Varex Announces Financial Results for Third Quarter Fiscal Year 2023

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 2023.\n\n\n3QFY23 Summary\n\n\n\nRevenues $232 million\n\n\n\nGAAP gross margin 33% | Non-GAAP gross margin* 34%\n\n\n\nGAAP operating margin 10% | Non-GAAP operating margin* 13%\n\n\n\nGAAP net earnings $0.21 per diluted share | Non-GAAP net earnings* $0.37 per diluted share\n\n\n\nCash flow from operations $38 million\n\n\n\n“We are pleased to report another solid quarter, with revenues reaching $232 million in the third quarter of fiscal 2023, a new quarterly record for Varex, and non-GAAP gross margin of 34% exceeding our expectations. These results were helped by the continued strength in our Industrial segment,” said Sunny Sanyal, Chief Executive Officer of Varex. Sanyal added, “Our efforts to reduce inventory levels coupled with profitability resulted in an increase in overall cash position by $30 million in the quarter.\"\n\n\nVarex’s revenue of $232 million was up 2% sequentially and 8% year-over-year. Medical segment revenue of $175 million was up 1% sequentially and 5% year-over-year. Industrial segment revenue of $57 million was up 5% sequentially and 20% year-over-year. Non-GAAP gross margin was 34% in the quarter compared to 33% in the second quarter of fiscal year 2023 and non-GAAP EPS increased to $0.37 from $0.26 in the second quarter.\n\n\nBalance Sheet & Cash Flow\n\n\nCash flow from operations was $38 million in the third quarter of fiscal year 2023, due primarily to improved earnings and a reduction in inventory. Cash, cash equivalents, marketable securities and CDs increased $30 million sequentially to $152 million at the end of the third quarter.\n\n\nOutlook\n\n\nThe following guidance is provided for the fourth quarter of fiscal year 2023:\n\n\n\nRevenues are expected to be between $220 million and $240 million\n\n\n\nNon-GAAP net earnings per diluted share is expected to be between $0.20 and $0.40\n\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 reconciliation to a GAAP forecast of net earnings per diluted share without unreasonable effort due to certain of these reconciling item...

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