Company press release.
SteriGenics International, Inc. Announces Preliminary Expectations for Fourth Quarter and Year End Results
PR Newswire - March 08, 1999 16:25
FREMONT, Calif., March 8 /PRNewswire/ -- SteriGenics International, Inc. (Nasdaq: STER) announced today that the Company expects total revenue and earnings per share for its fourth quarter and year ending March 31, 1999 to fall short of security analysts' expectations.
Based upon results to date, management estimates that the Company will report total revenue of approximately $13.3M to $13.9M for the quarter, with net income of $1.8M to $2.2M, or approximately $0.22 to $0.25 per share (diluted). Revenue of approximately $54.1M to $54.7M and net income of $7.6M to $7.9M, or earnings of approximately $0.91 to $0.94 per share (diluted) are expected for the year ended March 31, 1999. These annual figures reflect an anticipated year-over-year growth in revenue of approximately 15% to 16%, anticipated growth in net income of approximately 44% to 48%, and anticipated growth in earnings per share of approximately 15% to 19%. These statements regarding anticipated results are preliminary and based on partial information and management assumptions.
While the fourth quarter is generally one of the Company's strongest, SteriGenics has seen lower than anticipated volumes in selected markets within its Medical Sterilization Division, which currently accounts for a large percentage of the Company's total revenue. SteriGenics believes that this is in part due to the delay in seasonal increases in business that the Company has historically experienced in the fourth quarter that did not begin until mid-February. However, SteriGenics continues to be pleased with its overall performance in fiscal year 1999, in particular, that of its Advanced Applications Division. The Company is encouraged by the recent actions of the United States Department of Agriculture (USDA) and believes that the approval of red meat irradiation will create significant opportunities for the Company in the future. "We remain optimistic about the future," said James F. Clouser, President and CEO. "Particularly, with respect to the opportunities for advanced applications. And while the past two quarters have not met with our expectations, the Company has continued to show significant increases in revenue and net income over prior years." |
