Varian (VAR) says COVID-19 outbreak will negatively impact operating results

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 CallVarian 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.

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