PALO ALTO, Calif. (AP) -- Varian Medical Systems Inc., which makes equipment and software used to treat cancer, said Wednesday its profit fell 7 percent in the fiscal first quarter on acquisition costs and decreased orders from its customers in Japan.
Varian said its profit declined to $90.2 million, or 79 cents per share, in the three months ended Dec. 30. A year ago it reported a profit of $96.5 million, or 80 cents per share. Its revenue grew 8 percent, to $625.3 million from $579.9 million.
Analysts expected the company to turn a profit of 75 cents per share on $633.5 million in revenue, according to FactSet.
The company said its oncology system revenue increased 8 percent, to $487.6 million from $452.4 million. X-ray product revenue edged up 1 percent to $113 million. Varian reported lower demand from Japan, saying some of its customers in that country had overstocked tubes and panels as they tried to keep their production at normal levels after the earthquake and tsunami in 2011. It said business should return to normal levels later in the year. Its other revenue grew to $24.7 million from $15.9 million.
Varian also said its profit margins decreased because of its acquisition of Calypso Medical Technology late in the year.
The company reported $606.1 million in orders during the quarter and said its backlog was $2.51 billion at the end of the period, up from $2.21 billion a year ago. However it said some North American customers pushed back orders from the oncology systems business. Varian expects to fill those orders later in the year. X-ray product orders and security and inspection product orders fell compared to a year ago.
Varian said it expects its per-share profit to grow 12 to 13 percent in the fiscal second quarter, and revenue should rise 8 percent. That implies a profit of 96 cents to 97 cents per share on $700.3 million in revenue.
Analysts expect the company to report a profit of $1 per share on revenue of $711.8 million, according to FactSet.
Shares of Varian Medical Systems picked up 73 cents to $69.24 on Wednesday, and sank $2.99, or 4.3 percent, to $66.25 in aftermarket trading following the release of the earnings report.
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