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Jan 03
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.
Varex Imaging
Varex Imaging
Varex Imaging Revenue by Segment
Revenue by Segment
Medical Segment Revenue
CapyFin.comIndustrial Segment Revenue
CapyFin.com 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.
- Potential for additional tariffs or retaliatory actions to impact business.
- Uncertainty regarding the final Pillar Two model rules and their potential impact on the effective tax rate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income