June 2009 -- Varian Medical Systems, a leading manufacturer of medical devices and software for treating cancer and other medical conditions, announced earnings from continuing operations for the second quarter of fiscal 2009 of $79.3 million, or $0.64 per share, compared to $72.9 million, or $0.58 per share, in the second quarter of 2008. Including the discontinued ACCEL research instruments operation, net earnings per diluted share in the second quarter were $0.54.
Revenues for the quarter were $553.6 million, up 7% from the year-ago period. Net orders rose 2% to $524 million and Varian's order backlog rose to $1.9 billion.
"Net orders grew in our Oncology Systems and Security and Inspection Products businesses, but fell in our X-Ray Products business," said Tim Guertin, president and CEO of Varian Medical Systems. "Revenues from continuing operations increased in all three businesses, and our gross margin improved by nearly three percentage points, contributing to higher earnings versus the year-ago quarter. However, we began to feel the effects of the global recession during the quarter which resulted in modest net orders growth. Currency fluctuations negatively impacted orders and revenue growth in the quarter."
Guertin said the outlook for the rest of the fiscal year was "more cautious due to tigher capital budgets and credit, currency fluctuations, a longer order-to-delivery cycle in Oncology, and weaker demand for X-ray products." He said 2009 revenues were likely to grow about 5 to 8 percent, and that net earnings from continuing operations would be in the range of $2.50 to $2.60 per share.
