Q2 2024 Varex Imaging Corp Earnings Call Transcript
Key Points
- Varex Imaging Corp (VREX) reported a revenue of $206 million for the second quarter, which was in line with the company's expectations.
- The company's non-GAAP gross margin remained stable at 33%, consistent with the previous year's same quarter.
- Varex Imaging Corp (VREX) ended the quarter with $190 million in cash, cash equivalents, and marketable securities, marking an increase of $68 million from the previous year.
- Photon counting technology continues to see accelerated engagement and adoption, particularly in the industrial segment, promising strong future sales growth.
- The company has secured additional financing, enhancing its liquidity position and preparing it effectively for future refinancing of convertible bonds.
- Revenue in the second quarter decreased by 10% year over year, with a significant 15% decline in the medical segment.
- Non-GAAP earnings per share decreased to $0.16 from $0.26 in the previous year, indicating lower profitability.
- Sales in China declined due to ongoing government audits and investigations into the healthcare system, with no expected pickup in sales before the next fiscal year.
- The company observed cautious purchasing behavior across customers, leading to reduced demand and deferred shipments.
- Varex Imaging Corp (VREX) reduced its revenue expectations for the remainder of the fiscal year due to the continued softness in the market and challenges in China.
Greetings and welcome to the Varex Imaging second-quarter full-year 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Chris Belfiore, Director of Investor Relations. Thank you, sir. You may begin.
Good afternoon, and welcome to Varex Imaging Corporation's earnings conference call for the second 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 various 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 second quarter of fiscal year 2024. In addition, unless otherwise stated, quarterly comparisons are made year over year from the
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