The following is a summary of the Varex Imaging Corporation (VREX) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Varex reported Q2 revenue of $206 million, down 10% year-over-year with the medical segment declining by 15% and the industrial segment increasing 6%.

• Non-GAAP gross margin remained constant at 33% year-over-year, while non-GAAP earnings per share was $0.16, down from $0.26 last year.

• The company's cash and marketable securities rose by $68 million, reaching a total of $190 million compared to the same period in fiscal 2023.

• Despite slower market demand for their products, Varex successfully closed a $175 million financing, ensuring a strong cash liquidity.

Business Progress:

• Medical sales were negatively impacted due to cautious purchasing behaviours and softness in the Chinese market, but the sale of CT tubes improved.

• Industrial sales maintained trend with a boost from cargo inspection products and industrial tubes.

• Varex made progress in their photon-counting technology, securing it as a significant income source for the future.

• Success with collaborative projects under the Horizon Europe program enhanced Varex's photon-counting technology.

• Varex projects their photon-counting technology to contribute over $100 million in revenue over the next 5 years and more than $150 million annually by fiscal 2029.

• The company foresees a steady uptake of their photon counting detectors technology bringing considerable benefits to the industrial side of their business.

• Focus on image processing and construction software development, expected to benefit from the uptake of photon counting technology.

More details: Varex Imaging IR

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