Ahead Of The Bell: Accuray

NEW YORK (AP) — After Accuray Inc. reported disappointing fiscal fourth-quarter results and gave a weak outlook for the coming year, a Jefferies & Co. analyst said he is concerned about the medical radiation equipment maker's backlog and slowing growth in new orders.

Analyst Peter Bye took a positive view of Accuray's CyberKnife radiation therapy system, but noted that the company's backlog of orders waiting to be filled shrank during the fourth quarter. As of June 27, the company had booked a total of $556 million in CyberKnife system agreements and service agreements. That was a drop of $35 million from the end of the third quarter.

He said the weak global economy may continue to hurt the company over the next year.

"Although we view the Cyberknife as a compelling technology, macroeconomic pressures and immature clinical efficacy data for some indications could limit the rate of adoption through fiscal 2010," he said. Bye rates the stock "Hold" with a price target of $6.50 per share.

The CyberKnife system beams large doses of radiation into tumors, killing them without surgery and making some treatments into outpatient procedures.