Varian Reports Results for First Quarter of Fiscal Year 2021

PALO ALTO, Calif., Jan. 26, 2021 /PRNewswire/ —

First Quarter 2021 Abstract

• Oncology Programs gross orders grew 2% in {dollars} or 1% in fixed foreign money within the quarter; trailing twelve months gross orders down 5% in {dollars} or 6% in fixed foreign money
• 13 Ethos^TM orders obtained, together with 8 within the Americas, 4 in EMEA, and 1 in Asia-Pacific
• 1 Proton order awarded in China
• Complete firm revenues down 6% in {dollars}, or 8% in fixed foreign money, to $779 million
• GAAP working earnings grew 7% at 15.1% of revenues; non-GAAP working earnings grew 1% at 17.5% of revenues
• GAAP internet earnings per diluted share of $1.05; non-GAAP internet earnings per diluted share of $1.14
• Money flows from operations of $141 million, up 26%

Varian (NYSE: VAR) right now introduced its first quarter fiscal yr 2021 outcomes.

“I’m happy with our stable begin to the fiscal yr, particularly given the present international panorama as a result of pandemic. Our efficiency within the quarter displays the unwavering focus of our staff to ship crucial most cancers care options for our prospects,” stated Dow Wilson, Chief Government Officer of Varian. “Our long-term fundamentals stay robust and we’re excited in regards to the alternative to form the way forward for most cancers care with the pending mixture with Siemens Healthineers.”

As beforehand introduced on August 2, 2020, Varian entered right into a definitive settlement to mix with Siemens Healthineers AG (Frankfurt: SHL) in an all-cash transaction valued at $16.4 billion on a completely diluted foundation. On October 15, 2020, Varian’s stockholders voted in favor of the proposal to undertake the merger settlement with Siemens Healthineers. The transaction is anticipated to shut within the first half of calendar yr 2021, topic to regulatory approvals and different customary closing situations.

Abstract

The corporate ended the quarter with $773 million in money and money equivalents and $210 million in debt. Internet money supplied by working actions was $141 million within the quarter.

Oncology Programs Phase
Oncology Programs revenues totaled $744 million, down 5%. Gross orders have been $789 million, up 2%. Gross orders within the Americas have been down 4%, with flat progress in North America. In EMEA, gross orders grew 21%. In Asia-Pacific, gross orders have been down 12%.

Proton Options Phase
Proton Options revenues totaled $26 million, down 7%. The corporate obtained one new system order within the quarter.

Different Phase
Revenues for the Different section have been $9 million, down 54%. The Different section is comprised of the Interventional Options enterprise, together with cryoablation, embolic microspheres, and microwave ablation. Moreover, it consists of investments in cardiac radioablation.

Non-GAAP Changes
This quarter, our GAAP internet earnings and GAAP EPS included a $9.4 million profit from change in truthful worth from our public fairness investments and $4.9 million in prices associated to the proposed acquisition by Siemens Healthineers. As a reminder, within the first quarter of fiscal yr 2020, GAAP internet earnings and GAAP EPS included a cost of $8.8 million for a change within the truthful worth of contingent consideration.

Investor Convention Name
In mild of the pending transaction with Siemens Healthineers, Varian won’t be internet hosting a convention name for its first quarter of fiscal yr 2021 earnings.

About Varian
At Varian, we envision a world with out worry of most cancers. For greater than 70 years, we’ve developed, constructed and delivered modern most cancers care applied sciences and options for our scientific companions across the globe to assist them deal with tens of millions of sufferers every year. With an Clever Most cancers Care method, we’re harnessing superior applied sciences like synthetic intelligence, machine studying and information analytics to reinforce most cancers remedy and increase entry to care. Our 10,000 staff throughout 70 areas maintain the affected person and our scientific companions on the middle of our pondering as we energy new victories in most cancers care. As a result of, for most cancers sufferers in all places, their struggle is our struggle. For extra info, go to http://www.varian.com and comply with @VarianMedSys on Twitter.

