PALO ALTO, Calif.--(BUSINESS WIRE)--Nov. 9, 2000--Varian Medical Systems, Inc. (NYSE:VAR) today announced it will take an approximate $2 million pretax charge related to its abandoned acquisition of IMPAC Medical Systems in the fourth quarter of fiscal year 2000 rather than in the first quarter of fiscal year 2001 as previously announced.
The charge for legal and related fees will reduce earnings per diluted share by $0.03 to $0.71 for the fourth quarter and to $1.64 for the full fiscal year 2000.
Varian abandoned the IMPAC acquisition Monday after the U.S. Department of Justice declared its intention to challenge the transaction on antitrust grounds. Varian stated that it would proceed with other software alliances and internal product development rather than entering into a lengthy legal proceeding with the government. By abandoning the acquisition at this time, the company is required to record the charge in fourth quarter results.
Varian Medical Systems, Inc., (NYSE:VAR) of Palo Alto, California, is the world's leading manufacturer of radiotherapy systems, which are treating thousands of cancer patients per day. The company is also a premier supplier of X-ray tubes and flat-panel digital subsystems for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs some 2,300 people at some 40 sites around the world. In its most recent fiscal year ended September 29, 2000, Varian Medical Systems reported sales of $690 million. Additional information is available on the company's web site at www.varian.com.
CONTACT: for Varian Medical Systems, Inc.
Elisha Finney, 650/424-6803
Spencer Sias 650/424-5782