Varex Imaging Corporation (NASDAQ:VREX) Q4 2017 Earnings Conference Call Transcript

Nov 09, 2017 • 05:00 pm ET

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Varex Imaging Corporation (NASDAQ:VREX) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

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

I would now like to turn the conference over to your host, Howard Goldman, Director of Investor Relations. Please go ahead, sir.

Executive
Howard Goldman

Good afternoon, and welcome to Varex Imaging Corporation's earnings conference call for the fourth quarter and fiscal year 2017. With me today are Sunny Sanyal, our President and CEO; and Clarence Verhoef, our CFO. To simplify our discussion, unless otherwise stated, all references to the quarter or year are fiscal years and -- fiscal quarters and fiscal years. Quarterly comparisons are for the fourth quarter of fiscal 2017 versus the fourth quarter of fiscal 2016, unless otherwise stated. Annual comparisons are for fiscal year 2017 versus fiscal year 2016 unless otherwise stated. Comparable financial statements for fiscal year 2016 and the first quarter of fiscal 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, financial statements for the fourth quarter and the last five months of fiscal year 2017 include operating results for the imaging business we acquired from PerkinElmer on May 1st of 2017. In addition, we supplement our consolidated financial statements prepared in accordance with US generally accepted accounting principles, 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 a 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 direct comparable GAAP financial measure in our earnings press release, which is posted on our website. We are able to provide without unreasonable effort a reconciliation of adjusted net earnings to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability and limited visibility of the excluded items discussed.

(Forward-Looking Cautionary Statements)

And now I'll turn the call over to Sunny.

Executive
Sunny Sanyal

Thank you, Howard. Hello, everyone, and good afternoon. Fiscal year 2017 was a transformational year for us. And we successfully completed our spin-off up from Varian to become a new publicly-traded Company and we closed the major acquisition of imaging business from PerkinElmer. We accomplished these actions while maintaining our focus on growing revenue and providing excellent customer service. Our strong performance in the fourth quarter and the fiscal year reinforces our belief that our emphasis and commitment to X-ray imaging components has enabled us to serve our customers better and provide greater value to our stockholders.

Let me start by highlighting a few financial results, a little later Clarence will discuss our results