Radiation oncology treatments and software maker Varian Medical Systems (NYSE:VAR) announced today that it updated its previously reported GAAP preliminary financial results for the fourth quarter and fiscal 2019.
Earlier this week, the company uncovered new information and determined that the financial performance of its recently acquired Endocare and Alicon business was better than previously understood and the mix of revenues is different than the company previously expected.
An increase in the fair value of the contingent consideration payable under earnout obligations to the sellers of Endocare and Alicon is the result, and it has created an $18.6 million increase in acquisition-related expenses in the fourth quarter of 2019, adding $18.6 million in accrued liabilities as of the end of the quarter.
The resulted change in GAAP financial results for the quarter and full fiscal year did not have an impact on non-GAAP financial measures, according to Varian.
In June, Varian announced that it purchased Endocare and Alicon to add to its cancer care solutions portfolio. The $185 million acquisition was financed with cash and proceeds from borrowings. Combined, Endocare and Alicon reeled in $30 million in revenues last year.
Texas-based Endocare provides hardware and softwre for cryoablation and microwave ablation. The company’s lead product, Cryocare CS, incorporates planning, placement and treatment to simplify cryotherapy. Alicon, which is based in China, makes embolic therapy for treating liver cancer. The company’s lead product, Caligel, is used in over 1,000 hospitals in China, according to Varian.
