BOSTON--(BW HealthWire)--Oct. 23, 2000--Varian Medical Systems, Inc. (NYSE: VAR) today announced it expects sales for fiscal 2000 that ended Sept. 29 to total $690 million, up by $100 million or 17 percent above fiscal 1999 levels as a result of continuing strong demand for its new cancer treatment systems. Reporting from a meeting of the American Society for Therapeutic Radiology and Oncology (ASTRO) where the company is unveiling several new products for advanced radiotherapy, Varian management said it expects to post earnings on the order of $0.74 per share for the fourth quarter and $1.67 per share for the fiscal year. Consensus estimates published by First Call were at $0.70 per share for the fourth quarter and $1.62 per share for the fiscal year. The company expects to report fiscal 2000 net orders about 19 percent higher than fiscal 1999 totals.
The company attributes the sales growth to its new "smart" radiotherapy systems that treat cancer with laser-like precision using a technique called IMRT (Intensity Modulated Radiation Therapy) which delivers higher, more effective doses of radiation to tumors while reducing exposure of surrounding healthy tissue. Early studies have shown that IMRT has the potential to result in significantly improved cancer outcomes and reduced complications.
"We are excited by the continuing strong sales and earnings growth of the company and by the new products that we are introducing to make a real difference in cancer treatments and outcomes," said Richard M. Levy, Varian Medical Systems president and CEO.
Varian opened its ASTRO exhibit Sunday with several new radiotherapy products that work together within its Generation 6 system architecture for delivering SmartBeam(R) IMRT. The company unveiled an eye-catching, compact Silhouette(TM) Edition Clinac(R) linear accelerator designed to fit the most advanced technology for radiotherapy into small existing treatment rooms. It is also announcing an upgrade in its Helios(R) inverse treatment planning software that improves treatment precision and makes it easy for clinics to begin offering cancer patients highly accurate IMRT treatments.
Varian Medical Systems together with GE Medical Systems is also exhibiting a new See and Treat Cancer Care(TM) system that combines the world's leading diagnostic imaging and treatment processes for radiation oncology. The combination of these technologies will increase the potential for better outcomes through consolidated detection, localization, and treatment of tumors.
Varian Medical Systems is scheduled to announce financial results for the fourth quarter and fiscal 2000 via a press release followed by a conference call at 2 p.m. PST on Wednesday, November 1. The call, which will be open to all interested parties, will be accessible via the investor relations page of the company's website at www.varian.com
Forward Looking Statement
Except for historical information, this news release contains forward looking statements regarding expected revenues and earnings and demand for the Company's products involving risks and uncertainties that could cause actual results to differ materially from those projected. Some of the important risk factors relating to our business are described in our third quarter earnings release and the Company's filings with the SEC.
Varian Medical Systems, Inc., (NYSE:VAR) of Palo Alto, California, is the world's leading manufacturer of integrated cancer therapy systems which are treating thousands of patients per day. The company is also a premier supplier of X-ray tubes and flat-panel digital subsystems for imaging in medical, scientific, and industrial applications. Varian Medical Systems employs approximately 2,300 people who are located at manufacturing sites in North America, Europe and in its 40 sales and support offices around the world. Additional information is available on the company's web site at www.varian.com.
CONTACT: Varian Medical Systems
Spencer Sias, 888/781-4355
spencer.sias@varian.com