Varian Medical Systems Inc. F2Q09 (Qtr End 03/31/09) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-04-29 17:24:21.0

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

Question-and-Answer Session

Operator

(Operator instructions) And please standby for your first question. And your first question comes from the line of Amit Hazan of Oppenheimer.

Amit HazanOppenheimer

Thanks. Hey, good afternoon guys.

Tim Guertin

Hi, Amit.

Elisha Finney

Hi, Amit.

Amit HazanOppenheimer

I wondered maybe to start on the revenue side. I’m hoping maybe you can give us a little bit more color on to what extent there were units that were pushed out in the US, how many units may have been pushed out, and more specifically, kind of like when we talked about last quarter, what you are doing in terms of going back into your backlog and talking to folks and seeing what kind of visibility you have for this next quarter and who might take installation?

Tim Guertin

Yes. Amit, it was fairly normal in the quarter in terms of we are not seeing that backlog is getting cancelled or customers are pushing out indefinitely or anything like that. I would say it was probably on the order of one or two machines and that really related to things such as letters of credit and getting our financing, all the I’s dotted and the T’s crossed.

We are seeing, as Tim mentioned in his remarks, a slightly longer time in backlog with the orders coming in, but nothing that I would say is drastic. I’d remind you, I mean the FX had a significant impact in the second quarter and we would have reported 9% sales growth.

The way our quarter breaks down, it’s the four weeks, four weeks, five weeks and so, obviously most of orders and sales come in that third month of the quarter and the euro rate that we had to use that month was right around $1.26. So, it killed us on the FX with the highest volume of our sales coming at a very low rate. Fortunately today, it’s at $1.32, $1.33, which we certainly hope it can stay there.

Tim Guertin

Right. So, we have been talking to customers and third quarter, we see us reasonably lined up at this point and we are working on trying to line up fourth quarter and make sure that everything is there that we want to have and I think as we look at orders and the effects of currency, I think our – I think the fourth quarter is more something we are watching than third quarter at this point.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement