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Varian, Inc. Reports First Quarter 2008 Results
Date:1/23/2008

.2% in the first quarter of fiscal year 2008, compared to $22.9 million and 10.5% in the same quarter a year ago.

Adjusted income tax expense was $10.1 million (a 31.9% effective tax rate) in the first quarter of fiscal year 2008, compared to $10.2 million (a 35.1% effective tax rate) in the prior-year quarter. The lower effective tax rate in the first quarter of fiscal year 2008 reflects the positive outcome of tax uncertainties during the quarter. The effective tax rate for the full fiscal year 2008 is expected to be approximately 34.5% to 35.5%. On a GAAP basis, income tax expense was $8.1 million (a 31.4% effective tax rate) in the first quarter of fiscal year 2008, compared to $8.3 million (a 35.0% effective tax rate) in the same quarter a year ago.

"Our balanced approach of focusing on a broad array of applications, product lines and geographies positioned us to deliver another solid financial performance with record orders, sales, and earnings for any first quarter," said Garry W. Rogerson, President and Chief Executive Officer. "We accomplished this even though we incurred higher costs relating to sales commissions on strong orders, new product introductions and other initiatives in our Scientific Instruments segment, all of which should benefit us later in the year."

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, Actual.

Results by Segment

Scientific Instruments revenues for the first quarter of fiscal year 2008 were $197.0 million, representing an increase of 11.4% over revenues of $176.9 million in the first quarter of the prior fiscal year. Adjusted operating profit margin was 12.7% in the first quarters of both fiscal years 2008 and 2007. On a GAAP basis, operating profit margin was 10.1% in the first quarter of fiscal year 2008, com
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SOURCE Varian, Inc.
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