Varex announces financial results for first quarter fiscal year 2024

Varex Imaging Corporation announced its unaudited financial results for the first quarter of fiscal year 2024.

1QFY24 Summary

• Revenues $190 million
• GAAP gross margin 30% | Non-GAAP gross margin* 31%
• GAAP operating margin 2% | Non-GAAP operating margin* 5%
• GAAP net loss $0.01 per diluted share | Non-GAAP net earnings* $0.06 per diluted share
• Cash flow from operations was $10 million

“Revenue of $190 million in the first quarter of fiscal 2024, was at the mid-point of our guidance, however unfavorable mix in both the Medical and Industrial segments impacted profitability.” said Sunny Sanyal, Chief Executive Officer of Varex.

Varex’s revenue of $190 million was down 8% year-over-year. Medical segment revenue of $140 million was down 13% year-over-year. Industrial segment revenue of $50 million was up 10% year-over-year. Non-GAAP gross margin was 31% in the quarter compared to 32% in the first quarter of fiscal year 2023 and non-GAAP EPS decreased to $0.06 from $0.21 in the first quarter.

Balance sheet & cash flow
Cash flow from operations was $10 million in the first quarter of fiscal year 2024, due primarily to stable working capital management. Cash, cash equivalents, marketable securities, and CDs remained flat at $195 million at the end of the first quarter of fiscal 2024 compared to the end of fiscal year 2023.

Outlook
The following guidance is provided for the second quarter of fiscal year 2024:

• Revenues are expected to be between $195 million and $215 million
• Non-GAAP net earnings per diluted share is expected to be between $0.10 and $0.30

Guidance for the company’s net earnings per diluted share is provided on a non-GAAP basis only. This non-GAAP financial measure is forward-looking, and the company is unable to provide a meaningful or accurate reconciliation to a GAAP forecast of net earnings per diluted share without unreasonable effort due to certain of these reconciling items being uncertain, out of our control, and the amount and timing of these items being unable to be reasonably predicted. The actual amounts of such reconciling items could have a significant impact on the company’s GAAP net income (loss) per diluted share.
MB Bureau