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WuXi PharmaTech Announces Second Quarter 2008 Results
Date:8/13/2008

0.2 million in the second quarter 2007.

Net revenues from laboratory services increased 80% to $45.2 million in the second quarter 2008 from $25.1 million in the second quarter 2007. Net revenues from manufacturing services increased 400% to $25.6 million in the second quarter 2008 from $5.1 million in the second quarter 2007.

Gross Profit and Gross Margins. On a non-GAAP basis, gross profit for the second quarter 2008 was $28.6 million, up 84% from the second quarter 2007. Our overall non-GAAP gross margin was 40%, laboratory service non-GAAP gross margin was 50% and manufacturing non-GAAP gross margin was 24%. GAAP gross profit for the second quarter 2008 was $22.1 million and overall GAAP gross margin was 31%, laboratory service GAAP gross margin was 39% and manufacturing GAAP gross margin was 17%.

Operating Expenses. Non-GAAP operating expenses increased 75% to $11.6 million in the second quarter 2008 from $6.6 million in the second quarter 2007. Non-GAAP operating expenses as a percentage of total net revenues decreased to 16% in the second quarter 2008 from 22% over the same period last year. GAAP operating expenses increased 85% to $14.4 million in the second quarter 2008 from $7.8 million in the second quarter 2007. GAAP operating expenses as a percentage of total net revenues decreased to 20% in the second quarter 2008 from 26% over the same period last year.

Operating Income and Operating Margin. Non-GAAP operating income was $17.0 million in the second quarter 2008, a 90% increase from $8.9 million in the second quarter 2007. Non-GAAP operating margin was 24% in the second quarter 2008, down from 30% in the second quarter 2007. GAAP operating income for the second quarter 2008 was $7.7 million. GAAP operating margin was 11% in the second quarter 2008, down from 25% in the second quarter 2007 primarily due to amortization of acquired intangible assets.

Other Income (expenses), net. Other losses of $2.3 million were primar
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SOURCE WuXi PharmaTech (Cayman) Inc.
Copyright©2008 PR Newswire.
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