Varian to repurchase 8 million shares in '09
This article was originally published in Clinica
Cancer therapy specialist Varian Medical Systems said its board of directors has approved plans to buy back an additional eight million shares between January 1 andDecember 31 2009. The company will fund the repurchase from cash flow and cash on hand. It told Clinica that it has currently around $400m in cash and cash equivalents, and the firm generates approximately $100m in cash each quarter from its operations. As of the end of Varian's fourth fiscal quarter (ended October 3), the company had 127.4 million diluted shares outstanding. Since initiating share buyback programmes at the end of fiscal 2001, Palo Alto, California-based Varian said it has spent $1.4bn to repurchase 36 million shares at the average price of $40.13 per share. Last month, Varian recorded a 15% increase in revenues to $282.5m for the fourth fiscal quarter. The firm benefited from strong growth in international markets, in particular Asia Pacific and Latin America. Net earnings for the quarter went up 23% to $26m.