Varian Medical 4Q net income falls on tax costs

Varian Medical 4th-quarter net income slips, and company cuts contract backlog by $156M

Associated Press

NEW YORK (AP) -- NEWS: Varian Medical Systems said Wednesday its net income fell 2 percent in its fiscal fourth quarter and said it cut its backlog because of the state of the health care market. Its stock fell more than 7 percent in aftermarket trading.

DETAILS: The cancer treatment system maker cut its backlog by $156 million because of uncertainty in the U.S. health care environment and an increase canceled orders from small free standing clinic developers during the fourth quarter. Overall its backlog improved compared to a year ago, however.

NUMBERS: The company said net income fell to $117.3 million from $120.2 million. On a per-share basis net income was unchanged at $1.08. Revenue rose 2 percent to $769.9 million.

FactSet says analysts expected net income of $1.12 per share and $778.4 million in revenue. The quarter ended on Sept. 27.

Varian's annual net income grew 3 percent to $438.2 million, or $3.98 per share. Revenue rose 5 percent to $2.94 billion.

FUTURE: For the new fiscal year the company forecast net income of $4.22 to $4.34 per share and said revenue will grow 6 to 8 percent, or to about $3.12 billion to $3.18 billion.

Analysts expect net income of $4.46 per share and $3.14 billion in revenue.

STOCK: Shares of Varian fell $5.77 to $72.75 in aftermarket trading.

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