Varex Imaging Corporation (NASDAQ:VREX) Q3 2017 Earnings Conference Call - Final Transcript

Aug 03, 2017 • 05:00 pm ET

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Varex Imaging Corporation (NASDAQ:VREX) Q3 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Varex Imaging Third Quarter Fiscal Year 2017 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Howard Goldman, Director of Investor Relations. Thank you. You may begin.

Executive
Howard Goldman

Good afternoon, and welcome to our conference call for the third quarter of fiscal year 2017. With me today are Sunny Sanyal, our President and CEO; and Clarence Verhoef, our CFO.

To simplify our discussions, unless otherwise stated, all references to the quarter or year are fiscal year or fiscal quarters. Quarterly comparisons are for the third quarter of fiscal year 2017 versus the third quarter of fiscal 2016, unless otherwise stated. Year-to-date comparisons are for the first three months of fiscal year 2017 -- sorry, first three quarters fiscal '17 versus the three quarters of fiscal year 2016 unless otherwise stated.

Comparable financial statement for fiscal year 2016 and the first quarter of fiscal year 2017 reflect operating results for the Imaging Components business of Varian Medical systems, prior to our separation, and include estimates of cost allocations for various corporate functions, interest expense and tax expense. Additionally, third quarter and year-to-date financial statements for fiscal year 2017 reflect two months of operating results for the imaging business we acquired from PerkinElmer on May 1, 2017.

In addition, beginning with financial results for the third quarter of fiscal year 2017, we will supplement our consolidated financial statements compared in accordance with US generally accepted accounting principle or GAAP with the use of adjusted or non-GAAP financial measures of certain elements of financial performance. These adjusted measures are not presented in accordance with nor are they substitute for GAAP financial measures. These adjusted measures include adjusted gross margin, adjusted operating earnings, adjusted operating earnings margin, adjusted net earnings and adjusted net earnings per diluted share. We provide a reconciliation of each adjusted financial measure to the most directly comparable GAAP financial measure used in our earnings press release issued earlier today which is posted on our website. We are unable to provide without unreasonable effort a reconciliation of adjusted guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability and limited visibility of the exclusive items discussed.

Please be advised that this discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our use of words and phrases such as believe, estimate, expect, anticipate, could, will, potential, outlook and similar expressions are intended to identify those statements which represent our current judgment on future performance or other future matters. While we believe them to be reasonable based on information currently available to us, these are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Risk relating to our business are described in our third quarter earnings release