May 4, 2021

Financial Results Second Quarter 2021

SALT LAKE CITY, May 4, 2021 – Varex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the second quarter of fiscal year 2021.

2QFY21 Summary

  • Revenues $204 million
  • GAAP gross margin 32% | Non-GAAP gross margin* 35%
  • GAAP operating expense $49 million | Non-GAAP operating expense* $45 million
  • GAAP operating margin 8% | Non-GAAP operating margin* 13%
  • GAAP net earnings $0.08 per diluted share | Non-GAAP net earnings* $0.35 per diluted share

 

“Financial results for the second quarter of fiscal year 2021 were stronger than our expectations and exceeded pre-COVID revenue levels. Driving this was continued strong global CT tube sales and higher sales of industrial digital detectors. We also had higher demand for our other medical imaging products related to certain elective medical procedures,” said Sunny Sanyal, Chief Executive Officer of Varex Imaging. Sanyal added, “We also continued to have strong expense management, which led to excellent bottom-line results.”

 

Varex Imaging’s revenues in the second quarter increased 15% sequentially from the first quarter of fiscal year 2021 due to sales gains in both the medical and industrial segments. Revenues increased 3% year-over-year from the same quarter of the prior year. Non-GAAP gross margin increased to 35 percent due to higher sales volume and a favorable product mix. Non-GAAP operating expense declined sequentially and year-over-year reflecting benefits from previous cost reduction actions.

 

Balance Sheet & Cash Flow

Cash flow from operations was $13 million for the second quarter of fiscal year 2021. Cash and cash equivalents improved to $111 million at the end of the second quarter.

 

Outlook

The following guidance is provided for the third quarter of fiscal year 2021:

 

  • Revenues are expected to be between $195 million and $215 million
  • Non-GAAP earnings per diluted share is expected to be between $0.15 and $0.35

 

Guidance for the company’s net earnings per diluted share is provided on a non-GAAP basis only. This non-GAAP financial measure is forward-looking, and the company is unable to provide a meaningful or accurate GAAP forecast of net earnings per diluted share without unreasonable effort due to the uncertainty of amounts and timing of unusual items, such as restructuring costs.

 

Non-GAAP Financial Measures

*Please refer to “Reconciliation between GAAP and non-GAAP Financial Measures” below for a reconciliation of non-GAAP items to the comparable GAAP measures.

 

Conference Call Information

Varex Imaging will conduct its earnings conference call for the second quarter of fiscal year 2021 today at 3:00 p.m. Mountain Time. The conference call, including a supplemental slide presentation, will be webcast live and can be accessed at Varex Imaging’s website at investors.vareximaging.com. Access will also be available by dialing 877-524-8416 from anywhere in the U.S. or by dialing 412-902-1028 from non-U.S. locations. The webcast and supplemental slide presentation will be archived on Varex Imaging’s website. A replay of the call will be available from today through May 18th at 877-660-6853 from anywhere in the U.S. or 201-612-7415 from non-U.S. locations. The replay access code is 13719035.

 

About Varex Imaging

Varex Imaging Corporation is a leading innovator, designer and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors and other image processing solutions that are key components of X-ray imaging systems. With a 70+ year history of successful innovation, Varex Imaging’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate Varex Imaging’s X-ray sources, digital detectors, connecting devices and imaging software in their systems to detect, diagnose, protect and inspect. Headquartered in Salt Lake City, Utah, Varex Imaging employs approximately 2,000 people located in North America, Europe, and Asia. For more information visit vareximaging.com.

 

Forward Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements concerning unaudited financial results; the impact of COVID-19 on Varex Imaging’s business; benefits of current and future restructurings and other cost reduction actions; industry or market outlook; customer demand; potential impact of tariffs, revenues, product volumes, or other expected future financial results or performance; and any statements using the terms “believe,” “expect,” “intend,” “outlook,” “future,” “anticipate,” “will,” “could,” “estimate,” “guidance,” or similar statements are forward-looking statements that involve risks and uncertainties that could cause Varex Imaging’s actual results to differ materially from those anticipated. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. Such risks and uncertainties include the severity and duration of the COVID-19 pandemic and its impact on both the global economy and the Varex Imaging’s business; our ability to maintain compliance with our financial covenants; shifts in product mix; not receiving the intended benefit of current or future restructurings or cost reduction actions; the continued impact of tariffs or a global trade war on Varex Imaging’s products and customer purchasing patterns; global economic conditions; demand for and delays in delivery of products of Varex Imaging or its customers; litigation costs; Varex Imaging’s ability to develop, commercialize and deploy new products; the impact of reduced or limited demand by purchasers of certain X-ray products; the impact of competitive products and pricing; the ability to remediate material weaknesses in internal control; and the other risks listed from time to time in our filings with the U.S. Securities and Exchange Commission, which by this reference are incorporated herein. Any forward-looking statements made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Varex Imaging assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

 

Varex Imaging has not filed its Form 10-Q for the second quarter of fiscal year 2021. All financial results described here should be considered preliminary, and are subject to change to reflect any necessary adjustments or changes in accounting estimates, that are identified prior to the time Varex Imaging files the Form 10-Q.

 

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For Information Contact:

Howard Goldman

Director of Investor & Public Relations

Varex Imaging Corporation

801.978.5274 | howard.goldman@vareximaging.com

 

 

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