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

e will book them in this fiscal year."

X-Ray ProductsFirst quarter revenues for the X-Ray Products business were $113 million, up 1 percent from the year-ago quarter.  Compared to the corresponding period in fiscal year 2011, X-Ray Products first quarter net orders fell 2 percent to $110 million.

"Our X-Ray Products business experienced weakness related to inventory adjustments among several customers in Japan who appear to have overstocked tubes and panels.  We believe this was related to their efforts to maintain normal production schedules in spite of blackouts following the earthquake and tsunami," said Guertin.  "We expect this region to return to more typical levels as the year progresses."

OtherThe company's Other category, which is comprised of the Security and Inspection Products business, the Varian Particle Therapy business, and the Ginzton Technology Center, recorded first quarter revenues of $25 million, up $9 million from the year-ago period driven principally by revenues from the installation of the Scripps proton system.  Compared to the first quarter of fiscal 2011, net orders in the Other category fell by $10 million to $12 million, principally because of a fall off in the security business versus a comparatively strong year-ago quarter.  

Subsequent to the close of the quarter the company signed a contract and booked an order to supply the King Fahd Medical Center in Saudi Arabia with a $77 million proton therapy system in a new center in Riyadh.Outlook "We remain confident in our growth outlook for fiscal 2012 and expect our businesses to strengthen as the year progresses with annual revenues growing by about 10 percent and earnings per diluted share rising by about 15 percent," said Guertin. "For the second quarter of fiscal 2012, we believe that revenues could increase by about 8 percent over the second quarter of fiscal 2011 total and that net earnings per diluted share could rise by
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