Date of report (Date of earliest event reported)
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October 27, 2011
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VARIAN MEDICAL SYSTEMS, INC.
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(Exact Name of Registrant as Specified in its Charter)
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Delaware
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1-7598
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94-2359345
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(State or Other Jurisdiction
of Incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.)
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3100 Hansen Way, Palo Alto, CA
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94304-1030
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant's telephone number, including area code
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(650) 493-4000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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Varian Medical Systems, Inc.
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|||
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By:
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/s/ John W. Kuo | |
Name: | John W. Kuo | ||
Title: |
Corporate Vice President, General Counsel and Secretary
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||
Number
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Exhibit
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99.1
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Press Release dated October 27, 2011 entitled “Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011.”
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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011
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Page 2
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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011
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Page 3
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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011
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Page 4
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Forward-Looking Statements
Except for historical information, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning industry outlook, including growth drivers; the company’s future orders, revenues, backlog, or earnings growth; future financial results; market acceptance of or transition to new products or technology such as TrueBeam and radiographic flat panel detectors, image-guided radiation therapy, stereotactic radiosurgery, filmless X-rays, proton therapy, and security and inspection, and any statements using the terms “could,” “believe,” “outlook,” or similar statements are forward-looking statements that involve risks and uncertainties that could cause the company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the effect of economic conditions, including the lack of strength of the recovery from the global recession; the impact of the 2010 federal health care legislation and any further health care reforms (including changes to Medicare and Medicaid), and/or changes in third-party reimbursement levels; currency exchange rates and tax rates; demand for the company’s products; the company’s ability to develop, commercialize, and deploy new products such as the TrueBeam platform; the company’s ability to meet Food and Drug Administration (FDA) and other regulatory requirements for product clearances or to comply with FDA and other regulatory regulations or procedures; changes in the regulatory environment, including with respect to FDA requirements; challenges associated with the successful commercialization of the company’s particle therapy business; the effect of adverse publicity; the company’s reliance on sole or limited-source suppliers; the impact of reduced or limited demand by purchasers of certain X-ray products, including those located in Japan; the company’s ability to maintain or increase margins; the impact of competitive products and pricing; the potential loss of key distributors or key personnel; challenges to public tender awards and the loss of such awards or other orders; and the other risks listed from time to time in the company’s filings with the Securities and Exchange Commission, which by this reference are incorporated herein. The company assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.
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Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011
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Page 5
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Varian Medical Systems, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(Unaudited)
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(Dollars and shares in millions, except per share amounts)
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Q4 QTR
2011
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Q4 QTR
2010
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Q4 YTD
2011
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Q4 YTD
2010
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||||||||||||
Net orders
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$ | 967.9 | 776.7 | 2,933.5 | 2,494.8 | |||||||||||
Oncology Systems
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717.2 | 657.1 | 2,249.5 | 2,076.4 | ||||||||||||
X-Ray Products
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126.3 | 112.0 | 482.8 | 418.9 | ||||||||||||
Security & Inspection Products
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35.8 | 7.4 | 109.9 | 59.2 | ||||||||||||
Varian Particle Therapy (1)
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88.6 | 0.2 | 90.9 | (60.8 | ) | |||||||||||
Ginzton Technology Center
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- | - | 0.4 | 1.1 | ||||||||||||
Order backlog
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$ | 2,529.5 | 2,192.7 | 2,529.5 | 2,192.7 | |||||||||||
Revenues
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$ | 719.0 | 652.1 | 2,596.7 | 2,356.6 | |||||||||||
Oncology Systems
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549.1 | 511.6 | 2,021.9 | 1,862.1 | ||||||||||||
X-Ray Products
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119.0 | 107.3 | 469.2 | 403.2 | ||||||||||||
Other
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50.9 | 33.2 | 105.6 | 91.3 | ||||||||||||
Cost of revenues
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$ | 418.7 | 375.9 | 1,460.8 | 1,331.0 | |||||||||||
Gross margin
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300.3 | 276.2 | 1,135.9 | 1,025.6 | ||||||||||||
As a percent of revenues
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41.8 | % | 42.4 | % | 43.7 | % | 43.5 | % | ||||||||
