Accuray delays filing as it investigates allegations of inventory ‘improprieties’
Shares of Accuray plunged Friday, a day after the company said it would miss its deadline for filing financial results for its fiscal 2009 first quarter because the company was “further reviewing financial results” in response to allegations by a former employee of possible improprieties in handling and accounting for certain inventory items”.
The Sunnyvale maker of non-invasive medical devices to treat cancer had originally planned to release its results publicly Oct. 29, but postponed that at the last moment until Thursday, Nov. 6, which was also the deadline for filing the required report with the SEC.
Instead, the company announced Thursday news of an “internal investigation into the allegations, using an external investigator,” which is ongoing.
Last week, the company first reported information about sales and orders, and its cash balances, but said it was unable to report net income figures because “certain aspects of (its) quarterly reporting have not yet been completed.” No mention was made at that time about use of an “external investigator” .
The company reported sales of “approximately $55.9 million, a 15 percent increase over first quarter of fiscal 2008 total revenue of $48.6 million and a 10 percent sequential increase over the fourth quarter of fiscal 2008 total revenue of $50.9 million.”
Last week, Accuray shares were unfazed by the postponement as investors focused on the sales bump. But the shares dropped over the last three days, including a 16 percent plunge today to $5.01, matching the all-time closing low it hit two weeks ago.
Accuray shares, which were first offered to the public in February 2007 at $18 each, have lost two-thirds of their value so far this year.
