Exhibit 99.1
For Information Contact:
Investor Relations
Varian, Inc.
650.424.5471
ir@varianinc.com
VARIAN, INC. REPORTS THIRD QUARTER 2009 RESULTS
PALO ALTO, Calif. — Varian, Inc. (NasdaqGS: VARI) today reported third quarter fiscal year 2009 revenues of $196.6 million, a decrease of 19.6% from the third quarter of fiscal year 2008.
Non-GAAP (adjusted) diluted earnings per share for the third quarter of 2009 were $0.52 (including $0.04 of share-based compensation expense), a decrease of 3.7% from the $0.54 (including $0.06 of share-based compensation expense) in the third quarter of 2008. On a GAAP basis, diluted earnings per share in the third quarter of 2009 were $0.47, compared to $0.38 in the third quarter of 2008.
Adjusted operating profit margin was 10.6% in the third quarter of 2009, compared to 9.6% in the prior-year quarter. On a GAAP basis, operating profit margin was 9.4% in the third quarter of 2009, compared to 7.1% in the same quarter a year ago.
Free cash flow, which is defined as operating cash flow less net fixed asset purchases, was $24.0 million, or 178% of GAAP net earnings, in the third quarter of 2009.
Revenues in the third quarter of fiscal year 2009 were lower than the prior-year quarter, but were relatively flat on a sequential basis. Despite the lower revenues, the company was able to maintain solid adjusted operating profit margins in the quarter, primarily due to the positive impact of efficiency improvements implemented in recent years, the benefit of cost reduction activities announced in January 2009 and positive foreign currency movements. The company also generated excellent free cash flow in the quarter, continuing to demonstrate the fundamental strength and flexibility of the business through this challenging economic environment.
For a complete reconciliation of non-GAAP (adjusted) financial information used in this press release to the most directly comparable GAAP financial information, please refer to the attached Reconciliations of GAAP to Adjusted Results, Actual.
Results by Segment
Scientific Instruments revenues for the third quarter of 2009 were $167.9 million, a decrease of 16.4% from the third quarter of the prior year. Adjusted operating profit margin was 11.0% in the third quarter of 2009, compared to 9.2% in the third quarter of the prior year. On a GAAP basis, operating profit margin was 9.5% in the third quarter of 2009, compared to 6.1% in the same quarter a year ago.
Vacuum Technologies revenues were $28.7 million in the third quarter of 2009, a decrease of 34.3% from the third quarter of 2008. Adjusted operating profit margin was 18.9% in the third quarter of 2009, compared to 17.7% in the third quarter of the prior year. On a GAAP basis, operating profit margin was 19.3% in the third quarter of 2009, compared to 17.7% in the prior-year quarter.
Cancellation of Conference Call
The company has cancelled its previously announced investor conference call to review its third quarter results that was scheduled for Wednesday, July 29, 2009, at 2:00 p.m. Pacific time.
Non-GAAP (Adjusted) Financial Measures
This press release includes non-GAAP (adjusted) financial measures for cost of sales, selling, general and administrative expenses, research and development expenses, purchased in-process research and development expenses, operating earnings, operating profit margins, impairment of private company equity investments, income tax expense, net earnings, diluted earnings per share and free cash flow. With the exception of free cash flow, these non-GAAP financial measures exclude acquisition-related intangible and inventory write-up amortization and purchased in-process research and development expenses, restructuring and other related costs, and impairment of private company equity investments. Reconciliations of each of these non-GAAP financial measures to the most directly comparable GAAP financial measures are detailed in the Reconciliations of GAAP to Adjusted Results attached to this press release. We believe that presentation of these non-GAAP financial measures provides useful information to investors regarding our results of operations and our cash flows.
We believe that excluding acquisition-related intangible and inventory write-up amortization and purchased in-process research and development expenses provides supplemental information and an alternative presentation useful to investors’ understanding of the company’s core operating results and trends. In addition, investors have indicated to us that they analyze the benefits of acquisitions based on the cash return on the investment made, and thus consider financial measures excluding acquisition-related intangible and inventory write-up amortization and purchased in-process research and development expenses as important, useful information.
