Welcome!

Agile Computing Authors: Larry Alton, Pat Romanski, Elizabeth White, Yeshim Deniz, Astadia CloudGPS

News Feed Item

Varian Medical Systems Reports Results for First Quarter of Fiscal Year 2013

First quarter net earnings per diluted share rise 9 percent to $0.86 including a $0.03 restructuring charge; revenues increase 8 percent to $678 million

PALO ALTO, Calif., Jan. 23, 2013 /PRNewswire/ -- Varian Medical Systems (NYSE:VAR) today is reporting net earnings of $0.86 per diluted share in the first quarter of fiscal year 2013, up 9 percent from $0.79 in the year-ago quarter.  The results for the first quarter of fiscal year 2013 included a $4.1 million restructuring charge related to an enhanced retirement program. Varian's company-wide revenues totaled $678 million for the first quarter of fiscal year 2013, up 8 percent from the year-ago quarter.  Varian ended the first quarter of fiscal year 2013 with a $2.8 billion backlog, up 11 percent from the end of the first quarter of fiscal year 2012.

"The company's first quarter revenues and net earnings grew in line with our expectations for both our Oncology Systems and X-Ray Products businesses," said Dow R. Wilson, CEO of Varian Medical Systems.  "Margins were also in line with our expectations.  Excluding the restructuring charge in the quarter, our operating margin improved versus the year-ago quarter.  Net orders rose robustly in our X-Ray Products business, but declined in our Oncology business, which experienced weaker orders in Europe and Asia versus very strong year-ago results." 

The company finished the first quarter of fiscal year 2013 with $755 million in cash and cash equivalents and $206 million of debt.  Cash flow from operations for the first quarter was $72 million.  During the first quarter of fiscal year 2013, the company spent $104 million to repurchase 1.5 million shares of common stock.

Oncology Systems
Oncology Systems' first quarter revenues totaled $524 million, up 8 percent from the same period of fiscal year 2012.  First-quarter net orders were $477 million, down 2 percent versus the comparable year-ago period, with a 2 percent gain in North America and a 4 percent decline outside North America. Markets outside North America represented 56 percent of Oncology net orders for the first quarter of fiscal year 2013.  On a constant currency basis, Oncology Systems first quarter net orders were down 1 percent from the first quarter of fiscal year 2012 with a 2 percent decline in orders outside North America.

"Oncology customers took delivery during the quarter as expected but order placements were slower than anticipated," said Wilson.  "We believe the order slowness is principally a timing issue and that the market fundamentals remain sound."

X-Ray Products
First quarter revenues for the X-Ray Products business were $133 million, up 18 percent from the year-ago quarter.  X-Ray Products' first quarter net orders were $133 million, up 21 percent from the year-ago period.

"Our X-Ray Products business had a very good first quarter with strong revenue and order growth for both our X-ray tubes and flat panel detectors," Wilson said.  "Our tube business benefited from new products and apparent customer share gains in the CT market.  Market traction among our new products helped to drive flat panel growth during the quarter."

Other
The company's Other category, which is comprised of the Security and Inspection Products business, the Varian Particle Therapy business, and the Ginzton Technology Center, recorded first quarter revenues of $21 million versus $25 million in the year-ago quarter.  Net orders for the Other category were $9 million for the first quarter, down $2 million from the year-ago quarter. 

Outlook
"We are pleased with our first quarter results in revenues and earnings, which should keep the company on track for hitting its fiscal 2013 growth targets," said Wilson.  "We remain confident in the fundamental long-term strategy for serving our markets.  For the second quarter of fiscal year 2013, total company revenues could increase by about 5 to 6 percent over the prior year quarter.  With the balance of restructuring charges from the enhanced retirement program, net earnings per diluted share for the second quarter should be in the range of $0.98 to $1.03.  For the fiscal year, we continue to believe that total company revenues could increase by about 8 to 9 percent over the prior fiscal year.  Net earnings per diluted share for the fiscal year could be in the range of $4.08 to $4.16."

Investor Conference Call
Varian Medical Systems is scheduled to conduct its first quarter fiscal year 2013 conference call at 2 p.m. PT today.  To hear a live webcast or replay of the call, visit the investor relations page on the company's web site at www.varian.com/investor where it will be archived for a year.  To access the call via telephone, dial 1-877-869-3847 from inside the U.S. or 1-201-689-8261 from outside the U.S.  The replay can be accessed by dialing 1-877-660-6853 from inside the U.S or 1-201-612-7415 from outside the U.S. and entering confirmation code 406360.  The telephone replay will be available through 5 p.m. PT, Friday, January 25, 2013.

About Varian Medical Systems
Varian Medical Systems, Inc., of Palo Alto, California, is the world's leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiotherapy, radiosurgery, and brachytherapy. The company supplies informatics software for managing comprehensive cancer clinics, radiotherapy centers and medical oncology practices. Varian is a premier supplier of tubes, digital detectors, and image processing workstations for X-ray imaging in medical, scientific, and industrial applications and also supplies high-energy X-ray devices for cargo screening and non-destructive testing applications.  Varian Medical Systems employs approximately 6,200 people who are located at manufacturing sites in North America, Europe, and China and approximately 70 sales and support offices around the world. For more information, visit http://www.varian.com or follow us on Twitter.

