Covance Reports First Quarter Revenue of $441M and EPS of $0.63; Updates Full Year Financi...($27.2 $50.6 (46.3%) Mar...)

The Company's Early Development segment includes preclinical toxicology, analytical chemistry, clinical pharmacology services, and research products. Early Development net revenues for the first quarter of 2009 were $192.5 million compared to $202.0 million in the first quarter of 2008 and $214.2 million in the fourth quarter of 2008. Lower demand across most of the segment's service offerings led to the sequential and year-on-year declines in revenue. In addition, foreign exchange negatively impacted revenue growth in the quarter by approximately 670 basis points.

Operating income for the first quarter of 2009 declined 46.3% year-over-year to $27.2 million, compared to $50.6 million in the first quarter of last year. Operating margins for the first quarter of 2009 were 14.1% compared to 25.0% in the first quarter of 2008 and 21.4% last quarter. First quarter operating margins were impacted by a lower level of study activity, costs related to the staffing and validating of the new preclinical drug development facility in Chandler, and costs incurred for the consolidation of two small clinical pharmacology sites. In addition, the company maintained staffing levels to support expected increases in revenue generation in the second half of the year.

Late-Stage Development

    ($in millions)                              1Q09        1Q08      Change
    Net Revenues                              $248.7      $210.4       18.2%
    Operating Income                           $56.3       $38.9       44.9%
    Margin %                                   22.6%       18.5%

The Late-Stage Development segment includes central laboratory, Phase II-III clinical development, and commercialization services (periapproval services and market access ser
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