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

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For the first quarter, MDS Pharma Services net revenues declined 1% over the prior year. Adjusted EBITDA was $6 million compared to $1 million last year, an improvement of $5 million year-over-year, driven primarily by savings from 2007 restructuring activities.

MDS Pharma Services initiated the reporting of certain non-GAAP measures for new business wins and period ending backlog, to track confirmed contracts to which customers have committed within the period. New orders increased to $177 million representing three quarters of sequential improvements and are up 32% from last quarter. Contract cancellations were $37 million in the quarter leaving a quarter-ending backlog of $395 million, down 16% year-over-year and up 5% sequentially.

As of the end of the first quarter, MDS Pharma Services has implemented 90% of its restructuring initiatives announced in the second quarter of last year and is well positioned to accelerate profitable growth with higher second half revenues coupled with a lower cost base.

In January, MDS Pharma Services opened its 300-bed expansion of a Phase I facility in Phoenix, Arizona and is now conducting trials. As well, MDS Pharma Services launched Apollo, a new study management system for central lab customers which is designed to improve efficiency and enable MDS to deliver its brand promise of on-time, high-quality service.

MDS Nordion

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($ millions) Q1 2008 Q1 2007 Reported

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Revenue $ 60 $ 6
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SOURCE MDS Inc.
Copyright©2008 PR Newswire.
All rights reserved

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