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Varian Medical Systems Reports Results for First Quarter of Fiscal Year 2012
Date:1/25/2012

PALO ALTO, Calif., Jan. 25, 2012 /PRNewswire/ -- Varian Medical Systems (NYSE: VAR) today is reporting results for the first quarter of fiscal year 2012 with net earnings of $0.79 per diluted share, down 1 percent from the year-ago quarter. Revenues for the quarter were $625 million, up 8 percent from the year-ago period. Including $48 million in proton therapy backlog, the company ended the first quarter with a $2.5 billion backlog, up 14 percent from the end of the first quarter in fiscal 2011.  

"While we met our guidance for net earnings and revenues, this was a challenging quarter for the company in a variety of ways," said Tim Guertin, president and CEO of Varian Medical Systems.  "We experienced order push outs in our North American oncology business and X-Ray Product orders and sales were hurt by inventory adjustments by our customers in Japan. As anticipated, the gross margin was impacted by a tough year-ago comparison, product mix, and accounting for Scripps proton revenue with zero margin.  Additionally our operating margin was impacted by the dilutive effects of the Calypso acquisition."  

The company ended the first quarter with $606 million in cash and cash equivalents and $188 million of debt.

Oncology SystemsOncology Systems' first quarter revenues totaled $488 million, up 8 percent from the same period of fiscal year 2011.  First-quarter net orders were $485 million, up 6 percent, with a 22 percent increase in international markets offsetting an 11 percent decline in North America versus the comparable year-ago period."Net orders in all international regions were up in solid double digits, comprising nearly 60 percent of the net orders received by this business during the quarter," Guertin said.  "Several orders that we were aiming for in North America during the quarter were pushed out, but we fully expect that w
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