Varian Medical Systems Reports Record Performance for Second Quarter of Fiscal 2004; Raises Earnings Estimate for the Fiscal Year | Varian

Varian Medical Systems Reports Record Performance for Second Quarter of Fiscal 2004; Raises Earnings Estimate for the Fiscal Year

Palo Alto, Calif. April 28, 2004Varian Medical Systems (NYSE:VAR) today is reporting results for the second quarter of fiscal 2004 with net earnings of $44 million ($0.61 per diluted share), up 28 percent from $34 million ($0.48 per diluted share) in the year-ago period.The company achieved second quarter sales of $321 million, up 20 percent versus the year-ago quarter.Net orders for the second quarter were $348 million, up 19 percent from the year-ago period. Backlog at the end of the second quarter stood at $877 million, up 14 percent from the same time last fiscal year.

“Net orders, sales, and operating earnings were the highest for any quarter in Varian Medical Systems’ five-year history,”said Richard M. Levy, the company’s chairman and chief executive officer. “Gross profit reached record levels; and, for the 18th consecutive quarter, we established a new record-high backlog, setting the stage for continued sales growth.”

The company again generated positive operating cash flow and ended the quarter with about $396 million in cash and marketable securities.During the quarter, the company spent $36 million to buy back company stock.It spent another $37 million to complete its acquisition of the assets of OpTx Corporation, a supplier of software for medical oncology practices, and to establish a joint venture with Mitsubishi Electric Corp. for selling and servicing linear accelerators in Japan and other parts of Asia.

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