On August 2, 2020 Varian (NYSE: VAR) reported its third quarter fiscal year 2020 results (Press release, Varian Medical Systems, AUG 2, 2020, View Source [SID1234562663]).
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"I am proud of the team’s execution during the quarter, especially given the challenging operating backdrop created by the pandemic," said Dow Wilson, President and Chief Executive Officer of Varian. "Our continued investments in our strategic enablers, combined with our strong financial standing, position us well to exit the pandemic stronger, and extend our global leadership in oncology. In addition, we are pleased to announce a transaction with Siemens Healthineers – delivering immediate and compelling value to our shareholders, while bringing us even closer to realizing our transformative vision. Our innovative and patient-centric culture has enabled us to become an iconic leader in radiotherapy and multi-disciplinary cancer care, with a trusted global brand and strong customer loyalty. We are thrilled to partner with Siemens Healthineers to extend our renowned customer care, serving clinicians and patients from the very first stage in the fight against cancer."
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, 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 $769 million in cash and cash equivalents and $580 million in debt. Net cash provided by operating activities was $83 million.
Oncology Systems Segment
Oncology Systems revenues totaled $654 million, down 17%. Gross orders were $665 million, down 14%. Gross orders in the Americas were down 8%, including North America, which was down 6%. In EMEA, gross orders fell 32%. In Asia-Pacific, gross orders were up 4%.
Proton Solutions Segment
Proton Solutions revenues totaled $33 million, up 6%, primarily driven by continued growth in services revenues.
Other Segment
Revenues for the Other segment were $7 million. 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 operating earnings and GAAP EPS included a $21 million gain on an equity investment that went public, a $14 million workforce restructuring charge and a $9 million impairment of our available-for-sale investments. As a reminder, in the third quarter of fiscal year 2019, GAAP net earnings and GAAP EPS included a $51 million goodwill impairment charge related to our Proton Solutions business and a $21 million charge associated with the write-off of in-process research and development acquired in the CyberHeart acquisition.
Cancellation of Conference Call
In light of the announced transaction with Siemens Healthineers, Varian has cancelled its third quarter fiscal year 2020 earnings conference call previously scheduled for 4:30 PM ET on August 5, 2020.