TomoTherapy, a developer of the Hi-Art treatment system for advanced radiation therapy, saw a downturn in its financial results for the 2008 first quarter, which ended March 31.
For the quarter, the company reported revenue of $38.9 million, versus $51.2 million in the first quarter of 2007.
Also, first quarter operating expenses rose 28 percent to $20.2 million, which the company attributed to continued infrastructure building. Because of the fixed nature of much of its customer service-related expenses, the lower revenue had a significant impact on margins, which declined to 21.1 percent, the company reported.
On a positive note, TomoTherapy reported that the value of its new sales orders during the 2008 first quarter totaled $54.6 million, a 23 percent gain over the first quarter of 2007. U.S. orders more than doubled year over year, according to the company.
The “first quarter was somewhat challenging from a financial performance standpoint due to the back-end loaded nature of our current backlog. We were pleased that the value of new orders increased year over year at a rate more than double the growth rate of the overall radiation oncology market,” said Fred Robertson, TomoTherapy's CEO.