TomoTherapy sales up, but Q4 income down from 2006 performance

Madison, Wis. - TomoTherapy reported net income of $4.8 million, or $0.09 per diluted share in the fourth quarter of 2007, a decline from the $8.9 million, or $0.22 per diluted share, the company reported for the fourth quarter of 2006.

The Madison based medical device manufacturer, which trades on the NASDAQ under the symbol TOMO, reported revenue of $78.7 million, a 32 percent increase from $59.6 million in the fourth quarter of 2006.

In addition, the value of new sales orders received during the fourth quarter totaled a record $92 million, a 25 percent increase over the fourth quarter of 2006, and up 26 percent from the third quarter of 2007.

Fred Robertson, CEO of TomoTherapy, said the record value of sales orders resulted in a healthy increase in the company's year-end backlog. As of December 31, 2007, TomoTherapy had a record $248 million of revenue backlog, a 51 percent increase from the backlog at December 31, 2006. The backlog represents firm customer orders for systems and does not include any revenue from service contracts.

“We saw no impact from our competitors' new product offerings,” he added, referring to a rival product to be introduced by Varian Medical Systems of Palo Alto, Calif. TomoTherapy has manufactured 200 of its Hi·Art treatment system, a radiation therapy system for the treatment of a variety of cancers. The system was enhanced in 2007 with new software that should result in up to a 30 percent improvement in patient throughput, the company said.

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