Core Insights - Varex Imaging reported a strong start to fiscal year 2026, with first-quarter revenue of $210 million, a 5% increase year-over-year, driven by a 17% increase in the Industrial segment and stable performance in the Medical segment [5][16] - The company highlighted a favorable product sales mix contributing to a non-GAAP gross margin of 34%, and non-GAAP EPS of $0.19, up from $0.10 in the previous year [6][20] - Engagement with customers at the RSNA conference indicated a positive outlook for future demand, particularly in the Medical segment, with a focus on innovation and integration of technologies [10][12] Financial Performance - First-quarter revenue was $210 million, with Medical segment revenue at $145 million (69% of total) and Industrial segment revenue at $65 million (31% of total) [16] - Non-GAAP EBITDA for the quarter was $29 million, reflecting a 12% increase year-over-year [6] - Operating income was reported at $19 million, with an operating margin of 9%, up from 7% in the same quarter last year [20] Segment Performance - The Industrial segment showed strong growth, particularly in cargo security systems, which benefited from global demand [8][14] - The Medical segment remained stable, with solid demand for X-ray sources and digital detectors, although some modalities like dental and oncology were below sales trends [7][10] - The company is focusing on a modality-based approach to enhance customer engagement and drive long-term recurring revenue [11][12] Customer Engagement and Market Outlook - Increased customer engagement at RSNA, with over 150 meetings focused on design win opportunities and system upgrades [9][10] - The company is optimistic about future demand, particularly in the Medical segment, as customers shift from maintenance to new product development [13][29] - The India manufacturing strategy is seen as critical for future growth, with local production resonating well with customers [12][34] Inventory and Cash Flow - Inventory increased by $29 million to $328 million, driven by anticipated demand in the Industrial segment and qualification cycles for new products [21][62] - Net cash outflow from operations was $16 million, primarily due to inventory increases, with cash and marketable securities totaling $126 million [22][62] Guidance and Future Expectations - Guidance for the second quarter anticipates revenues between $210 million and $225 million, with non-GAAP EPS expected between $0.15 and $0.25 [23] - The company expects to continue seeing strong order activity in both Medical and Industrial segments, with a focus on securing new design wins [24][31]

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]