UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-Q ____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 3, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37860 _____________ ...

Varex Imaging Corporation (NASDAQ:VREX) Q3 2020 Earnings Conference Call August 12, 2020 5:00 PM ET Company Representatives Sunny Sanyal - President, Chief Executive Officer Sam Maheshwari - Chief Financial Officer Clarence Verhoef - Retiring Chief Financial Officer Howard Goldman - Director of Investor Relations Conference Call Participants Larry Solow - CJS Securities Anthony Petrone - Jefferies Suraj Kalia - Northland Security Jim Sidoti - Sidoti & Company Mark Strouse - JP Morgan Operator Greetings! And ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-Q ____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 3, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37860 ____________ ...

Varex Imaging Corporation (NASDAQ:VREX) Q2 2020 Earnings Conference Call May 12, 2020 5:00 PM ET Company Representatives Sunny Sanyal - President, Chief Executive Officer Clarence Verhoef - Chief Financial Officer Howard Goldman - Director of Investor Relations Conference Call Participants Anthony Petrone - Jefferies Larry Solow - CJS Securities Suraj Kalia - Oppenheimer Mark Strouse - JP Morgan Jim Sidoti - Sidoti & Company Operator Greetings! And welcome to Varex Imaging Corporation, Second Quarter Fiscal ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________ FORM 10-Q ____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 3, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37860 __________ ...

Varex Imaging Corporation (NASDAQ:VREX) Q1 2020 Earnings Conference Call February 11, 2020 5:00 PM ET Company Participants Howard Goldman - Director of IR Sunny Sanyal - President and CEO Clarence Verhoef - CFO Conference Call Participants Anthony Petrone - Jefferies Larry Solow - CJS Securities Suraj Kalia - Oppenheimer Mark Strouse - JP Morgan Jim Sidoti - Sidoti & Co Operator Greetings and welcome to the Varex Imaging Corporation First Quarter Fiscal Year 2020 Conference Call. At this time, all participa ...

Financial Performance - Total revenues for fiscal year 2019 were $780.6 million, a 0.3% increase from $773.4 million in 2018[209]. - Gross margin for fiscal year 2019 was $256.7 million, compared to $253.9 million in 2018, reflecting a slight improvement[209]. - Net earnings attributable to Varex for fiscal year 2019 were $15.5 million, down 43.6% from $27.5 million in 2018[209]. - Basic net earnings per share for fiscal year 2019 were $0.41, a decrease from $0.73 in 2018[209]. - Total assets at the end of fiscal year 2019 were $1,038.9 million, an increase from $987.9 million in 2018[209]. - Working capital decreased to $263.3 million in 2019 from $306.1 million in 2018[209]. Customer and Market Dynamics - Varex's top five customers accounted for approximately 38% of total revenues in fiscal year 2019, with Canon Medical Systems being the largest, contributing about 17%[35]. - Revenues from international customers accounted for approximately 65% of Varex's total revenues during fiscal years 2019, 2018, and 2017[102]. - The market for border protection systems has slowed significantly, impacting customer deployments and tenders, particularly in oil-based economies and war zones[74]. - The demand for Varex's products is affected by government budgets and economic conditions, causing customers to delay purchases[164]. Research and Development - The company employs over 500 engineers and continues to invest in research and development to enhance product performance and innovation[23]. - Research and development efforts focus on improving imaging component technology, including advancements in X-ray source and digital detector technologies[46]. - Varex's success depends on the timely development and commercialization of new products and enhancements[99]. Regulatory Compliance - Compliance with extensive U.S. regulations, including those from the FDA and NRC, is required for the marketing and sale of medical devices, ensuring safety and effectiveness[49]. - The company must adhere to international regulations, including obtaining CE marks for products sold in the EU, which requires compliance with quality management systems[63]. - Varex's manufacturing operations are subject to FDA inspections, and non-compliance could lead to enforcement actions that materially affect its financial results[145]. - The company is subject to environmental laws that impose compliance costs and potential liabilities related to hazardous substances used in manufacturing[188]. Competition and Market Risks - The digital detector market has experienced price erosion, particularly in the competitive radiographic detector segment, which is expected to continue[27]. - Competition from major diagnostic imaging systems companies that manufacture in-house components poses a risk to Varex's sales[92]. - Varex's ability to compete in high-growth markets may be limited compared to competitors with government support[94]. - Increased scrutiny and liability risks are associated with expanding business in higher-risk countries, which may delay market entry and affect operations[71]. Legal and Liability Risks - The company faces potential product liability claims related to the manufacture and sale of X-ray imaging devices, which could result in significant legal costs and damage to reputation[48]. - Varex maintains limited product liability insurance, which may prove inadequate for potential claims, leading to substantial damages that could adversely affect its financial position[175]. - Legal proceedings involving Varex can be lengthy and costly, potentially resulting in significant damages and adverse publicity that could impact its operations[184]. Operational Challenges - Varex's manufacturing operations are concentrated in Salt Lake City, Utah, and disruptions could materially affect its ability to meet customer demand[124]. - The company faces risks from reliance on limited or sole-source suppliers, which could restrict manufacturing capabilities and increase costs[131]. - The inability to match manufacturing capacity with product demand may negatively affect Varex's financial results and overall business[162]. Trade and Economic Factors - The escalation of trade conflicts, particularly between the United States and China, has negatively impacted the company's business[218]. - Tariffs imposed by the United States and China have increased costs and negatively impacted Varex's gross margins on certain products[97]. - Changes in international trade agreements and tariffs could lead to decreased demand for Varex's products[96]. Intellectual Property - The company holds over 290 patents in the United States and over 370 patents globally, with an additional 160 patent applications pending[76]. - Varex's competitive position may be harmed if it cannot maintain its intellectual property rights, leading to increased legal expenses[167]. - Third parties may claim that Varex infringes upon their intellectual property, resulting in significant litigation or licensing expenses[169]. Workforce and Employment - The company employs approximately 2,000 full-time and part-time employees worldwide, with no unionized employees in the U.S.[79]. - Varex's future success depends on its ability to attract and retain qualified personnel, with competition for talent potentially increasing compensation-related costs[185].

