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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2012
Date:10/25/2012

ccessful cost containment initiatives and improved quality costs."

Other
The 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 fourth quarter revenues of $36 million versus $51 million in the year-ago quarter when the company recognized a substantial amount of proton revenue. Revenues from the Other category for fiscal year 2012 totaled $125 million, up 18 percent from fiscal year 2011 levels.

Proton revenues approximating $5 million from the ongoing Scripps installation in San Diego were recognized during the quarter under contract accounting rules using the percentage of completion method.  

Net orders for the Other category were $30 million for the quarter, down from $124 million in the year ago quarter when the company booked a large proton order.
Compared to fiscal year 2011, Other category net orders for fiscal year 2012 rose 7 percent to $216 million, including two proton orders totaling over $120 million.

Outlook
"Our company is positioned for growth by focusing on continuous innovation, expanding our global presence, building our software and service franchises and commercializing protons," said Wilson.  "We are also enhancing our operational performance through productivity initiatives in all parts of the company.  As part of this effort, we will be taking a restructuring charge in the first quarter of fiscal year 2013.

"For fiscal year 2013, we believe that revenues could increase by 8 to 9 percent over the fiscal 2012 total," added Wilson. "Including an estimated $0.06 to $0.08 effect from the pending medical device excise tax, fiscal year 2013 net earnings per diluted share should be in the range of $4.06 to $4.16.  For the first quarter of fiscal year 2013, total company revenues could increase by about 8 to 9 percent over the prior year quarter.  Net earni
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SOURCE Varian Medical Systems
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