Ahead-Trying Statements
Aside from historic info, this information launch accommodates forward-looking statements inside the which means of the Personal Securities Litigation Reform Act of 1995. Statements regarding the timing of the corporate’s acquisition by Siemens Healthineers; the corporate’s long-term progress and worth creation methods future orders, backlog, liquidity, capital allocation priorities, and the continued affect of the COVID-19 pandemic on our enterprise; and any statements utilizing the phrases “may,” “imagine,” “anticipate,” “promising,” “outlook,” “ought to,” “well-positioned,” “will” or related statements are forward-looking statements that contain dangers and uncertainties that would trigger the corporate’s precise outcomes to vary materially from these anticipated. Such dangers and uncertainties embrace the persevering with affect of the COVID-19 pandemic on our enterprise, together with however not restricted to, the affect on our workforce, operations, provide chain, demand for our services and products, and our monetary outcomes and situation; our capability to efficiently handle the challenges related to the COVID-19 pandemic; our capability to realize anticipated synergies from acquisitions; dangers related to integrating latest acquisitions; international financial situations and modifications to traits for most cancers remedy regionally; foreign money trade charges and tax charges; the affect of the Tax Cuts and Jobs Act; the affect of the Reasonably priced Well being Look after America Act (together with excise taxes on medical gadgets) and any additional healthcare reforms (together with modifications to Medicare and Medicaid), and/or modifications in third-party reimbursement ranges; latest and potential future tariffs, cross-border commerce restrictions or a world commerce battle; demand for and delays in supply of the corporate’s merchandise; the corporate’s capability to develop, commercialize and deploy new merchandise; the corporate’s capability to fulfill Meals and Drug Administration (FDA) and different regulatory necessities, rules or procedures; modifications in regulatory environments; dangers related to the corporate offering financing for the development and start-up operations of particle remedy facilities, challenges related to commercializing the corporate’s Proton Options enterprise; challenges to public tender awards and the lack of such awards or different orders; the impact of opposed publicity; the corporate’s reliance on sole or limited-source suppliers; the corporate’s capability to keep up or improve margins; the affect of aggressive merchandise and pricing; the potential lack of key distributors or key personnel; challenges associated to coming into into new enterprise strains; the prevalence of any occasion, change or different circumstances that would give rise to the termination of the merger settlement with Siemens Healthineers; the failure to acquire sure required regulatory approvals or the failure to fulfill any of the opposite closing situations to the completion of the merger; dangers associated to disruption of administration’s consideration from the corporate’s ongoing enterprise operations as a result of merger; the impact of the announcement of the merger on the flexibility of the corporate to retain and rent key personnel and keep relationships with its prospects, suppliers, distributors and others with whom it does enterprise, or on its working outcomes and enterprise usually; the flexibility to fulfill expectations concerning the timing and completion of the merger; and the opposite dangers listed occasionally within the firm’s filings with the Securities and Trade Fee, which by this reference are integrated herein. For added info regarding components that would trigger precise outcomes and occasions to vary materially from these projected herein, please consult with our Kind 10-Ok for the yr ended October 2, 2020 and subsequent Varieties 8-Ok and 10-Q filed with the Securities and Trade Fee. The corporate assumes no obligation to replace or revise the forward-looking statements on this launch due to new info, future occasions, or in any other case.

Varian has not filed its Kind 10-Q for the quarter ended January 1, 2021. Because of this, all monetary outcomes described right here must be thought-about preliminary, and are topic to alter to mirror any essential changes, completion of buy accounting, or modifications in accounting estimates, which can be recognized previous to the time the corporate recordsdata the Kind 10-Q.

Dialogue of Non-GAAP Monetary Measures

This press launch consists of the next non-GAAP monetary measures derived from our Condensed Consolidated Statements of Earnings: non-GAAP working earnings, non-GAAP internet earnings and non-GAAP internet earnings per diluted share. We outline non-GAAP working earnings as working earnings excluding amortization of intangible belongings and amortization of stock step-up, acquisition and integration-related bills or advantages and in-process analysis and improvement, restructuring prices, impairment prices, important litigation prices or advantages and authorized prices. These measures should not offered in accordance with, nor are they an alternative choice to U.S. usually accepted accounting ideas, or GAAP. As well as, these measures could also be totally different from non-GAAP measures utilized by different firms, limiting their usefulness for comparability functions. The non-GAAP monetary measures shouldn’t be thought-about in isolation from measures of monetary efficiency ready in accordance with GAAP. Traders are cautioned that there are materials limitations related to using non-GAAP monetary measures as an analytical software. We’ve got supplied a reconciliation of every non-GAAP monetary measure used on this earnings launch to probably the most immediately comparable GAAP monetary measure. We’ve got not supplied a reconciliation of non-GAAP steering measures to the corresponding GAAP measures on a forward-looking foundation as a result of potential important variability and restricted visibility of the excluded gadgets mentioned under.

