UPDATE 2-Steris Q1 profit tops Street view; shares rise

(Recasts; adds analyst comments, details and stock movement)

BANGALORE, July 30 (Reuters) - Sterilization systems maker Steris Corp's (STE.N: Quote, Profile, Research) quarterly profit almost doubled, beating market expectations, as revenue at its healthcare segment rose driven by strong demand for new products, sending its shares to a lifetime high.

"This quarter we saw a big number from the healthcare group and that's where I think the biggest surprise was," Daniel Owczarski, an analyst with Avondale Partners, said.

The Mentor, Ohio-based company said first-quarter revenue rose 11 percent to $311.6 million, out of which the healthcare segment alone accounted for about $224.1 million, a 14 percent rise from the year-ago period.

In the healthcare segment, sales of capital equipment rose 20 percent, while consumables and services chipped in 9 percent and 11 percent, respectively.

Owczarski said the sale of equipment is just the beginning as it helps the company to tap other sources of cash through consumables and services. He has a "market outperform" rating on the stock.

For the quarter ended June 30, 2008, net income rose to $25.5 million, or 43 cents a share, from $13.2 million, or 20 cents a share, a year earlier.

Analysts were expecting a profit of 25 cents a share, excluding items, on revenue of $293.9 million, according to Reuters Estimates.

For the full year, Chief Executive Walter Rosebrough took a conservative stance as there was uncertainty regarding hospital spending post-election and purchase of equipment by major pharmaceutical companies.