PALO ALTO, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Varian, Inc.
(NasdaqGS: VARI) today reported fourth quarter fiscal year 2009
revenues of $196.5 million, a decrease of 30.4% from the fourth
quarter of fiscal year 2008. Orders exceeded revenues by
approximately $9 million in the fourth quarter of fiscal year 2009.
Non-GAAP (adjusted) diluted earnings per share for the fourth
quarter of 2009 were $0.40, a decrease of 48.7% from the $0.78 in
the fourth quarter of 2008. On a GAAP basis, diluted earnings per
share in the fourth quarter of 2009 were $0.07 (including $0.28 of
costs relating to the pending acquisition of the company by Agilent
Technologies, Inc. ("Agilent")), compared to $0.69 in the fourth
quarter of 2008. Adjusted operating profit margin was 8.4% in the
fourth quarter of 2009, compared to 13.0% in the prior-year
quarter. On a GAAP basis, operating profit margin was 2.6% in the
fourth quarter of 2009, compared to 11.6% in the same quarter a
year ago. Revenues in the fourth quarter of fiscal year 2009 were
essentially flat on a sequential basis, but were lower than the
prior-year quarter, primarily due to the global economic downturn
as well as specific items impacting the comparability of the fourth
quarter of fiscal year 2009 with the fourth quarter of fiscal year
2008. Revenues in the fourth quarter of fiscal year 2008 benefitted
from (1) an extra week and (2) exceptionally strong shipments
related to overcoming manufacturing transition and execution issues
experienced in the third quarter of fiscal year 2008. In addition,
revenues in the fourth quarter of fiscal year 2009 were negatively
impacted by customers' uncertainty and other disruptions related to
the announcement and pendency of the acquisition by Agilent.
Compared to record adjusted operating profit margins in the
prior-year quarter, adjusted operating margins in the fourth
quarter of fiscal year 2009 were negatively impacted by the lower
sales volumes, product mix and disruptions relating to the pending
acquisition. Free cash flow, which is defined as operating cash
flow less net fixed asset purchases, was $29.7 million in the
fourth quarter of 2009 and a record $94.3 million for the full
fiscal year. The excellent free cash flow generated by the company
in fiscal year 2009 demonstrates the fundamental strength and
flexibility of the business through the challenging economic
environment during that period. Fiscal year 2009 sales totaled
$806.7 million, a decrease of 20.3% compared to the $1.013 billion
reported in fiscal year 2008. Adjusted net earnings in fiscal year
2009 decreased 26.2% to $58.0 million, compared to $78.7 million in
the prior fiscal year. Adjusted diluted earnings per share were
$2.01 in fiscal year 2009, representing a decrease of 23.3%
compared to the $2.62 in fiscal year 2008. On a GAAP basis, net
earnings were $38.6 million, or $1.34 diluted earnings per share,
in fiscal year 2009, compared to $65.1 million, or $2.17 diluted
earnings per share, in fiscal year 2008. For a complete
reconciliation of non-GAAP (adjusted) financial information used in
this press release to the most directly comparable GAAP financial
information, please refer to the attached Reconciliations of GAAP
to Adjusted Results, Actual. Results by Segment Scientific
Instruments revenues for the fourth quarter of 2009 were $164.7
million, a decrease of 30.3% from the fourth quarter of the prior
year. Adjusted operating profit margin was 8.1% in the fourth
quarter of 2009, compared to 12.7% in the fourth quarter of the
prior year. On a GAAP basis, operating profit margin was 5.5% in
the fourth quarter of 2009, compared to 11.1% in the same quarter a
year ago. For the full fiscal year 2009, Scientific Instruments
revenues decreased 19.5% to $675.3 million, compared to $838.7
million in fiscal year 2008. Adjusted operating profit margin was
10.7% in fiscal year 2009, compared to 11.6% in fiscal year 2008.
