Radiation therapy firm Varian Medical Systems of Palo Alto, CA, reported gains in both revenue and net income for the first quarter of its 2011 fiscal year.
Revenues for the quarter were $579.9 million, an increase of 7% compared to $540.9 million from the same period a year ago. The company reported net earnings of $96.5 million, compared with $78.8 million in net earnings in the first quarter of fiscal 2010. Varian's quarter-ending backlog rose 10% from the prior-year quarter, to $2.2 billion.
Varian attributed its growth in gross and operating margins to a favorable product mix in its Oncology Systems business and higher shipment volumes in its X-ray Products business, reported Tim Guertin, president and CEO. More than 60% of the company's revenues originated outside the U.S.
Varian's Oncology Systems division's first-quarter revenue from sales of products and services for radiation therapy, radiosurgery, and brachytherapy totaled $452.4 million, an increase of 5% compared to the first quarter of fiscal 2010. Revenue for X-ray Products was $111.6 million, an increase of 22% from the same quarter a year ago.
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