Radiation therapy firm Varian Medical Systems reported that revenues and earnings grew at single-digit rates for the company's third quarter (end-June 28).
For the period, Varian posted sales of $726 million, up 3% from the $689.4 million recorded in the corresponding quarter of 2012. Revenues were somewhat less than expected due to negative currency changes with the Japanese yen, as well as what the company called "inventory adjustments" among major x-ray tube customers in Japan.
Varian saw net income of $112.8 million, compared with $108.8 million in the corresponding quarter of 2012. Earnings growth was in line with expectations, according to the company.
Among Varian's business lines, the Oncology Systems division saw revenues for the most recent period of $561 million, up 3% from the same quarter last fiscal year. Third-quarter net orders were $582 million, up 4% versus the same quarter a year ago and up 6% on a constant currency basis.
Third-quarter oncology net orders grew by 8% in markets outside North America, spurred by 21% growth in the Europe, Middle East, and Africa (EMEA) region, and fell by 1% in North America. Markets outside North America represented 57% of the division's net orders for the most recent period.
In the company's X-Ray Products unit, third-quarter revenues totaled $135 million, up 7% from the same quarter a year ago, and net orders were $123 million, up 2% from 2012. Decisions by Varian's x-ray tube customers in Japan to reduce inventory levels offset double-digit revenue growth in its flat-panel digital detector business, said CEO Dow Wilson. The division did a good job offsetting gross margin pressures with tight cost controls, and year to date, orders, revenues, and profits are all up in double digits, he added.
