Great qtr. and with the fda ruling we may be ready for a lot of attention from the street
SteriGenics International, Inc. Responds to USDA Announcement Regarding TheUse of Irradiation
FREMONT, Calif., Feb. 12 /PRNewswire/ -- SteriGenics International, Inc. (Nasdaq: STER) commented today on the United States Department of Agriculture's (USDA) proposed ruling regarding the use of radiation for the purpose of treating red meat products. According to the USDA, the draft guidelines governing the commercial use of radiation for the purpose of treating refrigerated or frozen uncooked meat and some meat products, will be published in the Federal Register within 10 days, after which there will be a sixty-day public comment period -- the minimum allowed under Federal rule. The irradiation of red meat, approved by the United States Food and Drug Administration (FDA) in December 1997, is a cold pasteurization process by which harmful bacteria, such as E. coli O157:H7, listeria, salmonella, and campylobacter, are eliminated.
"The Government's approval of irradiation is a significant milestone in our nation's quest for safe food," stated James F. Clouser, President and CEO. "Irradiation has been one of the most thoroughly studied food treatments in history. It has undergone more than 40 years of scientific and medical research and has been used safely for decades. The subject of food irradiation is not a controversy in science. No group of scientists or health care professionals has ever looked at the topic of food irradiation and concluded that it was anything but safe."
As with other treatment processes, however, SteriGenics maintains that irradiation is but one tool available to the food industry to fight against harmful bacteria and food-borne pathogens. "The pasteurization of red meat is analogous to the sterilization of medical devices," said D. Patterson Adams, President of the Advanced Applications Division. "As is true for the sterilization of medical products, irradiation pasteurization is most effective when used in combination with other measures employed to reduce and control food contamination. By working closely with our customers, we strive to ensure that the cleanest possible products are presented for irradiation because cleaner products require lower dosages for successful treatment. Lower dosages reduce the cost of irradiation processing and minimize the potential for adverse impact on color, taste or odor. Consequently, utilizing a combination of strategies to minimize microbial contamination before products are pasteurized with irradiation is beneficial to the consumer, the meat processor and the irradiation supplier."
SteriGenics has acknowledged its understanding of the public's wariness to accept irradiation, but has stated that the Company firmly believes that continued education and open communication between processors, suppliers and consumers will serve to demonstrate the health and safety benefits associated with irradiation pasteurization. "We believe in the technology and are committed to helping companies evaluate the process," stated Adams. "We encourage product testing and, as such, have developed an evaluation program designed specifically for the irradiation of meat products.
"The program provides for the delivery of precise irradiation dosages utilizing SteriGenics' ExCell(TM), a specialized gamma system, and the Company's electron beam facility in San Diego, California," continued Adams. "The program offers processors the ability to compare the two radiation technologies, allowing them to determine the best method and appropriate dose for their products. The program is specifically designed to allow processors to determine the dosage levels at which any deleterious effects might occur."
In addition to operating a nationwide network of contract irradiation facilities, SteriGenics designs, develops and builds gamma irradiation systems, which include state-of-the-art automated processing controls, safety systems and material handling equipment. "Because we are the only contract irradiation services provider to design and build our own irradiation systems, we have an enhanced ability to evaluate the capability of any given system with respect to the products processed," said Clouser. "As a result, we have been able to develop customized irradiation systems such as the MiniCell(TM), Gemini(TM), ExCell(TM) and OmegaCell(TM). Each of these systems was designed to address specific market requirements. We believe that our ability to offer innovative systems is key to our leadership position and competitive advantage."
According to Clouser, the Company has developed an irradiation system for the treatment of red meat, but anticipates that many processors will want to evaluate the entire process before making any decisions.
About SteriGenics International, Inc.
SteriGenics International, Inc., headquartered in Fremont, California, is a provider of high-quality contract irradiation and sterilization services, with 20 years of experience in the design and development of Gamma irradiation facilities and equipment. In addition to its Advanced Applications Division, providing microorganism reduction and radiation processing services to a variety of markets such as spices, herbs, botanicals, cosmetics, fresh foods, nutraceuticals, food and beverage packaging, labware, semiconductors and gemstones, the Company also maintains a Medical Sterilization Division, serving the healthcare products market. SteriGenics operates a nationwide network of facilities, offering either gamma or electron beam irradiation.
