Financial News: EMC, GE Healthcare, Philips, Varian

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EMC Corporation reported total consolidated revenue for Q4 2006 of $3.21 billion, 19 percent higher than the $2.71 billion for the same quarter of 2005 and $55 million more than the fourth-quarter revenue forecast provided by EMC in October 2006. GAAP net income for Q4 of 2006 was $389 million, compared to the 2005 total of $148 million.

Total consolidated revenue for EMC's full 2006 fiscal year was a record $11.15 billion, 15 percent higher than the $9.664 billion reported for the full 2005 fiscal year. GAAP net income for 2006 was $1.22 billion, up from the company’s 2005 reported net income of $1.13 billion.

GE Healthcare has received full corporate accreditation by the Electronic Healthcare Network Accreditation Commission (EHNAC). The commission is an independent, not-for-profit accrediting agency for entities that send or receive HIPAA transactions or that transport or process EDI (Electronic Data Interchange) transactions between two or more trading partners in the healthcare community. “Today, GE Healthcare’s Centricity EDI Services joins a select group of clearinghouses that have demonstrated to independent third party evaluators their ability to deliver services consistent with the only standards in the industry that measure the overall business practices of a clearinghouse,” said Lee Barrett, executive director of EHNAC.

Philips Medical Systems released Q4 2006 financial results, with sales of $2.68 billion (USD) compared to $2.62 billion in 2005, a rise of 7 percent (comparable) and 2 percent (nominal). Comparable sales grew largely due to double-digit growth in healthcare informatics and customer service, and due to sales of i-Site PACS that went up nearly 50 percent, the company said.
Philips said saw earning before tax (EBIT) in Q4 2006 of $403 million compared with $345 million during the period in 2005. The company said it saw improvements in most businesses, particularly computed tomography, nuclear medicine and customer service.

Varian Medical Systems reported net earnings of $50 million in Q1 of fiscal year 2007 versus net earnings of $41 million in the year-ago quarter. Revenues for the quarter were $388 million, up 16 percent from the first quarter of last fiscal year. Net orders for the first quarter were $408 million, up 1 percent versus the same period last year; and backlog at the end of the quarter stood at $1.4 billion, up 14 percent from the end of the Q1 fiscal 2006.

Varian ended Q1 with $363 million in cash and marketable securities after spending $77 million during the quarter to repurchase 1.5 million shares of its stock, completing a 6 million share repurchase authorization initiated at the beginning of calendar year 2006. The company has an additional 4.5 million share repurchase authorization that extends through the end of fiscal year 2007, according to a release.

By market, the company saw the following results:

Oncology Systems' Q1 revenues totaled $316 million, up 15 percent from results for first quarter of last fiscal year. This business recorded first-quarter net orders of $330 million, up 1 percent from the same period last year. Net orders were up 19 percent in North America and down 16 percent in international markets.

Revenues for the x-ray products business, including tubes and digital flat-panel detectors for filmless x-ray imaging, were $62 million for Q1, up 19 percent from the year-ago quarter. Net orders for this business were $67 million, up 22 percent from the year-ago quarter.