Forward-Looking Statements
Except for historical information, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company's future orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology such as our Edge™ radiosurgery system, TrueBeam™ and radiographic flat panel detectors, image-guided radiation therapy, stereotactic radiosurgery, filmless X-rays, proton therapy, and security and inspection, and any statements using the terms  "could," "believe,"  "outlook," or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company's actual results to differ materially from those anticipated. Such risks and uncertainties include global economic conditions; the impact of  the Affordable Health Care for America Act (including excise taxes on medical devices) and any further health care reforms (including changes to Medicare and Medicaid), and/or changes in third-party reimbursement levels; currency exchange rates and tax rates; demand for the company's products; the company's ability to develop, commercialize, and deploy new products such as the TrueBeam platform; the company's ability to meet Food and Drug Administration (FDA) and other regulatory requirements for product clearances or to comply with FDA and other regulatory regulations or procedures; changes in the regulatory environment, including with respect to FDA requirements; challenges associated with the successful commercialization of the company's particle therapy business; the effect of adverse publicity; the company's reliance on sole or limited-source suppliers; the impact of reduced or limited demand by purchasers of certain X-ray products, including those located in Japan; the company's ability to maintain or increase margins; the impact of competitive products and pricing; the potential loss of key distributors or key personnel; challenges to public tender awards and the loss of such awards or other orders; and the other risks listed from time to time in the company's filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

A summary of earnings and other financial information follows.


Varian Medical Systems, Inc. and Subsidiaries

 Condensed Consolidated Statements of Earnings

(Unaudited)





(Dollars and shares in millions, except per share amounts)


Q1 QTR

2013



Q1 QTR

2012













Net orders

$

619.2


$

606.1




  Oncology Systems


476.9



484.7




  X-Ray Products


133.2



109.8




  Other


9.1



11.6













Order backlog

$

2,785.2


$

2,510.2













Revenues     

$

678.4


$

625.3




  Oncology Systems


524.3



487.6




  X-Ray Products


132.9



113.0




  Other


21.2



24.7













Cost  of  revenues  

$

387.3


$

356.5













Gross margin  


291.1



268.8




  As a percent of revenues


42.9%



43.0%













Operating expenses  









  Research and development


47.1



43.8




  Selling, general and administrative 


106.5



96.1













Operating earnings


137.5



128.9




  As a percent of revenues


20.3%



20.6%













Interest income, net


0.7



0.3













Earnings before taxes


138.2



129.2













Taxes on earnings 


42.9



39.0













Net earnings   

$

95.3


$

90.2




  As a percent of revenues


14.0%



14.4%































Net earnings per share – basic

$

0.87


$

0.80




Net earnings  per share – diluted

$

0.86


$

0.79













Shares used in the calculation of net earnings per share:









Average shares outstanding - basic


109.3



112.3




Average shares outstanding - diluted


111.1



114.4
























         

     Varian Medical Systems, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets






(In thousands)


December 28, 


September 28,

2012

2012 (1)

(Unaudited)


Assets





Current assets





    Cash and cash equivalents

$

755,489

$

704,570

    Short-term investment


51,804


49,709

    Accounts receivable, net


637,473


691,806

    Inventories                                       


499,616


457,869

    Deferred tax assets and other                                


283,931


266,561

Total current assets                                       


2,228,313


2,170,515






Property, plant and equipment                                            


669,119


653,424

    Accumulated depreciation and amortization                    


(370,586)


(356,832)

Property, plant and equipment, net                         


298,533


296,592






Goodwill


223,914


222,242

Other assets                                                   


187,804


189,377

Total assets                                              

$

2,938,564

$

2,878,726






Liabilities and Stockholders' Equity





Current liabilities                                                       





    Accounts payable                                             

$

145,172

$

180,736

    Accrued expenses                                             


306,785


336,568

    Deferred revenues                                             


132,881


130,883

    Advance payments from customers                              


396,229


380,545

    Product warranty                                                        


50,705


52,799

    Short-term borrowings


200,000


155,000

Total current liabilities                                  


1,231,772


1,236,531

Other long-term liabilities


123,654


126,169

Long-term debt                                                            


6,250


6,250

Total liabilities                                          


1,361,676


1,368,950






Stockholders' Equity





Common stock


109,322


109,407

Capital in excess of par value


609,246


563,875

Retained earnings and accumulated other comprehensive loss 


858,320


836,494

Total stockholders' equity                                 


1,576,888


1,509,776

Total liabilities and stockholders' equity              

$

2,938,564

$

2,878,726

    

(1)  The condensed consolidated balance sheet as of September 28, 2012 was derived from audited financial statements as of that date.

 

FOR INFORMATION CONTACT:

Elisha Finney (650) 424-6803
[email protected]

Spencer Sias (650) 424-5782
[email protected]

SOURCE Varian Medical Systems

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...