Varex Announces Non-Intrusive Cargo Inspection Systems Orders Valued at $14 Million

Rhea-AI Summary

Varex Imaging (VREX) has secured orders worth approximately $14 million USD for its non-intrusive cargo inspection systems. The orders specifically target the company's recently launched high-energy inspection products: the VXP-6 Portal and VXM-6 Mobile systems, designed for cargo and vehicle inspection at ports and borders.

CEO Sunny Sanyal expressed enthusiasm about the market reception of their new full screening systems product line, highlighting how the company's expertise in high-energy linear accelerators enables them to expand their security infrastructure offerings globally.

Positive

• Secured new orders worth $14 million for cargo inspection systems
• Successfully launched and commercialized new VXP-6 Portal and VXM-6 Mobile systems
• Expansion into full screening systems market leveraging existing expertise

Negative

• None.

Insights

Security Technology Analyst

The $14 million order announcement for Varex's new cargo inspection systems marks a strategic pivot that could significantly impact their business model and market position. This move from being primarily a component manufacturer to offering complete screening solutions represents a vertical integration strategy that could substantially improve profit margins.

The global non-intrusive inspection systems market, valued at over $4 billion, is experiencing robust growth driven by increasing security threats and international trade volumes. By leveraging their established expertise in high-energy linear accelerators, Varex is positioning itself to capture a larger share of the value chain. The VXP-6 Portal and VXM-6 Mobile systems target the critical port and border security segment, where spending is relatively resistant to economic cycles due to national security priorities.

This strategic expansion into end-user solutions could potentially double or triple the revenue per installation compared to component-only sales. While the $14 million order is modest relative to Varex's annual revenue, it validates their product-market fit and could serve as a reference point for future sales, particularly in government and infrastructure security projects. The successful execution of this strategy could lead to a higher-margin revenue mix and reduced dependence on component sales, potentially improving the company's overall financial profile.

SALT LAKE CITY--(BUSINESS WIRE)-- Varex Imaging Corporation (Nasdaq: VREX) today announced that it has received orders for non-intrusive cargo inspection systems valued at approximately $14 million USD. The orders are for the recently launched high energy inspection systems, VXP-6 Portal and VXM-6 Mobile systems for cargo and vehicle inspection, which are designed to assist in securing ports and borders.

Varex Imaging CEO, Sunny Sanyal, stated, “We are excited to see the interest and adoption in the newly launched product line of full screening systems.” Sanyal added, “Our reputation in high energy linear accelerators enables us to engage with end-users and strengthen our portfolio of offerings to our customers to help secure infrastructures worldwide.”

For more information about Varex’s non-intrusive cargo inspection systems, please contact your Varex representative or visit our website at https://www.vareximaging.com/security-solutions/.

About Varex

Varex Imaging Corporation is a leading innovator, designer, and manufacturer of X-ray imaging components, which include X-ray tubes, digital detectors, and other image processing solutions that are key components of X-ray imaging systems, as well as X-ray imaging systems for industrial applications. With a 70+ year history of successful innovation, Varex’s products are used in medical imaging as well as in industrial and security imaging applications. Global OEM manufacturers incorporate the company’s X-ray sources, digital detectors, connecting devices, and imaging software in their systems to detect, diagnose, protect, and inspect. Headquartered in Salt Lake City, Utah, Varex employs approximately 2,300 people located in North America, Europe, and Asia. For more information visit vareximaging.com.

Forward Looking Statements

This news release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements concerning interest in and adoption and performance of our products and systems; strengthening our portfolio of offerings; and impact on safety and security of infrastructures; and any statements using the terms “expect,” “could,” “may,” “designed,” and “possible” or similar statements are forward-looking statements that involve risks and uncertainties that could cause our actual results and the outcome and timing of certain events to differ materially from those projected or management’s current expectations. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Varex assumes no obligation to update or revise the forward-looking statements in this release because of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250203907678/en/

For Investor Information Contact:

Christopher Belfiore

Director of Investor Relations

Varex Imaging Corporation

801.973.1566 | investors@vareximaging.com



For Sales Information, please visit Vareximaging.com and fill out our Contact form

Source: Varex Imaging Corporation

FAQ

What is the value of Varex Imaging's (VREX) recent cargo inspection systems orders?

Varex Imaging (VREX) received orders valued at approximately $14 million USD for their non-intrusive cargo inspection systems.

Which new cargo inspection products did Varex (VREX) recently launch?

Varex recently launched the VXP-6 Portal and VXM-6 Mobile systems, which are high-energy inspection systems designed for cargo and vehicle inspection.

What is the primary application of Varex's (VREX) new inspection systems?

The VXP-6 Portal and VXM-6 Mobile systems are designed to assist in securing ports and borders through non-intrusive cargo and vehicle inspection.

How will the $14M cargo inspection orders impact Varex (VREX) business?

The orders represent successful commercialization of Varex's new product line and expansion into the full screening systems market, leveraging their expertise in high-energy linear accelerators.