On a GAAP basis, operating profit margin was 8.0% in fiscal year
2009, compared to 9.6% in the prior fiscal year. Vacuum
Technologies revenues were $31.7 million in the fourth quarter of
2009, a decrease of 31.0% from the fourth quarter of 2008. Adjusted
operating profit margin was 20.5% in the fourth quarter of 2009,
compared to 22.0% in the fourth quarter of the prior year. On a
GAAP basis, operating profit margin was 20.3% in the fourth quarter
of 2009, compared to 22.0% in the prior-year quarter. For the full
fiscal year 2009, Vacuum Technologies revenues totaled $131.4
million, a decrease of 24.4% compared to the $173.8 million
reported in fiscal year 2008. Adjusted operating profit margin was
20.1% in fiscal year 2009, compared to 19.8% in the prior fiscal
year. On a GAAP basis, operating profit margin was 19.5% in fiscal
year 2009, compared to 19.8% in fiscal year 2008. Acquisition by
Agilent As previously announced, on July 26, 2009 the company
entered into an Agreement and Plan of Merger with Agilent (the
"Merger Agreement"), pursuant to which the company will, subject to
the satisfaction or waiver of the conditions set forth in the
Merger Agreement, be acquired by Agilent for $52.00 per share in
cash. At a special meeting held on October 5, 2009, the company's
stockholders approved the Merger Agreement. The transaction remains
subject to regulatory approvals and other closing conditions. No
Conference Call Due to the pending acquisition by Agilent, the
company will not be holding an investor conference call to review
its fourth quarter and full fiscal year 2009 results. Non-GAAP
(Adjusted) Financial Measures This press release includes non-GAAP
(adjusted) financial measures for cost of sales, selling, general
and administrative expenses, research and development expenses,
purchased in-process research and development expenses, operating
earnings, operating profit margins, impairment of private company
equity investments, income tax expense, net earnings, diluted
earnings per share and free cash flow. With the exception of free
cash flow, these non-GAAP financial measures exclude
acquisition-related intangible and inventory write-up amortization
and purchased in-process research and development expenses, costs
related to the pending acquisition by Agilent, restructuring and
other related costs, and impairment of private company equity
investments. Reconciliations of each of these non-GAAP financial
measures to the most directly comparable GAAP financial measures
are detailed in the Reconciliations of GAAP to Adjusted Results
attached to this press release. We believe that presentation of
these non-GAAP financial measures provides useful information to
investors regarding our results of operations and our cash flows.
We believe that excluding acquisition-related intangible and
inventory write-up amortization and purchased in-process research
and development expenses provides supplemental information and an
alternative presentation useful to investors' understanding of the
company's core operating results and trends. In addition, investors
have indicated to us that they analyze the benefits of acquisitions
based on the cash return on the investment made, and thus consider
financial measures excluding acquisition-related intangible and
inventory write-up amortization and purchased in-process research
and development expenses as important, useful information. We
similarly believe that excluding costs related to the pending
acquisition by Agilent, restructuring and other related costs
(principally related to facility closures and employee terminations
to reduce costs and improve operational efficiency) and impairment
of private company equity investments provides supplemental
information and an alternative presentation useful to investors'
understanding of the company's core operating results and trends,
especially when comparing those results on a consistent basis to
results for previous periods and anticipated results for future
periods. Investors have indicated that they consider financial
measures of our results of operations excluding restructuring and
other related costs and impairment of private company equity
investments as important supplemental information useful to their
understanding of our historical results and estimating of our
future results. We also believe that, in excluding
acquisition-related intangible and inventory write-up amortization
and purchased in-process research and development expenses, costs
related to the pending acquisition by Agilent, restructuring and
other related costs, and impairment of private company equity
