Our company gross margin dropped by more than 3 points with a record margin in our X-ray Product business that was more than offset by reduced margin in our Oncology business and higher-than-expected proton revenues that were booked on a 0 profit percentage of completion basis.Turning to our Oncology Systems business, second quarter revenues were $565 million, up 11% from the year-ago quarter. However, margins in this business declined to an unusually low level in the quarter due to a significant geographic mix to lower-margin countries, weaker pricing in those markets and slower-than-anticipated progress in product cost reduction programs. These programs should begin to show results during the second half of the year when we expect margins to recover somewhat to more historical levels.
Varian Medical Systems' CEO Discusses Q2 2012 Results - Earnings Call Transcript
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