We make the most of quite a few totally different monetary measures, each GAAP and non-GAAP, in analyzing and assessing the general efficiency of our enterprise, in making working selections, forecasting and planning for future durations, and figuring out funds beneath compensation applications. We think about using the non-GAAP measures to be useful in assessing the efficiency of the continuing operations of our enterprise. We imagine that disclosing non-GAAP monetary measures supplies helpful supplemental information that, whereas not an alternative choice to monetary measures ready in accordance with GAAP, permits for larger transparency within the overview of our monetary and operational efficiency. We additionally imagine that disclosing non-GAAP monetary measures supplies helpful info to buyers and others in understanding and evaluating our working outcomes and future prospects in the identical method as administration and in evaluating monetary outcomes throughout accounting durations and to these of peer firms. Non-GAAP working earnings and non-GAAP internet earnings exclude the next gadgets, apart from good points and losses on fairness investments, and important non-recurring tax expense or profit, that are solely excluded from non-GAAP internet earnings:

Amortization of intangible belongings and amortization of stock step-up: We don’t purchase companies and belongings on a predictable cycle. The quantity of buy worth allotted to intangible belongings, the step-up of stock values, and the time period of amortization can range considerably and are distinctive to every acquisition or buy. We imagine that excluding amortization of intangible belongings and amortization of stock step-up permits the customers of our monetary statements to raised overview and perceive the historic and present outcomes of our operations, and in addition facilitates comparisons to see firms.

Acquisition and integration-related bills or advantages and in-process analysis and improvement: We incur bills or advantages with respect to sure gadgets related to our acquisitions, corresponding to transaction prices, hedging good points and losses, modifications within the truthful worth of contingent consideration liabilities, good points or bills on settlement of pre-existing relationships, integration prices, breakup charges, and the write-off of in-process analysis and improvement. We exclude such bills or advantages as they’re associated to acquisitions and haven’t any direct correlation to the operations of our on-going enterprise.

Impairment and restructuring prices: We incur impairment and restructuring prices that consequence from occasions, which come up from unexpected circumstances and/or usually happen outdoors of the bizarre course of our on-going enterprise. Though these occasions are mirrored in our GAAP financials, these distinctive transactions could restrict the comparability of our on-going operations with prior and future durations.

Vital litigation prices or advantages and authorized prices: We could incur prices or advantages in addition to authorized prices occasionally associated to litigation and different contingencies. We exclude these prices or advantages, when important, in addition to authorized prices related to important authorized issues, as a result of we don’t imagine they’re reflective of on-going enterprise and working outcomes.

Positive factors and losses on fairness investments: We could incur good points and losses from our fairness investments in public and privately-held firms. We don’t commerce fairness investments, and we don’t plan on these investments for the funding of ongoing operations. We exclude such good points and losses as a result of we don’t imagine they’re reflective of our core enterprise.

Vital non-recurring tax expense or profit: We could incur a major tax expense or profit in consequence tax laws and/or a change in judgment in regards to the want for a valuation allowance which can be usually unrelated to the extent of enterprise exercise within the interval through which these tax results are reported. We exclude such bills or advantages from our non-GAAP internet earnings as a result of we imagine they don’t precisely mirror the underlying efficiency of our persevering with enterprise operations.

We apply our GAAP consolidated efficient tax price to our non-GAAP monetary measures, apart from when the underlying merchandise has a materially totally different tax remedy.

The next desk reconciles GAAP and non-GAAP monetary measures:

Investor Relations Contact
Anshul Maheshwari
Vice President, Treasury and Investor Relations
+1 (650) 424-5163
[email protected]

Press Contact
Kathy Conner
Vice President, World Company Advertising
+1 (650) 424-5695
[email protected] 

SOURCE Varian

Associated Hyperlinks

www.varian.com