Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $229 million, an increase of 11% year-over-year, and at the high end of guidance [5][6] - Non-GAAP gross margin for the fourth quarter was 34%, up 130 basis points from the same quarter last year [6][14] - Non-GAAP earnings per share in the fourth quarter was $0.37, up $0.21 compared to last year [6] - For the full fiscal year, total revenue was $845 million, a 4% increase compared to fiscal 2024 [6] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year-over-year to $152 million in the fourth quarter, while Industrial segment revenue surged by 25% to $77 million [11][12] - For the full year, Medical revenue was $593 million, a 2% increase, and Industrial revenue was $252 million, a 10% increase [6][11] - The Industrial segment achieved its highest revenue quarter ever at $77 million, driven by strong demand for security inspection systems [5][7] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year-over-year [13] - Sales volume to China remained steady, contributing 14% of total revenues, reflecting resilience in the healthcare market despite tariff challenges [13][21] Company Strategy and Development Direction - The company plans to focus on innovation and cost-effectiveness in the value tier and mid-tier segments, particularly in emerging markets like India, South Asia, and Latin America [22][23] - Investments in supply chain and manufacturing regionalization are aimed at strengthening geopolitical resiliency [21][22] - The company is advancing its Photon Counting CT project and expanding production capabilities in India [23][25] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to fiscal 2025 due to global tariff situations, but customer ordering patterns have normalized [21] - Expectations for stronger orders and sales in China for 2026 compared to previous years were expressed [21] - The company anticipates gradual growth throughout fiscal 2026, with Medical business expected to grow and Industrial business also projected to increase [41][42] Other Important Information - The company ended the year with $155 million in cash, down from $213 million the previous year, primarily due to debt reduction efforts [6][18] - The company reported a non-cash goodwill impairment charge of $94 million taken in Q3, impacting operating income [14] Q&A Session Summary Question: Can you split the top 10 customers' contribution between Medical and Industrial? - Management indicated that the top 10 customers generally contribute 50%-55% of sales, primarily from the Medical segment, but did not provide a specific breakdown for commercial reasons [30][31] Question: Is there a structural shift in Medical and Industrial segments? - Management noted that Industrial sales are growing and approaching 30% of overall sales, while Medical segment volatility is influenced by geopolitical factors [32][33] Question: Any implications from GE or Siemens Healthineers divesting their China business? - Management stated that the majority of business in China comes from Chinese OEMs, and they do not anticipate significant impacts from these potential divestitures [36][37] Question: Can you provide a high-level outlook for the full year? - Management expects solid demand and growth in both Medical and Industrial segments, with China modeled to be stable [40][41] Question: What is the impact of tariffs on gross margin? - Management indicated that tariffs are impacting gross margin by 100 to 150 basis points, but efforts to reroute supply chains and increase production in India may help mitigate this [81][82]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $229 million, an 11% increase year over year, and at the high end of guidance [5][12] - Non-GAAP gross margin for Q4 was 34%, up 130 basis points from the same quarter last year [6][15] - Non-GAAP earnings per share for Q4 was $0.37, up $0.21 compared to last year [6][18] - For the full fiscal year, total revenue was $845 million, a 4% increase compared to fiscal 2024 [6][12] - Non-GAAP EBITDA for the year was $122 million, up $33 million from $89 million last year [6][19] Business Line Data and Key Metrics Changes - Medical segment revenue increased by 5% year over year to $152 million in Q4, while industrial segment revenue surged by 25% to $77 million [5][12] - For the full year, medical revenue was $593 million, a 2% increase, and industrial revenue was $252 million, a 10% increase [6][12] - The industrial segment achieved its highest revenue quarter ever at $77 million [5][12] Market Data and Key Metrics Changes - Revenue from the Americas grew by 9%, EMEA rose by 16%, and APAC increased by 8% year over year [13] - Sales volume to China remained steady, contributing 14% of total revenues, despite tariff challenges [13][18] Company Strategy and Development Direction - The company is focusing on growth initiatives, including innovative technologies like photon counting for CT and expanding production in India [9][25] - The strategy includes strengthening geopolitical resiliency through supply chain and manufacturing regionalization [22][24] - The company plans to invest in R&D to maintain a competitive edge and target growth markets such as India, South Asia, and Latin America [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging start to fiscal 2025 due to global tariff situations, but customer ordering patterns normalized as the situation stabilized [22] - Customers in China are projecting stronger orders for 2026 compared to previous years, driven by demand for value-tier and mid-tier CT systems [22][24] - The company expects gradual growth throughout fiscal 2026, with medical business anticipated to grow, while China is modeled to be stable [42][44] Other Important Information - The company ended the year with $155 million in cash, down from $213 million the previous year, primarily due to debt reduction [6][19] - The company reported a net cash flow from operations of $8 million in Q4 [19] Q&A Session Summary Question: Can you split the top 10 customers' contribution between medical and industrial? - The company does not break out the contribution between medical and industrial due to commercial reasons, but top 10 customers generally account for 50%-55% of sales [33] Question: Is there a structural shift in the medical and industrial segments? - Industrial sales are growing and approaching 30% of overall sales, while medical segment volatility is influenced by geopolitical factors [35] Question: Any implications from GE or Siemens divesting their China business? - The majority of business in China comes through Chinese OEMs, so these announcements do not have significant implications for the company [38] Question: Can you provide a high-level outlook for the full year? - The demand environment looks solid, with expectations for growth in both medical and industrial segments, though China is modeled to be stable [42][44] Question: What is the impact of tariffs on gross margin? - Tariffs are impacting gross margin by approximately 100 to 150 basis points, but rerouting supply chains may help mitigate this in the future [83]

