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Varian Medical Systems Reports Results for Third Quarter of Fiscal Year 2012
Date:7/25/2012

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X-Ray Products
Third quarter revenues for the X-Ray Products business were $127 million, up 5 percent from the year-ago quarter.  Compared to the corresponding period in fiscal year 2011, X-Ray Products' third quarter net orders fell 1 percent to $120 million.  The X-Ray Products business experienced the effects of a weaker economy during the quarter in the face of softer demand from major customers. Gross margins for this business rose by more than 4 points to a record 45 percent, driven mainly by a greater proportion of higher margin products and improved quality costs in the panel business.

Other
The company's Other category, which includes Security and Inspection Products and Varian Particle Therapy, recorded third quarter revenues of $32 million, double the year-ago quarter.  Revenues from Security and Inspection Products were up strongly in the quarter. Third-quarter orders for the Other category totaled $7 million, down $10 million from the year-ago quarter. Results from these businesses generally vary significantly from quarter to quarter.

Outlook
"With tremendous movements in currency exchange rates, particularly the substantial weakening of the Euro, we are adjusting our outlook for fiscal 2012," said Guertin. "Compared with fiscal 2011 totals, we now believe that for fiscal year 2012 revenues could increase by about 8 percent and net earnings per diluted share from continuing operations could grow by 8 to 9 percent." 

Investor Conference Call
Varian Medical Systems is scheduled to conduct its third quarter fiscal year 2012 conference call at 2 p.m. PT today.  To hear a live webcast or replay of the call, visit the investor relations page on the company's web site at www.varian.com/investor where it will be archived for a year.  To access the call via telephone, dial 1-877-556-5921 from inside the U.S. or 1-617-597-5474 from outside
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SOURCE Varian Medical Systems, Inc.
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