Varex Imaging Corporation ( (VREX) ) has released its Q2 earnings. Here is a breakdown of the information Varex Imaging Corporation presented to its investors.
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Varex Imaging Corporation is a prominent innovator and manufacturer in the X-ray imaging industry, providing essential components and systems for medical, industrial, and security applications. Based in Salt Lake City, Utah, the company has a rich history of over 70 years in innovation and employs approximately 2,300 people worldwide.
In its latest earnings report for the second quarter of fiscal year 2025, Varex Imaging Corporation reported revenues of $213 million, marking a 3% increase year-over-year. The company achieved a GAAP gross margin of 36% and a GAAP operating margin of 10%, with non-GAAP figures slightly higher at 36% and 12%, respectively. Net earnings per diluted share were reported at $0.17 on a GAAP basis and $0.26 on a non-GAAP basis.
Key highlights from the report include a strong demand driving sales growth across both the medical and industrial segments, each witnessing a 3% year-over-year increase. The company also reported a cash flow from operations of $17 million and a cash reserve of $226 million, excluding restricted cash. However, Varex faced challenges due to high tariffs imposed by China, affecting short-term sales outlooks.
Looking ahead, Varex plans to repay its outstanding convertible notes due in June 2025, which is expected to reduce its debt burden and simplify its capital structure. The company forecasts third-quarter revenues to be between $180 million and $200 million, with non-GAAP net earnings per diluted share ranging from -$0.05 to $0.10, considering the impact of tariffs on its China-based sales.
Varex Imaging Corporation remains cautiously optimistic about its future performance, focusing on managing tariff impacts while continuing to leverage its strong market position in the X-ray imaging sector.