STERIS Reports Slight Third-Quarter Revenue Increase

STERIS Corp. reported today its revenue increased slightly to $328.3 million in the fiscal 2011 third quarter that ended Dec. 31 compared with $327.8 million in the third quarter of fiscal 2010. 

Although the Mentor-based medical device manufacturer said revenues for its health care and Isomedix services business segments grew by 2 percent and 9 percent, respectively, its life sciences business revenues decreased by 13 percent.

During the third quarter of fiscal 2011, STERIS posted a pre-tax operating expense charge of $19.8 million for the settlement of the previously reported class-action lawsuit involving the company’s System 1 product.

The SS1 had been used in surgical and endoscopy suites to sterilize or disinfect medical devices.  In 2009, the U.S. Food and Drug Administration received some reports of malfunctions of the SS1 that had the potential to cause or contribute to serious injuries, such as infections, to patients. 

STERIS has replaced the System 1 device with a System 1E device.

“We believe that System 1E remains the best System 1 transition alternative for most of our customers' needs, and we anticipate shipping approximately 1,000 System 1E units this fiscal year," said Walt Rosebrough, STERIS president and chief executive officer.

Fiscal 2011 third quarter operating income totaled $55.6 million compared with $59.4 million in the third quarter of fiscal 2010. Fiscal 2011 third quarter net income totaled $34.1 million compared with net income of $41.0 million in the third quarter of fiscal 2010.

STERIS also is lowering its revenue outlook for fiscal year 2011 because of lower shipment levels of System 1E. The company expects revenues to increase by 2 percent, compared with a 5 percent increase in revenue anticipated previously.