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Varian, Inc. Announces First Quarter 2009 Preliminary Results
Date:1/16/2009

PALO ALTO, Calif., Jan. 16 /PRNewswire-FirstCall/ -- Varian, Inc. (NasdaqGS: VARI) today announced preliminary results for the first quarter of its fiscal year 2009, which ended January 2, 2009.

First quarter sales should be between $205 million and $210 million. Non- GAAP (adjusted) diluted earnings per share should be between $0.50 and $0.54 including share-based compensation expense of approximately $0.05. On a GAAP basis, diluted earnings per share should be between $0.41 and $0.45. Adjusted operating margins should be between 11.2% and 11.4% in the quarter, while GAAP operating margins should be between 9.4% and 9.6%. Operating cash flow should be between $15 million and $20 million for the quarter.

For a complete reconciliation of non-GAAP (adjusted) financial information used in this press release to the most directly comparable GAAP financial information, please refer to the attached Reconciliations of GAAP to Adjusted Results, Preliminary.

Sales were below expectations in the first quarter primarily due to lower revenues from research products (in particular NMR and imaging systems). Despite order weakness late in the quarter, in particular for certain vacuum and analytical products, total company orders exceeded sales for the quarter. Adjusted operating margins held up well, even on lower revenues, due to the positive impact of efficiency improvements implemented in recent years and favorable foreign currency movements. In addition, operating cash flow was solid during the quarter.

"With respect to our research products sales, we have said many times that the timing of revenues on these products is impacted by factors such as laboratory readiness and access to customer sites, duration of installations and availability of key components and installation personnel," said Garry W. Rogerson, President and Chief Executive Officer. "Although we entered the first quart
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