VAR - Earnings call transcript Q1 2020 | Varian Medical Systems Inc

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Operator

Good day, ladies and gentlemen. And welcome to Varian's Fiscal First Quarter 2020 Earnings Call.

As a reminder, this conference call is being recorded and a replay can be accessed on the Varian investor website at www.varian.com/investors.

Now, I would like to turn the call over to Anshul Maheshwari, Vice President of Investor Relations. Please go ahead.

Anshul Maheshwari

operator. you, Thank and earnings everyone, Varian’s first fiscal Good welcome XXXX call. quarter afternoon, to

questions. today to are cover After Officer, we Joining Chief the strategy more on on me call detail. our and and take Dow will his be long-term and will financial our Dow in results Executive Mike Varian's remarks, Wilson, Chief operating Bruff. our Financial will your prepared Mike and share happy thoughts our Officer, and President results

the website, press fiscal and intended On Relations first quarter and earnings are our Investor can find perspective Varian you which additional and release to details. XXXX provide presentation,

A accompanying at non-GAAP webcast our any website and www.varian.com/investorrs. on this of reconciliations are call available

are and rates of periods Unless reference share. from All Services per otherwise International, all otherwise to impact discussed periods gross fiscal and FX year-over-year, stated. CTSI, organic Solutions orders are are exclude stated, results unless net EPS All to growth acquisitions diluted Treatment financial Cancer growth to any to of orders. non-GAAP. are are Interventional reference and business. to earnings references growth the or referred All All

to These current or subject we During are are projections forward-looking undertake future and be obligation other this risks to expectations earnings on statements Actual events. statements statements, will predictions, and based results and any assumptions uncertainties. could any about our do are differ which making this the call, that factors conference call release, not filings. materially in today's forward-looking of discussed because SEC statement. We update

his comments. to turn the And over with Dow call pleased that, for to I'm

Dow Wilson

Thanks, Anshul.

leading X earnings this the Investor the that Relations in assumed And call company as first is will Bruff function. be As on you know, Mike first now role Anshul of quarter, all CFO the announced our capacity. in his for and December formally

value creation thank our the and strategy. quarter milestones and that, contributed long-term achieved how to they joining share us I'll key everyone, today. this growth you, for With we past

Our first product driven and momentum, expanding quarter innovation and by results our reflect continued industry-leading portfolio cycle.

first company million. Oncology revenues down grew $XX quarter increased million, let were other touch Now, revenues performance. our and $XX of $XXX million XX%, Proton were revenues on Total $XXX revenues XX% million. to me XX%.

$XXX XX.X% drive earnings as project XX%. mix well This investments Operating updated in Solutions or revenues, planned of million, includes our business. grew growth, and of project costs to Proton as

share per earnings $X.XX earnings per XX%. XX% grew of non-GAAP $X.XX GAAP share and declined of

million working Cash flows our from growth. $XX operations to in capital $XXX were due investment support down million, to

provide Now, let on quarter. me some the additional color

care becoming in is for the powered cancer toward on four our by leader their global solutions multidisciplinary customers executing progress enablers Our and patients. strategic

radiation innovating in therapy. First,

Second, cloud-based leveraging machine intelligence, solutions. and learning artificial

And emerging growing and efficiency. operational, improving Third, capital businesses, financial fourth, geographies technologies. and

review our progress therapy. let's on in First, radiation innovating

market expand addressable with We leadership continue product global offerings. and share comprehensive market to and our portfolio our our services innovation, extend

revenues. In share the months. Oncology filings, orders the both X% public and business, for market quarter the leader grew we XX trailing Based to orders be in continue and the on

in replace will five Hospital in We signed one to replace expected existing will for an with Varian systems, begin be seven radiotherapy XXXX. system one vault. an non-Varian a Installation systems, agreement General Varian Massachusetts new will is placed and

one the order National Subsequent received were systems University Singapore. for National TrueBeam In VitalBeam six machines two at system ordered quarter seven systems IDENTIFY we Center an an Edge we close, the with December XXXX, at to Singapore. for and in Cancer Hospital, order

see China, licenses well received eight the category Brazil, as issuance continue the country. share And as B In of quarter. to in market we Halcyon we leadership for orders in in

