Varex guides lower

 Global demand for our products was in line with our expectations, resulting in revenue of $206 million in the first quarter," said Sunny Sanyal, Chief Executive Officer of Varex. Sanyal added, "However, we are beginning to see some cautiousness from our customers as they assess an uncertain economic environment."

Varex’s revenue of $206 million was down 11% sequentially and up 3% year-over-year. Medical segment revenue of $160 million was down 12% sequentially and up 3% year-over-year. Industrial segment revenue of $46 million was down 9% sequentially and up 5% year-over-year. Non-GAAP gross margin was 32% in the quarter compared to 33% in the fourth quarter of fiscal year 2022 and non-GAAP EPS declined to $0.21 from $0.42 last quarter.

Balance Sheet & Cash Flow

Cash flow from operations was a use of $4 million in the first quarter of fiscal year 2023, due to higher inventory levels and annual employee incentive payments, as is typical in the first quarter of the fiscal year. Cash, cash equivalents and marketable securities declined $5 million sequentially to $108 million at the end of the first quarter.

Outlook

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

• Revenues are expected to be between $205 million and $225 million

• Non-GAAP net earnings per diluted share is expected to be between $0.05 and $0.25

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.

Conference Call Information

Varex will conduct its earnings conference call for the first quarter of fiscal year 2023 today at 3:00 p.m. Mountain Time. The conference call, including a supplemental slide presentation, will be webcast live and can be accessed at Varex’s website at vareximaging.com/news. Access will also be available by dialing 877-524-8416 from anywhere in the U.S. or by dialing 412-902-1028 from non-U.S. locations. The webcast and supplemental slide presentation will be archived on Varex’s website at vareximaging.com/quarterly-reports. A replay of the call will be available from today through February 14th at 877-660-6853 from anywhere in the U.S. or 201-612-7415 from non-U.S. locations. The replay access code is 13735486. The listen-only webcast link is: https://event.choruscall.com/mediaframe/webcast.html?webcastid=YcwMaGcv

https://finance.yahoo.com/news/varex-announces-financial-results-first-210500774.html