in the U.S. We remain focused on further sharpening and enhancing our sales efforts, while at the same time maintaining strict discipline on the cost side. We are confident in the current benefits of our technology which we firmly believe offers the most advanced and effective system to deliver high-quality cancer care and are committed to realizing our company’s longer-term potential.”