X% revenues for grew Hardware the quarter.

continued XXX revenue units services. from future growth X,XXX and upgrades, or X%. installed base installed our of recurring base software net Our in grew This worldwide units drives

three of to in Nigeria. access expand the Hospital the Mauritania, installation the Centre University systems Centre Teaching Halcyon Hospitalier In to Africa, and in d'Oncologie we Lagos Nganda continued cancer Congo at quality in National with care

front, around and help efficient planning by on resource workflow, around of driven focused software close clinical systems grew We innovation On to the treatment continued the revenues XX%, the quality skills globe. adoption our integration in solutions. current and investing gap software remain

continues HyperArc, radiotherapy opportunity radiosurgery our a less high-definition for stereotactic XX% metastases, solution grew penetration, sizable in With installed than TrueBeam base. the our across Orders for double-digits brain quarter. be this to

a revenues XX% including in from XX-week grew services in quarter, Our benefit the the CTSI quarter.

services X%. revenue grew Excluding benefits, these

drive and for is to line our integrated perform market our Systems Oncology technology-enabled market investing continues into which in new emerging infrastructure productivity accelerate business, to CTSI, We're in mature services with expectations. adoption.

we In our the new in one Proton took order business, quarter. Solutions

gain pipeline Consortium. strong interest, to global remains customer the ProBeam market our XXX° smaller the and we with business preclinical driven Our in share are research FlashForward with the by and continue doing we footprint Proton

fourth XXX° first system our quarter install Lancaster in Penn at is its the single-room in call center were patient additional Ann treat to Barshinger earnings an ProBeam B. highlighted General a in Cancer As we The Medicine XXXX. to Health selected expected in Institute. configuration October, by

second and the also our the in ARIA in for The XXXX. Eclipse and information with install Taiwan ability center Medical single-room were ProBeam to a is management end use gantry. we of Hospital completion system a to planning the quarter, XXX° scheduled system configuration system University Subsequent China will selected add treatment to in by a

XX room We operations globally. have over under XX clinical quarter. are handed Proton XX to rooms that operational, was this one rooms including contract sites across

system. of compact treating patient more Florida the per treatments making our South the ramp fastest the campus single or patients patient it the November, world. on in room In of gantry SFPTI, treated XX per Center day, now than Therapy Institute, is Medical on Delray first SFPTI Proton ProBeam its

product FlashForward to our to Turning the the attention preclinical by from are results we per efforts. we encouraged continue plan progressing and research FLASH, see development Consortium is and

across future regional ProBeam the enabling Consortium global FlashForward our to populations. all research As different continues from representation has geographies, footprint expand, now

strong. Since the artificial to of artificial in turn been let's intelligence-powered learning cloud leveraging solutions. system therapy launch reception and Ethos XXXX, the platform and September of extremely our Second, progress in the for has machine excitement intelligence,

Ethos. quarter, from three Two Israel. and the received for Icon were including CE in orders from Australia, orders we second Ethos XXX(NYSE:K) the from pending the order During is US. the one Group Marked order and a of

Treatments at Herlev site in clinical our first to Hospital, continue Denmark well. progress

been While team initial bladder is cancer, focus for therapy to the adaptive has in on new the sites start disease preparing pelvis.

our Spectrum in third Medisch Group Australia went at Shore Hospital center, second XX our Wahroonga North fourth in Royal are Icon live and underway respectively. December and installations in Additionally, and the in Netherlands center

the sites in the increase been half. installs expect and has about to weeks number two time of the Install at second initial we