investments, our non-GAAP financial measures provide investors with
transparency into what is used by management to measure and
forecast our results of operations, to compare on a consistent
basis our results of operations for the current period to that of
prior periods, to compare our results of operations on a more
consistent basis against that of other companies, in making
financial and operating decisions and to establish certain
management compensation. We believe that the presentation of free
cash flow provides investors with useful information on what is
used by management to measure cash management performance, in
making financial and operating decisions and to establish certain
management compensation. Although we believe, for the foregoing
reasons, that our presentation of non-GAAP financial measures
provides useful supplemental information to investors regarding our
results of operations and our cash flows, our non-GAAP financial
measures should only be considered in addition to, and not as a
substitute for or superior to, our financial measures prepared in
accordance with GAAP. About Varian, Inc. Varian, Inc. is a leading
worldwide supplier of scientific instruments and vacuum
technologies for life science, environmental, energy, and applied
research and other applications. The company provides complete
solutions, including instruments, vacuum products, laboratory
consumable supplies, software, training and support through its
global distribution and support systems. Varian, Inc.'s common
stock is traded on the NASDAQ Global Select Market under the symbol
"VARI". Further information is available on the company's Web site
at http://www.varianinc.com/. VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (In
thousands, except per share amounts) Fourth Quarter FY 2009 and
Fourth Quarter FY 2008 Fiscal Quarter Ended
-------------------------- October 2, October 3, 2009 2008
--------- --------- Sales $196,459 $282,470 Cost of sales 113,263
(1) 156,377 (7) --------- --------- Gross profit 83,196 126,093
--------- --------- Operating expenses Selling, general and
administrative 64,644 (2) 75,098 (8) Research and development
13,448 (3) 17,921 (9) Purchased in-process research and development
- 215 (10) --------- --------- Total operating expenses 78,092
93,234 --------- --------- Operating earnings 5,104 (4) 32,859 (11)
Interest income 375 1,042 Interest expense (395) (382) ---------
--------- Earnings before income taxes 5,084 33,519 Income tax
expense 3,144 (5) 13,142 (12) --------- --------- Net earnings $
1,940 (6) $ 20,377 (13) ========= ========= Net earnings per
diluted share $0.07 (6) $0.69 (13) ========= ========= Diluted
shares outstanding 29,138 29,367 ========= ========= NON-GAAP
(ADJUSTED) FINANCIAL MEASURES (see also attached reconciliations of
GAAP to Adjusted results for each of these measures): (1) $111,263
on an adjusted basis excluding $1,550 in acquisition-related
intangible amortization, $72 in acquisition-related inventory
write-up amortization and $378 in restructuring and other related
costs. (2) $55,063 on an adjusted basis excluding $9,155 in costs
related to the pending acquisition by Agilent, $194 in
acquisition-related intangible amortization and $232 in
restructuring and other related costs. (3) $13,694 on an adjusted
basis excluding a credit of $246 in restructuring and other related
costs. (4) $16,439 on an adjusted basis excluding the adjustments
described in items (1) - (3) above. (5) $4,891 on an adjusted basis
excluding the tax impact of the adjustments described in items (1)
- (3) above. (6) $11,528 and $0.40 per diluted share, respectively,
on an adjusted basis excluding the adjustments (net of related tax
effects) described in items (1) - (3) above. (7) $154,076 on an
adjusted basis excluding $1,663 in acquisition- related intangible
amortization, $172 in acquisition-related inventory write-up
amortization and $466 in restructuring and other related costs. (8)
$74,239 on an adjusted basis excluding $586 in acquisition-related
intangible amortization and $273 in restructuring and other related
costs. (9) $17,420 on an adjusted basis excluding $501 in
restructuring and other related costs. (10) $0 on an adjusted basis
excluding $215 related to an acquisition- related in-process
research and development charge. (11) $36,735 on an adjusted basis
excluding the adjustments described in items (7) - (10) above. (12)
$14,417 on an adjusted basis excluding the tax impact of the
adjustments described in items (7) - (9) above. (13) $22,978 and