Operating expenses
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||||||||||||||||
Research and development
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43.9 | 40.5 | 170.7 | 156.7 | ||||||||||||
Selling, general and administrative
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96.7 | 86.9 | 376.8 | 334.7 | ||||||||||||
Operating earnings
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159.7 | 148.8 | 588.4 | 534.2 | ||||||||||||
As a percent of revenues
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22.2 | % | 22.8 | % | 22.7 | % | 22.7 | % | ||||||||
Interest income/(expense), net
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0.1 | 0.2 | 0.3 | (1.3 | ) | |||||||||||
Earnings from continuing operations before taxes
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159.8 | 149.0 | 588.7 | 532.9 | ||||||||||||
Taxes on earnings
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49.4 | 43.3 | 180.1 | 165.4 | ||||||||||||
Earnings from continuing operations
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110.4 | 105.7 | 408.6 | 367.5 | ||||||||||||
As a percent of revenues
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15.4 | % | 16.2 | % | 15.7 | % | 15.6 | % | ||||||||
Loss from discontinued operations – net of taxes (2)
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(9.7 | ) | (0.7 | ) | (9.7 | ) | (7.1 | ) | ||||||||
Net earnings
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$ | 100.7 | 105.0 | 398.9 | 360.4 | |||||||||||
Net earnings (loss) per share – basic:
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||||||||||||||||
Continuing operations
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$ | 0.97 | 0.89 | 3.50 | 3.02 | |||||||||||
Discontinued operations (2)
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(0.09 | ) | (0.01 | ) | (0.08 | ) | (0.06 | ) | ||||||||
Net earnings per share
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$ | 0.88 | 0.88 | 3.42 | 2.96 | |||||||||||
Net earnings (loss) per share – diluted:
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||||||||||||||||
Continuing operations
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$ | 0.95 | 0.87 | 3.44 | 2.96 | |||||||||||
Discontinued operations (2)
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(0.08 | ) | - | (0.08 | ) | (0.05 | ) | |||||||||
Net earnings per share
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$ | 0.87 | 0.87 | 3.36 | 2.91 | |||||||||||
Shares used in the calculation of net earnings (loss) per share:
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||||||||||||||||
Average shares outstanding - basic
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114.4 | 119.0 | 116.7 | 121.8 | ||||||||||||
Average shares outstanding - diluted
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116.2 | 121.4 | 118.7 | 124.0 | ||||||||||||
Varian Medical Systems Reports Results for Fourth Quarter of Fiscal Year 2011
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Page 6
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Condensed Consolidated Balance Sheets
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(In thousands)
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September 30,
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October 1,
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||||||
2011
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2010 (1)
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|||||||
(Unaudited)
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||||||||
Assets
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||||||||
Current assets
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||||||||
Cash and cash equivalents
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$ | 564,457 | $ | 520,221 | ||||
Short-term investment
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19,205 | - | ||||||
Accounts receivable, net
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635,153 | 591,677 | ||||||
Inventories
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409,962 | 363,933 | ||||||
Deferred tax assets and other
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225,840 | 205,513 | ||||||
Total current assets
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1,854,617 | 1,681,344 | ||||||
Property, plant and equipment
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601,115 | 562,763 | ||||||
Accumulated depreciation and amortization
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(315,221 | ) | (294,836 | ) | ||||
Property, plant and equipment, net
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285,894 | 267,927 | ||||||
Goodwill
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212,452 | 208,451 | ||||||
Other assets
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145,798 | 166,230 | ||||||
Total assets
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$ | 2,498,761 | $ | 2,323,952 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Current liabilities
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||||||||
Accounts payable
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$ | 154,946 | $ | 119,018 | ||||
Accrued expenses
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290,009 | 287,851 | ||||||
Deferred revenues
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140,173 | 141,916 | ||||||
Advance payments from customers
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299,380 | 275,998 | ||||||
Product warranty
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50,128 | 53,233 | ||||||
Short-term borrowings
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181,400 | 20,000 | ||||||
Current maturities of long-term debt
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9,876 | 5,525 | ||||||
Total current liabilities
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1,125,912 | 903,541 | ||||||
Other long-term liabilities
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122,708 | 127,175 | ||||||
Long-term debt
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6,250 | 17,869 | ||||||
Total liabilities
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1,254,870 | 1,048,585 | ||||||
Stockholders’ Equity
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||||||||
Common stock
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112,344 | 118,007 | ||||||
Capital in excess of par value
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500,922 | 508,366 | ||||||
Retained earnings and accumulated other comprehensive loss
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630,625 | 648,994 | ||||||
Total stockholders’ equity
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1,243,891 | 1,275,367 | ||||||
Total liabilities and stockholders’ equity
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$ | 2,498,761 | $ | 2,323,952 | ||||