07.27.07
$1.6 Billion
Key Executives:
Timothy E. Guertin, President and CEO
Tai-Yun Chen, Corporate VP and Corporate Controller
Elisha W. Finney, Sr. VP and CFO
Robert H. Kluge, Corporate VP and President, X-Ray Products
J. A. (Andy) Thorson, VP, Business Development
Dow R. Wilson, Exec. VP and President, Oncology Systems
No. of Employees: 3,900
World Headquarters: Palo Alto, CA
It wouldn’t take one of its imaging systems to create a clear picture of the impressive growth that Varian Medical has realized in the past year. Significant double-digit gains marked the company’s record fiscal 2006 performance. The company’s technology is focused on cancer therapies and X-ray imaging.
Varian’s Oncology Systems business manufactures systems for treating cancer with radiation, including hardware and software for image-guided radiation therapies, as well as brachytherapy (internal) radiotherapy (which involves placing seeds or sources in or near a tumor). Varian Surgical Sciences produces technology for stereotactic radiosurgery and neurosurgery for the treatment of cancer and other disorders of the central nervous system.
The company’s X-ray Products business manufactures X-ray tubes and flat-panel imagers for CT and other diagnostic imaging, mammography and radioscopic/fluoroscopic imaging.
Tim Guertin, who has been CEO about a year and a half, called 2006 a year of “major transition and rapid growth.”
For fiscal 2006 (ended Sept. 29), annual revenues grew 16% to $1.6 billion. Net earnings were $245 million, compared to $207 million in fiscal 2005.
“Robust demand for advanced products for image-guided radiotherapy (IGRT), stereotactic radiosurgery, brachytherapy and filmless X-ray imaging contributed to our growth in net orders, revenues and net earnings during the quarter and the fiscal year,” Guertin said. “We ended fiscal year 2006 on a particularly strong note that sets the stage for continued growth in fiscal year 2007 and beyond.”
Going forward, Guertin has outlined an ambitious plan to grow Varian into a $3 billion enterprise in the next five years.
The Oncology Systems division reported fiscal year net orders of $1.5 billion, up 13%, with 19% growth in North America and 6% growth in international markets. Gains in Europe were offset by a weak Asian market, the company said.
“North American cancer treatment centers are again leading a major market transition toward IGRT and image-guided radiosurgery,” Guertin added. “Our OBI [On-Board Imager] devices together with our linear accelerators are being used more commonly to target smaller tumors more precisely.”
The company said that, at the end of fiscal 2006, more than 325 installations of its OBI devices—which allow real-time imaging of tumors while on the treatment couch—were complete or in progress. Guertin said Varian’s Trilogy accelerator for both radiotherapy and radiosurgery, as well as our brachytherapy and software products, contributed significantly to the growth in net orders and revenues.
For the company’s X-ray sector, sales were $228 million, up 17%. Growth largely was driven by Varian’s flat-panel digital detectors for filmless X-ray imaging. During the quarter, the company completed construction of a new flat-panel production facility at its Salt Lake City, UT, manufacturing plant.
Fiscal 2007 is shaping up to be a growth year as well—two key acquisitions to date are aiding that growth. In January, Varian Medical completed the acquisition of Accel Instruments GmbH, a privately held supplier of scientific research instruments and proton therapy systems for cancer treatment based near Cologne, Germany. The company paid approximately $30 million.
“With Accel Instruments, we have the opportunity to build a several hundred million dollar business based on improving cancer care with a clinically practical and affordable system for proton therapy,” Guertin said following the purchase. In 2006, Accel had approximately $30 million in annual revenues.
In May, Varian completed the acquisition of Bio-Imaging Research, Inc., a supplier of X-ray imaging products for security and inspection. Varian paid approximately $21 million to acquire the privately held business based in Lincolnshire, IL, which will expand its non-medical X-ray business.
For the second quarter of 2007 (ended March 30), Varian Medical reported net earnings of $61 million, compared to $56 million for the same period in 2006. Revenues for the quarter rose 7% to $443 million, including $9 million from Accel Instruments.
Varian also reported that Oncology Systems revenues for the quarter were lower than expected due in large measure to a higher percentage of IGRT installations, which require greater site preparation and longer construction cycles. Guertin said the X-ray Products business continued to post excellent results with growth in orders, sales and profits in both tube and filmless X-ray detector product lines.
Due to low growth of orders in Oncology Systems for the first half of fiscal 2007 and longer average times in backlog, the company lowered guidance for the rest of fiscal 2007. The company now expects growth in the low double digits above fiscal 2006. During the first quarter, Varian had predicted growth of 13% or more for the year.
