Q3 2024 Varex Imaging Corp Earnings Call Transcript
Key Points
- Varex Imaging Corp (VREX) experienced continued strength in its cargo inspection business within the industrial segment.
- The company ended the quarter with $192 million in cash, cash equivalents, and marketable securities, up $40 million compared to the third quarter of fiscal 2023.
- Global sales of CT tubes improved slightly in the quarter and were in line with sales trends.
- Varex Imaging Corp (VREX) is optimistic about the potential for growth in the Chinese medical imaging market, particularly with the upgrade from 16-slice to 64- and 128-slice CTs.
- The company is making progress in its long-term strategy with photon counting technology and cost leadership initiatives, particularly in India.
- Third-quarter revenue decreased by 10% year over year, with a 15% decrease in the medical segment.
- Gross margin was lower than anticipated due to an unfavorable product sales mix in the industrial segment.
- Sales in China remained soft due to ongoing anticorruption actions by the Chinese government, impacting overall revenue.
- Non-GAAP EPS was $0.14, down from $0.37 in the previous year.
- The company faces continued competition from Asia-based detector manufacturers, particularly in low-end modalities such as radiographic and dental.
Greetings. Welcome to the Varex Imaging third-quarter fiscal year '24 earnings call. (Operator Instructions) Please note this conference is being recorded.
At this time, I'll turn the conference over to Christopher Belfiore, Director of Investor Relations. Christopher, you may now begin your presentation.
Good afternoon, and welcome to Varex Imaging Corporation's earnings conference call for the third quarter of fiscal year 2024. With me today are Sunny Sanyal, our President and CEO; and Sam Maheshwari, our CFO. Please note that the live webcast of this conference call includes a supplemental slide presentation that can be accessed at Varex's website at vareximaging.com.
The webcast and supplemental slide presentation will be archived on Varex's website. To simplify our discussion, unless otherwise stated, all references to the quarter are for the third quarter of fiscal year 2024.
In addition, unless otherwise stated, quarterly comparisons are made year over
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