Strong growth in its oncology business helped offset a drop in revenues from x-ray products, according to Varian Medical Systems of Palo Alto, CA, which reported third-quarter financial results yesterday. The company's prospects are so good that Varian increased its estimates for fiscal 2001.
For the quarter, Varian posted sales of $191.4 million, up 12% compared with revenues of $170.7 million in the third quarter of fiscal 2000. The company had net earnings of $19.5 million, compared with earnings of $14 million in the same period the year before.
The vendor's oncology systems unit was a solid performer during the quarter, thanks to high interest in intensity modulated radiation therapy (IMRT) systems, according to Richard Levy, president and CEO of Varian. The division's sales grew 15% over the third quarter of 2000.
Sales fell in the company's x-ray products business, which includes x-ray tubes and amorphous silicon flat panels. The division posted sales of $33 million, down 4% compared with the same period the year before. The lower revenues were partially due to a decline in sales of Varian's Snowbird high-power CT tube. Varian has extended the life of the tube, which has led to reduced demand for replacement tubes.
By AuntMinnie.com staff writersJuly 26, 2001
Related Reading
Varian releases VariSeed 7.0 software, July 24, 2001
Varian to supply VA with radiotherapy units, June 12, 2001
Varian gets FDA OK for Eclipse software, May 16, 2001
Varian names Thorson to VP post, April 26, 2001
Copyright © 2001 AuntMinnie.com