Key Executives:
Timothy E. Guertin, President and CEO
Tai-Yun Chen, Corporate VP and Corporate Controller
Elisha W. Finney, Sr. VP and CFO
Robert H. Kluge, Corporate VP and President, X-Ray Products
J. A. (Andy) Thorson, VP, Business Development
Dow R. Wilson, Exec. VP and President, Oncology Systems
No. of Employees: 3,900
World Headquarters: Palo Alto, CA
It wouldn’t take one of its imaging systems to create a clear picture of the impressive growth that Varian Medical has realized in the past year. Significant double-digit gains marked the company’s record fiscal 2006 performance. The company’s technology is focused on cancer therapies and X-ray imaging.
Varian’s Oncology Systems business manufactures systems for treating cancer with radiation, including hardware and software for image-guided radiation therapies, as well as brachytherapy (internal) radiotherapy (which involves placing seeds or sources in or near a tumor). Varian Surgical Sciences produces technology for stereotactic radiosurgery and neurosurgery for the treatment of cancer and other disorders of the central nervous system.
The company’s X-ray Products business manufactures X-ray tubes and flat-panel imagers for CT and other diagnostic imaging, mammography and radioscopic/fluoroscopic imaging.
Tim Guertin, who has been CEO about a year and a half, called 2006 a year of “major transition and rapid growth.”
For fiscal 2006 (ended Sept. 29), annual revenues grew 16% to $1.6 billion. Net earnings were $245 million, compared to $207 million in fiscal 2005.
“Robust demand for advanced products for image-guided radiotherapy (IGRT), stereotactic radiosurgery, brachytherapy and filmless X-ray imaging contributed to our growth in net orders, revenues and net earnings during the quarter and the fiscal year,” Guertin said. “We ended fiscal year 2006 on a particularly strong note that sets the stage for continued growth in fiscal year 2007 and beyond.”
Going forward, Guertin has outlined an ambitious plan to grow Varian into a $3 billion enterprise in the next five years.
The Oncology Systems division reported fiscal year net orders of $1.5 billion, up 13%, with 19% growth in North America and 6% growth in international markets. Gains in Europe were offset by a weak Asian market, the company said.
“North American cancer treatment centers are again leading a major market transition toward IGRT and image-guided radiosurgery,” Guertin added. “Our OBI [On-Board Imager] devices together with our linear accelerators are being used more commonly to target smaller tumors more precisely.”
The company said that, at the end of fiscal 2006, more than 325 installations of its OBI devices—which allow real-time imaging of tumors while on the treatment couch—were complete or in progress. Guertin said Varian’s Trilogy accelerator for both radiotherapy and radiosurgery, as well as our brachytherapy and software products, contributed significantly to the growth in net orders and revenues.
For the company’s X-ray sector, sales were $228 million, up 17%. Growth largely was driven by Varian’s flat-panel digital detectors for filmless X-ray imaging. During the quarter, the company completed construction of a new flat-panel production facility at its Salt Lake City, UT, manufacturing plant.
Fiscal 2007 is shaping up to be a growth year as well—two key acquisitions to date are aiding that growth. In January, Varian Medical completed the acquisition of Accel Instruments GmbH, a privately held supplier of scientific research instruments and proton therapy systems for cancer treatment based near Cologne, Germany. The company paid approximately $30 million.
“With Accel Instruments, we have the opportunity to build a several hundred million dollar business based on improving cancer care with a clinically practical and affordable system for proton therapy,” Guertin said following the purchase. In 2006, Accel had approximately $30 million in annual revenues.
In May, Varian completed the acquisition of Bio-Imaging Research, Inc., a supplier of X-ray imaging products for security and inspection. Varian paid approximately $21 million to acquire the privately held business based in Lincolnshire, IL, which will expand its non-medical X-ray business.
For the second quarter of 2007 (ended March 30), Varian Medical reported net earnings of $61 million, compared to $56 million for the same period in 2006. Revenues for the quarter rose 7% to $443 million, including $9 million from Accel Instruments.
Varian also reported that Oncology Systems revenues for the quarter were lower than expected due in large measure to a higher percentage of IGRT installations, which require greater site preparation and longer construction cycles. Guertin said the X-ray Products business continued to post excellent results with growth in orders, sales and profits in both tube and filmless X-ray detector product lines.
Due to low growth of orders in Oncology Systems for the first half of fiscal 2007 and longer average times in backlog, the company lowered guidance for the rest of fiscal 2007. The company now expects growth in the low double digits above fiscal 2006. During the first quarter, Varian had predicted growth of 13% or more for the year.