Varex Imaging Corporation (NASDAQ: VREX) reported Q4 EPS of ($0.04), $0.06 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $170 million versus the consensus estimate of $162.1 million.

4QFY20 Summary

• Revenues were $170 million
• GAAP gross margin was 27% | non-GAAP gross margin* was 28%
• GAAP operating expense was $58 million | non-GAAP operating expense* was $48 million
• GAAP operating margin was (8%) | non-GAAP operating margin* was 0%
• GAAP net loss was $0.66 per diluted share | non-GAAP net loss* was $0.04 per diluted share

“Revenues for the fourth quarter of fiscal year 2020 exceeded expectations and were comparable to the third quarter of fiscal year 2020. Strong sales of our CT tubes were partially offset by continued decline in sales for other medical and industrial products,” said Sunny Sanyal, Chief Executive Officer of Varex. “Gross margin for the quarter improved sequentially from the third quarter due to a slight improvement in product mix and the start of cost reduction actions implemented late in the third quarter and during the fourth quarter,” Sanyal added.

“Our fourth quarter financial results indicate that the impact of COVID on our business has started to stabilize, while the timing and pace of sales recovery continues to remain uncertain. Nonetheless, we expect to see increasing benefit from the closure of our Santa Clara facility and other cost reduction actions on our profitability over the next two quarters,” Sanyal added.

GUIDANCE:

Varex Imaging Corporation sees Q1 2021 EPS of ($0.15)-$0.10, versus the consensus of $0.02. Varex Imaging Corporation sees Q1 2021 revenue of $160-180 million, versus the consensus of $173.73 million.

The following guidance is provided for the first quarter of fiscal year 2021:

• Revenue is expected to be between $160 million and $180 million
• Non-GAAP earnings per diluted share is expected to be between ($0.15) and $0.10

For earnings history and earnings-related data on Varex Imaging Corporation (VREX) click here.