We similarly believe that excluding restructuring and other related costs (principally related to facility closures and employee terminations to reduce costs and improve operational efficiency) and impairment of private company equity investments provides supplemental information and an alternative presentation useful to investors’ understanding of the company’s core operating results and trends, especially when comparing those results on a consistent basis to results for previous periods and anticipated results for future periods. Investors have indicated that they consider financial measures of our results of operations excluding restructuring and other related costs and impairment of private company equity investments as important supplemental information useful to their understanding of our historical results and estimating of our future results.
We also believe that, in excluding acquisition-related intangible and inventory write-up amortization and purchased in-process research and development expenses, restructuring and other related costs, and impairment of private company equity investments, our non-GAAP financial measures provide investors with transparency into what is used by management to measure and forecast our results of operations, to compare on a consistent basis our results of operations for the current period to that of prior periods, to compare our results of operations on a more consistent basis against that of other companies, in making financial and operating decisions and to establish certain management compensation.
We believe that the presentation of free cash flow provides investors with useful information on what is used by management to measure cash management performance, in making financial and operating decisions and to establish certain management compensation.
Although we believe, for the foregoing reasons, that our presentation of non-GAAP financial measures provides useful supplemental information to investors regarding our results of operations and our cash flows, our non-GAAP financial measures should only be considered in addition to, and not as a substitute for or superior to, our financial measures prepared in accordance with GAAP.
About Varian, Inc.
Varian, Inc. is a leading worldwide supplier of scientific instruments and vacuum technologies for life science, environmental, energy, and applied research and other applications. The company provides complete solutions, including instruments, vacuum products, laboratory consumable supplies, software, training and support through its global distribution and support systems. Varian, Inc. employs approximately 3,500 people worldwide and operates manufacturing facilities in North America, Europe and Asia Pacific. Varian, Inc. had fiscal year 2008 sales of $1.0 billion, and its common stock is traded on the NASDAQ Global Select Market under the symbol “VARI.” Further information is available on the company’s Web site at http://www.varianinc.com.
VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(In thousands, except per share amounts)
Third Quarter FY 2009 and Third Quarter FY 2008
Fiscal Quarter Ended | ||||||||
July 3, 2009 | June 27, 2008 | |||||||
Sales | $ | 196,623 | $ | 244,449 | ||||
Cost of sales | 109,974 | (1) | 138,266 | (7) | ||||
Gross profit | 86,649 | 106,183 | ||||||
Operating expenses | ||||||||
Selling, general and administrative | 54,444 | (2) | 68,797 | (8) | ||||
Research and development | 13,718 | (3) | 18,519 | (9) | ||||
Purchased in-process research and development | — | 1,488 | (10) | |||||
Total operating expenses | 68,162 | 88,804 | ||||||
Operating earnings | 18,487 | (4) | 17,379 | (11) | ||||
Interest income | 350 | 1,200 | ||||||
