TomoTherapy, a provider of radiation therapy systems, has posted decreased revenues and increased losses for the 2008 third quarter, which ended Sept. 30.
The Madison, Wis.-based company incurred a net loss of $12.9 million in the third quarter, a sharp drop from comparative results a year ago when it saw net income of $2.58 million. TomoTherapy said its losses are due to a softening in the flow of orders because of the economy and heightened competition.
For the third quarter, the company reported revenue of $27.4 million, a decrease of 54 percent from $59.2 million in the third quarter of 2007.
According to company, operating expenses increased to $22.5 million in the third quarter, including $3.3 million of expenses associated with TomoTherapy’s affiliate, Compact Particle Acceleration. Excluding this item, third quarter operating expenses decreased 8 percent from the corresponding period of 2007. While the company said it will continue to make select investments to support future growth, it is slowing its overall operational spending to better align with current revenue levels.
“While our third quarter financial results were disappointing, they were essentially in line with our expectations going into the quarter,” said Fred Robertson, TomoTherapy’s CEO.