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

reased year over year to 39.8% from 41.7% primarily due to a larger contribution from the lower-margin Manufacturing Services business. Gross margin from Laboratory Services improved year over year due to improved profitability of newer downstream China-based laboratory services and U.S.-based laboratory services, partially offset by increased expenses related to the ramp-up of the Suzhou toxicology facility. Partially offsetting this benefit in Laboratory Services, gross margin declined year over year in Manufacturing Services primarily due to project mix and the beginning of depreciation of the large-scale manufacturing facility.

First-quarter 2010 non-GAAP operating income increased 57% year over year to $20.5 million, primarily due to the 30% increase in non-GAAP gross profit and essentially flat operating expenses due to cost control.

First-quarter 2010 non-GAAP net income grew 29% year over year to $18.3 million due to a 57% increase in non-GAAP operating income, offset by higher taxes and an unfavorable change in other income (expenses) net, which is discussed above for GAAP results. Diluted non-GAAP earnings per ADS grew 26% year over year to 25 cents compared to 20 cents in first-quarter 2009, mainly due to the 29% increase in non-GAAP net income, offset by higher share count due to stock-option activity.

2010 Financial Guidance

The Company is pleased to reconfirm its previous financial guidance for 2010. More specifically, the company believes that it will achieve the upper end of its guidance range in net revenues and operating income. The Company's current guidance for 2010 is as follows:

    -- Total net revenues in the upper end of the previous r
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SOURCE WuXi PharmaTech (Cayman) Inc.
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