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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2010
Date:10/28/2010

PALO ALTO, Calif., Oct. 28 /PRNewswire-FirstCall/ -- Varian Medical Systems (NYSE: VAR) today is reporting net earnings from continuing operations of $0.87 per diluted share in the fourth quarter of fiscal year 2010, up 12 percent from $0.78 in the year-ago quarter.  Net earnings per diluted share from continuing operations for fiscal year 2010 climbed to $2.96, also up 12 percent from $2.65 in fiscal year 2009.  Including discontinued operations, net earnings were $0.87 per diluted share for the fourth quarter and $2.91 for the fiscal year.  Compared to the same periods in fiscal year 2009, fourth-quarter revenues grew 2 percent to $652 million and revenues for fiscal year 2010 rose by 6 percent to $2.4 billion.

Net orders rose by 12 percent to $777 million for the fourth quarter and increased by 10 percent to $2.6 billion for the fiscal year, excluding from the year-ago periods a $62 million proton therapy system order that has been cancelled.  Excluding the proton order, the year-ending backlog rose 10 percent to $2.2 billion.  Including the proton order in the year-ago periods, net orders rose 3 percent for the fourth quarter and 5 percent for the fiscal year, and the year-ending backlog rose 7 percent.

"Our Oncology Systems and X-Ray Products businesses each generated solid order gains and achieved double-digit increases in backlog with the help of strong demand for new products, particularly our TrueBeam™ system and flat panel detectors," said Tim Guertin, president and CEO of Varian Medical Systems.  "Total revenues expanded modestly, reflecting the economic challenges and slower order activity that we experienced in the previous year, particularly in North America.  Product and territorial mix shifts within the Oncology business, a comparatively stronger dollar, and product launch costs contributed to a decline in the com
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