Varex Announces Financial Results for Third Quarter Fiscal Year 2021

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 third quarter of fiscal year 2021.\n\n3QFY21 Summary\n\n\nRevenues $211 million\n\n\nGAAP gross margin 35% | Non-GAAP gross margin* 36%\n\n\nGAAP operating expense $48 million | Non-GAAP operating expense* $46 million\n\n\nGAAP operating margin 12% | Non-GAAP operating margin* 14%\n\n\nGAAP net earnings $0.29 per diluted share | Non-GAAP net earnings* $0.40 per diluted share\n\n\n“Sales momentum continued in the third quarter of fiscal 2021 with revenues reaching $211 million, driven by demand in both the Medical and Industrial segments,” said Sunny Sanyal, Chief Executive Officer of Varex. Sanyal added, “Higher sales volume and continued execution on expense management led to margin and profitability expansion in the quarter.”\n\nVarex’s revenues in the third quarter increased 4% sequentially from the second quarter of fiscal year 2021 due mainly to sales gains in the Medical segment. Revenues increased 23% year-over-year from the same quarter of the prior year driven by strength in both the Medical and Industrial segments. Non-GAAP gross margin increased to 36% percent primarily due to higher sales volume and productivity. Higher operating expense sequentially was primarily attributable to higher R&D expense, which remained at approximately 9% of a higher sales base.\n\nBalance Sheet & Cash Flow\n\nCash flow from operations was $22 million for the third quarter of fiscal year 2021. Cash and cash equivalents improved $17 million sequentially to $128 million at the end of the third quarter. As announced on July 1st, following quarter end Varex made a $30 million partial redemption of its $300 million 7.875% senior secured notes due 2027.\n\nOutlook\n\nThe following guidance is provided for the fourth quarter of fiscal year 2021:\n\n\nRevenues are expected to be between $205 million and $225 million\n\n\nNon-GAAP net earnings per diluted share is expected to be between $0.25 and $0.40\n\n\nGuidance 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 amo...

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