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PAREXEL Reports Second Quarter Fiscal Year 2008 Financial Results
Date:1/23/2008

Second Quarter Highlights: - Consolidated service revenue of $238.7 million grows 32% year-over-year - Operating income increases 47.7%, diluted earnings per share grow 25%

- Backlog increases 41% to a record of $1.8 billion

- Net quarterly book-to-burn ratio equates to 1.9

BOSTON, Jan. 23 /PRNewswire-FirstCall/ -- PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the second quarter ended December 31, 2007.

For the three months ended December 31, 2007, PAREXEL's consolidated service revenue increased 32.2% to a record $238.7 million, compared with $180.5 million in the prior year period. The Company reported operating income of $20.5 million, or 8.6% of service revenue, versus operating income of $13.9 million, or 7.7% of service revenue, in the comparable quarter of the prior year. Net income for the quarter totaled $11.5 million, or $0.40 per diluted share, compared with net income of approximately $9.1 million, or $0.32 per diluted share, for the quarter ended December 31, 2006, representing earnings per share growth of 25%.

On a segment basis, consolidated service revenue for the second quarter of Fiscal Year 2008 was $182.7 million in Clinical Research Services (CRS), $32.5 million in PAREXEL Consulting and Medical Communications Services (PCMS), and $23.4 million in Perceptive Informatics, Inc.

PAREXEL's backlog increased approximately 41% year-over-year, and 13% sequentially, to $1.778 billion at the end of the December quarter. As of September 30, 2007, PAREXEL's backlog totaled $1.570 billion. Adding the December quarter's gross new business wins of $486.8 million to that amount, and subtracting $238.7 million6% 73.1%

Gross profit $115,225 $85,437

Gross margin % of service revenue 33.7% 33.8%

PAREXEL Consulting & Medical Communications

Services (PCMS)

Service revenue $63,057 $57,619

% of total service revenue 14.1% 16.7%

Gross profit $20,723 $16,711

Gross margin % of service revenue 32.9% 29.0%

Perceptive Informatics, Inc. (PII)

Service revenue $41,687 $35,212

% of total service revenue 9.3% 10.2%

Gross profit $17,777 $15,265

Gross margin % of service revenue 42.6% 43.4%

Total service revenue $446,778 $345,531

Total gross profit $153,725 $117,413

Gross margin % of service revenue 34.4% 34.0%

Revenue by Geography

The Americas $172,924 $135,619

Europe, Middle East & Africa 240,887 193,310

Asia/Pacific 32,967 16,602

Total service revenue $446,778 $345,531

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation.

Certain Direct costs have been moved to selling, general and

administrative to ensure consistency among all business segments.

in current quarter service revenue and $40.1 million in cancellations, left the Company with a backlog of $1.778 billion as of December 31, 2007. The net book-to-burn ratio in the quarter was 1.87.

Mr. Josef H. von Rickenbach, PAREXEL's Chairman and Chief Executive Officer stated, "During the second quarter, very strong revenue growth was driven by increases across all business and geographic reporting segments. The quarter's operating performance further validates our strategy and tangibly demonstrates that the initiatives we have been focusing on over the past few years are bearing fruit. In combination with the current favorable outsourcing market, our proven capabilities to compete for and win significant levels of new business leaves us well-positioned to further improve operating margins and drive profitable growth as we go forward."

The Company issued forward-looking guidance for the third quarter of Fiscal Year 2008 (ending March 31, 2008), for Fiscal Year 2008, and for Calendar Year 2008. For the third quarter, the Company anticipates reporting consolidated service revenue in the range of $240 to $250 million, using recent exchange rates, and earnings per diluted share in the range of $0.42 to $0.44. For Fiscal Year 2008, consolidated service revenue is expected to be in the range of $935 to $955 million, using recent exchange rates (previously issued revenue guidance was $890 to $920 million). Earnings per diluted share for Fiscal Year 2008 are projected to be in the range of $1.78 and $1.83 (versus previously issued guidance for earnings per diluted share of $1.75 to $1.81). For Calendar Year 2008, consolidated service revenue is expected to be in the range of $1.0 billion to $1.04 billion, using recent exchange rates, and earnings per diluted share are projected to be in the range of $1.85 to $1.94.

A conference call to discuss PAREXEL's second quarter earnings, business, and financial outlook will begin at 10 a.m. ET, Thursday, January 24th 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 ensure 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 +1-612-332-0107 and ask to join the PAREXEL quarterly conference call.

About the Company

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 64 locations throughout 51 countries around the world, and has over 7,320 employees. For more information about PAREXEL International visit http://www.PAREXEL.com.

