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Jan 03, 2025
Varex Imaging Q1 2025 Earnings Report
Varex Imaging reported a decrease in net loss and an increase in revenue for the first quarter of fiscal year 2025.
Key Takeaways
Varex Imaging Corporation reported a net loss of $0.1 million for the three months ended January 3, 2025, an improvement from a $0.4 million net loss in the prior quarter. Revenues increased to $199.8 million, up from $190.0 million in the previous quarter, driven by strong performance in both Medical and Industrial segments.
Net loss improved to $0.1 million from $0.4 million in the prior quarter.
Total revenues increased by $9.8 million, or 5.2%, quarter-over-quarter.
Medical segment revenue grew by 3.4% and Industrial segment revenue grew by 10.2%.
Gross profit increased by $11.4 million, or 20.0%, quarter-over-quarter.
Revenue by Segment
Forward Guidance
The company anticipates continued challenges and opportunities in the coming periods, with a focus on innovation and strategic investments.
Positive Outlook
- Optimism for increased opportunities in China due to a new stimulus program including the healthcare industry.
- Continued investment in research and development to bring new products to market for global OEM customers.
- Industrial business benefits from research and development investment and manufacturing economies of scale from the Medical side.
- Industrial business benefits from long-term service agreements for Linatron® products.
- Active pursuit of new potential applications for non-destructive testing products.
Challenges Ahead
- Uncertain economic and geopolitical environment, supply chain and logistic challenges, and geopolitical tensions.
- Potential for renewed inflation, higher interest rates and capital costs, increased shipping costs, and supply shortages.
- Negative impact on Medical business from the Chinese government's anti-corruption campaign related to the healthcare industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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