Nordion Inc. (TSX: NDN) (NYSE: NDZ), a leading provider of products and
services to the global health science market, today reported results for
the fiscal third quarter ended July 31, 2012. The Company generated
$67.1 million in revenue for the third quarter, an increase of $0.3
million, or 0.5%, over revenue of $66.8 million for the same period in
2011.
Excluding the specified items shown on the attached quarterly non-GAAP
reconciliation table, adjusted net income for the third quarter
increased to $15.5 million from $9.8 million during the same period in
the previous fiscal year. Nordion generated GAAP net income of $12.3
million in its third quarter, compared with a net loss of $4.1 million
in the third quarter of fiscal 2011 when Nordion recorded a loss from
discontinued operations, net of income taxes, of $8.8 million.
Third-quarter adjusted earnings per share, excluding specified items,
increased to $0.25 compared with $0.15 in the third quarter of 2011.
GAAP earnings per share were $0.20 in the third quarter of 2012, versus
a $0.06 loss per share in the same period last year.
"Nordion delivered improved and solid performance across our
businesses," said Mr. Steve West, Chief Executive Officer, Nordion Inc.
"We increased our margins and generated double-digit TheraSphere growth.
Management continues to focus on building the business and improving
alignment within each of our portfolios."
Targeted Therapies
The Company's Targeted Therapies business generated revenue of $15.3
million in the third quarter of 2012, an increase of $2.0 million or
15%, from the third quarter of 2011. TheraSphere generated revenue of
$13.0 million, an increase of $1.5 million or 13%, in the third quarter
from the same time period in 2011. Contract Manufacturing generated
revenue of $2.3 million, an increase of $0.5 million or 28%, compared
with the same period in the prior year due to an increase in Bexxar
revenue.
Increased revenue of TheraSphere in the third quarter of fiscal 2012 was
primarily due to adoption by new clinics.
Management continues to expect 2012 TheraSphere revenue growth to be
approximately 15% higher than revenue generated in 2011. Sustained
growth in TheraSphere supports management's belief that Nordion can
create significant value by building a leadership position in the
emerging Interventional Oncology market.
Sterilization Technologies
Sterilization Technologies delivered third quarter revenue of $32.1
million, which was relatively flat from the same period in 2011. Cobalt
generated third quarter revenue of $31.8 million, an increase of $1.0
million or 3%. The increase in Cobalt revenue was primarily due to
increased cobalt-60 shipments to customers.
Sterilization-Other reported revenue of $0.3 million, a decline of $0.9
million or 76%, compared with the same period in 2011. This decline was
due to no production irradiators being shipped during the quarter, as
compared to one production irradiator shipment in the third quarter of
2011.
Management continues to expect a similar level of Cobalt revenue in
fiscal 2012 compared with fiscal 2011, and Sterilization Technologies
overall segment revenue to be approximately 10% lower in fiscal 2012
compared with fiscal 2011.
Medical Isotopes