Varian Medical Systems, Inc. (Varian Medical) has reported revenue of $509 million for the first quarter of fiscal 2009, compared with the revenue of $451.2 million in the year-ago quarter. It has also reported net earnings of $68.8 million, or $0.55 per diluted share, for the first quarter of fiscal 2009, compared with the net earnings of $55.5 million, or $0.43 per diluted share, in the year-ago quarter.
“Net orders and revenues increased in our Oncology Systems and X-Ray Products business segments as well as our Security and Inspection Products business,” said Tim Guertin, president and chief executive officer of Varian Medical. “Our gross margin improved by more than half percentage point and contributed to higher earnings versus the year-ago quarter.”
The company ended the first quarter with $423 million in cash and cash equivalents and $65 million of debt. Days sales outstanding of 83 days in the quarter improved by 4 days versus the year-ago period. The company spent $72 million during the quarter to repurchase 1.5 million shares under its stock repurchase authorization.
Oncology Systems’ revenues for the quarter totaled $398 million, up 11% from the first quarter of last fiscal year. This business recorded first-quarter net orders of $428 million, up 11% from the same period last year. Net orders were up 6% in North America and up 16% in international markets.
Revenues for the X-Ray Products business, including tubes and digital flat-panel detectors for filmless X-ray imaging, were $86 million for the first quarter, up 23% from the year-ago quarter. Net orders for this business were $91 million, up 21% from the year-ago quarter.
The company’s security and inspection products business, ACCEL proton therapy unit, and Ginzton Technology Center reported combined fiscal 2009 first quarter revenues of $24 million, up 17% from the year-ago quarter. Net orders for the quarter were $33 million, up 15% versus the year-ago quarter, due primarily to the security and inspection products business.
“Despite continuing turbulent financial times, we believe that fiscal year 2009 revenues could grow by about 10 to 13% and that net earnings per diluted share from continuing operations for the fiscal year could grow to between $2.59 and $2.64,” Guertin said. “For the second quarter of fiscal year 2009, revenues could grow in the range of 9 to 10% with a slightly faster growth rate in operating earnings. Including a higher expected tax rate, net earnings per diluted share from continuing operations for the second quarter should be in the range of $0.59 to $0.62.”