I have said it before and I'll say it again - while it doesn't really show up in the share price, the current CEO of Accuray (ARAY) has done a good job with this business, not only in stabilizing the financial situation, but also reprioritizing/refocusing the R&D efforts and repositioning the company for sustainable growth. The company was never going to win the head-to-head battle with Varian (VAR) in markets like the U.S. and Europe, but taking a page out of Willie Keeler's book ("hit 'em where they ain't"), Accuray has refocused on opportunities in Japan and China where its system designs have some meaningful potential advantages.
Still, factors outside the company continue to weigh heavily on performance, as disruptions related to COVID-19 and the Chinese tendering process have continued to delay the anticipated revenue ramp. The business is profitable now and the shares are up a bit from my last update, but the key catalyst remains a significant ramp in China - the timing of which management pushed back again by another quarter. While this has been a frustrating wait, and major competitors like Varian and Elekta (OTCPK:EKTAY) are certainly targeting China's large market opportunity, I believe Accuray shares remain undervalued albeit with well above-average risk.
Read the full article here:
Accuray Idling On The Runway Ahead Of A Significant Chinese Revenue Launch
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