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Varian Medical Systems Reports Results for Second Quarter of Fiscal Year 2011
Date:4/27/2011

PALO ALTO, Calif., April 27, 2011 /PRNewswire/ -- Varian Medical Systems (NYSE: VAR) today is reporting net earnings from continuing operations of $0.86 per diluted share in the second quarter of fiscal year 2011, up 18 percent from the year-ago quarter.  Revenues for the quarter were $648 million, up 11 percent from the prior-year period and up 9 percent on a constant currency basis. Order backlog at the end of the second quarter rose 11 percent from the prior-year quarter to $2.2 billion.

"Demand for our new TrueBeam system, Oncology services, X-ray tubes and panels, as well as our security products, led to healthy orders and revenue growth and improved gross and operating margins during the quarter," said Tim Guertin, president and CEO of Varian Medical Systems.  "Although it is too early to determine the eventual impact of the tragic situation in Japan, it had minimal impact on orders, revenues, and profits in any of our businesses during the quarter."

At the end of the quarter, the company had $584 million in cash and cash equivalents and $143 million of debt.  During the second quarter, the company spent $238 million to buy 3.5 million shares of its common stock through a previously announced accelerated share repurchase program.  Days sales outstanding for the quarter was 79, an increase of 3 days from the year-ago period.  

Oncology SystemsSecond quarter revenues from Oncology Systems' products and services for radiotherapy, radiosurgery, and brachytherapy totaled $508 million, up 9 percent from the same period last fiscal year.  Second quarter net orders totaled $520 million, up 9 percent versus the year-ago period, or 8 percent on a constant currency basis.  Net orders rose 12 percent in North America and increased 7 percent in the international markets. Double digit order gains in Europe and the Rest of the World m
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SOURCE Varian Medical Systems
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