Biotech Values

[DewDiligence]

ARAY – iHub was out front on this story. If I recall
correctly, several posters on this board questioned
ARAY’s aggressive accounting policies early on,
particularly with respect to the order backlog. I
owned this stock briefly in 2007, but sold when I
concluded that management couldn’t be trusted
(#msg-23930622).

http://www.reuters.com/article/marketsNews/idINBNG35355320081106

›Accuray Further Delays Q1 Results On Accounting Issues

Thu Nov 6, 2008 6:13pm EST

Nov 6 (Reuters) - Accuray Inc (ARAY), which delayed its first-quarter results last week, said it is further reviewing the results in response to certain accounting-related allegations by a former employee, sending its shares down 17 percent.

The maker of robotic medical devices said the employee alleged improprieties in the handling and accounting for certain inventory items, and it has commenced an internal investigation into the allegations. The company will not release its first-quarter results until the investigation is complete. In addition, Accuray will not be able to file its quarterly report with U.S. regulators within the due date.

On Oct 29, the company said it would delay its first-quarter results as certain aspects of its quarterly reporting were not completed. Shares of the company fell to $5.00 in trading after the bell. They closed at $5.99 Thursday on Nasdaq.‹