Varian Medical Systems Q3 Profit Tops Estimates

(RTTNews) - Varian Medical Systems Inc. (VAR) reported that its third-quarter net earnings attributable to the company increased to $61.2 million or $0.67 per share from $29.4 million or $0.32 per share in the prior year.

The latest-quarter results included a $21 million gain on an equity investment that went public, a $14 million workforce restructuring charge and a $9 million impairment of its available-for-sale investments.

The prior year results included a $51 million goodwill impairment charge related to its Proton Solutions business and a $21 million charge associated with the write-off of in-process research and development acquired in the CyberHeart acquisition.

Non-GAAP net earnings per share were $0.78 compared to $1.32 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.52 per share for the quarter. Analysts' estimates typically exclude special items.

Total company revenues declined 16% in dollars and 15% in constant currency, to $694.3 million. Organic revenues were down 19%. Analysts expected revenue of $664.38 million for the quarter.

Earlier today, Varian Medical Systems said that it reached a deal to merge with German health group Siemens Healthineers AG (SMMNY.PK) in an all-cash transaction valued at $16.4 billion.

As per the terms of the agreement, Siemens Healthineers will acquire all outstanding shares of Varian for $177.50 per share in cash, representing a premium of about 24% to the closing price of Varian's common stock on July 31, 2020.

It expected that the transaction will close in the first half of calendar year 2021.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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