This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Accuray's CEO Presents At Morgan Stanley Global Healthcare Conference (Transcript)

Stocks in this article: ARAY

So we have very solid indicators already of future growth in the product revenue line. And it’s not a launch that’s done through an act of desperation. This is a good solid launch that supplements our existing momentum in growing our product revenue line.

Steve Beuchaw - Morgan Stanley

Well, you have introduced quite a few topics there. Let's spend a little bit more time on what's been probably the highest profile topic for investors for the company over the last year, and that’s margins and the evolution of margins. So I think somewhere we are a little bit surprised by the margins in the quarter and we have more spending coming ahead at ASTRO. Can you help people understand though, the trajectory of margins over the course of the year? How the spending that’s happening around ASTRO is somewhat discreet in nature. And then help people think about the longer term trajectory, because you have been very clear about the importance of the [1000] system hurdle. We are still thinking about 10% to 15% margin objective there and we are still thinking about profitability by the end of fiscal ’13. Can you help us walk down that path?

Euan Thomson

Yeah. The easiest way to answer that is just talking about the individual element and I will give some overall, sort of summary at the end of it. So if you think about the drivers for our profitability, as we entered the year the big question mark was really of the service? And going back beyond that, Accuray had run what I think was an excellent service business with very solid revenue. And if you compare even the topline performance from the service business for the size of our installation versus the other players in the industry, you get a very very positive ratio. So we definitely have always maximized the value of our installed base in terms of service revenue.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs