Varian Medical Systems reports record 2Q for FY04

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Varian Medical Systems Inc. continued to ride the success of its oncology treatment technology, as sales and earnings blossomed again in the second fiscal quarter of FY04, ending March 31.

Sales gained 20 percent to $320.6 million, compared with $266.2 million in the first quarter of 2003. Net earnings reached $44 million, up 28 percent from $34 million in the year-ago quarter. Net orders of $348 million in the second quarter were the highest for any quarter in Varian Medical Systems' five-year history.

For the six-month period, sales increased to $587.6 million, up from $472.9 million in the first half of FY03. Net earnings escalated to $72.9 million, compared with $55.2 million in the year-ago period.

Varian Medical Systems Chairman and CEO Richard M. Levy said the company's second-quarter backlog of $877 million established a new record high, "setting the stage for continued sales growth."

Varian's Oncology Systems division posted sales of $270 million, up 26 percent from the year-ago period. Sales in its X-Ray Products unit, however, slipped 5 percent to $42 million, as the segment came off record sales in the year-ago quarter.

"We now believe that sales for fiscal year 2004 will rise by about 17 to 18 percent over fiscal 2003 totals," said Levy. He added that third-quarter earnings per diluted share are "expected to grow by about 20 percent and sales to grow nearly 15 percent over their respective totals in the year-ago third quarter."