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MDS Reports First Quarter 2008 Results
Date:3/6/2008

excluding the impact of foreign exchange. The late-stage decline was primarily a result of contract cancellations related to failures of compounds that occurred in the current and prior quarters. While we have seen an increase in early-stage orders, the timing of service delivery relative to our capacity did not allow us to convert these orders into revenue in the quarter and this business continued to show declines versus the prior year.

New orders in the first quarter of 2008 of $177 million were up 32% sequentially and were higher than any quarter in 2007; however, we also experienced a high level of contract cancellations relating to compound failures affecting our late-stage businesses. As order cancellations occurred early in the quarter and order receipts were higher at the end of the quarter, we saw an overall decrease in our average monthly backlog to $360 million, down $25 million from the fourth quarter of 2007 and down 20% compared to the first quarter of 2007. Despite these cancellations and given the strength of new orders, our quarter end backlog increased sequentially by $20 million to $395 million.

Period

New Average Ending

New orders and backlog Orders Backlog Backlog

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Fiscal 2007 - Quarter 1 $ 159 $ 450 $ 472

Quarter 2 103 450 428

Quarter 3 119 420 408

Quarter 4 134 385 375

Fiscal 2008 - Quarter 1 177 360 395

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SOURCE MDS Inc.
Copyright©2008 PR Newswire.
All rights reserved

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