Intelligence are Our throughout both for publications Adaptive on XXXX. Consortium efforts track technical clinical and

that see We XX-minute full sites. sessions significant in several a evaluation typical results adaptive Early disease expect time to show are treatment slot. practical publications on

expand planning In learning therapy, future. to Europe, in XXXX, for and individualized our launched plan treatment software offering other we Proton the regions machine RapidPlan in in the PT,

time significant therapy gap to particularly This Consistent XX clinical with several resources skilled RapidPlan our efficiency for compromising approximately minutes therapy conventional you quality hours treatment the of without radiotherapy, for about the RapidPlan and extraordinary, in creates is customers. Proton the think Proton plan. PT when from for planning reduces the

population sales in businesses, emerging region. direct East geographies and in discuss better country Republic operation In of a service Africa the we the let's the and November, established growing to serve Third, Kenya and technologies. cancer the

Africa given estimated minimal therapy diagnosed cancer by and to continues X.X be new XXXX. for to the per us, million opportunity access cases sizable year radiation a the

Our installed XX% over fiscal years. increased base Africa in has approximately two the last

performance of business. with grow to Other capacity global Interventional execute and revenues platform China business in to We our distribution $XX global had continue Solutions software reported solid invest the and under We our this and support continue which are million, to in segment.

turn discuss strategic our over more provide on will who to With results. Mike, fourth first enabler the it that, and quarter financial context I'll

Michael Bruff

And Dow. hello, Thanks, everyone.

maintaining improving fourth capital operational and balanced across enabler Our profitability growth, by is liquidity. strategic focus a and financial, efficiency

let Organic me first up with and grew So, dollars revenues X%. currency. million, $XXX growth. XX% Companywide revenues were in start XX% constant in

were and revenues a services. grew basis, currency. driven million, growth dollars Systems, $XXX XX-month in On currency, strong XX% trailing and XX% up in constant Oncology in XX% XX% by software in In and constant in dollars revenues

currency dollars Geographic mix in and the XX% quarter with orders the $X.X million, in constant EMEA X%. Orders in were the APAC. We both billion XX% $XXX backlog, in X% in Americas, up the XX-months. and trailing X% XX% quarter was and in up in ended

up Taking X%. XX-month North demand a On XX% driven in our million, look solutions. trailing grew Americas, Orders by Oncology care value-based at closer business in market revenues results, a and in grew geography our $XXX continued for were integrated region. X%, orders basis, America the the our

up Orders X%. East, and Africa In revenues India orders $XXX grew basis, XX%. our trailing Middle were a XX-month million, On grew Europe, XX%. geography,

region, our XX-month orders Japan. million, $XXX were our orders and softness partially offset by X% in by geography. growth basis, and X% X% grew Asia-Pacific Asia/Korea in trailing China a double-digit revenues Asia-Pacific the up for led Southeast grew On

Our by business million, decline of revenues grew primarily XX%. mix. revenues Proton Solutions driven a project posted XX%, $X of of $XX million Service

revenue our reduced XXXX. customer's recognized order this to $XX Proton reflect by been backlog cancel we therapy No order. we decision fourth quarter, to of the the had booked on quarter Indian that During million the an in

$X This million, driven to an revenues, business updated of million margin was mix mix, acquisitions Total project by and of points, and profitability. Turning offset Proton up XXX product was XX%, exclusions. $XXX the basis tariff company project gross of increase XX.X% partially costs. by and

of gross Oncology increased XXX points. revenues of XX.X% margin basis

X.X% core R&D long-term which R&D, and is $XX strategy. growth million value of up in to creation innovation Investing drive revenue. in to invested our remains XX%, We

is SG&A revenue. which XX.X% expenses $XXX million, were XX%, up of

Endocare, Scientific CTSI, XX%. was Boston of and acquisitions portfolio, the up Excluding SG&A Alicon the bead

of in planned XX%, drive by quarter Company the points. million to up driven the The operating margin which basis million, earnings the gross by $X were XX growth. expansion updated $XXX up project revenues, in cost basis and points, Proton impacted XX.X% operating XX business future is investments earnings

