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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2013
Date:10/23/2013

illion, down 1 percent from the same period of fiscal year 2012, and fiscal year revenues were $2.3 billion, up
3 percent from fiscal year 2012.  "Customers took delivery of treatment systems as expected in the quarter, however, short cycle sales of upgrades that normally occur during a quarter did not materialize and the Oncology Systems business fell short of its revenue targets," Wilson said. 

Compared to the fourth quarter of fiscal year 2012, Oncology Systems' fourth quarter gross orders rose 3 percent to $841 million and net orders fell 13 percent to $685 million including the backlog adjustment.  Compared to fiscal year 2012 totals, Oncology Systems' fiscal year 2013 gross orders rose 2 percent to $2.6 billion and net orders fell 4 percent to $2.3 billion.  

Compared to the year-ago quarter, gross orders in international markets grew by 12 percent, more than offsetting a 6 percent decline in North America.  On a constant currency basis, gross orders in international markets grew by 15 percent during the fourth quarter with solid gains in Asia and the Rest of the World.  Net orders grew by 6 percent in international markets while falling 35 percent in North America, including the backlog adjustment. 

"The U.S. market remains a replacement market," said Wilson.  "We continued to see growing interest in our new stereotactic radiosurgery products as well as our software and service offerings that we believe are setting the stage for long-term growth in this market.  In the meantime, the U.S. market is challenged by ongoing uncertainties related to the implementation of healthcare reform, cumulative cuts in reimbursements for freestanding clinics, and consolidation of radiation oncology centers.  We believe these factors are causing customers to change business models and to slow purchasing decisions." 

X-Ray Products
Fourth quarter revenues for the X-Ray Products business
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SOURCE Varian Medical Systems
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