Varian Medical's Q3 sales rise, earnings stay flat

July 28, 2010 by MassDevice staff

Varian Medical Systems posts a 13.4 percent revenue increase, but the bottom line ticks up a mere 0.1 percent on losses from the sale of its Accel lab instruments unit to Bruker Corp.

Varian Medical Systems (NYSE:VAR) posted a double-digit top-line increase during its third quarter, but net earnings rose only 0.1 percent on a $6.4 million loss from the sale of its Accel lab instruments division to Bruker Corp. (NSDQ:BRKR).

The Palo Alto, Calif.-based cancer treatment maker reported net earnings of $85.5 million, or 69 cents per diluted share, on sales of $578 million during its fiscal 2010 third quarter. That compares with net earnings of $85 million, or 68 cents per diluted share, on sales of $510 million during the same period last year. Absent the loss from the discontinued Accel operations, however, Varian posted net earnings of $91.9 million, or 75 cents per share, a 7.5 percent increase.

Varian said it expects fourth-quarter net earnings from continuing operations of between 80 cents and 83 cents and of between $2.90 and $2.93 for the full year. President and CEO Tim Guertin said full-year revenues "could grow by about 6 to 7 percent" in prepared remarks.

Agilent Technologies Inc. (NYSE:A), which acquired Varian's instrument-making subsidiary in July 2009 for a reported $1.5 billion, was forced to deal three of those business units to Bruker to comply with European antitrust laws.