$X.XX $X.XX. was EPS and was non-GAAP EPS GAAP

million tax GAAP and diluted XX.X were rates share and XX% count shares. was non-GAAP

of This quarter, Endocare earnings consideration fair included our to $X.X our contingent of an GAAP in change acquisitions GAAP value the Alicon. related operating EPS million and and

and GAAP fiscal million earnings the first a on in equity gain year In net Augmenix. investment sale of included the quarter $XX our EPS GAAP of XXXX,

to from equivalents proceeds flat year fund and $XXX due Turning support were and last XX% flows to Cash million million used Oncology We cash of at cash to the DSO term. quarter quarter investment operations the short the $XXX liquidity. debt. ended $XXX balance were in continued in and XXX with to the capital from growth. borrowings in down sheet days. million, in operations working versus U.S. was Certain

Other in $XX $XX CapEx million our the to repurchase include stock. shares million and of investments quarter in used

X.X quarter, As remaining million authorization. repurchase of share shares the existing the of we our end had under

operating non-GAAP are performance delivered and which solid with we earnings. summary, double-digit quarter, pleased the growth first operating In both in the in revenues

to I over now turn will it back Dow.

Dow Wilson

Thanks, during XXXX first Mike. last market operating quarter Based and fiscal we're product the guidance in the making continued the and earnings to given call. no solid changes performance year on momentum, the

weighted be the to to software business mix the earnings factors year towards portfolio, the and and including that expect invest of variability as emerging from of strength the of back continue influence We the growth in growing future the markets. performance we across Proton contribution Solutions the half and can considered as mature services, fiscal segment

Thank you. go to Q&A, let's And now operator.

Operator

you. Instructions]. [Operator Thank

question comes ISI. Evercore your Kumar from with question. first Please Our Vijay state

Vijay Kumar

coronavirus. of here. Hey, the curious, Q? variety just orders you pull-forward current all. Dow, here, I'm you the in a strong. were how feedback really We've just any there for And of just Thanks question. quota mentioned at to on quarter guys. my China. front China if guys, Congrats hearing given of that's nice going order impact on a Curious been taking

Dow Wilson

X%; trailing X% on quarter, is on China. currency and to I'll a currency XX-months; was trailing quarter, still the the then XX% I'll on and high you walk the tell APAC the trailing growth me a XX-months; constant double-digit was down on growth quarter, basis, EMEA you XX-months. high quarter, X% X% constant Starting X% the a quarter, America what? XX% constant saw the level, Let overall in start trailing at currency X% was

are China, to being in seeing licenses say relates I it released. incremental the would As an we uptick

for applications know, you category late ended A out. B licenses continue As to December, the remaining licenses roll category

see to As we of roll. said last quarter, starting we're really kind that

has though, revenue years, that I way a best accelerate think five anything, CAGR little about seen If bit. still, is, XX%. in past to think the our we've the been this

but know, remains and the guide good. market So, funnel you tenders China for don't rate We remains our very high. public as our good looks orders, win

I strong. maybe about thing think add strength other portfolio the China the of I'd is is our very

executing Interventional in Solutions. on We have three we're in China Gary's orders business, Proton

nice presence a have in China. We also

customers As to this everything our news sure Good we're not protect employees and it time. seeing relates to support the make virus, is our anything to and – doing we're yet. priority is during

We haven't in seen those at of either situations point. any this impact

perspective, too watching responsible to business Cross. a factory everybody, contribution local customers' a from our be very to local early surrounding think, like it it's significant and course. impact the to of I activity, the citizen. to carefully. And pretty continuing call. on made We've We're We're Red monitor trying

on one China the I'd just add well kind in product is other thing China. of Maybe Halcyon doing momentum, very

We have now. XX over orders

that's flowing. – wait, uptick. see starting to that So, see of only regulatory And kind all seeing starting to the after

Vijay Kumar

helpful, one maybe side. That's just on Dow. And margin the

would margins relief, better. the Given have perhaps gross I expected tariff in maybe come to

gross all. the margins, investments the you're comments the on curious anything understand growth seeing I'm to support at While if on business, I just

