Varian has strong fiscal Q3

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Varian Medical Systems Monday reported net earnings of fiscal Q3 of $66 million, compared with net earnings in Q3 2005 of $51 million.

"Compared to the same period last fiscal year, third-quarter revenues grew 14 percent to $396 million, net orders rose 19 percent to $443 million, and the quarter-ending backlog increased 22 percent to $1.3 billion," said Tim Guertin, president and CEO of Varian. "New products for image-guided radiation therapy (IGRT) for cancer, stereotactic radiosurgery, filmless x-rays, and security and inspection contributed to significant growth in net orders in all of our business segments," Guertin added.
 
Varian generated strong cash flow from operations in the third quarter, ending the period with $371 million in cash and marketable securities. During the period, $75 million was spent to repurchase 1.5 million shares of common stock and $9 million was invested in the dpiX consortium to build a new semiconductor fab for the thin film transistor arrays used in digital image detectors for filmless X-rays, the company said.
 
Some highlights:

  • Oncology Systems' third quarter revenues totaled $331 million, up 14 percent from the third quarter of last fiscal year. This business recorded third quarter net orders of $374 million, up 15 percent from the same period last year with 14 percent growth in North America and 17 percent growth in international markets;
  • Revenues for the X-ray Products business, including X-ray tubes and flat panel digital image detectors for filmless X-rays, were $56 million for the third quarter, up 15 percent from the year-ago quarter.