This press release contains forward-looking statements regarding the Company's potential markets and future operating results. Because such statements deal with future events, they are subject to various risks and uncertainties and actual results may differ materially from the Company's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, risks related to managing growth, unpredictability of future operating results, likely fluctuations in quarterly operating results, uncertainty of expansion in advanced applications markets, increased competition, risks related to government regulation and other risks as set forth in the Company's quarterly report on form 10-Q as filed with the Securities and Exchange Commission on November 16, 1998.
SOURCE SteriGenics International, Inc.
CO: SteriGenics International, Inc.; United States Department of Agriculture
ST: California
IN: MTC FOD AGR
SU: LEG
02/12/99 15:37 EST prnewswire.com
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SteriGenics International, Inc. Announces 40% Growth in Net Income and 28%Growth in Earnings per Share for the Third Fiscal Quarter EndedDecember 31, 1998
FREMONT, Calif., Jan. 20 /PRNewswire/ -- SteriGenics International, Inc.
(Nasdaq: STER) announced today financial results for the third quarter and
nine-month period ended December 31, 1998.
Revenues increased 13.4 % from $11,849,000 for the three months ended
December 31, 1997 to $13,432,000 for the three months ended December 31, 1998.
Net income increased 40.1% from $1,383,000, or $0.18 per share, for the three
months ended December 31, 1997 to $1,938,000, or $0.23 per share for the three
months ended December 31, 1998.
Revenues increased 20.5% from $33,871,000 for the nine months ended
December 31, 1997 to $40,798,000 for the nine months ended December 31, 1998.
Net income increased 57.5% from $3,665,000, or $0.58 per share, for the nine
months ended December 31, 1997 to $5,771,000, or $0.69 per share for the nine
months ended December 31, 1998.
"When comparing same periods last year, we are pleased with our overall
revenue growth rate of 21% for the last nine months and the strong 28% growth
in our earnings per share for the third quarter," said James F. Clouser,
President and Chief Executive Officer. "We believe that this is attributable
to leveraging of incremental revenue from existing facilities, continued
growth of our premium services, the acquisition of the Company's e-beam
business, and strong expense control."
According to Clouser, the third quarter was impacted by the seasonal slow
down that the Company typically experiences in the third quarter because of
the holidays and year-end inventory reductions. The Company also experienced a
softening in certain medical product categories and some increases in
competitive pricing pressures.
"We are optimistic about the future," said Clouser. "In the short term,
we are focusing on pursuing the conversion of captive to contract and EtO to
gamma, in order to seek to increase revenue growth beyond the seasonal upswing
we've typically seen in the fourth quarter, as the fourth quarter has
historically been the Company's strongest quarter. In the longer term, we
expect that our growth strategy will be increasingly focused on the expansion
of the advanced applications markets. Our challenge over the next twelve to
fifteen months will be to continue to grow earnings per share, while
simultaneously introducing our four new facilities. While this represents a
challenge in the short term, we believe that these four facilities will be an
important factor in positioning the Company for the future." In addition,
Clouser noted that the Company continues to actively pursue acquisitions.
About SteriGenics International, Inc.
SteriGenics International, Inc., headquartered in Fremont, California, is
a provider of high-quality contract irradiation and sterilization services,
with 20 years of experience in the design and development of Gamma irradiation
facilities and equipment. In addition to its Medical Sterilization Division,
serving the health care products market, the Company also maintains an
Advanced Applications Division, providing microbial reduction and radiation
processing services to a variety of markets such as spices, herbs, botanicals,
cosmetics, fresh foods, nutraceuticals, food and beverage packaging, labware,
semiconductors and gemstones. SteriGenics offers gamma and electron beam
irradiation and operates a nationwide network of facilities. Upon completion
of the Company's three plants under construction throughout the United States
and its plan to build an irradiation complex in Thailand, SteriGenics will
operate a total of 17 irradiation processing facilities.
This press release contains forward-looking statements regarding the
Company's future sales growth and earnings, potential markets and business
prospects. Because such statements deal with future events, they are subject
to various risks and uncertainties and actual results may differ materially
from the Company's expectations. Facts that could cause or contribute to
differences include, but are not limited to, risks related to managing growth,
unpredictability of future operating results, likely fluctuations in quarterly
operating results, uncertainty of expansion in the medical and advanced
applications markets, risks related to the development of new facilities and
geographic expansion, the uncertainty of international expansion, increased
competition, risks related to government regulation and other risks as set
forth in the Company's quarterly report on form 10-Q as filed with the
Securities and Exchange Commission on November 16, 1998.
SteriGenics International, Inc. |
