PALO ALTO, Calif., Oct. 14 Varian, Inc.(NasdaqGS: VARI) today pre-announced unaudited results for the 53-week fiscalyear that ended October 3, 2008. Sales should exceed $1 billion, with strongorders and excellent execution during the fourth quarter. Non-GAAP (adjusted)diluted earnings per share should exceed $2.80, compared to the prior guidanceof $2.74 plus or minus $0.05. Share-based compensation expense, which isexcluded from these amounts, should be $0.23. On a GAAP basis, dilutedearnings per share should exceed $2.11, compared to prior guidance of $2.05plus or minus $0.09. Adjusted operating margins improved in the fourth fiscalquarter and should represent a record high for any quarter.
"We are pleased with our execution in the fourth quarter and havesubstantially overcome the issues we had in the third quarter," said Garry W.Rogerson, President and Chief Executive Officer. "We saw strong orders andsales as the quarter progressed. With strong total company orders in thequarter and a large backlog in high-field magnet-based systems, we are in agood position going into fiscal year 2009."
For a complete reconciliation of non-GAAP (adjusted) financial informationused in this press release to the most directly comparable GAAP financialinformation, please refer to the attached Reconciliation of GAAP to AdjustedResults, Projected.
Webcast Conference Call
The company plans to report its fourth quarter and full fiscal year 2008results and provide initial guidance for fiscal year 2009 after 1:00 p.m.Pacific Time (PT) on Wednesday, October 29, 2008. A conference call to reviewthe results and guidance is scheduled to follow at 2:00 p.m. PT that same day.
A live webcast of the conference call will be publicly available (inlisten-only mode) and may be heard via the Internet by going tohttp://www.varianinc.com and clicking on the "Live Webcast" link at the top ofthe right side of the page. In addition to the live webcast, replays will beavailable to the public on Varian, Inc.'s website for at least 90 days.
Non-GAAP (Adjusted) Financial Measures
This press release includes non-GAAP (which we refer to as "adjusted")financial measures for diluted earnings per share. These non-GAAP financialmeasures exclude share-based compensation expense, impairment of privatecompany equity investments, acquisition-related intangible and inventorywrite-up amortization and in-process research and development charges, andrestructuring and other related costs. Reconciliations of each of thesenon-GAAP financial measures to the most directly comparable GAAP financialmeasures are detailed in the Reconciliations of GAAP to Adjusted Resultsattached to this press release. We believe that presentation of thesenon-GAAP financial measures provides useful information to investors regardingour results of operations.
We believe that excluding acquisition-related intangible and inventorywrite-up amortization and in-process research and development charges providessupplemental information and an alternative presentation useful to investors'understanding of the company's core operating results and trends. Inaddition, investors have indicated to us that they analyze the benefits ofacquisitions based on the cash return on the investment made, and thusconsider financial measures excluding acquisition-related intangible andinventory write-up amortization and in-process research and developmentcharges as important, useful information.
We similarly believe that excluding share-based compensation expense,restructuring and other related costs (principally related to facilityclosures and employee terminations to improve operational efficiency), andimpairment of private company equity investments provides supplementalinformation and an alternative presentation useful to investors' understandingof the company's core operating results and trends, especially when comparingthose results on a consistent basis to results for previous periods andanticipated results for future periods. Investors have indicated that theyconsider financial measures of our results of operations excluding share-basedcompensation expense, restructuring and other related costs, and impairment ofprivate company equity investments as important supplemental informationuseful to their understanding of our historical results and estimating of ourfuture results.
We also believe that, in excluding share-based compensation expense,acquisition-related intangible and inventory write-up amortization andin-process research and development charges, restructuring and other relatedcosts, and impairment of private company equity investments, our non-GAAPfinancial measures provide investors with transparency into what is used bymanagement to measure and forecast our results of operations, to compare on aconsistent basis our results of operations for the current period to that ofprior periods, to compare our results of operations on a more consistent basisagainst that of other companies, in making financial and operating decisionsand to establish certain management compensation.
Although we believe, for the foregoing reasons, that our presentation ofnon-GAAP financial measures provides useful supplemental information toinvestors regarding our results of operations, our non-GAAP financial measuresshould only be considered in addition to, and not as a substitute for orsuperior to, our financial measures prepared in accordance with GAAP.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaningof Section 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934, as amended. These forward-looking statements are basedon management's current expectations, are not guarantees of futureperformance, and involve certain risks and uncertainties that could cause thecompany's actual results to differ materially from management's currentexpectations and the forward-looking statements made in this press release.Those risks and uncertainties include, but are not limited to, the following:whether actual financial results for the company's fourth quarter and fullfiscal year 2008 differ materially from the preliminary results reportedabove; and other risks detailed from time to time in the company's filingswith the Securities and Exchange Commission. We undertake no specialobligation to update any forward-looking statements, whether in response tonew information, future events or otherwise.
About Varian, Inc.
Varian, Inc. is a leading worldwide supplier of scientific instruments andvacuum technologies for life science and industrial applications. The companyprovides complete solutions, including instruments, vacuum products,laboratory consumable supplies, software, training and support through itsglobal distribution and support systems. Varian, Inc. employs approximately4,000 people worldwide and operates manufacturing facilities in North America,Europe and Asia Pacific. Varian, Inc. had fiscal year 2007 sales of $921million, and its common stock is traded on the NASDAQ Global Select Marketunder the symbol "VARI." Further information is available on the company's Website: http://www.varianinc.com.For More Information, Contact: Investor Relations Varian, Inc. 650.424.5471 [email protected]
VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - PROJECTED RESULTS OF OPERATIONS (UNAUDITED) Fiscal Year Ended October 3, 2008 Projected TOTAL COMPANY Results ------------- --------- Projected Diluted Earnings Per Share Projected U.S. GAAP $2.11 Adjustments: Projected share-based compensation expense $0.23 Projected acquisition-related in-process research and development charge $0.06 Projected acquisition-related intangible amortization $0.19 Projected acquisition-related inventory write-up amortization $0.03 Projected impairment of private company equity investment $0.06 Projected restructuring and other related costs $0.12 Projected as adjusted $2.80
SOURCE Varian, Inc.