Dow Wilson

line the can we in it here to and the do turn of kind where right I'll on over was margins. you with of quarter the quarter. kind say, walk for he expecting were Mike I'd

Michael Bruff

that's for events the XXX the exclusions Yeah, and roughly basis the on The company and The of did planned Vijay, got around and product product XXX we margin real our in mix is to expansion. expansion. the our That that level, points impact But Dow. here the was was geo on exactly, gross XX points thanks into at tariff expansion in back the expansion story that geo questions. the gross margin. that of basis QX. based guidance playing of have

had. services So, the we growth that and software about strong rates think

impacted gross had impacted XX points. we basis operating the that we And by the expected, called points perspective. margin we unexpected as XX the in a improved basis on unexpected our out, the And the quarter, around thing it in then, bps. rate But that on which around Proton gross costs margin, XX business. Acquisitions, margin about was

in expected that got while triggered was all some and review We around process. that identified about it. what the heads our projects isolated it in say But I'd retrofit the the we specific that like have to team is, project a It it other early very something the to quarter, not in costs. was was of It quarter. a

of cost, after the top we well back go end the year. and is at to the range that again, day, growth kind rates. And dive, believe, of just within deep our bottom on line tolerance the million our And $X I'll line

to We are set up commitments. achieve in a very our full-year good position

Vijay Kumar

guys. Thanks,

Operator

Thank you.

Petrone with Jefferies. next state Please Our from question. question Anthony your comes

Anthony Petrone

to All At the strong China. LINACs. on XX MoUs there right, And good little XX dig covering thanks. into that afternoon. Also, company congrats a deeper the Day, Dow, orders here. Analyst announced Maybe just was bit

sits those It on Thanks. B. like be sounds where follow-up. Class just then, update and if is out so, in the the here specific I'll would A have activity licenses certainly as then, follow-up along, that wondering, but Class orders. moving there helpful Class well. was And an and quarter, B one would between Class also distinction there And the of A any be And

Dow Wilson

most it, XX it tend Anthony, be the not those Expo China relates Yeah. months I period. to to term Meeting, long Import MoUs X are and of to say, kind for, executed would call of as

would So, none China. of that very this point. here in are I at in We strong those quarter had say a

So, seeing what the we Across We're much we very see. strong demand. equipment portfolio, continue frankly. to like

that, good very in have we're traction Ethos also but TrueBeam strong market, And to on Halcyon, and also that seeing highlighted when position on on VitalBeam. market, I eventually there. believe a we'll Edge, comes

So, set-up. the portfolio well is

strong and growth we the you is comp. of way what a relates that's way We best quota to it. not, strong growth a it best double-digit track also is year. that of were it whether double-digit kind part it last on tough can the I to contract it was As was tell or probably each And characterize

Anthony Petrone

there's It follow-up of the over – company's from And it on US, any of just where the enough. seems Fair to terms updates sits? timing. just bundle, like on range expectations be the in would a view just the

where So, of discussions the rule maybe in with in is terms there. CMS timing the Thanks. latest is what final and

Dow Wilson

clearly timeline, led the some time ranges from There's no a ruling. were that guidance delay vendor original clinical has of the given final to CMS in issuing the timing. the delayed. know, been providers, the from community, from significant likely on There I've comments definite there. you from the customers, are out As community, seen

out I think and that it's to there. to XXXX it's as be going to be time some time is not in some going delayed XXXX

we've I it, the designing think clearly, about portfolio, to that, value-based as a thinking we're world really many for been years.

think portfolio up well the set transition. I So, for the was

we to a for CTSI services be of the excited as that kinds believe well we of activities with And technology-enabled are all look particularly customers we'll having about growth. outsourcing play will and more acquisition, set-up

seeing quarter. So, both we're in the

on As I quarter, ago, Americas mentioned total it was X%; a and X%. our trailing-XX is minute the

