-- New business wins increase 400% to $16 million in third quarter 2008; up 40% year-to-date
-- Results include $1.9 million non-cash goodwill impairment charge
WAYNE, Pa., Nov. 26/PRNewswire-FirstCall/ -- Encorium Group, Inc. (Nasdaq: ENCO), a full service multinational clinical research organization (CRO) conducting studies in over 30 countries for many of the world's leadingpharmaceutical and biotechnology companies, today announced its financial results for the third quarter ended September 30, 2008.
2008 Third Quarter Financial Results
Net revenue for the third quarter of 2008 was $7.4 million, an increase of 3.5% from $7.2 million for the third quarter of 2007. The increase in net revenues was primarily due to a $650,000 increase in revenues generated by our European operations, offset by a $400,000 decrease in revenues generated in the U.S. The increase in revenues at the Company's European operations reflected a benefit of approximately $438,000 due to favorable foreign currency fluctuations for the three months ended September 30, 2008 compared with the same prior year period. The decrease in net revenues generated in the U.S. was primarily due to a decrease in the number of contracts and related contract values of active clinical studies being conducted in the U.S. during the third quarter of 2008 compared to the same prior year period.
Direct expenses for the third quarter of 2008 were $5.4 million, or 72.3% of net revenues compared to $4.9 million, or 67.9% of revenues, for the comparable prior year period. The increase in direct expenses was partially affected by $280,000 in foreign currency fluctuations absorbed by the Company's European operations for the third quarter of 2008.
Selling, general, and administ
|SOURCE Encorium Group, Inc.|
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