Varian reports that revenues for the second quarter of fiscal year 2007 increased 9.7 percent from the second quarter of fiscal year 2006. The increase was driven by strong growth in sales of Scientific Instruments products for industrial applications. Demand was strong within Europe, Asia Pacific and Latin America, which more than offset continued softness in North America. Revenues were $229.9 million in the second quarter of fiscal year 2007, compared to $209.6 million in the second quarter of fiscal year 2006.
Non-GAAP (adjusted) net earnings for the second quarter of fiscal year 2007 increased 29.9 percent to $19.5 million, or $0.63 diluted earnings per share, compared to $15.1 million, or $0.48 diluted earnings per share, in the second quarter of fiscal year 2006. On a GAAP basis, net earnings in the second quarter of fiscal year 2007 were $16.3 million, or $0.53 diluted earnings per share, compared to $11.2 million, or $0.36 diluted earnings per share, in the second quarter of fiscal year 2006.
Adjusted operating earnings increased 28.2 percent to $29.2 million in the second quarter of fiscal year 2007, compared to $22.8 million in the second quarter last year. Adjusted operating profit margin was 12.7 percent in the second quarter of fiscal year 2007, compared to 10.9 percent in the prior-year quarter. The improvements in adjusted operating earnings and adjusted operating profit margin were primarily the result of a mix shift toward higher-margin products, efficiency improvements impacting SG&A expense and sales volume leverage in the Scientific Instruments segment. On a GAAP basis, operating earnings were $24.1 million and operating profit margin was 10.5 percent in the second quarter of fiscal year 2007, compared to $16.9 million and 8.1 percent, respectively, in the same quarter a year ago.
"Our investment in research and development continues to pay off," said Garry W. Rogerson, President and Chief Executive Officer. "Of particular note was the fast pace of customer demand for some of our newer information rich detection products, including our new routine 400MHz NMR and some of our mass spec systems. We are in a position to deliver another record year."
Vacuum Technologies revenues increased 3.7 percent to $39.6 million in the second quarter of fiscal year 2007, compared to $38.2 million in the second quarter of fiscal year 2006. Adjusted operating profit margin was 19.6 percent in the second quarter of both fiscal years 2007 and 2006. On a GAAP basis, operating profit margin was 19.3 percent in the second quarter of fiscal year 2007, compared to 18.9 percent in the prior-year quarter.
