On October 27, 2020 Varian (NYSE: VAR) reported its fourth quarter fiscal year 2020 results (Press release, Varian Medical Systems, OCT 27, 2020, View Source [SID1234569123]).

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"Our fourth quarter performance continues to reaffirm the criticality of radiation therapy as a core treatment modality. I am proud of our dedicated employees who ensured our customers and their patients continued to have uninterrupted access to our innovative technology and solutions," said Dow Wilson, Chief Executive Officer of Varian. "While the pandemic continues to be a headwind, we are entering our next fiscal year with significant operating momentum, and we remain focused on executing our strategic growth priorities and closing the transaction with Siemens Healthineers."

As previously announced on August 2, 2020, Varian entered into a definitive agreement to combine with Siemens Healthineers AG (Frankfurt: SHL) in an all-cash transaction valued at $16.4 billion on a fully diluted basis. On October 15, 2020, Varian’s stockholders voted in favor of the proposal to adopt the merger agreement with Siemens Healthineers. The transaction is expected to close in the first half of calendar year 2021, subject to regulatory approvals and other customary closing conditions.

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Non-GAAP net earnings and non-GAAP net earnings per diluted share are defined as GAAP net earnings and GAAP net earnings per diluted share adjusted to exclude the amortization of intangible assets and amortization of inventory step-up, acquisition and integration-related expenses or benefits and in-process research and development, impairment charges, restructuring charges, significant litigation charges or benefits, legal costs, gains and losses on equity investments, and significant non-recurring tax expense or benefits. Reconciliation of GAAP and non-GAAP financial measures can be found at the end of the press release.

The company ended the quarter with $766 million in cash and cash equivalents and $355 million in debt. Net cash provided by operating activities was $266 million in the fourth quarter.

Oncology Systems Segment

Oncology Systems revenues totaled $800 million for the fourth quarter and $3.0 billion for the full year, both down 2%.

Gross orders for the fourth quarter were $1.0 billion, down 8%, and $3.3 billion for the full year, down 4%. Fourth quarter gross orders in the Americas were down 19%, including North America down 17%. In EMEA, gross orders fell 4%. In Asia-Pacific, gross orders were up 14%.

Proton Solutions Segment

Proton Solutions revenues totaled $38 million for the fourth quarter, down 8%, and $121 million for the full year, down 16%. The company received one new system order in the fourth quarter and four new system orders for the full year. Operating earnings in the quarter for Proton were impacted by $14 million in asset write-offs and bad debt reserves.

Other Segment

Revenues for the Other segment were $12 million for the fourth quarter, down 33%, and $49 million for the full year. The Other segment is comprised of the Interventional Solutions business, including cryoablation, embolic microspheres, and microwave ablation. Additionally, it includes investments in cardiac radioablation.

Non-GAAP Adjustments

This quarter, our GAAP net earnings and GAAP EPS included $15 million in gains on public and private equity investments, $11 million in acquisition expenses, $11 million in litigation charges and legal costs, and a $9 million impairment on our available-for-sale investments. As a reminder, in the fourth quarter of fiscal year 2019, GAAP net earnings and GAAP EPS included a charge of $19 million for a change in fair value of contingent consideration.

Investor Conference Call

In light of the pending transaction with Siemens Healthineers, Varian will not be hosting a conference call for its fourth quarter of fiscal year 2020 earnings.