Nordion Turns To Profit In Q1 - Quick Facts

(RTTNews) - Nordion Inc. (NDZ, NDN.TO), a provider of products and services to the global health science market, said that GAAP net income for the first quarter of fiscal 2014 was $35.3 million, compared with a GAAP net loss of $0.3 million in the first quarter of fiscal 2013. GAAP earnings per share of $0.57were recorded in the first quarter of fiscal 2014 versus break even per share in the same period last fiscal year.

Adjusted net income for the first quarter increased to $36.5million from adjusted net income of $2.9 million during the same period in the previous fiscal year.

Excluding the specified items shown on the attached non-GAAP reconciliation table, first quarter adjusted non-GAAP EPS increased to $0.59 compared with $0.05 non-GAAP earnings per share in the first quarter of fiscal 2013. The U.S.-Canadian dollar currency exchange fluctuations had a positive non-cash after-tax impact of $0.31 per share on first quarter fiscal 2014 earnings per share.

The Company generated $70.8 million in revenue for the first quarter of fiscal 2014, an increase of $17.2 million, or 32%, from revenue of $53.7 million for the same period in fiscal 2013.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share and revenues of $66.55 million for the quarter.

During January 2013, Nordion initiated a review of strategic alternatives with a view to enhancing shareholder value. In Q3 2013, Nordion announced in May and completed in July the sale of the Targeted Therapies business to BTG plc (BTG), reaching the conclusion of the first phase of the strategic review. During Q4 2013 and to date in fiscal 2014, Nordion continued to advance the second phase of the review.

Completing the strategic review continues to be a priority for Nordion in fiscal 2014. Certain decisions, including the use of the Company's current cash, are expected to be made as part of or once the outcome of the strategic review has been finalized. While Nordion cannot provide the current status of, or address the timeline and potential results of the strategic review, the Company is working diligently with the objective of reaching a successful outcome, the company said.

For fiscal 2014, Nordion expects Contract Manufacturing revenue to be approximately $20 million, as a result of $13 million in expected revenue for the manufacture of TheraSphere, and $7 million in expected revenue for the contract manufacture of Bexxar and the close out of the Bexxar manufacturing agreement. The Company's forecast for TheraSphere decreased from $14 million to $13 million due to the negative impact of the weakening Canadian dollar.