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11/18/2025 1 Making the Invisible Visible Q4 FY25 Earnings Presentation November 18, 2025 While forward-looking statements are based on assumptions and analyses made by management of Varex that it believes to be reasonable under the circumstances, whether actual results and developments will meet such expectations depends on a number of risks and uncertainties which could cause actual results, performance, and financial condition to differ materially from such expectations. Such risks and uncertainties incl ...

Group 1 - The article does not provide any specific content related to a company or industry [1]

Revenue Concentration and Customer Dependence - In fiscal year 2025, one customer accounted for 18.0% of the company's revenue, all from the Medical segment, while the top ten customers collectively represented approximately 52% of total revenue[95] - The company generated significant accounts receivables, with one customer representing 14.0% of accounts receivables as of October 3, 2025, indicating potential risks if this customer defaults[96] - More than half of the company's revenue is generated from international customers, accounting for approximately 70%, 68%, and 69% of total revenues in fiscal years 2025, 2024, and 2023 respectively[106] Market and Competitive Challenges - The company faced significant challenges due to tariffs imposed by the United States, which increased costs and lowered gross margins, particularly affecting competitiveness against non-imported products[87] - The company has experienced pricing pressures and margin erosion due to intense competition, with major OEM customers also manufacturing their own components[98] - Changes in customer order forecasts have led to excess inventory and slowdowns in sales, complicating demand predictions[97] - The company has faced challenges in meeting customer needs and demands, particularly when the U.S. Dollar is strong against international currencies, impacting revenue and market share[101] Operational Risks and Supply Chain Issues - Supply chain disruptions and inflation have impacted the company's ability to manufacture products, leading to increased costs and potential delays in product delivery[120] - Material shortages and delays have caused the company to temporarily stop production of certain products, affecting sales opportunities[121] - The company is vulnerable to natural disasters and other disruptions that could significantly affect operations and product shipments[124] Regulatory and Compliance Challenges - Compliance with FDA regulations is critical; failure to do so could result in production shutdowns and financial penalties[134] - Obtaining regulatory clearances for new products is time-consuming and uncertain, impacting market introduction[137] - International regulatory compliance is costly and can delay product marketing, affecting business operations[141] - The company faces substantial litigation risks related to intellectual property rights, which could divert management resources[132] - The company must file timely reports with regulatory authorities to avoid sanctions and maintain market authorizations[144] Financial and Economic Factors - Total combined indebtedness as of October 3, 2025, was approximately $369.9 million, primarily consisting of 7.875% Senior Secured Notes due 2027[166] - Changes in tax laws, including a new requirement effective in 2023 for capitalization of research expenditures, significantly increased cash tax expense, expected to continue until normalizing in fiscal year 2027[153] - The company’s ability to respond to economic changes is limited by significant operational and financial restrictions imposed by its Credit Agreement and Senior Secured Notes[166] - The company may face challenges in raising additional debt or equity financing, which could restrict its operational flexibility and ability to compete effectively[168] - Adverse economic developments could lead to reduced customer spending, impacting net sales and cash flow[171] Environmental and Social Governance - Compliance with environmental laws may impose significant costs and liabilities, including cleanup obligations related to hazardous substances[162] - Future changes in environmental laws could increase operational costs, particularly in the EU where manufacturers may bear disposal costs for products at the end of their useful life[164] - The company is subject to evolving environmental, social, and governance regulations that could expose it to various risks and affect its reputation[176] - The company faces risks related to compliance with customer procurement policies that require adherence to social and environmental provisions[177] Internal Controls and Management Challenges - The company may incur substantial costs related to legal proceedings, which could disrupt operations and adversely impact financial results[113] - The company faces challenges in developing and introducing new products due to complex quality assurance processes, which could delay customer orders[104] - The company may face challenges in maintaining effective internal controls, which could negatively impact financial reporting and investor confidence[172] - The competitive labor market has led to increased compensation-related costs, impacting the company's ability to attract and retain key personnel[175] Goodwill and Impairment Issues - As of October 3, 2025, the company's goodwill was $198.4 million, with a recorded goodwill impairment charge of $93.9 million during the three months ended July 4, 2025[174] - The company’s goodwill impairment analysis is sensitive to key assumptions, and further impairment charges may be necessary in the future[174]

