Radiology components supplier Varex Imaging reported a drop in revenues and a net loss in the fourth quarter of fiscal year 2020 compared with the same period in 2019.
For the period (end-October 2), Varex reported revenues of $170 million, down 16% compared with revenues of $202.4 million in the fourth quarter of 2019. Varex had a fourth-quarter net loss of $25.4 million in the most recent period, compared with net income of $8.2 million in the fourth quarter of 2019.
The company noted strong sales of CT tubes helped offset the continued decline in other medical and industrial product sales. Varex also resolved any concerns about its ability to continue as a going concern by paying off its prior credit facility debt with net proceeds from the sale of notes.
For the full year, revenues decreased when compared to the prior fiscal year. Varex ended fiscal year 2020 with revenues of $738.3 million, down 5.4% compared with $780.6 million at the end of fiscal year 2019. Net losses for fiscal year 2020 were about $56.6 million compared with net income of $15.8 million in the prior year, according to the vendor.
Finally, the company has a more flexible capital structure and increased its liquidity despite ending the fiscal year with more debt, according to Varex.
