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Varex Announces Financial Results for Second Quarter Fiscal Year 2025
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 2025.\n\n2QFY25 Summary\n\n\nRevenues of $213 million\n\n\nGAAP gross margin 36% | Non-GAAP gross margin* 36%\n\n\nGAAP operating margin 10% | Non-GAAP operating margin* 12%\n\n\nGAAP net earnings $0.17 per diluted share | Non-GAAP net earnings* $0.26 per diluted share\n\n\nCash flow from operations was $17 million\n\n\nSunny Sanyal, Chief Executive Officer, stated, \"Demand remained strong in the second quarter, driving year-over-year sales growth across both segments. Higher volumes, improved sales mix and productivity gains drove margin expansion, profitability and cash generation in the quarter.\" Sanyal added, \"Due to high tariffs imposed by China on U.S. products, several of our China-based customers have paused purchases, causing us to reduce our outlook for the short term.\"\n\nVarex’s revenue of $213 million was up 3% year-over-year. Medical segment revenue of $154 million was up 3% year-over-year. Industrial segment revenue of $59 million was up 3% year-over-year. Non-GAAP gross margin was 36% in the quarter compared to 33% in the second quarter of fiscal year 2024 and non-GAAP EPS increased to $0.26 in the quarter from $0.16 in the second quarter of fiscal year 2024.\n\nBalance Sheet & Cash Flow\n\nCash flow from operations was $17 million in the second quarter of fiscal year 2025. Cash, cash equivalents, and marketable securities at the end of the second quarter of fiscal year 2025 was $226 million, excluding the $125 million of restricted cash related to the Senior Secured Note Add On, and compares to $213 million at the end of fiscal year 2024.\n\nConvertible Debt Maturity\n\nWe plan to repay the outstanding principal of our Convertible Notes, due June 2025 upon maturity. Sam Maheshwari, Chief Financial Officer, stated, \"Paying off convertible notes will reduce our overall debt burden and simplify our capital structure.\"\n\nOutlook\n\nOur guidance for the third quarter of fiscal year 2025 is as follows:\n\n\nRevenues are expected to be between $180 million and $200 million, assuming sales in China of approximately $10 million\n\n\nNon-GAAP net earnings per diluted share is expected to be between -$0.05 and $0.10\n\n\nGuidance for the company's net earn...