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

riod last year. Net orders were up 4 percent in North America and up 7 percent in international markets.

"Oncology Systems' order growth was driven primarily by our service business and international demand," said Guertin. "Oncology order growth was 10 percent on a constant currency basis. The North American order growth rate was slowed by tightened capital budgets and tougher credit requirements. A shift toward North American deliveries and a richer product mix including RapidArc contributed to significant growth in gross margins for this business."

X-Ray Products

Revenues for the X-Ray Products business, including tubes and digital flat-panel detectors for filmless X-ray imaging, were $86 million for the second quarter, up 15 percent from the year-ago quarter. Net orders for this business were $69 million, down 17 percent from the year-ago quarter.

"X-ray Product orders were impacted by customers who are now adjusting inventory levels to reflect slower imaging equipment sales in a recessionary environment," said Guertin. "Orders for high-tier CT and mammography tubes declined. Decreases in dental and veterinary imaging panel orders offset significant growth in orders for our emerging line of radiographic panels. Higher revenues combined with operational improvements and reductions in quality cost led to a substantial margin increase for this business."

Other Businesses

The company's Security and Inspection Products (SIP) business, proton therapy business, and Ginzton Technology Center reported combined fiscal 2009 second quarter revenues of $23 million, up 3 percent from the year-ago quarter. Net orders for the quarter were $21 million, up 9 percent versus the year-ago quarter due exclusively to the SIP business.

The company completed the sale of the ACCEL research instruments business to Bruker Corporation during the quarter a
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SOURCE Varian Medical Systems, Inc.
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