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Varian Medical Systems Reports Results for Third Quarter of Fiscal Year 2011
Date:7/27/2011

ublic tender awards and the loss of such awards or other orders; and the other risks listed from time to time in the company's filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

A summary of earnings and other financial information follows.Varian Medical Systems, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)(Dollars and shares in millions, except per share amounts)Q3 QTR2011Q3 QTR2010Q3YTD2011Q3YTD2010Net orders

$

691.3629.31,965.61,718.1  Oncology Systems553.2506.61,532.31,419.3  X-Ray Products120.9103.2356.5306.9  Security & Inspection Products15.718.074.151.8  Varian Particle Therapy  (1)1.10.42.3(61.0)   Ginzton Technology Center0.41.10.41.1Order backlog

$

2,280.52,068.02,280.52,068.0Revenues

$

649.4578.01,877.71,704.5  Oncology Systems512.5455.91,472.81,350.5  X-Ray Products120.8102.3350.2295.9  Other16.119.854.758.1Cost of revenues

$

369.6323.61,042.1955.1Gross margin279.8254.4835.6749.4  As a percent of revenues43.1%44.0%44.5%44.0%Operating expenses  Research and development  44.438.9126.8116.2  Selling, general and administrative  94.984.7280.1247.8Operating earnings 140.5130.8428.7385.4  As a percent of revenues21.6%22.6%22.8%22.6%Interest income/(expense), net0.1(0.9)0.2(1.5)Earnings from continuing operations before taxes140.6129.9428.9383.9Taxes on earnings 42.038.0130.7122.1Earnings from continuing operations  98.691.9298.2261.8  As a percent of revenues15.2%15.9%15.9%15.4%Loss  from discontinued operations – net
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