Seeking Alpha: For Accuray, Lumpy Progress Is Still Progress

What Accuray (ARAY) is attempting to do is not easy, and that at least partially explains why the company continues to see lumpy progress on its path toward becoming a fully-fledged growth med-tech. It's hard enough to sell hospital capital equipment with a list price above $4 million, and harder still when competing against such well-established rivals as Varian (VAR) and Elekta (OTCPK:EKTAY) (rivals that were able to essentially push Siemens out of the market).

Making matters worse, Accuray's stock has gotten caught up in the same capital flight that has led to other growth med-techs like Novadaq, Heartware, and Insulet seeing share price declines between 15% and 25% over the past three months. The next 18 months are likely to continue to show quarter-to-quarter volatility in certain areas (like orders), but the shares remain too cheap so long as revenue and margins continue to develop favorably.

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For Accuray, Lumpy Progress Is Still Progress