Revenue Performance - Fourth quarter revenue reached $229 million, up 11% year-over-year, driven by global CT tube sales in the Medical segment and a 25% increase in Industrial segment sales[3]. - Fiscal year 2025 revenue grew 4% year-over-year to $845 million, with non-GAAP EBITDA increasing 37% to $122 million and non-GAAP EPS rising 73% to $0.90[4]. - Medical segment revenue for Q4FY25 was $152 million, up 5% year-over-year, while Industrial segment revenue was $77 million, up 25% year-over-year[3]. - Revenues increased by 11.3% from $205.7 million in the prior year to $228.9 million[20]. Profitability Metrics - Non-GAAP gross margin for Q4FY25 was 34%, compared to 33% in Q4FY24, and non-GAAP operating margin was 10%[3]. - Gross profit rose to $77.8 million, up from $67.1 million, reflecting a gross margin improvement from 32.6% to 34.0%[20]. - Non-GAAP operating income increased to $23.1 million, compared to $14.5 million in the previous year, with a non-GAAP operating margin of 10.1%[21]. - The company reported an operating income of $19.6 million for the quarter, compared to $10.9 million in the same quarter last year[21]. Cash Flow and Liquidity - Cash flow from operations was $8 million in Q4FY25, with cash, cash equivalents, and marketable securities totaling $155 million at the end of FY25[5]. - Cash and cash equivalents decreased from $168.7 million to $145.0 million, a decline of approximately 14.1%[19]. Guidance and Future Outlook - Guidance for Q1 FY26 expects revenues between $200 million and $215 million, with non-GAAP net earnings per diluted share projected between $0.05 and $0.25[6][8]. - The company advanced key growth initiatives, including innovative technologies like photon counting for CT and the launch of a radiographic detector from a new facility in India[4]. Expenses and Liabilities - Total operating expenses for FY25 were $318.3 million, with research and development expenses at $91.1 million[17]. - Current liabilities decreased slightly from $195.9 million to $187.2 million, a reduction of about 3.6%[19]. - Long-term debt decreased from $397.1 million to $366.0 million, a decline of approximately 7.8%[19]. Stockholder Equity and Assets - Total stockholders' equity decreased from $543.2 million to $486.6 million, a drop of about 10.4%[19]. - Total assets decreased from $1,213.6 million to $1,107.4 million, a decline of approximately 8.7%[19]. Net Income and Adjustments - GAAP net income for Q4FY25 was $0.29 per diluted share, while GAAP net loss for FY25 was $(1.70) per diluted share[7]. - Net income attributable to Varex for the three months ended September 27, 2024, was $12.2 million, compared to a loss of $51.1 million in the same period last year[22]. - Non-GAAP net income for the twelve months ended October 3, 2025, was $37.3 million, up from $21.2 million in the previous year[22]. - Non-GAAP diluted net income per share for the twelve months ended October 3, 2025, was $0.90, compared to $0.52 in the previous year[22]. Other Financial Metrics - Adjusted EBITDA for the three months ended September 27, 2024, was $34.9 million, compared to $22.6 million in the same period last year[22]. - Interest expense for the twelve months ended October 3, 2025, was $35.4 million, an increase from $29.6 million in the previous year[22]. - Restructuring charges for the three months ended September 27, 2024, were $0.2 million, down from $1.2 million in the same period last year[22]. - Impairment of goodwill for the twelve months ended October 3, 2025, was $93.9 million, indicating significant challenges in asset valuation[22]. - Non-ordinary course litigation expenses for the twelve months ended October 3, 2025, totaled $7.4 million, compared to $5.2 million in the previous year[22]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures for assessing ongoing operations and providing transparency in financial performance[24].

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Core Insights - Women We Admire has announced The Top 50 Women Leaders of Salt Lake City for 2025, highlighting the city's growth as a vibrant urban economy with a strong technology sector and healthcare institutions [1] - The honorees are recognized for their leadership and contributions to various industries, community building, and shaping the future of Salt Lake City [1] Company Highlights - Francesca Luthi, COO of Assurant, is noted for her expertise in driving transformations in Fortune 500 companies and aligning business strategy with customer-centric values [2] - Aurelia Redd, Senior Director at CHG Healthcare, has over 26 years of experience in operations and people strategy, focusing on team effectiveness and aligning talent initiatives with business goals [3] - Rebecca Yates, CEO of ARK Insurance Solutions, founded the company to prioritize people over profit, making health coverage more accessible and personalized for clients [4] Industry Context - Salt Lake City is recognized for its economic vitality and outdoor access, attracting talent and investment, which is essential for the growth of its technology and healthcare sectors [1] - The recognition of women leaders in various sectors serves to inspire future generations and promote diversity in leadership roles across industries [7]

Core Insights - Varex Imaging Corporation will report its unaudited financial results for the fourth quarter and fiscal year 2025 on November 18, 2025, after market close [1] - A conference call will follow the earnings release at 3:00 PM Mountain Time on the same day [1] Company Overview - Varex Imaging Corporation is a leading innovator in the design and manufacturing of X-ray imaging components, including X-ray tubes and digital detectors [3] - The company has over 70 years of history in innovation and its products are utilized in medical, industrial, and security imaging applications [3] - Varex is headquartered in Salt Lake City, Utah, and employs approximately 2,300 people across North America, Europe, and Asia [3]