Varex Imaging(VREX) - 2024 Q4 - Annual Results

Financial Performance - Q4 FY24 revenues were $206 million, a 10% decrease year-over-year, with medical segment revenue at $144 million (down 12%) and industrial revenue at $61 million (down 4%) [4] - GAAP net earnings for Q4 FY24 were $(1.22) per diluted share, while non-GAAP net earnings were $0.19 per diluted share, down from $0.45 in Q4 FY23 [4] - For FY24, total revenues were $811 million, with a GAAP gross margin of 32% and a non-GAAP gross margin of 32% [4] - Revenues for the three months ended September 27, 2024, were $205.7 million, a decrease from $227.4 million in the same period last year, representing a decline of approximately 9.4% [21] - Gross profit for the same period was $67.1 million, down from $78.0 million year-over-year, resulting in a gross margin of 32.6%, compared to 34.3% in the prior year [21] - Non-GAAP operating income decreased to $14.5 million for the three months ended September 27, 2024, from $29.6 million in the same period last year, reflecting a non-GAAP operating margin of 7.0% [23] - The net loss attributable to Varex for the three months ended September 27, 2024, was $50.0 million, compared to a net income of $31.9 million in the prior year [25] - Non-GAAP diluted net loss per share was $0.19 for the three months ended September 27, 2024, down from $0.45 in the same period last year [25] Cash Flow and Assets - Cash flow from operations for Q4 FY24 was $26 million, ending the fiscal year with $213 million in cash and marketable securities [5] - Total assets as of September 27, 2024, were $1,217 million, down from $1,249.6 million as of September 29, 2023 [18] - Total liabilities were $667.8 million as of September 27, 2024, compared to $668.6 million the previous year [18] - Retained earnings decreased to $70.4 million as of September 27, 2024, down from $118.1 million the previous year [18] Operating Expenses and Margins - The company reported a GAAP operating margin of 5% for Q4 FY24 and a non-GAAP operating margin of 7% [4] - Total operating expenses for the three months ended September 27, 2024, were $56.2 million, compared to $53.7 million in the same period last year, indicating an increase of approximately 4.6% [23] - The company reported a significant increase in other non-operational costs, which rose to $2.5 million for the three months ended September 27, 2024, compared to $0.8 million in the prior year [23] Future Outlook - The company expects Q1 FY25 revenues to be between $195 million and $215 million, with non-GAAP net earnings per diluted share projected between -$0.05 and $0.10 [6] Technological Advancements - Significant technological advancements were made in FY24, particularly in photon counting and nanotubes, with initial steps taken to expand into the cargo systems vertical [5] Tax and Restructuring - The effective tax rate on non-GAAP adjustments was 1,545.7% for the three months ended September 27, 2024, compared to (149.3)% in the same period last year [25] - The company incurred restructuring charges of $0.1 million for the three months ended September 27, 2024, compared to $1.0 million in the same period last year [23]