Varian earnings jump

August 6, 2003

Net earnings at Varian Medical Systems grew 41% to $32 million during third quarter 2003 on a 23% rise in sales over the year-earlier period-and the future looks even brighter. Net orders in the quarter rose 14%, and the backlog jumped 18% to $789

Net earnings at Varian Medical Systems grew 41% to $32 million during third quarter 2003 on a 23% rise in sales over the year-earlier period-and the future looks even brighter. Net orders in the quarter rose 14%, and the backlog jumped 18% to $789 million. Company executives report sales growth in double digits across all business segments with brightening prospects in emerging product lines, including brachytherapy systems, as well as nonmedical security and inspection equipment.

This is the fourth consecutive year net earnings have grown by more than 40%, according to the company. Oncology Systems sales of Clinac accelerators as well as accessories, software, and services for radiation therapy totaled $218 million for the quarter, up 25% from the prior-year period. Orders for intensity-modulated and image-guided radiotherapy products also rose. Third quarter net orders in the Oncology Systems business totaled $242 million, up 18% with especially strong performance in Europe. X-ray products sales, including tubes and amorphous silicon flat-panel digital imagers, accounted for $37 million, up 11% from the year-ago quarter. The company predicts that sales for fiscal year 2003 will overshadow fiscal 2002 totals by about 18%.