BOSTON, Sept. 26 /PRNewswire-FirstCall/ -- PAREXEL International Corporation (Nasdaq: PRXL), a leading global biopharmaceutical services organization, today announced the successful completion of the acquisition of Taiwan-based APEX International Clinical Research Co., Ltd. ("APEX") in a separate press release. In conjunction with the acquisition and other factors discussed herein, the Company is updating its forward-looking financial guidance for the first quarter of Fiscal Year 2008 (ending September 30, 2007) and for Fiscal Year 2008, using recent exchange rates.
As a result of the completion of the APEX acquisition and a strengthening operating environment, PAREXEL has increased its forward-looking service revenue guidance. The Company anticipates reporting consolidated service revenue in the range of $203 to $210 million for the first quarter, and consolidated service revenue in the range of $875 to $910 million for Fiscal Year 2008. The impact of the APEX acquisition is included in these numbers and is expected to contribute approximately $1 million in service revenue in the first quarter (representing three weeks of ownership) and between $14 and $17 million in service revenue during Fiscal Year 2008. Previously issued revenue guidance for the first quarter was $200 to $210 million, and for the Fiscal Year was $855 to $885 million.
PAREXEL has also revised its forward-looking earnings per share guidance, and anticipates reporting diluted earnings per share in the range of $0.33 to $0.34 for the first quarter, and diluted earnings per share in the range of $1.58 to $1.66 for the Fiscal Year. The projected impact of higher non-APEX service revenue, a better performance on the other income line, and a slightly lower tax rate is expected to add approximately one cent to diluted earnings per share projections in the current quarter and approximately four to six cents per diluted share for Fiscal Year 2008. The Company anticipates that these increases in diluted earnings per share will be offset by the negative impact of the non-cash amortization of intangibles related to the APEX acquisition. Previously issued diluted earnings per share guidance was in the range of $0.32 to $0.34 for the first quarter and in the range of $1.56 to $1.66 for the Fiscal Year.
A conference call to discuss PAREXEL's acquisition of APEX and updated financial outlook will begin at 10:00 a.m. EDT tomorrow, Thursday, September 27th and will be broadcast live over the Internet via webcast. The webcast may be accessed in the "Webcasts" portion of the Investor Relations section of the Company's website at http://www.PAREXEL.com. Users should follow the instructions provided to assure that the necessary audio applications are downloaded and installed. A replay of this webcast will be archived on the website approximately two hours after the call and will continue to be accessible for approximately one year following the live event. To participate via telephone, dial (612) 288-0329 and ask to join the PAREXEL Earnings Guidance conference call.
PAREXEL International Corporation is a leading global bio/pharmaceutical services organization, providing a broad range of knowledge-based contract research, medical communications and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. Perceptive Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 65 locations throughout 51 countries around the world, and has approximately 7,000 employees. For more information about PAREXEL International visit http://www.PAREXEL.com.
This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," "intends," "appears," "estimates," "projects," "targets," and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from recent restructurings; the loss, modification, or delay of contracts which would, among other things, adversely impact the Company's recognition of revenue included in backlog; the Company's dependence on certain industries and clients; the Company's ability to win new business, manage growth and costs, and attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses or enter into new lines of business, including APEX; the impact on the Company's business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations and other international economic, political, and other risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the Fiscal Year ended June 30, 2007 as filed with the SEC on August 27, 2007, which "Risk Factors" discussion is incorporated by reference in this press release. The forward-looking statements included in this press release represent the Company's estimates as of the date of this release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release.
PAREXEL is a registered trademark of PAREXEL International Corporation, and Perceptive Informatics is a trademark of Perceptive Informatics, Inc. All other names or marks may be registered trademarks or trademarks of their respective business and are hereby acknowledged.
CONTACTS: James Winschel,
Senior Vice President and Chief Financial Officer
Jill Baker, Vice President of Investor Relations
|SOURCE PAREXEL International Corporation|
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