TomoTherapy incurs Q4 net losses due to tax charge

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TomoTherapy, developer of the Hi·Art radiation therapy system, reported an upwsing in sales along with a downturn in income for its fiscal 2008 fourth quarter, which ended Dec. 31, 2008.

The Madison, Wis.-based company incurred a net loss of $11.5 million for the fourth quarter of 2008, compared with net income of $4.8 million in the fourth quarter of 2007.

The 2008 quarterly results included a charge of $20.6 million related to the establishment of a valuation allowance against deferred tax assets. Excluding this charge, the company said it would have reported net income of $9.1 million for the fourth quarter of 2008.

TomoTherapy booked revenues of $86.3 million for the period, a quarterly record for the company and an increase of 10 percent from the $78.7 million booked in the prior-year period.

The company said it closed the year with $155 million of cash, cash equivalents and short-term investments, after generating $13 million of cash during the fourth quarter. The company also renewed its $50 million revolving line of credit during the quarter. There were no borrowings under the credit line during 2008.

"Although fourth quarter financial performance was in line with our expectations, we experienced weakness in new sales orders. While we achieved strong order growth in Europe, we saw a slowdown in U.S. orders momentum. We are intently focused on initiatives to drive future sales, while at the same time reducing spending to better align costs with near-term revenue expectations," said Fred Robertson, TomoTherapy's CEO.