TomoTherapy posts bigger loss despite better sales

MADISON, Wis. (AP) — Radiation therapy device maker TomoTherapy Inc. posted a larger third-quarter loss on Wednesday despite a 26 percent jump in sales.

TomoTherapy's year-ago results included a $6.3 million income tax benefit. Compared with last year, it took a bigger loss of $13.9 million, or 27 cents per share, from $13 million, or 26 cents per share, a year ago. Revenue rose to $34.4 million from $27.3 million.

Analysts expected a smaller loss of 20 cents per share and $40.3 million in revenue, according to a survey by Thomson Reuters.

TomoTherapy cut its research and development costs by $3.7 million, to $7.2 million, but selling, general and administrative expenses grew to $12.5 million from $11.5 million.

The company makes the Hi-Art radiation treatment system, which can spiral around a patient to deliver more direct doses of radiation to a tumor. Sales of medical equipment have been hit hard by the recession and global economic slump, and TomoTherapy's revenue is down a total of 10 percent over the first three quarters of the year.

TomoTherapy said it is in the process of eliminating 10 percent of its jobs to save money. It expects restructuring costs of $2.1 million, or 4 cents per share, in the fourth quarter.

The company said it expects to lose between 6 cents and 23 cents per share in the fourth quarter while reporting $50 million to $70 million in revenue. Analysts expect a loss of 14 cents per share and revenue of $48.8 million.

That forecast means TomoTherapy will lose between 73 cents and 90 cents per share in 2009. It previously said it could lose as little as 65 cents per share and as much as 90 cents per share. Analysts project 74 cents per share.

TomoTherapy maintained its forecast of $155 million to $175 million in revenue, and analysts expect $160.8 million.

In aftermarket trading, TomoTherapy shares were unchanged at $3.39. The stock fell 11.5 percent during the day.