Accuray, Inc. (ARAY) - Bear of the Day

Accuray Incorporated (ARAY) designs, develops and sells the CyberKnife System, an image-guided robotic radiosurgery system used for the treatment of solid tumors. The company was badly affected by reimbursement uncertainties surrounding its products.

This was reflected in Accuray's top and bottom line performance in the first quarter of fiscal 2010. Accuray reported a net loss of $0.06 per share in the first quarter, compared to the Zacks Consensus Estimate of a net loss of $0.03 per share and unchanged from the year-ago figure.

Total revenues declined 9.5% year over year in the reported quarter. We downgrade the stock to Underperform with a target price of $6.Zacks Investment Research