$0.78 per diluted share, respectively, on an adjusted basis
excluding the adjustments (net of related tax effects) described in
items (7) - (10) above. VARIAN, INC. AND SUBSIDIARY COMPANIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (In
thousands, except per share amounts) Full Year FY 2009 and Full
Year FY 2008 Fiscal Year Ended -------------------------- October
2, October 3, 2009 2008 ----------- ----------- Sales $ 806,744
$1,012,515 Cost of sales 452,054 (1) 560,061 (7) -----------
----------- Gross profit 354,690 452,454 ----------- -----------
Operating expenses Selling, general and administrative 239,282 (2)
277,478 (8) Research and development 56,425 (3) 71,810 (9)
Purchased in-process research and development - 1,703 (10)
----------- ----------- Total operating expenses 295,707 350,991
----------- ----------- Operating earnings 58,983 (4) 101,463 (11)
Impairment of private company equity investment - (3,018) (12)
Interest income 1,650 5,930 Interest expense (1,486) (1,656)
----------- ----------- Earnings before income taxes 59,147 102,719
Income tax expense 20,527 (5) 37,605 (13) ----------- -----------
Net earnings $ 38,620 (6) $ 65,114 (14) =========== =========== Net
earnings per diluted share $1.34 (6) $2.17 (14) ===========
=========== Diluted shares outstanding 28,936 30,072 ===========
=========== NON-GAAP (ADJUSTED) FINANCIAL MEASURES (see also
attached reconciliations of GAAP to Adjusted results for each of
these measures): (1) $441,730 on an adjusted basis excluding $6,117
in acquisition- related intangible amortization, $131 in
acquisition-related inventory write-up amortization and $4,076 in
restructuring and other related costs. (2) $224,255 on an adjusted
basis excluding $9,155 in costs related to the pending acquisition
by Agilent, $1,118 in acquisition-related intangible amortization
and $4,754 in restructuring and other related costs. (3) $55,583 on
an adjusted basis excluding $842 in restructuring and other related
costs. (4) $85,176 on an adjusted basis excluding the adjustments
described in items (1) - (3) above. (5) $27,294 on an adjusted
basis excluding the tax impact of the adjustments described in
items (1) - (3) above. (6) $58,046 and $2.01 per share,
respectively, on an adjusted basis excluding the adjustments (net
of related tax effects) described in items (1) - (3) above. (7)
$550,465 on an adjusted basis excluding $6,547 in
acquisition-related intangible amortization, $1,408 in
acquisition-related inventory write-up amortization and $1,641 in
restructuring and other related costs. (8) $273,072 on an adjusted
basis excluding $1,825 in acquisition-related intangible
amortization and $2,581 in restructuring and other related costs.
(9) $70,556 on an adjusted basis excluding $1,254 in restructuring
and other related costs. (10) $0 on an adjusted basis excluding
$1,703 related to an acquisition- related in-process research and
development charge. (11) $118,422 on an adjusted basis excluding
the adjustments described in items (7) - (10) above. (12) $0 on an
adjusted basis excluding $3,018 related to the impairment of a
private company equity investment. (13) $44,007 on an adjusted
basis excluding the tax impact of the adjustments described in
items (7) - (9) and (12) above. (14) $78,689 and $2.62 per share,
respectively, on an adjusted basis excluding the adjustments (net
of related tax effects) described in items (7) - (10) and (12)
above. VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEET (In thousands, except par value amounts)
October 2, October 3, 2009 2008 --------- --------- ASSETS Current
assets Cash and cash equivalents $209,348 $103,895 Accounts
receivable, net 159,958 199,420 Inventories 136,704 161,039
Deferred taxes 38,349 32,287 Prepaid expenses and other current
assets 15,488 15,663 --------- --------- Total current assets
559,847 512,304 Property, plant and equipment, net 114,363 110,343
Goodwill 216,223 218,208 Intangible assets, net 28,334 36,972 Other
assets 25,420 24,089 --------- --------- Total assets $944,187
$901,916 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities Current portion of long-term debt $ 6,250 $ -
Accounts payable 63,368 70,923 Deferred profit 8,935 10,957 Accrued
liabilities 171,103 167,173 --------- --------- Total current
liabilities 249,656 249,053 Long-term debt 12,500 18,750 Deferred
taxes 2,505 4,341 Other liabilities 41,255 43,431 ---------
--------- Total liabilities 305,916 315,575 --------- ---------
Stockholders' equity Preferred stock-par value $0.01,
authorized-1,000 shares; issued-none - - Common stock-par value
