Varian Medical revenues soar as company closes fiscal year

November 10, 2004

Strong demand for new radiation therapy and x-ray imaging products boosted fiscal year 2004 to record earnings, revenues, net orders, and a strong year-ending backlog for Varian Medical Systems. The company, which reported flat orders in Q3 for oncology equipment from North American customers, raised its guidance for fiscal 2005, predicting an increase of 13% to 14% and a rise in earnings of nearly 20% over 2004.

Strong demand for new radiation therapy and x-ray imaging products boosted fiscal year 2004 to record earnings, revenues, net orders, and a strong year-ending backlog for Varian Medical Systems. The company, which reported flat orders in Q3 for oncology equipment from North American customers, raised its guidance for fiscal 2005, predicting an increase of 13% to 14% and a rise in earnings of nearly 20% over 2004.

Net earnings grew about 18% in the fourth quarter ended Sept. 30, to $52 million compared with $44 million in the previous year's fourth quarter. Net earnings for fiscal year 2004 were up 28% to $167 million versus net earnings of $131 million for fiscal year 2003. Fourth-quarter revenues were $345 million, up 14% from the year-ago quarter, bringing revenues for the fiscal year to $1.2 billion, 19% higher than total revenues for fiscal year 2003. Net orders were $412 million for the fourth quarter, up 28% from the year-ago quarter. Total net orders for fiscal year 2004 were $1.4 billion, up 21% from the fiscal year 2003 total. The backlog at year's end was $970 million, 20% higher than at the end of fiscal year 2003.

Oncology Systems revenues for the fiscal year were $1 billion, up 20% from fiscal year 2003. Net orders for the quarter accounted for $351 million, up 24% from the same period last year, and $1.2 billion for the fiscal year, up 20% from fy 2003 totals. Net orders for the year were up 10% in North America and 37% in international markets.

Revenues for the X-Ray Products business, including tubes and amorphous silicon flat-panel digital imagers, were $45 million in the fourth quarter, up 21% from the year-ago quarter. For fy 2004, X-Ray revenues were a record $165 million, up 8% from fiscal year 2003.