Palo Alto, Calif. January 28, 2004 -Varian Medical Systems (NYSE:VAR) today reported continued strong growth in net earnings, sales, net orders, and backlog for the first quarter of fiscal 2004. Net earnings for the quarter were $29 million ($0.41 per diluted share) versus $21 million ($0.30 per diluted share) in the year-ago period. First-quarter sales were $267 million, up 29 percent from the year-ago quarter. Net orders were $308 million, up 23 percent from the year-ago period. Backlog at the end of the quarter stood at a record $850 million, up 14 percent from the total at the end of the first quarter in fiscal 2003.
"Our company had another robust quarter of growth in all business segments," said Richard M. Levy, Chairman and CEO of Varian Medical Systems. "We are serving a growing market in which demand is being driven by rising cancer incidence, underserved medical needs outside the U.S., and dramatic technological advances that are leading to significant improvements in patient care. Meanwhile, our emerging businesses in security and inspection, flat panel X-ray imaging, and brachytherapy also added to the company’s sales growth during the quarter."
The company ended the quarter with $396 million in cash and marketable securities after buying back $35 million in company stock and completing the acquisition of Zmed, Inc. for $35 million during the period. Operating cash flow for the quarter was $57 million. Accounts receivable days sales outstanding also improved to 76 days at the end of the quarter, down 13 days from the same point in the last fiscal year.
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