PALO ALTO, Calif., March 9, 2020 /PRNewswire/ -- Varian (NYSE:
VAR) today announced that the COVID-19 outbreak will negatively
impact the company's operating results.
Across the company's Asia-Pacific geographies, healthcare resources
are being prioritized for the treatment and management of the
outbreak. Consequently, the company is experiencing delays in
hardware and software installations and acceptance, as well as in
the delivery of interventional oncology procedures. While no
orders have been cancelled, the company expects revenues to be
negatively impacted and, as of today, estimates second quarter of
fiscal 2020 revenues to be in the range of $800 million to $825
million.
While uncertainty remains around the duration, severity and
geographic scope of the COVID-19 outbreak, the company
preliminarily estimates 7 to 9 percent revenue growth for fiscal
year 2020. The company's outlook could shift if the dynamics
of the outbreak change materially.
"We are closely monitoring this fluid situation and our priority
is protecting our employees, supporting our customers, and making
sure patients have access to our cancer-fighting technologies,"
said Dow Wilson, President and Chief Executive Officer. "Our
long-term fundamentals remain strong and we are continuing with
planned investments to drive long-term growth and profitability for
our shareholders."
The company will provide further updates to guidance, including
earnings and cash flow from operations, during the second quarter
of fiscal 2020 earnings call based on information available at that
time.
Conference Call
Varian will hold a teleconference on
March 9 at 8:00am Eastern Time to discuss the expected
impact from COVID-19. To access the call, dial 1-877-869-3847
inside the U.S. and 1-201-689-8261 outside the U.S. The replay can
be accessed by dialing 1-877-660-6853 from inside the U.S. or
1-201-612-7415 from outside the U.S. and entering conference ID
13700120. The teleconference replay will be available through
12:00 p.m. Eastern Time, Wednesday, March 11, 2020.
About Varian
At Varian, we envision a world without
fear of cancer. For more than 70 years, we have developed, built
and delivered innovative cancer care technologies and solutions for
our clinical partners around the globe to help them treat millions
of patients each year. With an Intelligent Cancer Care approach, we
are harnessing advanced technologies like artificial intelligence,
machine learning and data analytics to enhance cancer treatment and
expand access to care. Our 10,000 employees across 70 locations
keep the patient and our clinical partners at the center of our
thinking as we power new victories in cancer care. Because, for
cancer patients everywhere, their fight is our fight. For more
information, visit http://www.varian.com and follow @VarianMedSys
on Twitter.
Forward-Looking Statements
Except for historical information, this news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements concerning
industry or market outlook, including the potential impact of
COVID-19 on revenues, the strength of our long-term fundamentals,
and the expected continuation of planned investments; and any
statements using the terms "could," "believe," "expect,"
"promising," "outlook," "should," "well-positioned," "will" or
similar statements are forward-looking statements that involve
risks and uncertainties that could cause the company's actual
results to differ materially from those anticipated. Such risks and
uncertainties include our ability to achieve expected synergies
from acquisitions; risks associated with integrating recent
acquisitions; global economic conditions and changes to trends for
cancer treatment regionally; currency exchange rates and tax rates;
the impact of the Tax Cuts and Jobs Act; the impact of the
Affordable Health Care for America Act (including excise taxes on
medical devices) and any further healthcare reforms (including
changes to Medicare and Medicaid), and/or changes in third-party
reimbursement levels; recent and potential future tariffs or a
global trade war; demand for and delays in delivery of the
company's products; the company's ability to develop, commercialize
and deploy new products; the company's ability to meet Food and
Drug Administration (FDA) and other regulatory requirements,
regulations or procedures; changes in regulatory environments;
risks associated with the company providing financing for the
construction and start-up operations of particle therapy centers,
challenges associated with commercializing the company's proton
solutions business; challenges to public tender awards and the loss
of such awards or other orders; the effect of adverse publicity;
the company's reliance on sole or limited-source suppliers; the
company's ability to maintain or increase margins; the impact of
competitive products and pricing; the potential loss of key
distributors or key personnel; challenges related to entering into
new business lines; the impact of the COVID-19 virus; and the other
risks listed from time to time in the company's filings with the
Securities and Exchange Commission, which by this reference are
incorporated herein. The company assumes no obligation to update or
revise the forward-looking statements in this release because of
new information, future events, or otherwise.
Investor Relations Contact
Anshul Maheshwari
Vice President, Treasury and Investor Relations
+1 (650) 424-5163
investors@varian.com
Press Contact
Mark Plungy
Director, Public Relations
+1 (650) 424-5630
mark.plungy@varian.com
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SOURCE Varian