Varex Announces Strong Financial Results for Second Quarter Fiscal Year 2023

Varex Imaging Corporation (Nasdaq: VREX) today announced its unaudited financial results for the second quarter of fiscal year 2023.

2QFY23 Summary

  • Revenues $228 million
  • GAAP gross margin 32% | Non-GAAP gross margin* 33%
  • GAAP operating margin 7% | Non-GAAP operating margin* 10%
  • GAAP net earnings $0.10 per diluted share | Non-GAAP net earnings* $0.26 per diluted share
  • Cash flow from operations $27 million

“We are pleased to report results for the second quarter that exceeded the high-end of our guidance. Demand for our products was strong during the quarter. Revenue growth for the Industrial segment exceeded our expectations, while Medical segment revenue growth was as expected,” said Sunny Sanyal, Chief Executive Officer of Varex. Sanyal added, “We are encouraged by the demand levels we are seeing, and we anticipate our growth to remain solid in the second half of the fiscal year.”

Varex’s revenue of $228 million was up 11% sequentially and 6% year-over-year. Medical segment revenue of $174 million was up 9% sequentially and 2% year-over-year. Industrial segment revenue of $54 million was up 19% sequentially and 22% year-over-year. Non-GAAP gross margin was 33% in the quarter compared to 32% in the first quarter of fiscal year 2023 and non-GAAP EPS increased to $0.26 from $0.21 last quarter.

Balance Sheet & Cash Flow

Cash flow from operations was $27 million in the second quarter of fiscal year 2023, due primarily to a reduction in inventory. Cash, cash equivalents, marketable securities and CDs increased $14 million sequentially to $122 million at the end of the second quarter.


The following guidance is provided for the third quarter of fiscal year 2023:

  • Revenues are expected to be between $220 million and $240 million
  • Non-GAAP net earnings per diluted share is expected to be between $0.20 and $0.40

Guidance for the company’s net earnings per diluted share is provided on a non-GAAP basis only. This non-GAAP financial measure is forward-looking, and the company is unable to provide a meaningful or accurate GAAP forecast of net earnings per diluted share without unreasonable effort due to the uncertainty of amounts and timing of unusual items.

Non-GAAP Financial Measures

*Please refer to “Reconciliation between GAAP and non-GAAP Financial Measures” below for a reconciliation of non-GAAP items to the comparable GAAP measures.


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