Interest expense | (434 | ) | (390 | ) | ||||
Earnings before income taxes | 18,403 | 18,189 | ||||||
Income tax expense | 4,950 | (5) | 6,823 | (12) | ||||
Net earnings | $ | 13,453 | (6) | $ | 11,366 | (13) | ||
Net earnings per diluted share | $ | 0.47 | (6) | $ | 0.38 | (13) | ||
Diluted shares outstanding | 28,791 | 29,728 | ||||||
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures):
(1) | $108,028 on an adjusted basis excluding $1,493 in acquisition-related intangible amortization and $453 in restructuring and other related costs. |
(2) | $54,112 on an adjusted basis excluding $189 in acquisition-related intangible amortization and $143 in restructuring and other related costs. |
(3) | $13,692 on an adjusted basis excluding $26 in restructuring and other related costs. |
(4) | $20,791 on an adjusted basis excluding the adjustments described in items (1) – (3) above. |
(5) | $5,674 on an adjusted basis excluding the tax impact of the adjustments described in items (1) – (3) above. |
(6) | $15,033 and $0.52 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) – (3) above. |
(7) | $135,117 on an adjusted basis excluding $1,978 in acquisition-related intangible amortization, $646 in acquisition-related inventory write-up amortization and $525 in restructuring and other related costs. |
(8) | $67,494 on an adjusted basis excluding $399 in acquisition-related intangible amortization and $904 in restructuring and other related costs. |
(9) | $18,261 on an adjusted basis excluding $258 in restructuring and other related costs. |
(10) | $0 on an adjusted basis excluding $1,488 related to an acquisition-related in-process research and development charge. |
(11) | $23,577 on an adjusted basis excluding the adjustments described in items (7) – (10) above. |
(12) | $8,328 on an adjusted basis excluding the tax impact of the adjustments described in items (7) – (9) above. |
(13) | $16,059 and $0.54 per diluted share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (7) – (10) above. |
VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
(In thousands, except per share amounts)
First Nine Months FY 2009 and First Nine Months FY 2008
Nine Months Ended | ||||||||
July 3, 2009 | June 27, 2008 | |||||||
Sales | $ | 610,285 | $ | 730,045 | ||||
Cost of sales | 338,791 | (1) | 403,684 | (7) | ||||
Gross profit | 271,494 | 326,361 | ||||||
Operating expenses | ||||||||
Selling, general and administrative | 174,638 | (2) | 202,380 | (8) | ||||
Research and development | 42,977 | (3) | 53,889 | (9) | ||||
Purchased in-process research and development | — | 1,488 | (10) | |||||
Total operating expenses | 217,615 | 257,757 | ||||||
Operating earnings | 53,879 | (4) | 68,604 | (11) | ||||
Impairment of private company equity investment | — | (3,018 | )(12) | |||||
Interest income | 1,275 | 4,888 | ||||||
Interest expense | (1,091 | ) | (1,274 | ) | ||||
Earnings before income taxes | 54,063 | 69,200 | ||||||
Income tax expense | 17,383 | (5) | 24,463 | (13) | ||||
Net earnings | $ | 36,680 | (6) | $ | 44,737 | (14) | ||
Net earnings per diluted share | $ | 1.27 | (6) | $ | 1.48 | (14) | ||
Diluted shares outstanding | 28,924 | 30,309 | ||||||
NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of GAAP to Adjusted results for each of these measures):
(1) | $330,467 on an adjusted basis excluding $4,567 in acquisition-related intangible amortization, $59 in acquisition-related inventory write-up amortization and $3,698 in restructuring and other related costs. |
(2) | $169,192 on an adjusted basis excluding $924 in acquisition-related intangible amortization and $4,522 in restructuring and other related costs. |
