Radiation oncology firm Varian Medical Systems reported slightly higher revenue for the first quarter of 2017.
The company's revenues for the quarter (end-January 1) were $763 million, up 1% from 2016's $757 million. The company's net earnings took a hit, however, at $21 million, down from $89 million for the same period last year.
Varian attributed the decrease to $76 million in charges relating to a proton facility owned by California Proton Treatment Center in San Diego. The center disclosed to investors that it has defaulted on several loans, one of which is from Varian; this prompted Varian to reserve $38 million in accounts receivable and to impair $38 million of its $98 million loan to the center.
Revenues from Varian's Oncology Systems business were $581 million, down 1% from the previous year's $589 million. First-quarter oncology gross orders were $586 million, up 10% from the first quarter in 2016. In Europe, the Middle East, and Africa, gross orders were up 8%, while in the Asia-Pacific region, they were up 29%, the company reported.
The company's Imaging Components business had revenues of $152 million, up 7% from 2016's $141 million. Gross orders were $132 million, up 4% from $127 million during the same period last year, Varian said. The business will spin off as an independent company called Varex Imaging in a transaction scheduled for January 28.
