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Varian Medical Systems Reports Results for Second Quarter of Fiscal Year 2009
Date:4/29/2009

PALO ALTO, Calif., April 29 /PRNewswire-FirstCall/ -- Varian Medical Systems (NYSE: VAR) today reported net earnings from continuing operations of $0.64 per diluted share in the second quarter of fiscal year 2009 versus net earnings from continuing operations of $0.57 per diluted share in the year-ago quarter. Including the discontinued ACCEL research instruments operation, net earnings per diluted share in the quarter were $0.54.

Compared to continuing operations in the year-ago quarter, second quarter revenues rose 7 percent to $554 million, net orders rose 2 percent to $524 million, and the backlog rose 12 percent to $1.9 billion.

"Net orders grew in our Oncology Systems and Security and Inspection Products businesses but fell in our X-Ray Products business," said Tim Guertin, president and CEO of Varian Medical Systems. "Revenues from continuing operations increased in all three businesses, and our gross margin improved by nearly three percentage points, contributing to higher earnings versus the year-ago quarter. However, we began to feel the effects of the global recession during the quarter which resulted in modest net orders growth. Currency fluctuations negatively impacted orders and revenue growth in the quarter."

The company ended the second quarter with $375 million in cash and cash equivalents and $43 million of debt. Days sales outstanding was 87 for the quarter, an improvement of three days versus the year-ago period and up four days from the preceding quarter. The company did not repurchase shares of its stock during the period.

Oncology Systems

Oncology Systems' revenues for the quarter totaled $445 million, up 6 percent from the second quarter of last fiscal year. This business recorded second-quarter net orders of $434 million, up 5 percent from the same pe
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SOURCE Varian Medical Systems, Inc.
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