Radiation therapy firm Varian Medical Systems expects to report lower earnings for fiscal 2015 than previously predicted in its earnings report for the third quarter of the fiscal year.
The company now expects net earnings per generally accepted accounting principles (GAAP) to be approximately $4.09 per diluted share and non-GAAP net earnings to be approximately $4.29 per diluted share. The company continues to expect revenue growth for the year of about 2%, or 6% on a constant currency basis.
Several TrueBeam systems and related software slipped out of the quarter, contributing to a shortfall in high-margin revenues for Varian's Oncology Systems business, the firm's CEO said. Also, the earnings shortfall was partially offset by an approximately one-point drop in the projected annual tax rate.
Compared with the corresponding prior-year periods, gross orders in its Imaging Components business are expected to decline by about 30% for the fourth quarter and by about 16% for the fiscal year. The fourth-quarter results should also include proton therapy orders totaling about $140 million for three centers, Varian said. In addition, the year-end backlog for the company is expected to be $3.5 billion, up 10%.
Varian's full fiscal year results will be released on October 28.
