Varian Medical Systems Inc. F1Q09 (Qtr. End 01/02/09) Earnings Call Transcript

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2009-01-29 19:02:13.0

Tags: Call Transcript, Needham & Co., Earnings, Varian Medical Systems Inc., Needham, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) And your first question will come from the line of Dalton Chandler with Needham & Company. Please proceed.

Dalton Chandler - Needham & Company

Hi, good afternoon.

Tim Guertin

Hi, Dalton.

Dalton Chandler - Needham & Company

Elisha I am sorry. If you gave the revenue growth in constant currency, I missed that. Could you tell us what that was?

Elisha Finney

Yes, revenue growth for the total company for the quarter was 13% in US dollars, 15% in constant currency.

Dalton Chandler - Needham & Company

Okay. On the growth rate in new orders for Oncology Systems, you have from time to time talked about the various components of that, like the software component or radiotherapy component. Could you walk through what you saw in the different components for the quarter?

Tim Guertin

I can give you a little color on that. RapidArc and the service businesses I think we're the leaders for us in the first quarter. I think that and they added to -- the RapidArc of course is adding to the average price that we are seeing on deals as a new accessory. New Linac orders were roughly flat with the year ago period.

Dalton Chandler - Needham & Company

Okay. That's helpful. You did mention you are adding sales reps. Could you talk about where you are adding those geographically?

Tim Guertin

It's all over the place. We were adding some in the United States. We were adding some in Europe. So it's in for a variety of indications. Some of is just because as we sell more products to the average customers as they buy more things. We need to have specialists who can talk to them about those particular products. So more people that talk about treatment planning, more people talk about RapidArc, these kinds of things. So I think all together it's about 13 additional sales people.

Dalton Chandler - Needham & Company

Okay. And what does that bring your total sales headcount to now?

Tim Guertin

I don't know. I just went to a meeting where there was a ballroom full of them. So, I'm not sure.

Dalton Chandler - Needham & Company

Okay. And then you know just last...

Tim Guertin

We are north of a 100, but I don’t know what the exact number is.

Dalton Chandler - Needham & Company

Okay. And just you know lastly, last quarter you talked about how financing was definitely still available albeit at usually higher interest rates. Have you seen any change in those trends either in rates or in the amount of time it takes to get a loan underwritten?

 

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