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Varex Imaging Corporation (VREX-0.22%) has submitted its 10-K filing for the fiscal year ended September 27, 2024.
The filing includes financial statements for the year, showing total revenues of $811.0 million, a decrease from $893.4 million in the previous year. This decline is attributed to lower sales in the Medical segment, particularly in China.
Medical segment revenues decreased by 14% to $581.7 million, primarily due to reduced sales of X-ray tubes and digital detectors. The Industrial segment saw a 4% increase in revenues to $229.3 million, driven by higher sales of security inspection products.
Gross profit for the year was $256.9 million, down from $290.3 million in the previous year, with the decrease mainly due to lower volumes in the Medical segment.
Operating expenses increased to $224.8 million from $213.2 million, primarily due to higher research and development spending and increased selling, general, and administrative expenses.
The company reported a net loss of $47.7 million, compared to a net income of $48.2 million in the previous year. The loss was primarily due to a significant tax expense of $52.2 million, resulting from changes in valuation allowances and deferred tax assets.
Varex had total debt of $446.6 million as of September 27, 2024, with a portion classified as current due to the maturity of Convertible Notes in June 2025. The company anticipates refinancing these notes using its Revolving Credit Facility.
The filing also details various financial agreements, including a Revolving Credit Facility and an Equipment Credit Facility, which provide additional liquidity to support operations and future growth.
Varex continues to focus on innovation and product development, with research and development expenses increasing to $87.0 million, representing 10.7% of total revenues.
The company remains optimistic about long-term opportunities in China despite short-term challenges due to the ongoing anti-corruption campaign in the healthcare industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Varex Imaging Corporation annual 10-K report dated November 19, 2024. To report an error, please email earnings@qz.com.