This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements regarding expected financial results, future growth and customer demand, such as the guidance provided by the Company with respect to the third quarter of Fiscal Year 2008, Fiscal Year 2008, and Calendar Year 2008. 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; 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 Quarterly Report on Form 10-Q for the period ended September 30, 2007 as filed with the SEC on November 7, 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

+1-781-434-4118

PAREXEL International Corporation

Consolidated Condensed Statement of Operations

(In thousands, except per share data)

Unaudited

For the three months

ended December 31,

2007 2006

Service revenue $238,653 $180,474

Reimbursement revenue 45,635 39,522

Total revenue 284,288 219,996

Costs and expenses:

Direct costs 156,991 119,630 (a)

Reimbursable out-of-pocket expenses 45,635 39,522

Selling, general and administrative 51,406 39,376 (a)

Depreciation 8,392 6,608

Amortization 1,382 993

Income from operations 20,482 13,867

Other income (expense) (329) 823

Income before income taxes 20,153 14,690

Provision for income taxes 8,326 5,482

Effective tax rate 41.3% 37.3%

Minority interest expense 296 128

Net income $11,531 $9,080

Earnings per common share:

Basic $0.41 $0.33

Diluted $0.40 $0.32

Shares used in computing earnings per

common share:

Basic 27,821 27,245

Diluted 28,648 27,970

Balance Sheet Information Preliminary

Dec 31, Sept 30, June 30,

2007 2007 2007

Billed accounts receivable, net $221,476 $205,002 $189,843

Unbilled accounts receivable, net 163,251 149,378 135,178

Deferred revenue (200,093) (173,972) (170,718)

Net receivables $184,634 $180,408 $154,303

Cash and marketable securities $62,926 $50,436 $96,677

Working capital $108,877 $75,958 $118,746

Total assets $809,549 $735,660 $680,013

Short-term borrowings $60,453 $55,463 $30,463

Stockholders' equity $363,403 $343,087 $316,616

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation.

Certain Direct costs have been moved to selling, general and

administrative to ensure consistency among all business segments.

PAREXEL International Corporation

Consolidated Condensed Statement of Operations

(In thousands, except per share data)

Unaudited

For the six months

ended December 31,

2007 2006

Service revenue $446,778 $345,531

Reimbursement revenue 89,542 77,972

Total revenue 536,320 423,503

Costs and expenses:

Direct costs 293,053 228,118 (a)

Reimbursable out-of-pocket expenses 89,542 77,972

Selling, general and administrative 98,546 78,148 (a)

Depreciation 15,888 12,751

Amortization 2,281 1,400

Restructuring benefit - (74)

Income from operations 37,010 25,188

Other income (expense) (755) 1,306

Income before income taxes 36,255 26,494

Provision for income taxes 10,563 10,298

Effective tax rate 29.1% 38.9%

Minority interest expense 276 139

Net income $25,416 $16,057

Earnings per common share:

Basic $0.92 $0.59

Diluted $0.89 $0.57

Shares used in computing earnings per

common share:

Basic 27,721 27,148

Diluted 28,595 27,950

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation.

Certain Direct costs have been moved to selling, general and

administrative to ensure consistency among all business segments.

PAREXEL International Corporation

Segment Information

($ in thousands)

Three months ended

December 31,

2007 2006 (a)

Clinical Research Services (CRS)

Service revenue $182,705 $132,464

% of total service revenue 76.6% 73.4%

Gross profit $60,063 $44,138

Gross margin % of service revenue 32.9% 33.3%

PAREXEL Consulting & Medical Communications

Services (PCMS)

Service revenue $32,537 $28,309

% of total service revenue 13.6% 15.7%

Gross profit $11,142 $7,558

Gross margin % of service revenue 34.2% 26.7%

Perceptive Informatics, Inc. (PII)

Service revenue $23,411 $19,701

% of total service revenue 9.8% 10.9%

Gross profit $10,457 $9,148

Gross margin % of service revenue 44.7% 46.4%

Total service revenue $238,653 $180,474

Total gross profit $81,662 $60,844

Gross margin % of service revenue 34.2% 33.7%

Revenue by Geography

The Americas $92,925 $70,973

Europe, Middle East & Africa 128,044 100,710

Asia/Pacific 17,684 8,791

Total service revenue $238,653 $180,474

Quarterly Supplemental Financial Data

Total revenue $284,288 $219,996

Investigator fees 41,198 34,417

Gross revenue $325,486 $254,413

DSO 52 53

Capital expenditures $13,283 $8,733

(a) FY 2007 numbers have been adjusted to reflect FY 2008 presentation.

Certain Direct costs have been moved to selling, general and

administrative to ensure consistency among all business segments.

PAREXEL International Corporation

Segment Information

($ in thousands)

Six months ended

December 31,

2007 2006 (a)

Clinical Research Services (CRS)

Service revenue $342,034 $252,700

% of total service revenue 76.
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SOURCE PAREXEL International Corporation
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