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Encorium Reports Third Quarter 2009 Financial Results; Announces Date of Annual Stockholder Meeting
Date:11/16/2009

BERWYN, Pa., Nov. 16 /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 leading pharmaceutical and biotechnology companies, today announced its financial results for the third quarter ended September 30, 2009.

As previously announced, on July 16, 2009 the Company sold substantially all of the assets relating to its US line of business to Pierrel Research USA, Inc., the result of which the Company no longer has any employees or significant operations in the United States. Due to this sale, for the three and nine months ended September 30, 2009 and 2008, the results of the U.S. business have been presented as discontinued operations in the Company's consolidated financial statements.

Net revenue for the third quarter of 2009 was $4.5 million, a decrease of 17.6% from $5.4 million for the third quarter of 2008. The decrease in net revenues was primarily attributable to unfavorable foreign currency fluctuations of $200,000 for the three months ended September 30, 2009. Approximately $650,000 was attributable to revenue recognized on a contract that completed in 2008. The Company had a consolidated backlog at September 30, 2009 from continuing operations of $19.9 million which included approximately $8.3 million of new business wins in the first nine months of 2009 compared to a backlog of $27.0 million at September 30, 2008.

Direct expenses for the third quarter of 2009 were $2.9 million, or 56.9% of net revenues, compared to $3.5 million, or 54.0% of net revenues, for the comparable prior year period. The decrease in direct expenses was primarily the result of approximately $156,000 of favorable foreign currency fluctuations combined with reductions in staff and subcontra
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SOURCE Encorium Group, Inc.
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