Wednesday, October 29, 2008

UPDATE 1-Varian Q4 earnings beat estimates; to cut 35 jobs

* To cut 35 jobs in Europe, take related charge

* Q4 results beat estimates

* FY09 outlook almost in-line with analysts' view (Adds job-cuts, other details)

Oct 29 (Reuters) - Varian Inc (VARI.O: Quote, Profile, Research, Stock Buzz), a maker of scientific equipment, posted better-than-expected quarterly results, helped by strong sales growth and an extra week, and said it would cut about 35 jobs and take a related charge in the first half of 2009.

The company plans to reduce the jobs mainly in Europe to cut operating costs and increase margins. It will also take pretax restructuring and other related costs of $2.5 million to $3.5 million, Varian said in a regulatory filing.

The cost-cut measures are expected to save $2 million to $3 million annually, to be realized by the second half of fiscal 2009, Varian said.

Sales in its scientific instruments segment grew 14 percent to $236.5 million, and revenue from vacuum technologies segment rose 20 percent to $46.0 million. [ID:nPnAQW123a] [ID:nWNAB4275] .

Varian expects to be helped by strong orders, new products gaining traction and a sound backlog in the fiscal year 2009.

Shares of the company closed up 7 percent at $31.68 Wednesday on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Gopakumar Warrier)

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