$0.01, authorized- 99,000 shares; issued and outstanding- 28,971
shares at October 2, 2009 and 28,917 shares at October 3, 2008
368,324 356,192 Retained earnings 220,068 184,678 Accumulated other
comprehensive income 49,879 45,471 --------- --------- Total
stockholders' equity 638,271 586,341 --------- --------- Total
liabilities and stockholders' equity $944,187 $901,916 =========
========= VARIAN, INC. AND SUBSIDIARY COMPANIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) Fiscal Quarter
Ended Fiscal Year Ended ------------------- -------------------
October 2, October 3, October 2, October 3, 2009 2008 2009 2008
--------- --------- --------- --------- Cash flows from operating
activities Net earnings $ 1,940 $ 20,377 $ 38,620 $ 65,114
Adjustments to reconcile net earnings to net cash provided by
operating activities: Depreciation and amortization 6,470 8,128
26,783 29,346 Gain on disposition of property, plant and equipment
(90) (22) (230) (474) Impairment of private company equity
investment - - - 3,018 Purchased in-process research and
development - 215 - 1,703 Share-based compensation expense 1,672
2,466 7,705 9,673 Excess tax benefit from share-based plans (705)
(894) (705) (894) Deferred taxes (11,157) (1,251) (12,211) (1,791)
Unrealized loss (gain) on currency remeasurement 929 (7,959) 525
(5,286) Changes in assets and liabilities, excluding effects of
acquisitions: Accounts receivable, net 1,093 (22,940) 42,387
(12,205) Inventories 12,812 11,618 24,663 (19,428) Prepaid expenses
and other current assets 386 2,811 403 3,300 Other assets 1,531
(736) 168 (1,462) Accounts payable 9,260 (2,293) (8,663) (1,072)
Deferred profit (1,289) 440 (2,103) (3,526) Accrued liabilities
11,196 10,853 (3,061) 14,053 Other liabilities (490) (1,416)
(1,394) (1,048) --------- --------- --------- --------- Net cash
provided by operating activities 33,558 19,397 112,887 79,021
--------- --------- --------- --------- Cash flows from investing
activities Proceeds from sale of property, plant and equipment 344
470 6,454 1,735 Purchase of property, plant and equipment (4,245)
(7,286) (25,073) (23,960) Acquisitions, net of cash acquired (20)
(2,269) (2,449) (55,167) Private company equity investments - - -
(18) --------- --------- --------- --------- Net cash used in
investing activities (3,921) (9,085) (21,068) (77,410) ---------
--------- --------- --------- Cash flows from financing activities
Repayments of debt - - - (6,250) Repurchase of common stock (24)
(24,968) (7,647) (106,859) Issuance of common stock 4,856 2,467
8,139 18,228 Excess tax benefit from share-based plans 705 (2,258)
705 894 Transfers to Varian Medical Systems, Inc. (204) - (645)
(600) --------- --------- --------- --------- Net cash provided by
(used in) financing activities 5,333 (24,759) 552 (94,587)
--------- --------- --------- --------- Effects of exchange rate
changes on cash and cash equivalents 8,001 (9,872) 13,082 475
--------- --------- --------- --------- Net increase (decrease) in
cash and cash equivalents 42,971 (24,319) 105,453 (92,501) Cash and
cash equivalents at beginning of period 166,377 128,214 103,895
196,396 --------- --------- --------- --------- Cash and cash
equivalents at end of period $209,348 $103,895 $209,348 $103,895
========= ========= ========= ========= VARIAN, INC. AND SUBSIDIARY
COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS - ACTUAL
UNAUDITED RESULTS OF OPERATIONS (In thousands) Fourth Quarter FY
2009 and Fourth Quarter FY 2008 and Full Year FY 2009 and Full Year
FY 2008 Fiscal Quarter Ended Fiscal Year Ended ------------------
------------------ October 2, October 3, October 2, October 3, 2009
2008 2009 2008 -------- -------- -------- -------- TOTAL COMPANY
------------- Cost of Sales U.S. GAAP as reported $113,263 $156,377
$452,054 $560,061 Adjustments: Acquisition-related intangible
amortization (1,550) (1,663) (6,117) (6,547) Acquisition-related
inventory write-up amortization (72) (172) (131) (1,408)
Restructuring and other related costs (378) (466) (4,076) (1,641)
-------- -------- -------- -------- As adjusted $111,263 $154,076
$441,730 $550,465 ======== ======== ======== ======== Selling,
General and Administrative U.S. GAAP as reported $ 64,644 $ 75,098
$239,282 $277,478 Adjustments: Acquisition-related intangible
amortization (194) (586) (1,118) (1,825) Costs related to pending
acquisition by Agilent (9,155) - (9,155) - Restructuring and other
related costs (232) (273) (4,754) (2,581) -------- --------
-------- -------- As adjusted $ 55,063 $ 74,239 $224,255 $273,072
======== ======== ======== ======== Research and Development U.S.
