Varex Imaging(US:VREX)2025-11-18 21:07Revenue 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].