(3) | $41,889 on an adjusted basis excluding $1,088 in restructuring and other related costs. |
(4) | $68,737 on an adjusted basis excluding the adjustments described in items (1) – (3) above. |
(5) | $22,403 on an adjusted basis excluding the tax impact of the adjustments described in items (1) – (3) above. |
(6) | $46,518 and $1.61 per share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (1) – (3) above. |
(7) | $396,389 on an adjusted basis excluding $4,884 in acquisition-related intangible amortization, $1,236 in acquisition-related inventory write-up amortization and $1,175 in restructuring and other related costs. |
(8) | $198,833 on an adjusted basis excluding $1,239 in acquisition-related intangible amortization and $2,308 in restructuring and other related costs. |
(9) | $53,136 on an adjusted basis excluding $753 in restructuring and other related costs. |
(10) | $0 on an adjusted basis excluding $1,488 related to an acquisition-related in-process research and development charge. |
(11) | $81,687 on an adjusted basis excluding the adjustments described in items (7) – (10) above. |
(12) | $0 on an adjusted basis excluding $3,018 related to the impairment of a private company equity investment. |
(13) | $29,590 on an adjusted basis excluding the tax impact of the adjustments described in items (7) – (9) and (12) above. |
(14) | $55,711 and $1.84 per share, respectively, on an adjusted basis excluding the adjustments (net of related tax effects) described in items (7) – (10) and (12) above. |
VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except par value amounts)
July 3, 2009 | October 3, 2008 | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 166,377 | $ | 103,895 | ||
Accounts receivable, net | 156,268 | 199,420 | ||||
Inventories | 146,817 | 161,039 | ||||
Deferred taxes | 31,235 | 32,287 | ||||
Prepaid expenses and other current assets | 15,465 | 15,663 | ||||
Total current assets | 516,162 | 512,304 | ||||
Property, plant and equipment, net | 114,869 | 110,343 | ||||
Goodwill | 215,705 | 218,208 | ||||
Intangible assets, net | 30,338 | 36,972 | ||||
Other assets | 26,954 | 24,089 | ||||
Total assets | $ | 904,028 | $ | 901,916 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $ | 6,250 | $ | — | ||
Accounts payable | 53,072 | 70,923 | ||||
Deferred profit | 10,205 | 10,957 | ||||
Accrued liabilities | 156,407 | 167,173 | ||||
Total current liabilities | 225,934 | 249,053 | ||||
Long-term debt | 12,500 | 18,750 | ||||
Deferred taxes | 4,012 | 4,341 | ||||
Other liabilities | 38,469 | 43,431 | ||||
Total liabilities | 280,915 | 315,575 | ||||
Stockholders’ equity | ||||||
Preferred stock—par value $0.01, authorized—1,000 shares; issued—none | — | — | ||||
Common stock—par value $0.01, authorized—99,000 shares; issued and outstanding—28,824 shares at July 3, 2009 and 28,917 shares at October 3, 2008 | 361,523 | 356,192 | ||||
Retained earnings | 218,074 | 184,678 | ||||
Accumulated other comprehensive income | 43,516 | 45,471 | ||||
Total stockholders’ equity | 623,113 | 586,341 | ||||
Total liabilities and stockholders’ equity | $ | 904,028 | $ | 901,916 | ||
VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
Fiscal Quarter Ended | Nine Months Ended | |||||||||||||||
July 3, 2009 | June 27, 2008 | July 3, 2009 | June 27, 2008 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net earnings | $ | 13,453 | $ | 11,366 | $ | 36,680 | $ | 44,737 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 6,942 | 7,938 | 20,313 | 21,217 | ||||||||||||
Gain on disposition of property, plant and equipment | (136 | ) | (154 | ) | (140 | ) | (452 | ) | ||||||||
Impairment of private company equity investment | — | — | — | 3,018 | ||||||||||||
