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WuXi PharmaTech Announces Fourth-Quarter and Full-Year 2009 Results
Date:3/8/2010

p> Non-GAAP financial results excluded the impact of share-based compensation expenses, amortization and the deferred tax impact of acquired intangible assets, impairment charges, and losses from discontinued operations.

Fourth-quarter 2009 non-GAAP gross profit increased 23% year over year to $30.8 million, mainly due to revenue growth and improved gross margin. Fourth-quarter 2009 non-GAAP gross margin increased year over year to 41.7% from 39.1% due to improved gross margin in the Laboratory Services business and the larger relative contribution of this higher-margin Laboratory Services business. The benefit was partially offset by increased operating costs of the Suzhou toxicology facility and a decline in the gross-profit contribution from Manufacturing Services due to lower revenues and lower gross margin.

Fourth-quarter 2009 non-GAAP operating income increased 54% year over year to $17.3 million, primarily due to the 23% increase in non-GAAP gross profit and a 3% decrease in operating expenses due to cost control.

Fourth-quarter 2009 non-GAAP net income grew 59% year over year to $16.0 million due to a 54% increase in non-GAAP operating income and lower taxes, offset by an unfavorable change in other income (expenses) net. Taxe
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SOURCE WuXi PharmaTech (Cayman) Inc.
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