So, when we're seeing Not cancellations worry. revenue any number, not at the the this the on anything else we impact you said fact look us in then, and to at it in the And time. XX% – would flowing, seeing acceleration rate way the cause or as quarter. that up Americas is order the of was point script, backlog in

in seeing nice the we're So, geography. flow a

Anthony Petrone

I'll in again. all right. Okay, queue. Thanks, hop

Operator

you. Thank

Our state your next UBS. Matt question. with question from Taylor Please comes

Matthew Taylor

taking questions. for you Thank the Hi.

give to orders us And US? in in Ethos get about first any you three. I approval when you the Ethos' expect quarter, had Can and the ask wanted the just The that one update was timing. then, you for to would on on

about you coming think of the see the the you there will a like funnel had step-up really gate strong orders and You looks you if Can out in period? what quarter. last talk

Dow Wilson

in orders in, out basically, QX. taken early QX, know. the versus kind orders. late QX, in right with XX out of pleased very were Frankly, We and on. look QX September the ramp gate when we've you. we as launch Between at the of Thank of Halcyon, Matt. Got QX, Sure, you Yeah.

So, pretty good. that looks

maybe bit for demand The or regulatory waiting a orders are pent-up approval of Or a little lumpy. quarter. little last

we As I the not in do have script, yet regulatory said approval. US

that We this expect quarter. XXX(k)

remains And product really across again the a should gives XX XX high and frankly, things pricing in of it. view. the the end positions us feedback days, point outstanding. to is portfolio our in and of it next of Customer from we we So, how like rate mix have something one the margin that

do the approval We IMRT of XXX(k) We is So, saw IGRT. expect kind adaptive of the order think quarter. on shifts this it's we still radiotherapy early. to shift that do this and in with

seen So, we've at that I'd about Ethos. discourages from this say we're point, nothing and that us bullish

Matthew Taylor

Thanks.

others? just in So, MRI it of – hear your telling with putting a it kind how differently? it follow-up What about just customers or about on the would you some are that approach things the more head versus I to market. to Are positioning positioning you're head love adaptive you of up are

Dow Wilson

Yeah. image say, that very, product. is customers. very the the the We're I'd love fact superior to our the of love there. feedback workflow positive love getting top integration list, our right at of quality the say of they product. the I'd They the else from out they multi-modality everything

in time patients. and and leverages our we in to sacred I customers envision It the really a the yet ease-of-use. slot, XX-minute As kind that's anything mentioned for that sacred of seen haven't technology all we Halcyon script, can't to

coming, an well-positioned that has environment of the it's APM kind with think that's ROI I outstanding throughput. for very

to going that it's basis. on win think I So,

our we product, the here. of lot on think, the enthusiasm. we through now RapidPlan, market on We're of in we much have in machine got with it seeing that with We're early sell the the and the engage XXX(k) people before can But Clearly, we other here. the the learning as of gate I and with very technologies side are, market in a a to leader US Ethos. us software AI previous get perceived introductions out lot the

leader I market. the think we're very AI much perceived as in the

Matthew Taylor

you great. very Thank Okay, much.

Operator

you. Thank

your Baird Company. with from question Please state & W. Jeff question. next Our comes Johnson Robert

Jeffrey Johnson

guys. Good afternoon, okay? you. me Thank you Can hear

Dow Wilson

Hi, Jeff.

Michael Bruff

Hey, Jeff.

Jeffrey Johnson

be Mike. back. Hey, Dow. to Good Hey,

you. for question So,

there. I think I heard is I left the question that only Tata. any here I update know have don't

that you wondering tailwinds relationship low quantify saw Just anything energy, quarter in that. any anything high the there, here from Thanks. and can you if like first energy,

Dow Wilson

Tata of two continues books had Yeah. the deal since Sure. more agreement. The move had the XX signature this quarter. to past We along. We've

[ph], of, that's I three quarters, like something to be So, that. last Kind think, like continue it's going as look, to lumpy. you something XXX.X

very is the frankly, kind systems. for agreement great only going is for that XXX XX%. say it's long TrueBeam, to a sold agreement with And, the this get services of in most the position We're think have, on this thrilled customers play. is RT have what for it's combination the the in around. But framework we up with radiation to that see for going. of we bounce we're there rate approach therapy utilization So, to to how India. CTSI we by India the Jeff. We is in term, of XX% enabling to in I'd encouraged products

So, it's product. we going of a I'd see. like mix it's kind we what expected. say how good We of

Jeffrey Johnson

guys. Yeah, That's all understood. got. I've Thanks, All right.