Purchased in-process research and development | — | 1,488 | — | 1,488 | ||||||||||||
Share-based compensation expense | 1,722 | 2,385 | 6,033 | 7,207 | ||||||||||||
Deferred taxes | (399 | ) | 1,116 | (1,054 | ) | (540 | ) | |||||||||
Unrealized loss (gain) on currency remeasurement | 5,959 | 2,031 | (404 | ) | 2,673 | |||||||||||
Changes in assets and liabilities, excluding effects of acquisitions: | ||||||||||||||||
Accounts receivable, net | 9,175 | 12,467 | 41,294 | 10,735 | ||||||||||||
Inventories | 10,668 | (7,328 | ) | 11,850 | (31,046 | ) | ||||||||||
Prepaid expenses and other current assets | (211 | ) | 1,482 | 18 | 490 | |||||||||||
Other assets | (215 | ) | (691 | ) | (1,363 | ) | (726 | ) | ||||||||
Accounts payable | (8,529 | ) | (2,065 | ) | (17,923 | ) | 1,222 | |||||||||
Deferred profit | (2,362 | ) | 508 | (814 | ) | (3,966 | ) | |||||||||
Accrued liabilities | (7,357 | ) | (613 | ) | (14,257 | ) | 3,200 | |||||||||
Other liabilities | 109 | (37 | ) | (904 | ) | 368 | ||||||||||
Net cash provided by operating activities | 28,819 | 29,893 | 79,329 | 59,625 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
Proceeds from sale of property, plant and equipment | 864 | 478 | 6,110 | 1,265 | ||||||||||||
Purchase of property, plant and equipment | (5,691 | ) | (7,466 | ) | (20,828 | ) | (16,674 | ) | ||||||||
Acquisitions, net of cash acquired | (182 | ) | (37,689 | ) | (2,429 | ) | (52,898 | ) | ||||||||
Private company equity investments | — | — | — | (18 | ) | |||||||||||
Net cash used in investing activities | (5,009 | ) | (44,677 | ) | (17,147 | ) | (68,325 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Repayments of debt | — | (6,250 | ) | — | (6,250 | ) | ||||||||||
Repurchase of common stock | (148 | ) | (10,369 | ) | (7,623 | ) | (81,892 | ) | ||||||||
Issuance of common stock | 968 | 2,528 | 3,283 | 15,761 | ||||||||||||
Excess tax benefit from share-based plans | — | 188 | — | 3,151 | ||||||||||||
Transfers to Varian Medical Systems, Inc. | (76 | ) | (178 | ) | (441 | ) | (600 | ) | ||||||||
Net cash provided by (used in) financing activities | 744 | (14,081 | ) | (4,781 | ) | (69,830 | ) | |||||||||
Effects of exchange rate changes on cash and cash equivalents | 11,318 | (343 | ) | 5,081 | 10,349 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 35,872 | (29,208 | ) | 62,482 | (68,181 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 130,505 | 157,423 | 103,895 | 196,396 | ||||||||||||
Cash and cash equivalents at end of period | $ | 166,377 | $ | 128,215 | $ | 166,377 | $ | 128,215 | ||||||||
VARIAN, INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL
UNAUDITED RESULTS OF OPERATIONS
(In thousands)
Third Quarter FY 2009 and Third Quarter FY 2008
and
First Nine Months FY 2009 and First Nine Months FY 2008
Fiscal Quarter Ended | Nine Months Ended | |||||||||||||||
July 3, 2009 | June 27, 2008 | July 3, 2009 | June 27, 2008 | |||||||||||||
TOTAL COMPANY | ||||||||||||||||
Cost of Sales | ||||||||||||||||
U.S. GAAP as reported | $ | 109,974 | $ | 138,266 | $ | 338,791 | $ | 403,684 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related intangible amortization | (1,493 | ) | (1,978 | ) | (4,567 | ) | (4,884 | ) | ||||||||
Acquisition-related inventory write-up amortization | — | (646 | ) | (59 | ) | (1,236 | ) | |||||||||
Restructuring and other related costs | (453 | ) | (525 | ) | (3,698 | ) | (1,175 | ) | ||||||||
As adjusted | $ | 108,028 | $ | 135,117 | $ | 330,467 | $ | 396,389 | ||||||||
Selling, General and Administrative | ||||||||||||||||
U.S. GAAP as reported | $ | 54,444 | $ | 68,797 | $ | 174,638 | $ | 202,380 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related intangible amortization | (189 | ) | (399 | ) | (924 | ) | (1,239 | ) | ||||||||