GAAP as reported $ 13,448 $ 17,921 $ 56,425 $ 71,810 Adjustments:
Restructuring and other related costs 246 (501) (842) (1,254)
-------- -------- -------- -------- As adjusted $ 13,694 $ 17,420 $
55,583 $ 70,556 ======== ======== ======== ======== Purchased
In-Process Research and Development U.S. GAAP as reported $ - $ 215
$ - $ 1,703 Adjustments: Acquisition-related in- process research
and development charge - (215) - (1,703) -------- -------- --------
-------- As adjusted $ - $ - $ - $ - ======== ======== ========
======== VARIAN, INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF
GAAP TO ADJUSTED RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS
(In thousands, except per share data) Fourth Quarter FY 2009 and
Fourth Quarter FY 2008 and Full Year FY 2009 and Full Year FY 2008
Fiscal Quarter Ended Fiscal Year Ended -----------------
----------------- October 2, October 3, October 2, October 3, 2009
2008 2009 2008 ------- ------- ------- ------- TOTAL COMPANY
(Continued) ------------------------- Net Earnings U.S. GAAP as
reported $ 1,940 $20,377 $38,620 $65,114 Adjustments:
Acquisition-related in- process research and development charges -
215 - 1,703 Acquisition-related intangible amortization 1,217 1,526
4,925 5,617 Acquisition-related inventory write-up amortization 52
97 94 923 Costs related to pending acquisition by Agilent 8,110 -
8,110 - Impairment of private company equity investment - - - 1,871
Restructuring and other related costs 209 763 6,297 3,461 -------
------- ------- ------- As adjusted $11,528 $22,978 $58,046 $78,689
======= ======= ======= ======= Diluted Earnings Per Share U.S.
GAAP as reported $ 0.07 $ 0.69 $ 1.34 $ 2.17 Adjustments:
Acquisition-related in- process research and development charges -
0.01 - 0.06 Acquisition-related intangible amortization 0.04 0.05
0.17 0.18 Acquisition-related inventory write-up amortization 0.00
0.00 0.00 0.03 Costs related to pending acquisition by Agilent 0.28
- 0.28 - Impairment of private company equity investment - - - 0.06
Restructuring and other related costs 0.01 0.03 0.22 0.12 -------
------- ------- ------- As adjusted $ 0.40 $ 0.78 $ 2.01 $ 2.62
======= ======= ======= ======= Free Cash Flow U.S. GAAP as
reported - Net cash provided by operating activities $33,558
$19,396 $112,887 $79,021 Adjustments: Proceeds from sale of
property, plant and equipment 344 470 6,454 1,735 Purchase of
property, plant and equipment (4,245) (7,286) (25,073) (23,960)
------ ------ ------- ------- As adjusted - Free Cash Flow $29,657
$12,580 $94,268 $56,796 ======= ======= ======= ======= VARIAN,
INC. AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED
RESULTS - ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands,
except margin data) Fourth Quarter FY 2009 and Fourth Quarter FY
2008 and Full Year FY 2009 and Full Year FY 2008 Fiscal Quarter
Ended Fiscal Year Ended -------------------- -----------------
October 2, October 3, October 2, October 3, 2009 2008 2009 2008
------- ------- ------- ------- TOTAL COMPANY (Continued)
------------------------- Operating Earnings U.S. GAAP as reported
$5,104 $32,859 $58,983 $101,463 Adjustments: Acquisition-related
in-process research and development charges - 215 - 1,703
Acquisition-related intangible amortization 1,744 2,249 7,235 8,372
Acquisition-related inventory write-up amortization 72 172 131
1,408 Costs related to pending acquisition by Agilent 9,155 - 9,155
- Restructuring and other related costs 364 1,240 9,672 5,476
------- ------- ------- -------- As adjusted $16,439 $36,735
$85,176 $118,422 ======= ======= ======= ======== Operating Margins
U.S. GAAP as reported 2.6 % 11.6 % 7.3 % 10.0 % Adjustments:
Acquisition-related in-process research and development charges -
0.1 - 0.2 Acquisition-related intangible amortization 0.9 0.8 1.0
0.9 Acquisition-related inventory write-up amortization 0.0 0.1 0.0
0.1 Costs related to pending acquisition by Agilent 4.7 - 1.1 -
Restructuring and other related costs 0.2 0.4 1.2 0.5 --- --- ---
--- As adjusted 8.4 % 13.0 % 10.6 % 11.7 % === ==== ==== ====
Impairment of Private Company Equity Investment U.S. GAAP as
reported $ - $ - $ - $3,018 Adjustments: Impairment of private
company equity investment - - - (3,018) --- --- --- ------ As
adjusted $ - $ - $ - $ - === === === === Income Tax Expense U.S.
