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WuXi PharmaTech Announces First-Quarter 2010 Results
Date:5/11/2010

o propel future revenue growth."

"WuXi achieved a strong performance in revenues, gross profit, operating income and net income in the first quarter," said Edward Hu, Chief Operating Officer. "Revenues in our Laboratory Services business grew 18% year over year in the quarter, driven by growing demand. This performance in Laboratory Services was broad-based, with 20% year-over-year growth in China-based operations and 14% year-over-year revenue growth in U.S.-based operations. Revenues in Manufacturing Services grew 433% year over year from improving demand and delivery of a large order, which we spoke about in our fourth-quarter 2009 earnings release. The company's margin performance was consistent with our expectations. We continue to expect strong financial performance throughout 2010 and beyond."

GAAP Results

First-quarter 2010 net revenues increased 36% year over year to $80.6 million due to 18% growth in Laboratory Services net revenues and 433% growth in Manufacturing Services net revenues. Revenue growth in Laboratory Services was strong in both discovery chemistry and newer services, such as DMPK/ADME, biology, process research, formulation and analytical services. Revenue growth in Manufacturing Services was driven by delivery of a large project and increasing demand.

First-quarter 2010 GAAP gross profit increased 30% year over year to $30.4 million due to an increased contribution from both Laboratory Services, driven by both revenue growth and gross-margin improvement, and Manufacturing Services, driven by revenue growth. First-quarter 2010 GAAP gross margin declined year over year to 37.7% from 39.4%, mainly due to a larger contribution from the lower-margin Manufacturing Services busi
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SOURCE WuXi PharmaTech (Cayman) Inc.
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