Company profile

Ticker
VAR
Exchange
Website
CEO
Dow R. Wilson
Employees
Incorporated in
Location
Fiscal year end
Former names
Varian Associates Inc
SEC CIK
IRS number
942359345

VAR stock data

(
)

Calendar

12 May 20
11 Jul 20
2 Oct 20

News

Company financial data Financial data

Quarter (USD) Apr 20 Jan 20 Sep 19 Jun 19
Revenue 794.5M 828.9M 878.9M 825.8M
Net income 43.1M 88.9M 70.4M 29.5M
Diluted EPS 0.47 0.96 0.77 0.32
Net profit margin 5.42% 10.73% 8.01% 3.57%
Operating income 54.9M 110M 110.8M 53.9M
Net change in cash -54.1M 190.5M 10.7M -25.6M
Cash on hand 667.8M 721.9M 531.4M 520.7M
Cost of revenue 457.3M 462.1M 494.3M 474.4M
Annual (USD) Sep 19 Sep 18 Sep 17 Sep 16
Revenue 3.23B 2.92B 2.62B 2.59B
Net income 292.2M 150.3M 219.2M 399.7M
Diluted EPS 3.18 1.62 2.35 4.16
Net profit margin 9.06% 5.15% 8.37% 15.41%
Operating income 386.2M 437.4M 297.8M 426.8M
Net change in cash 26.6M -211.4M -95.2M -34.1M
Cash on hand 531.4M 504.8M 716.2M 811.4M
Cost of revenue 1.85B 1.65B 1.51B 1.49B

Financial data from company earnings reports

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
30 Jun 20 Varian Medical Systems Common Shares Conversion Aquire C No 0 2,719,164 0 3,218,632
30 Jun 20 Varian Medical Systems Common Shares Conversion Aquire C No 0 499,468 0 499,468
30 Jun 20 Varian Medical Systems Class B Preferred Shares Common Shares Conversion Dispose C No 0 14,517,619 0 0
30 Jun 20 Varian Medical Systems Class A Preferred Shares Common Shares Conversion Dispose C No 0 2,666,667 0 0
7 May 20 Bruff Jesse Michael Common Stock Sell Dispose S Yes 117.2246 205 24.03K 919
13 Apr 20 Toth Christopher A. Common Stock Sell Dispose S Yes 111.2756 119 13.24K 1,624
13 Apr 20 Toth Christopher A. Common Stock Sell Dispose S Yes 110.1781 510 56.19K 1,743
13 Apr 20 Toth Christopher A. Common Stock Sell Dispose S Yes 109.3301 996 108.89K 2,253
90.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 557 575 -3.1%
Opened positions 67 90 -25.6%
Closed positions 85 65 +30.8%
Increased positions 173 170 +1.8%
Reduced positions 219 202 +8.4%
13F shares
Current Prev Q Change
Total value 8.41B 11.52B -27.1%
Total shares 81.78M 80.98M +1.0%
Total puts 129.23K 125.5K +3.0%
Total calls 94.5K 263.2K -64.1%
Total put/call ratio 1.4 0.5 +186.8%
Largest owners
Shares Value Change
BLK BlackRock 10.36M $1.06B +19.9%
Vanguard 10.26M $1.05B +2.4%
STT State Street 4.21M $432.55M -0.1%
FSZ Fiera Capital 3.33M $342.25M +2.9%
Loomis Sayles & Co L P 3.12M $320.38M -5.0%
WFC Wells Fargo & Company 2.39M $245.66M +6.5%
Wellington Management 2.12M $217.25M -3.4%
JHG Janus Henderson 1.95M $200.48M -10.3%
Generation Investment Management 1.8M $184.47M NEW
MKFCF Mackenzie Financial 1.5M $154.33M +156.8%
Largest transactions
Shares Bought/sold Change
Generation Investment Management 1.8M +1.8M NEW
BLK BlackRock 10.36M +1.72M +19.9%
Ajo 128.41K -1.06M -89.2%
MKFCF Mackenzie Financial 1.5M +917.95K +156.8%
Viking Global Investors 867.11K +867.11K NEW
DSM Capital Partners 768.68K +768.68K NEW
Norges Bank 0 -755.47K EXIT
Alyeska Investment 0 -495.32K EXIT
York Capital Management Global Advisors 0 -432.5K EXIT
Schroder Investment Management 65.06K -346.02K -84.2%

