Demand for its newer products helped radiation therapy firm Varian Medical Systems to revenue and earnings gains in its fiscal third quarter.
For the period (end-June 30), Varian had revenues of $649 million, up 12% and up 9% on a currency-comparable basis from the $578 million recorded in the same period last year. The company had third-quarter net earnings of $98.6 million, up from $85.5 million a year ago.
President and CEO Tim Guertin credited continued healthy demand for Varian's newer products for the quarterly growth in net orders and revenues in both its oncology systems and x-ray products business segments.
On the downside, Guertin noted that product retrofits in its oncology business as well as challenging conditions in its other business segment contributed to lower than normal gross margin in the quarter.