Varian Reports Results for 1st Quarter of Fiscal Year 2021.

PALO ALTO, Calif: First Quarter 2021 Summary

Oncology Systems gross orders grew 2% in dollars or 1% in constant currency in the quarter; trailing twelve months gross orders down 5% in dollars or 6% in constant currency

13 EthosTM orders received, including 8 in the Americas, 4 in EMEA, and 1 in Asia-Pacific

1 Proton order awarded in China

Total company revenues down 6% in dollars, or 8% in constant currency, to $779 million

GAAP operating earnings grew 7% at 15.1% of revenues; non-GAAP operating earnings grew 1% at 17.5% of revenues

GAAP net earnings per diluted share of $1.05; non-GAAP net earnings per diluted share of $1.14

Cash flows from operations of $141 million, up 26%

All growth rates are year-over-year. Any reference to dollars is US dollars.

Varian (NYSE: VAR) today announced its first quarter fiscal year 2021 results.

"I am pleased with our solid start to the fiscal year, especially given the current global landscape due to the pandemic. Our performance in the quarter reflects the unwavering focus of our employees to deliver critical cancer care solutions for our customers," said Dow Wilson, Chief Executive Officer of Varian. "Our long-term fundamentals remain strong and we are excited about the opportunity to shape the future of cancer care with the pending combination 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.

Summary

(Dollars and shares in millions, except per share amounts)

Q1 2021

Q1 2020

Y/Y

Revenues

$

778.8

$

828.9

(6)

%

Gross margin as a percentage of revenues

46.1

%

44.2

%

190 bps

GAAP net earnings attributable to Varian

$

96.5

$

88.2

9

%

GAAP net earnings per share - diluted

$

1.05

$

0.96

9

%

Net cash provided by operating activities

$

141.4

$

112.6

26

%

Non-GAAP net earnings attributable to Varian (1)

$

105.3

$

106.6

(1)

%

Non-GAAP net earnings per share - diluted (1)

$

1.14

$

1.16

(2)

%

Shares used in computing GAAP and non-GAAP net earnings per diluted share

92.2

91.7

(1)

Non-GAAP net earnings and non-GAAP net earnings per diluted share are...