Financial report summary

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Risks
  • Our performance depends on successful improvements to our existing products and services, commercialization of new products and services and increasingly on our ability to anticipate emerging trends in oncology diagnosis, treatment and management.
  • We compete in highly competitive markets, and we may lose market share to companies with greater resources or more effective technologies, or be forced to reduce our prices.
  • The interoperability of radiation oncology treatment products is becoming increasingly important, and sales of our products could fall if we fail to establish interoperability.
  • Disruption of our critical information systems or material cyberattacks or security breaches of our products may adversely affect our business and customer relations.
  • We may offer extended payment terms to certain customers, which could adversely affect our financial results.
  • Economic, political and other risks associated with international sales and operations could adversely affect our sales or make them less predictable.
  • Changes in foreign currency exchange rates may impact our results.
  • Unfavorable results of legal proceedings could adversely affect our financial results.
  • Consolidation among our oncology systems customers could adversely affect our sales of oncology products.
  • Our business will suffer if we are unable to provide the significant education and training required for the healthcare market to accept our products.
  • Our business may suffer if we are not able to hire and retain qualified personnel.
  • We may not realize expected benefits from acquisitions of or investments in businesses, products or technologies, which could harm our business.
  • Our efforts to integrate acquired businesses may not be successful, and this may adversely affect our financial results.
  • Acquiring or implementing new business lines or offering new products and services may subject us to additional risks.
  • Losing distributors may harm our revenues in some territories.
  • The results of studies and clinical trials are highly uncertain.
  • Our credit facility restricts certain activities, and failure to comply with this agreement may adversely affect our business, liquidity and financial position.
  • Changes in the interpretation or application of generally accepted accounting principles may adversely affect our operating results.
  • Our operations are vulnerable to interruption or loss due to natural or other disasters, power loss, strikes and other events beyond our control.
  • The decision by British voters to exit the E.U. may negatively impact our operations.
  • We work in international locations with high security risks, which could result in harm to our employees or contractors or cause us to incur substantial costs.
  • We are subject to certain risks related to the separation of our former imaging components business into Varex Imaging Corporation.
  • We may face delays in the installation of our software products, which could have a material adverse effect on our operating results.
  • The need to maintain and service multiple versions of the same software product across our installed base of customers could adversely affect our ability to release upgraded or new products.
  • Coding errors in our software and cloud offerings could adversely affect our results of operations.
  • We may not be successful in transitioning our customer base to software solutions deployed via cloud and SaaS solutions.
  • Because we recognize revenue from subscriptions for our SaaS solutions over the term of the subscription, downturns or upturns in our SaaS business may not be immediately reflected in our operating results.
  • Certain software that we use in our products is licensed from third parties and, for that reason, may not be available to us in the future, which has the potential to delay product development and production or cause us to incur additional expenses.
  • We participate in project financing for our Proton Solutions business, which has resulted in impairment charges and could result in payment defaults that adversely affect our financial results.
  • The financial results of our Proton Solutions business may be unpredictable and if our proton customers are unsuccessful, our financial results will be adversely affected.
  • Our Proton Solutions business may subject us to increased liability.
  • Our cancer center operations may not be profitable, and the operation or development of existing and future cancer centers could cause us to incur unexpected costs.
  • Our performance depends on our ability to recruit and retain quality physicians, qualified nurses and medical support staff and we face competition for staffing that may increase our labor costs and harm our results of operations.
  • Our cancer centers face competition for patients from other cancer centers, hospitals and health care providers.
  • We may be subject to liabilities from claims brought against our cancer centers and third-party customers of our AmPath business.
  • Any inability to obtain supplies of important components could restrict the manufacture of products, cause delays in delivery, or significantly increase our costs.
  • A shortage or change in source of raw materials could restrict our ability to manufacture products, cause delays, or significantly increase our cost of goods.
  • Our financial results may suffer if we are not able to match our manufacturing capacity with demand for our products.
  • We rely on third parties to perform spare parts shipping and other logistics functions on our behalf. Disruptions at our logistics providers may adversely impact our business.
  • The Affordable Care Act includes provisions that may adversely affect our business, including an excise tax on the sales of most medical devices.
  • Any violation of federal, state or foreign laws governing our business practices may result in substantial penalties. Investigation into our business practices could cause adverse publicity and harm our business.
  • Environmental laws impose compliance costs on our business and can result in liability.
  • Protecting our intellectual property can be costly and we may not be able to maintain licensed rights, which would harm our business.
  • Third parties may claim we are infringing their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling our products.
  • Fluctuations in our operating results, including quarterly gross orders, revenues, margins, and cash flows may cause our stock price to be volatile, resulting in losses for our stockholders.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • This Quarterly Report on Form 10-Q contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, which provides a “safe harbor” for statements about future events, products and future financial performance that are based on the beliefs of, estimates made by, and information currently available to the management of Varian Medical Systems, Inc. (“VMS”) and its subsidiaries (collectively “we,” “our” or the “Company”). The outcome of the events described in these forward-looking statements is subject to risks and uncertainties. Actual results and the outcome or timing of certain events may differ significantly from those projected in these forward-looking statements or management’s current expectations due to the factors cited in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”), the Risk Factors listed under Part II, Item 1A of this Quarterly Report on Form 10-Q, and other factors described from time to time in our other filings with the Securities and Exchange Commission (“SEC”), or other reasons. For this purpose, statements concerning: the impact of the COVID-19 pandemic on our business, including but not limited to, the impact on our workforce, operations, supply chain, demand for our products and services, and our financial results and condition; our ability to successfully manage the challenges associated with the COVID-19 pandemic; growth strategies; industry or market segment outlook; economic and market conditions; domestic and global trends; development, market acceptance of or transition to new products, technologies, solutions or services; growth drivers; future orders, revenues, operating expenses, tax rate, cash flows, backlog, earnings growth or other financial results; expected capital expenditures; new and potential future tariffs and exclusions therefrom or cross-border trade restrictions; currency fluctuation, changes in political, regulatory, safety or economic conditions; and any statements using the terms “believe,” “expect,” “anticipate,” “can,” “should,” “would,” “could,” “estimate,” “may,” “intended,” “potential,” and “possible” or similar statements are forward-looking statements that involve risks and uncertainties that could cause our actual results and the outcome and timing of certain events to differ materially from those projected or management’s current expectations. By making forward-looking statements, we have not assumed any obligation to, and you should not expect us to, update or revise those statements because of new information, future events or otherwise.
  • This discussion and analysis of our financial condition and results of operations is based upon and should be read in conjunction with the Condensed Consolidated Financial Statements and the Notes included elsewhere in this Quarterly Report on Form 10-Q and the Consolidated Financial Statements, the Notes to the Consolidated Financial Statements and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended September 27, 2019 (the “2019 Annual Report”), as well as the information contained under Part I, Item 1A "Risk Factors" of the 2019 Annual Report and Part II, Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q , and other information provided from time to time in our other filings with the SEC.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
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Patents

