Varian Medical Systems Reports Record Earnings, Revenues, Net Orders, and Backlog for Fiscal Year 2004; Company Raises Guidance for Fiscal Year 2005 | Varian

Varian Medical Systems Reports Record Earnings, Revenues, Net Orders, and Backlog for Fiscal Year 2004; Company Raises Guidance for Fiscal Year 2005

PALO ALTO, Calif. -- Oct. 27, 2004 -- Strong demand for new radiation therapy and X-ray imaging products contributed to another year of record earnings, revenues, net orders, and year-ending backlog for Varian Medical Systems (NYSE: VAR) in fiscal year 2004. The company today reported net earnings of $52 million ($0.37 per diluted share) for the fourth quarter of fiscal year 2004, versus net earnings of $44 million ($0.31 per diluted share) in the year-ago fourth quarter. Net earnings for fiscal year 2004 were up 28 percent to $167 million ($1.18 per diluted share) versus net earnings of $131 million ($0.92 per diluted share) for fiscal year 2003. Fourth-quarter revenues were $345 million, up 14 percent from the year-ago quarter, bringing revenues for the fiscal year to $1.2 billion, 19 percent higher than total revenues for fiscal year 2003. Net orders were $412 million for the fourth quarter, up 28 percent from the year ago quarter.Total net orders for fiscal year 2004 were $1.4 billion, up 21 percent from the fiscal year 2003 total. The backlog at year-end stood at $970 million, 20 percent higher than at the end of fiscal year 2003.

"Our company had an outstanding quarter and fiscal year with growth in all of our segments," said Richard M. Levy, chairman and CEO of Varian Medical Systems.

"We saw strong demand for new products that support more precise image-guided and stereotactic cancer treatments as well as solid revenue growth in our emerging flat-panel, brachytherapy, and security and inspection products."

"Annual gross margin and operating margin increased to record levels,"Levy added."We generated operating cash flow of $63 million during the quarter and ended the fiscal year with $393 million in cash and marketable securities."

The company repurchased $82 million of its common stock during the quarter, leaving a balance of 1.5 million shares in the existing repurchase authorization.

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