On November 14, 2023, Varex Imaging Corp (VREX, Financial) released its 8-K filing, disclosing its financial results for the fourth quarter and the fiscal year 2023. The company reported a mixed performance with record annual revenues of $893 million, despite a slight year-over-year decline in the fourth quarter. The GAAP net income for the fiscal year was $1.08 per diluted share, while the non-GAAP net income reached $1.27 per diluted share.
Financial Performance Overview
Varex Imaging Corp (VREX, Financial) experienced a challenging fourth quarter in its Medical segment, particularly in China, with a 10% decrease in revenue compared to the same period last year. However, this was offset by a robust 27% increase in the Industrial segment. The company's total Q4 revenues were $227 million, a 2% decrease from Q4 FY22. The GAAP gross margin for the fiscal year was 32%, with a non-GAAP gross margin slightly higher at 33%. Operating expenses for the year on a GAAP basis were $213 million, while non-GAAP operating expenses were reported at $199 million.
Income Statement Highlights
The GAAP operating margin for the year was 9%, with the non-GAAP operating margin at 11%. The GAAP net income per diluted share for Q4 FY23 was $0.66, while the non-GAAP net income per diluted share was $0.45. The company's CEO, Sunny Sanyal, commented on the results, stating,
We are pleased to report another solid quarter. Revenue of $227 million in the fourth quarter of fiscal 2023 was the result of the strong performance in our Industrial segment, offset primarily by lower revenue in China in our Medical segment."Sanyal also highlighted the company's robust cash generation and inventory management.
Balance Sheet and Cash Flow
The balance sheet of Varex Imaging Corp (VREX, Financial) remained solid, with cash and marketable securities totaling $195 million at the end of the fiscal year. The company's cash flow from operations was strong, at $47 million for the fourth quarter and $108 million for the fiscal year.
Future Outlook
Looking ahead, Varex Imaging Corp (VREX, Financial) provided guidance for the first quarter of fiscal year 2024, expecting revenues to be between $180 million and $200 million, and non-GAAP net income per diluted share to be between $0.00 and $0.20. The company's forward-looking statements suggest cautious optimism, with an emphasis on growth potential in China and the Industrial segment.
Investor Relations and Conference Call
The company will conduct an earnings conference call to discuss the fourth quarter results, which will be webcast live and accessible through Varex's website. Investors can also access the call by dialing in from the U.S. or international locations. A replay of the call will be available through November 28th.
In conclusion, Varex Imaging Corp (VREX, Financial) has navigated a challenging fiscal year with resilience, particularly in its Industrial segment. The company's ability to generate strong cash flow amidst market challenges positions it to potentially capitalize on future growth opportunities, especially as conditions in the Medical segment improve. Investors and stakeholders will be watching closely to see how Varex's strategic investments and market positioning unfold in the coming fiscal year.
Explore the complete 8-K earnings release (here) from Varex Imaging Corp for further details.
