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| VAR - Varian Med Sys Inc (NYSE) | 2:54 PM ET, 7/29/2005 |
<!--StartFragment --> Varian Medical 3Q Profit Rises 20 Pct.
07.27.2005, 05:18 PM
Varian Medical Systems Inc. on Wednesday reported third-quarter profit grew 20 percent as revenue and orders were boosted by demand for its cancer therapy systems.
The company said quarterly net income rose to $51.1 million, or 37 cents per share, from $42.7 million, or 30 cents per share, a year earlier. Revenue grew 14 percent to $346.6 million from $303.1 million a year ago.
Varian said earnings would have been reduced by $7.3 million in the latest quarter if it had elected to recognize stock compensation costs, and earnings per would have been 32 cents per share.
Analysts expected earnings of 36 cents per share on revenue of $344.7 million, according to a Thomson Financial survey.
Quarterly net orders climbed 14 percent to $373.4 million, while backlog totaled nearly $1.08 billion at the end of the quarter, up 19 percent from a year ago.
"The company had a solid quarter with gains in net orders and revenues helped by accelerating adoption of our new technologies in radiation therapy and X-ray imaging," said Richard M. Levy, chairman and chief executive, in a statement. "Demand for new, more precise, and cost effective cancer treatment technology, including image-guided radiation therapy and stereotactic radiotherapy, is robust and adoption is proceeding at an unprecedented pace."
Varian said it still expects fiscal 2005 earnings per share growth of about 26 percent, compared with earnings of $1.18 per share in fiscal 2004. That guidance implies full-year earnings of about $1.49 per share. The company estimates revenue growth of about 12 percent over fiscal 2004 revenue of $1.2 billion.
The company said fiscal 2006 earnings per share should grow at a mid-teens rate before stock option expensing, and revenue should rise by about 13 percent from fiscal 2005.
Analysts expect earnings of $1.48 per share on $1.39 billion in revenue for fiscal 2005, and $1.69 per share on revenue of $1.57 billion for fiscal 2006.
Varian Medical shares closed up $1.21, or 3.1 percent, at $39.81 on the New York Stock Exchange.