Varex Imaging Reports Exciting Financial Generate Results

Varex Imaging Financial Performance Overview

Varex Imaging Corporation (NASDAQ: VREX) has made headlines with its strong unaudited financial results for the first quarter of fiscal year 2025. With total revenues hitting $200 million, the company has marked a commendable 5% increase compared to the previous year. This performance echoes a positive trend, particularly visible in both its Medical and Industrial segments.

Quarterly Revenue Breakdown

In detail, the Medical segment generated $145 million, reflecting a 3% year-over-year increase, while the Industrial segment experienced an impressive 10% growth, reaching $55 million. This diversification in revenue sources has significantly bolstered Varex’s financial stature.

Gross Margin and Operating Margins

Varex’s gross margin for the quarter was at 34% on a GAAP basis, with a slightly higher non-GAAP gross margin of 35%. This illustrates the company’s ability to maintain profitability amid operational costs. The operating margin was recorded at 6% for GAAP and 7% for non-GAAP, indicating a solid command over expenses relative to revenues.

Net Earnings and Losses

The company's net loss stood at $0.01 per diluted share under GAAP, yet the non-GAAP net earnings per share saw a rise to $0.07. With cash flow from operations reported at $10 million, Varex shows a healthy liquidity position, bolstered by $219 million in cash, cash equivalents, and marketable securities at the close of the quarter.

Management Insights and Future Outlook

Sunny Sanyal, the Chief Executive Officer, expressed optimism regarding the company's direction, stating, "Demand in the first quarter was solid, with both Medical and Industrial revenue up year-over-year. Favorable sales mix and productivity gains across both segments resulted in higher than expected profitability and earnings per share."

Sanyal further elaborated on the company’s expected growth trajectory, asserting, "We expect to see continued solid demand across both segments in the second quarter of fiscal 2025." This optimism reflects Varex’s commitment to pursuing strategic initiatives aimed at sustaining growth.

Financial Guidance for the Upcoming Quarter

For the second quarter, Varex has set revenue expectations between $200 million and $215 million. The projected non-GAAP net earnings per diluted share are anticipated to be between $0.05 and $0.20. The company aims to continue leveraging its strengths to meet these targets.

Key Financial Metrics at a Glance

• Total Revenues: $200 million
• Gross Margin (GAAP): 34%
• Non-GAAP Gross Margin: 35%
• GAAP Operating Margin: 6%
• Non-GAAP Operating Margin: 7%
• Net Loss per Diluted Share: $0.01 (GAAP), $0.07 (Non-GAAP)
• Cash Flow from Operations: $10 million

About Varex Imaging Corporation

Varex Imaging Corporation is recognized as a leading innovator, designer, and manufacturer of X-ray imaging components, including X-ray tubes, digital detectors, and sophisticated imaging solutions for both medical and industrial applications. With a legacy that spans more than 70 years, Varex’s products are integral to medical imaging and provide key capabilities for industrial safety and security systems. Operating globally, the company employs approximately 2,300 dedicated professionals across North America, Europe, and Asia.

Frequently Asked Questions

1. What were Varex Imaging's total revenues for the first quarter of fiscal year 2025?

Varex Imaging reported total revenues of $200 million for the first quarter of fiscal year 2025.

2. How much did the Medical segment contribute to revenues?

The Medical segment contributed $145 million, reflecting a 3% year-over-year increase.

3. What is the company’s outlook for the second quarter?

Varex expects revenues between $200 million and $215 million with projected non-GAAP net earnings per diluted share of $0.05 to $0.20.

4. Who is the CEO of Varex Imaging Corporation?

Sunny Sanyal serves as the Chief Executive Officer of Varex Imaging Corporation.

5. What is Varex Imaging's stock ticker symbol?

The stock ticker symbol for Varex Imaging Corporation is NASDAQ: VREX.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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