GRANT
Utility
Accounting for imaging-based radiation doses
7 Jul 20
A radiation-treatment plan to treat a treatment target in a given patient takes into account imaging-based dosing of that patient by, for example, automatically accounting for radiation dosing of the given patient that results from imaging to determine at least one physical position of the given patient when forming the radiation-treatment plan.
GRANT
Utility
System and methods for processing images to measure collimator leaf and collimator performance
7 Jul 20
Systems and methods are proposed for accurate and efficient automatic measurement of jaw and leaf positioning in multi-leaf collimator imaging systems.
GRANT
Utility
Particle beam monitoring systems and methods
7 Jul 20
Presented systems and methods facilitate efficient and effective monitoring of particle beams.
APP
Utility
Multileaf Collimator with Alternating Trapezoidal Leaf Geometry Design
2 Jul 20
A multileaf collimator includes a plurality of beam-blocking leaves of a first type and a plurality of beam-blocking leaves of a second type.
APP
Utility
Image Fusion In Multi-layer Flat Panel Imager
2 Jul 20
An imaging apparatus includes: a first scintillator layer configured to provide first image signals with a first quantum efficiency and a first spatial resolution; a second scintillator layer configured to provide second image signals with a second quantum efficiency and a second spatial resolution, wherein the first quantum efficiency is lower than the second quantum efficiency, but the first spatial resolution is higher than the second spatial resolution; and an image combiner configured to combine the first image signals and the second image signals.