Restructuring and other related costs | (143 | ) | (904 | ) | (4,522 | ) | (2,308 | ) | ||||||||
As adjusted | $ | 54,112 | $ | 67,494 | $ | 169,192 | $ | 198,833 | ||||||||
Research and Development | ||||||||||||||||
U.S. GAAP as reported | $ | 13,718 | $ | 18,519 | $ | 42,977 | $ | 53,889 | ||||||||
Adjustments: | ||||||||||||||||
Restructuring and other related costs | (26 | ) | (258 | ) | (1,088 | ) | (753 | ) | ||||||||
As adjusted | $ | 13,692 | $ | 18,261 | $ | 41,889 | $ | 53,136 | ||||||||
Purchased In-Process Research and Development | ||||||||||||||||
U.S. GAAP as reported | $ | — | $ | 1,488 | $ | — | $ | 1,488 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charge | — | (1,488 | ) | — | (1,488 | ) | ||||||||||
As adjusted | $ | — | $ | — | $ | — | $ | — | ||||||||
VARIAN, INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL
UNAUDITED RESULTS OF OPERATIONS
(In thousands, except margin data)
Third Quarter FY 2009 and Third Quarter FY 2008
and
First Nine Months FY 2009 and First Nine Months FY 2008
Fiscal Quarter Ended | Nine Months Ended | |||||||||||||||
July 3, 2009 | June 27, 2008 | July 3, 2009 | June 27, 2008 | |||||||||||||
TOTAL COMPANY (Continued) | ||||||||||||||||
Operating Earnings | ||||||||||||||||
U.S. GAAP as reported | $ | 18,487 | $ | 17,379 | $ | 53,879 | $ | 68,604 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 1,488 | — | 1,488 | ||||||||||||
Acquisition-related intangible amortization | 1,682 | 2,377 | 5,491 | 6,123 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 646 | 59 | 1,236 | ||||||||||||
Restructuring and other related costs | 622 | 1,687 | 9,308 | 4,236 | ||||||||||||
As adjusted | $ | 20,791 | $ | 23,577 | $ | 68,737 | $ | 81,687 | ||||||||
Operating Margins | ||||||||||||||||
U.S. GAAP as reported | 9.4 | % | 7.1 | % | 8.8 | % | 9.4 | % | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 0.6 | — | 0.2 | ||||||||||||
Acquisition-related intangible amortization | 0.9 | 0.9 | 1.0 | 0.7 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 0.3 | 0.0 | 0.2 | ||||||||||||
Restructuring and other related costs | 0.3 | 0.7 | 1.5 | 0.6 | ||||||||||||
As adjusted | 10.6 | % | 9.6 | % | 11.3 | % | 11.1 | % | ||||||||
Impairment of Private Company Equity Investment | ||||||||||||||||
U.S. GAAP as reported | $ | — | $ | — | $ | — | $ | 3,018 | ||||||||
Adjustments: | ||||||||||||||||
Impairment of private company equity investment | — | — | — | (3,018 | ) | |||||||||||
As adjusted | $ | — | $ | — | $ | — | $ | — | ||||||||
Income Tax Expense | ||||||||||||||||
U.S. GAAP as reported | $ | 4,950 | $ | 6,823 | $ | 17,383 | $ | 24,463 | ||||||||
Adjustments: | ||||||||||||||||
Tax impact of adjustments: | ||||||||||||||||
Acquisition-related intangible amortization | 531 | 747 | 1,783 | 2,025 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 161 | 17 | 410 | ||||||||||||
Impairment of private company equity investment | — | — | — | 1,154 | ||||||||||||
Restructuring and other related costs | 193 | 597 | 3,220 | 1,538 | ||||||||||||
As adjusted | $ | 5,674 | $ | 8,328 | $ | 22,403 | $ | 29,590 | ||||||||
VARIAN, INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL
UNAUDITED RESULTS OF OPERATIONS
(In thousands, except per share data)
Third Quarter FY 2009 and Third Quarter FY 2008
and
First Nine Months FY 2009 and First Nine Months FY 2008
Fiscal Quarter Ended | Nine Months Ended | |||||||||||||||
July 3, 2009 | June 27, 2008 | July 3, 2009 | June 27, 2008 | |||||||||||||
TOTAL COMPANY (Continued) | ||||||||||||||||
Net Earnings | ||||||||||||||||
