Despite a decline in overall revenue, radiation oncology firm Accuray posted net income for its second quarter and first six months of fiscal 2020.
For the quarter (end-December 31, 2019), the company's revenue slipped to $98.8 million, down 3.4% compared with $102.3 million in the second quarter of 2019. The decline was due to lower product revenue of $43.8 million, compared with $48.1 million in the same prior quarter. On the other hand, service revenue increased by 1% to $55.1 million in the second quarter, compared with $54.3 million in the same quarter a year ago.
Despite the overall revenue shortfall, Accuray reported net income of $10.7 million in the second quarter, compared with a net loss of $4.6 million in the second quarter of 2019. The profit swing was largely attributable to a noncash special gain of $13 million related to the launch in the quarter of the company's joint venture in China.
For the six-month period, net revenue totaled $188.4 million, which was down 4.9% from $198.1 million in the same period of 2019. Product revenue decreased to $81.4 million, compared with $89.6 million in the same period a year ago, while service revenue dropped to $107 million in the six-month period, compared with $108.6 million in the same period in 2019. Accuray still posted net income of $1.4 million in the six-month period, compared with a net loss of $13.8 million in the same six months of 2019. The six-month net income figures include the special gain from the China joint venture.
