Varex Imaging lands $25 million order for security systems

SALT LAKE CITY - Varex Imaging Corporation (NASDAQ:VREX), a prominent manufacturer of X-ray imaging components, has secured a substantial order valued at around $25 million from an international customer for its high-energy cargo and vehicle inspection systems. These systems are intended for deployment at key sea and land port locations to enhance security measures. According to InvestingPro data, the company, currently valued at $350.88M, shows signs of being undervalued based on its Fair Value analysis.

The company’s CEO, Sunny Sanyal, expressed satisfaction with the new business, attributing the success to Varex’s established reputation and the quality of its Linear Accelerator based imaging technology. Sanyal emphasized the company’s commitment to partnering with its customers and end users to bolster global port and border security. With annual revenue of $820.8M and a strong free cash flow yield, InvestingPro analysts indicate positive net income growth expectations for the coming year.

Varex Imaging boasts a history exceeding 70 years in innovation and supplies X-ray imaging components such as tubes, digital detectors, and image processing solutions. These components are integral to a variety of X-ray imaging systems used across medical, industrial, and security applications. The company’s expertise extends to the design and manufacture of X-ray imaging systems specifically for industrial use.

Employing roughly 2,300 people, Varex operates out of Salt Lake City, Utah, with a workforce distributed across North America, Europe, and Asia. The company’s products are incorporated into the systems of global OEM manufacturers, where they serve critical functions in detecting, diagnosing, protecting, and inspecting.

The announcement underlines Varex’s ongoing efforts to expand its portfolio in the security sector and reinforces its role in enhancing the safety and security of critical infrastructure worldwide.

While the news release includes forward-looking statements regarding the company’s product interest, adoption, and performance, as well as its potential impact on infrastructure safety and security, Varex notes that such statements are subject to risks and uncertainties that could cause actual results to differ from projections. For deeper insights into Varex’s financial health and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

This report is based on a press release statement by Varex Imaging Corporation.

In other recent news, Varex Imaging Corp reported significant developments impacting its operations and corporate governance. The company disclosed that the China Ministry of Commerce has initiated an anti-dumping investigation into imports of its medical CT X-ray tubes from the United States and India. Varex Imaging stated its intent to cooperate with the investigation, emphasizing its compliance with competition laws. Additionally, Varex shareholders approved an amendment to the company’s corporate governance structure, limiting the monetary liability of certain officers for breaches of fiduciary duty, aligning with Delaware law. This change was part of broader efforts to update the company’s Certificate of Incorporation, with shareholders also electing directors and approving executive compensation and the employee stock purchase plan.

In financial news, Jefferies analyst Matthew Taylor adjusted Varex Imaging’s price target to $15.00 from $16.00, while maintaining a Hold rating. This revision followed a period of stock volatility despite strong first-quarter results, particularly in the Chinese market. Varex Imaging recorded a 7% year-over-year growth and a 12% quarter-over-quarter increase in China, contributing significantly to its total revenue. These developments reflect the company’s ongoing efforts to navigate both regulatory challenges and market opportunities.

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