U.S. GAAP as reported | $ | 13,453 | $ | 11,366 | $ | 36,680 | $ | 44,737 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 1,488 | — | 1,488 | ||||||||||||
Acquisition-related intangible amortization | 1,151 | 1,630 | 3,708 | 4,098 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 485 | 42 | 826 | ||||||||||||
Impairment of private company equity investment | — | — | — | 1,864 | ||||||||||||
Restructuring and other related costs | 429 | 1,090 | 6,088 | 2,698 | ||||||||||||
As adjusted | $ | 15,033 | $ | 16,059 | $ | 46,518 | $ | 55,711 | ||||||||
Diluted Earnings Per Share | ||||||||||||||||
U.S. GAAP as reported | $ | 0.47 | $ | 0.38 | $ | 1.27 | $ | 1.48 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 0.05 | — | 0.05 | ||||||||||||
Acquisition-related intangible amortization | 0.04 | 0.05 | 0.13 | 0.13 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 0.02 | 0.00 | 0.03 | ||||||||||||
Impairment of private company equity investment | — | — | — | 0.06 | ||||||||||||
Restructuring and other related costs | 0.01 | 0.04 | 0.21 | 0.09 | ||||||||||||
As adjusted | $ | 0.52 | $ | 0.54 | $ | 1.61 | $ | 1.84 | ||||||||
Free Cash Flow | ||||||||||||||||
U.S. GAAP as reported - Net cash provided by operating activities | $ | 28,819 | $ | 29,893 | $ | 79,329 | $ | 59,625 | ||||||||
Adjustments: | ||||||||||||||||
Proceeds from sale of property, plant and equipment | 864 | 478 | 6,110 | 1,265 | ||||||||||||
Purchase of property, plant and equipment | (5,691 | ) | (7,466 | ) | (20,828 | ) | (16,674 | ) | ||||||||
As adjusted - Free Cash Flow | $ | 23,992 | $ | 22,905 | $ | 64,611 | $ | 44,216 | ||||||||
VARIAN, INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL
UNAUDITED RESULTS OF OPERATIONS
(In thousands, except margin data)
Third Quarter FY 2009 and Third Quarter FY 2008
and
First Nine Months FY 2009 and First Nine Months FY 2008
Fiscal Quarter Ended | Nine Months Ended | |||||||||||||||
July 3, 2009 | June 27, 2008 | July 3, 2009 | June 27, 2008 | |||||||||||||
SCIENTIFIC INSTRUMENTS SEGMENT | ||||||||||||||||
Operating Earnings | ||||||||||||||||
U.S. GAAP as reported | $ | 16,000 | $ | 12,199 | $ | 44,849 | $ | 54,509 | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 1,488 | — | 1,488 | ||||||||||||
Acquisition-related intangible amortization | 1,682 | 2,377 | 5,491 | 6,123 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 646 | 59 | 1,236 | ||||||||||||
Restructuring and other related costs | 760 | 1,687 | 8,567 | 4,236 | ||||||||||||
As adjusted | $ | 18,442 | $ | 18,397 | $ | 58,966 | $ | 67,592 | ||||||||
Operating Margins | ||||||||||||||||
U.S. GAAP as reported | 9.5 | % | 6.1 | % | 8.8 | % | 9.1 | % | ||||||||
Adjustments: | ||||||||||||||||
Acquisition-related in-process research and development charges | — | 0.7 | — | 0.2 | ||||||||||||
Acquisition-related intangible amortization | 1.0 | 1.3 | 1.0 | 1.1 | ||||||||||||
Acquisition-related inventory write-up amortization | — | 0.3 | 0.0 | 0.2 | ||||||||||||
Restructuring and other related costs | 0.5 | 0.8 | 1.7 | 0.7 | ||||||||||||
As adjusted | 11.0 | % | 9.2 | % | 11.5 | % | 11.3 | % | ||||||||
VACUUM TECHNOLOGIES SEGMENT | ||||||||||||||||
Operating Earnings | ||||||||||||||||
U.S. GAAP as reported | $ | 5,557 | $ | 7,757 | $ | 19,233 | $ | 24,261 | ||||||||
Adjustments: | ||||||||||||||||
Restructuring and other related costs | (137 | ) | — | 742 | — | |||||||||||
As adjusted | $ | 5,420 | $ | 7,757 | $ | 19,975 | $ | 24,261 | ||||||||
Operating Margins | ||||||||||||||||
U.S. GAAP as reported | 19.3 | % | 17.7 | % | 19.3 | % | 19.0 | % | ||||||||
Adjustments: | ||||||||||||||||
Restructuring and other related costs | (0.4 | ) | — | 0.7 | — | |||||||||||
As adjusted | 18.9 | % | 17.7 | % | 20.0 | % | 19.0 | % | ||||||||