SALT LAKE CITY, March 22, 2017 /PRNewswire/ -- Varex
Imaging Corporation (Nasdaq: VREX) today announced it has entered
into a renewed three-year pricing agreement with Toshiba Medical
Systems under which Varex Imaging will continue to supply its
computed tomography (CT) tubes for integration into Toshiba
Medical's CT imaging systems for the global market. This renewed
agreement will be effective April 1,
2017.
Potential sales of CT tubes associated with this renewed
agreement are estimated to be in the range of $345 million to $385 million. Orders under this
renewed agreement will be booked when placed over the three-year
term. CT tube pricing and expected volume ranges under this renewed
agreement are consistent with CT tube purchases made in the past
two years under the prior pricing agreement. Innovation and product
performance also factor into the supply agreement with Toshiba
Medical, with some tube pricing incorporating price adjustments
based on extending CT tube performance.
In addition to this renewed pricing agreement, Varex has in
place separate one-year pricing agreements to supply to Toshiba
Medical other imaging components, including digital detectors and
high voltage connectors. Annual sales of these additional
components have ranged from $20 million to
$30 million per year.
"The continuation of our four-decades long relationship with
Toshiba Medical Systems is a testament to its strength and Toshiba
Medical's confidence in our ongoing ability to develop new X-ray
imaging component technology that improves performance, contributes
to faster time to market and reduces cost as Toshiba Medical
introduces a number of next-generation imaging systems over the
coming years," said Sunny Sanyal,
Chief Executive Officer of Varex Imaging Corporation. "We look
forward to continuing our long-standing relationship with Toshiba
Medical now that they are part of Canon and to the prospect of
providing Canon with access to our portfolio of X-ray imaging
products," Sanyal added.
About Varex Imaging
Varex Imaging Corporation is a leading innovator, designer and
manufacturer of X-ray imaging components, which include tubes,
digital flat panel detectors and other image processing solutions,
which are key components of X-ray imaging systems. Varex's
components are used in medical imaging as well as in industrial and
security imaging applications. With a 65+ year history of
successful innovation, global OEM manufacturers of X-ray imaging
system use the company's X-ray sources, digital detectors,
connecting devices and imaging software as components in their
systems to detect, diagnose and protect. Varex employs
approximately 1,400 people located at manufacturing and service
center sites in North America,
Europe, and Asia. For more
information about Varex, visit www.vareximaging.com.
Forward Looking Statements
Except for historical information, this news release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements concerning
industry or market outlook, including expected volumes, growth
drivers; customer demand and acceptance of products or technology;
the company's future orders, revenues, or earnings growth or other
financial results; the ability of the company's technology and
products to achieve stated results or outcomes; and any statements
using the terms "continue", "potential", "estimated", expected",
"ongoing", "prospect," "future," "anticipate," "will" or similar
statements are forward-looking statements that involve risks and
uncertainties that could cause the company's actual results to
differ materially from those anticipated. Such risks and
uncertainties include global economic conditions; demand for the
company's products; the company's ability to develop, commercialize
and deploy new products; the impact of competitive products and
pricing; and the other risks listed from time to time in the
company's Registration Statement on Form 10 and other filings with
the Securities and Exchange Commission, which by this reference are
incorporated herein. The company assumes no obligation to update or
revise the forward-looking statements in this release because of
new information, future events, or otherwise.
For Information Contact:
Howard Goldman
Director of Investor & Public Relations
Varex Imaging Corporation
801.978.5274 | howard.goldman@vareximaging.com
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SOURCE Varex Imaging Corporation