Operator

you. Thank

question with next from question. your Our state BTIG. Marie comes Please Thibault

Marie Thibault

so the orders. Hi. congrats And again strong questions. Thanks on for taking much

Dow Wilson

Hi, Marie.

Marie Thibault

a Hey, wanted Japan. to that out some I softness quick orders one in in called you hi. ask

on really a to important little a bit dynamics going that's the market, just I there. hear about wanted Given

Dow Wilson

normal unfortunately, three years. in down oscillations, in Japan The the Yeah. seen say hair. a just of overall it's what we've of two kind or is I'd last

We had of a starting last Japan, is in the particular, we little the first because service little and it course, a is software Asia/Korea APAC comps has rate growth business strong rate, Japan And tough is of very in in has equipment half the very in APAC but The see been hitting bit. to there. So, have China business dilutive strong Japan. in is out The service overall, a And, growth strong. the rest of to activity. We're been our very year. park. down dilutive Japan to Southeast

of hum. a Very change China, Asia, got in strong see of business I'd to and might we Korea. kind in more So, little our say, there. no outlook But a working good bit recovery Southeast Service coming. hard Japan. to kind team in build continues this some we've of

Marie Thibault

Yeah, makes sense.

other And at then, spoke you on a both a and taking I'd Day quite of there. investments to my I back more little like some the this the of second R&D the the November, about understand FLASH. are you SG&A, look a of At should Okay. bit spending you're Investor kind making in question, my model, projects like half, hear R&D bit about spend quarter. love the that off. some sounds SG&A going the it on, that that did peel And

So, I wanted the of to as hear about a little that bit timing well.

Dow Wilson

Yeah.

Let and kind walk. of have me through you Mike tee up I'll this take the

big first huge the – that's think acquisition. piece is a I there's piece of it

year, build So, the we of made million things that do saw that last then between rest Mike, year frankly, of in looking the $XX kind and half some on the the we're the infrastructure at quarter. between then, last Interventional year. put week the extra Oncology doing, And is of of of the balanced some our you CTSI SG&A on million and to kind you're $X color that? the you and investment in acquisitions and ongoing to annualization from want last any additive marketing, last distribution

Michael Bruff

that's at ex and the XX%. in growing investments that acquisitions the think Dow. said acquisitions SG&A that about right, We themselves I is the

a basis. Our about revenue that is currency growing on constant rate at

scaling that we're we're acquisitions, these XXX% excluding And investments of making. so, the even all with at

year, said the the that the the of years are in play well. those continue And out growth in would drive we rest support in five and, the again, as to to the we also scale the our investment we but driving to we range year So, throughout to SG&A long over as plan, is there business. drive expect growth,

majority there, this days related. lift acquisition of early the So, is but

Marie Thibault

so Thanks sense. perfect Makes much.

Operator

questions no time. for this remarks. Ladies turn management closing it I'll at and are to there gentlemen, back further you. Thank

Dow Wilson

you, made I strides quarter. pleased the first we've am in Thank operator. the with

to operating solid and Our us orders earnings. both in non-GAAP revenues growth double-digit deliver oncology growth and focused execution enabled

a ultimate we'll innovating in forward, to for in to victory, remain fear strategic our of investing drive Looking technologies new cancer. and the and world committed enablers without continue invest to

us joining for Thanks today.

Operator

Thank great This conference. parties All you. disconnect. today's may a Have concludes evening.

Varian Medical Systems (VAR) 30 Jan 202020 Q1 Earnings call transcript