Revenue during the quarter dropped 7.57 percent to $97.31 million from $105.28 million in the previous year period. Gross margin for the quarter contracted 628 basis points over the previous year period to 36.40 percent. Total expenses were 98.70 percent of quarterly revenues, up from 94.83 percent for the same period last year. That has resulted in a contraction of 387 basis points in operating margin to 1.30 percent.

Operating income for the quarter was $1.27 million, compared with $5.44 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $7.12 million compared with $13.92 million in the prior year period. At the same time, adjusted EBITDA margin contracted 591 basis points in the quarter to 7.31 percent from 13.22 percent in the last year period.

"Our 49% year-over-year gross order growth during the third quarter was led by increased demand for our CyberKnife System especially from existing customers,” said Joshua H. Levine, president and chief executive officer. "In addition, gross orders were favorably impacted by solid demand for our new Radixact System, which is now in full commercial launch. The third quarter gross orders have resulted in nine-month order results that are above expectations. We are seeing several indicators that lead us to believe our strong order growth will continue through the end of fiscal 2017 and into fiscal 2018."

For financial year 2017, Accuray Incorporated projects revenue to be in the range of $380 million to $390 million. The company expects net loss to be in the range of $24.58 million to $20.58 million.