Varex Imaging Corp
NASDAQ:VREX
Varex Imaging Corp
Varex Imaging Corp. engages in the design, manufacture, and sale of imaging components. The company is headquartered in Salt Lake City, Utah and currently employs 2,100 full-time employees. The company went IPO on 2017-01-20. The company operates through two segments: Medical and Industrial. The Medical segment designs, manufactures, sells and services X-ray imaging components, including X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, three-dimensional (3D) reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, heat exchangers, ionization chambers and buckys. These components are used in a range of medical imaging applications. The Industrial segment designs, develops, manufactures, sells and services X-ray imaging products for use in various markets, including security applications for cargo screening at ports and borders, baggage screening at airports, and nondestructive testing and inspection applications used in various other markets.
Varex Imaging Corp. engages in the design, manufacture, and sale of imaging components. The company is headquartered in Salt Lake City, Utah and currently employs 2,100 full-time employees. The company went IPO on 2017-01-20. The company operates through two segments: Medical and Industrial. The Medical segment designs, manufactures, sells and services X-ray imaging components, including X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, three-dimensional (3D) reconstruction software, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, heat exchangers, ionization chambers and buckys. These components are used in a range of medical imaging applications. The Industrial segment designs, develops, manufactures, sells and services X-ray imaging products for use in various markets, including security applications for cargo screening at ports and borders, baggage screening at airports, and nondestructive testing and inspection applications used in various other markets.
Strong Start: Varex reported Q1 revenue of $210 million, up 5% year-over-year and at the high end of guidance, with robust performance from the Industrial segment.
Industrial Growth: Industrial segment revenue rose 17% year-over-year, driven by strong cargo security system sales and broad-based demand.
Stable Medical Segment: Medical segment revenue was flat year-over-year, with particular strength in CT and growing interest in new system designs.
Margins & Profitability: Non-GAAP gross margin reached 34%, at the high end of guidance, and non-GAAP EPS grew to $0.19 from $0.10 last year.
China Revenue: Sales to China contributed 17% of total revenue and are expected to remain stable to slightly up for the full year.
Q2 Guidance: Second quarter revenue is expected between $210 million and $225 million, with non-GAAP EPS forecast at $0.15 to $0.25 per share.
India Operations: Ramp-up of detector and tube manufacturing in India is underway, generating customer interest despite short-term P&L impact.
Inventory Build: Inventory increased to support anticipated Industrial demand and new product ramps, with normalization targeted in coming quarters.
