Varian, Inc. (Varian), a diagnostic imaging company, has reported revenues of $205.4 million for the second quarter of fiscal 2009, down 17.2%, compared with the revenues of $248.1 million in the year-ago quarter. It has also reported net earnings of $10.1 million, or $0.35 per diluted per share, for the second quarter of fiscal 2009, compared with net earnings of $15.7 million, or $0.52 per diluted per share, in the year-ago quarter.
Adjusted operating profit margin was 11.8% in the second quarter of 2009, against 12% in the prior-year quarter. On a GAAP basis, operating profit margin was 7.5% in the second quarter of 2009, against 10.9% in the same quarter a year ago.
Free cash flow, which is defined as operating cash flow less net fixed asset purchases, was $25.5 million, or 250% of GAAP net earnings, in the second quarter of 2009.
We were able to maintain solid adjusted operating profit margins in the quarter even with the expected lower revenues, said Garry W. Rogerson, chairman and chief executive officer. This was primarily due to the positive impact of efficiency improvements we have implemented in recent years, combined with benefits from the cost reduction activities we announced on January 16, 2009 and positive foreign currency movements. We also generated excellent free cash flow, which demonstrates the fundamental strength and flexibility of our business, even in a challenging economic environment.
Second quarter 2009 adjusted diluted earnings per share were $0.55, up 1.9% from the $0.54 reported in the first quarter of 2009. Second quarter 2009 adjusted operating profit margin was 11.8%, an increase of 40 basis points against the 11.4% reported in the first quarter of 2009. On a GAAP basis, second quarter 2009 operating profit margin was 7.5%, compared to 9.6% in the prior quarter.
We are encouraged by the stability reflected in the sequential results, with essentially flat revenues and profitability on an adjusted basis, said Rogerson. Looking forward, the diversity of our products, the applications we serve and our worldwide distribution position us well. There are a few positive signs for the future, including governmental spending initiatives, a global focus on environmental, food and product testing, and investments in alternative energies such as solar, nuclear and biofuels. We believe that our strategy is sound, but will remain vigilant with respect to the economic situation, making the appropriate decisions to maintain solid profitability and cash flow through this very difficult period and position ourselves for profitable growth with the economic recovery.