TomoTherapy Incorporated (NASD: TOMO), producer of the Hi•Art® treatment system for advanced radiation therapy, recently released financial results for the third quarter ended September 30, 2008. The company reported revenue of $27.4 million, a 54 percent decline from $59.2 million in the third quarter one-year earlier. TomoTherapy incurred a net loss of $13.0 million, or $0.26 per share, compared to net income of $2.6 million, or $0.05 per share, for the third quarter of 2007.
Despite the expected decrease in revenue for the quarter, management anticipates revenue of $70 million to $90 million and earnings per share in the range of $0.09 to $0.15, resulting in full-year revenue in the range of $190 million to $210 million and a loss in the range of $0.36 per share to $0.43 per share. The majority of TomoTherapy’s revenue is recognized based on the customer’s acceptance of the Hi•Art® treatment system. The current fourth quarter outlook is based on existing customer orders being delivered out of backlog and converted to revenue during the last three months of the year.
Frederick A. Robertson, MD, the chief executive officer of TomoTherapy, commented, “Our third quarter financial results were expected to be weak, and our performance was consistent with these expectations. We have also expected that our year would be back-end loaded, and we expect our fourth quarter results to be stronger than each of the first three quarters.” He added, “We recently signed a preliminary agreement with Hitachi medical for distribution of the Hi-Art® treatment system in Japan. We expect the benefits of this arrangement to begin to be realized in 2009.” Mr. Robertson concluded, “Innovation and expansion of our clinical capabilities will extend our technology leadership position and increase our prospects for greater market share and continued growth.”
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