| --- | --- | --- | --- | |-------|-------|--------------------------------------------|-------| | | | A WORLD LEADER IN X-RAY IMAGING COMPONENTS | | | | | | | | | | September 2019 | 1 | | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2019 or UNITED STATES SECURITIES AND EXCHANGE COMMISSION ____________________________________________________________ FORM 10-Q ____________________________________________________________ Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37860 ____________ ...

Financial Data and Key Metrics Changes - Quarterly revenues increased by 3% compared to the prior year, driven by record global CT tube sales and double-digit growth in oncology and mammography imaging products [9][10] - Operating earnings for the third quarter were $5 million, down from $7 million in the same quarter a year ago, while adjusted operating earnings were $19 million, comparable to the prior year [21][29] - Gross margin was 31%, down from 33% in the prior year, with adjusted gross margin at 34%, compared to 35% in the prior year [27][32] - Net loss of $1 million or $0.04 per diluted share in the third quarter compared to net earnings of $4 million or $0.10 per diluted share in the prior year [32] Business Line Data and Key Metrics Changes - Medical segment revenues increased by 3%, with higher sales of CT, oncology, and mammography products, partially offset by lower sales of radiographic detectors [26] - Industrial segment revenues also rose by 3%, primarily driven by increased demand for X-ray tubes for airport security [26][13] Market Data and Key Metrics Changes - The company experienced a significant increase in shipments of CT tubes to OEM customers in China, with expectations to ship more than twice the number of units compared to the previous year [12] - The global detector business faced challenges due to tariff-related losses in radiographic detector sales in China, but plans to establish local production in Wuxi are underway [16] Company Strategy and Development Direction - The company is focusing on a local-for-local strategy to mitigate tariff impacts by establishing local manufacturing and sourcing [16] - Plans to close digital detector manufacturing operations in Santa Clara, California, are expected to yield annual benefits of $21 million to $27 million once completed [19][24] - The company is actively pursuing small tuck-in acquisitions while prioritizing debt reduction over the next 12 to 18 months [90][91] Management's Comments on Operating Environment and Future Outlook - Management noted that the tariff situation has not significantly impacted product costs, and they are closely monitoring developments [11] - The effective tax rate for fiscal year 2019 is now expected to be approximately 26%, affecting adjusted net earnings per diluted share guidance to be in the range of $1.25 to $1.45 [36] - The company maintains its revenue outlook for fiscal year 2019, expecting revenues between $760 million and $785 million [35] Other Important Information - The company launched three new industrial digital detectors and one detector for 3D dental applications during the quarter [15] - The acquisition of Direct Conversion contributed approximately $2 million in revenues, with integration activities ongoing [10][63] Q&A Session Summary Question: Has anything other than the tax rate changed in guidance? - Management clarified that expectations for gross margins and operating expenses remain the same, with the only change being related to tax impact [39][41] Question: Can you discuss the factors that would drive the wide range for Q4 guidance? - Management indicated that guidance is based on annual expectations and will not change unless known events occur [42][46] Question: What is the timeline for the closure of the Santa Clara facility? - The facility is expected to cease operations by mid-2021, with most benefits realized after full closure [23][55] Question: How is the direct conversion acquisition performing? - The acquisition was slightly a drag on earnings due to R&D expenses, but overall it is expected to be a breakeven transaction [56] Question: What is the status of the China OEM order book? - Management reported that 8 out of 10 Chinese OEMs have contracts with the company, with a backlog of approximately $140 million [71] Question: How are new industrial products performing? - The company launched a new small footprint linear accelerator and several digital detectors, focusing on oil and gas applications [82]