varian medical systems inc (VNM) Snapshot

Varian Medical Systems and Siemens Healthcare announced that clinicians at The Ohio State University (Ohio State) are now using Varian software to plan and manage radiotherapy treatments delivered on a Siemens medical linear accelerator. The companies have developed and deployed an interface that connects Varian's ARIA(R) oncology information system with Siemens' ONCOR and PRIMUS accelerators and imaging systems.

Varian Medical Systems, Inc. announced it received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for Varian's diagnostic X-ray image processing workstation that combines radio frequency (RF) and digital radiography (DR) capabilities on one platform. Varian's Nexus DRF Digital X-Ray Imaging System(TM) has the ability to interface with a variety of image receptors, including CCD cameras and commercially available flat-panel image detectors. The Nexus system enables an operator to acquire, display, process, transmit, export, or print high resolution X-ray images. The advanced image processing algorithms make it possible to bring out diagnostic details that can be difficult to see using conventional imaging techniques. The major system components include an image detector, a computer, a high resolution monitor, and Varian's proprietary image processing software. Each system can be set up to process data from multiple receptors and detectors.

Varian Medical Systems, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended March 31, 2013. For the quarter, the company’s revenues were $768.4 million against $720.3 million a year ago. Earnings before taxes were $156.3 million against $144.2 million a year ago. Net earnings were $112.8 million or $1.02 per diluted share against $107.8 million or $1.94 per diluted share a year ago. Operating earnings were $155.7 million, against $143.8 million a year ago. Revenues and net earnings continued to grow during the second quarter in line with the expectations for the company. Second quarter cash flow from operations was $31 million as net income was more than offset by working capital changes. For the six months, the company’s revenues were $1,446.8 million against $1,345.6 million a year ago. Earnings before taxes were $294.5 million against $273.4 million a year ago. Net earnings were $208.1 million or $1.88 per diluted share against $198.0 million or $1.73 per diluted share a year ago. Operating earnings were $293.2 million, against $272.7 million a year ago. Year-to-date, cash flow from operations was $103 million. For the third quarter of fiscal year 2013, total company revenues could increase by about 7% over the prior-year quarter. Net earnings per diluted share for the third quarter should be in the range of $0.98 to $1.02. The company remains on track for achieving its fiscal 2013 growth targets. For the fiscal year 2013, the company continues to believe that total company revenues could increase by about 8% over the prior fiscal year and that net earnings per diluted share for the fiscal year could be in the range of $4.09 to $4.14. And for the second half, the company estimates that the effective tax rate will be about 28% to 29%.