Business
Varex Announces Financial Results for Second Quarter of Fiscal Year 2020
SALT LAKE CITY--(BUSINESS WIRE)-- Varex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the second quarter of fiscal
About this update from Varex Imaging Corporation
[{"type":"text","content":" SALT LAKE CITY--(BUSINESS WIRE)--\nVarex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the second quarter of fiscal year 2020. Varex also announced the withdrawal of its previously issued guidance for fiscal year 2020 due to the significant uncertainty surrounding the COVID-19 pandemic and its impact on the company’s business and the global economy.\n\n\nSummary\n\n\n\n2Q20 Revenues were $197 million\n\n\n2Q20 Gross margin was 29% | Adjusted gross margin* was 32%\n\n\n2Q20 Operating earnings margin was 1% | Adjusted operating earnings margin* was 5%\n\n\n2Q20 Net earnings were ($0.05) per diluted share | Adjusted net earnings* were $0.12 per diluted share\n\n\n\n“During the second quarter we began to see the impact of the COVID-19 pandemic on our business. Although our revenues increased over the prior year quarter, we experienced a substantial shift in mix between and within our business segments that lowered our overall margins,” said Sunny Sanyal, Chief Executive Officer of Varex.\n\n\n“In our medical segment, during the second quarter a significant increase in sales of CT tubes and higher demand for other X-ray imaging products that assist with the fight against COVID-19 drove revenue growth. This growth was partially offset by a decline in sales of other medical products as our OEM customers managed their inventory levels in response to the uncertainty around spending for X-ray imaging systems. In our industrial segment, a decline in world oil prices and the widespread economic impact of COVID-19 led to lower sales of products for cargo screening and non-destructive inspection applications that were partially offset by increased sales of products for the airport security market,” Sanyal added.\n\n\nSecond Quarter Fiscal Year 2020 Results\n\n\nRevenues for the second quarter of fiscal year 2020 were $197 million compared to $196 million in the prior year quarter. Medical segment revenues increased 4% to $155 million while Industrial segment revenues decreased 11% to $42 million from the prior year quarter.\n\n\nGross margin for the second quarter of fiscal year 2020 was 29% of revenues compared to gross margin of 33% of revenues in the prior year quarter. Adjusted gross margin* was 32% of revenues compared to 34% of revenues in the prior year quarter.\n\n\nR&D investment for the seco...