Radiation oncology firm Varian Medical Systems reported that revenues grew 3% for the company's fiscal third quarter (end-June 27), but net income slipped, in part due to a one-time charge.
For the quarter, Varian reported revenues of $747.7 million, compared with revenues of $726.2 million for the same period the year before. The firm said that revenues were lower than expected due to delays in recognizing sales in its proton therapy business, as well as weakness in sales of x-ray tubes.
The company generated sales in its Oncology Systems division of $578 million, up 3%, while its Imaging Components business brought in $162 million, up 2%. Improvements in the quality and operating life of Varian's tubes enabled the company's customers to reduce their inventory levels.
Net income was $107.1 million, compared with $112.8 million in the corresponding quarter of 2013. The company's Q3 profit was affected by a one-time charge of $8 million for its equity investment in Augmenix, a firm developing hydrogels for radiation therapy.
