Varian Medical Systems Expects To Report Solid Growth In Net Earnings, Sales, Net Orders, and Backlog for Third Quarter of Fiscal 2004; Company Raises Earnings Guidance for Fiscal 2004 | Varian

Varian Medical Systems Expects To Report Solid Growth In Net Earnings, Sales, Net Orders, and Backlog for Third Quarter of Fiscal 2004; Company Raises Earnings Guidance for Fiscal 2004

PALO ALTO, Calif., July 14, 2004 -- Varian Medical Systems, Inc. (NYSE:VAR) announced today that it expects earnings per diluted share for the third quarter of fiscal year 2004 to be up by nearly 30 percent over the reported earnings per diluted share in the third quarter of fiscal year 2003. Sales for the third quarter are expected to grow by about 14 percent over the corresponding period in fiscal year 2003. Third-quarter net orders for the company will be about 15 percent higher than the year-ago quarter.

The Oncology Systems business expects to report an increase of about 14 percent in net orders, despite roughly flat orders in North America.The quarter-ending backlog for the company is expected to be up by about 14 percent over the backlog for the same time last fiscal year.

“We are pleased to be posting another quarter of solid growth for our company, consistent with our long-term growth expectations,” said Dick Levy, chairman and CEO of Varian Medical Systems. “We also believe that we have maintained or increased our leading share in our major radiation oncology markets.”

“We expect that sales for fiscal year 2004 will rise by about 17 to 18 percent over fiscal 2003 sales with earnings per diluted share growth of about 25 percent over the fiscal 2003 level,” Levy said.

“Given recent trading volatility and above average volumes, we wanted to indicate our anticipated results in advance of our usual earnings release,” Levy said.

Varian Medical Systems’ management will comment in more detail about the third quarter results, as well as its outlook for fiscal year 2005, after the close of trading on the New York Stock Exchange on Thursday, July 29, on the company’s scheduled conference call.The conference call is scheduled for 2 p.m. PT and can be accessed via the web at http://investor.varian.com or via telephone at 1-800-599-9795 (inside the
U.S.) or 1-617-786-2905 (outside the U.S.) with confirmation code 93474526.
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