GAAP as reported $3,144 $13,142 $20,527 $37,605 Adjustments: Tax
impact of adjustments: Acquisition-related intangible amortization
527 723 2,310 2,755 Acquisition-related inventory write-up
amortization 20 75 37 485 Costs related to pending acquisition by
Agilent 1,045 - 1,045 - Impairment of private company equity
investment - - - 1,147 Restructuring and other related costs 155
477 3,375 2,015 ------ ------- ------- ------- As adjusted $4,891
$14,417 $27,294 $44,007 ====== ======= ======= ======= VARIAN, INC.
AND SUBSIDIARY COMPANIES RECONCILIATION OF GAAP TO ADJUSTED RESULTS
- ACTUAL UNAUDITED RESULTS OF OPERATIONS (In thousands, except
margin data) Fourth Quarter FY 2009 and Fourth Quarter FY 2008 and
Full Year FY 2009 and Full Year FY 2008 Fiscal Quarter Ended Fiscal
Year Ended -------------------- ----------------- October 2,
October 3, October 2, October 3, 2009 2008 2009 2008 -------
------- ------- ------- SCIENTIFIC INSTRUMENTS SEGMENT
-------------------- Operating Earnings U.S. GAAP as reported $
9,041 $26,191 $53,890 $80,700 Adjustments: Acquisition-related in-
process research and development charges - 215 - 1,703
Acquisition-related intangible amortization 1,744 2,249 7,235 8,372
Acquisition-related inventory write- up amortization 72 172 131
1,408 Costs related to pending acquisition by Agilent 2,157 - 2,157
- Restructuring and other related costs 304 1,240 8,871 5,476
------- ------- ------- ------- As adjusted $13,318 $30,067 $72,284
$97,659 ======= ======= ======= ======= Operating Margins U.S. GAAP
as reported 5.5 % 11.1 % 8.0 % 9.6 % Adjustments:
Acquisition-related in- process research and development charges -
0.1 - 0.2 Acquisition-related intangible amortization 1.1 0.9 1.1
0.9 Acquisition-related inventory write- up amortization 0.0 0.1
0.0 0.2 Costs related to pending acquisition by Agilent 1.3 - 0.3 -
Restructuring and other related costs 0.2 0.5 1.3 0.7 -------
------- ------- ------- As adjusted 8.1 % 12.7 % 10.7 % 11.6 %
======= ======= ======= ======= VACUUM TECHNOLOGIES SEGMENT
------------------- Operating Earnings U.S. GAAP as reported $
6,432 $10,123 $25,665 $34,384 Adjustments: Restructuring and other
related costs 60 - 802 - ------- ------- ------- ------- As
adjusted $ 6,492 $10,123 $26,467 $34,384 ======= ======= =======
======= Operating Margins U.S. GAAP as reported 20.3 % 22.0 % 19.5
% 19.8 % Adjustments: Restructuring and other related costs 0.2 -
0.6 - ------- ------- ------- ------- As adjusted 20.5 % 22.0 %
20.1 % 19.8 % ======= ======= ======= ======= GENERAL (UNALLOCATED)
CORPORATE --------------------- Operating Earnings U.S. GAAP as
reported $(10,369) $(3,455) $(20,572) $(13,621) Adjustments: Costs
related to pending acquisition by Agilent 6,998 - 6,998 - -------
------- ------- ------- As adjusted $ (3,371) $(3,455) $(13,574)
$(13,621) ======= ======= ======== ======== For Information
Contact: Investor Relations Varian, Inc. 650.424.5471 DATASOURCE:
Varian, Inc. CONTACT: Investor Relations of Varian, Inc.,
+1-650-424-5471, Web Site: http://www.varianinc.com/
Copyright