PAREXEL's consolidated service revenue for third-quarter 2010 increases 10.1% to $291.2M

PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the third quarter ended March 31, 2010.

For the three months ended March 31, 2010, PAREXEL’s consolidated service revenue increased 10.1% to $291.2 million compared with $264.5 million in the prior year period.  Excluding the positive impact of foreign exchange of $14.9 million dollars in the quarter, revenue increased approximately 4.5% from the prior year.  Operating income as reported under Generally Accepted Accounting Principles (GAAP) totaled $25.8 million, or 8.9% of consolidated service revenue in the third quarter of Fiscal Year 2010, as compared with $26.4 million, or 10.0% of consolidated service revenue in the same period one year ago.  Excluding the impact of restructuring-related items in the quarter, as detailed in the attached financial tables, operating income was $29.9 million, or 10.3% of consolidated service revenue, in the third quarter of Fiscal Year 2010.  GAAP net income for the quarter totaled $12.8 million, or $0.22 per diluted share, compared with net income of $14.2 million, or $0.25 per diluted share, for the quarter ended March 31, 2009.  On a non-GAAP basis, excluding the impact of restructuring-related items in the quarter, net income for the third quarter was $16.8 million, or $0.28 per diluted share.

On a segment basis, consolidated service revenue for the third quarter of Fiscal Year 2010 was $221.4 million in Clinical Research Services (CRS), $31.5 million in PAREXEL Consulting and Medical Communications Services (PCMS), and $38.3 million in Perceptive Informatics, Inc.

For the nine months ended March 31, 2010, consolidated service revenue was $835.7 million versus $803.3 million in the prior year period, an increase of 4.0%.  Excluding the positive impact of foreign exchange of $11.1 million dollars in the nine-month period, revenue increased 2.7%.  GAAP operating income for the current nine-month period was $63.0 million, or 7.5% of service revenue, compared with GAAP operating income of $56.1 million, or 7.0% of service revenue in the prior year nine-month period.  Excluding the impact of restructuring-related items in the second and third quarters, operating income was $75.3 million, or 9.0% of consolidated service revenue, for the nine months ended March 31, 2010.  Excluding certain items in the year ago nine-month period, operating income was $71.1 million, or 8.9% of consolidated service revenue.  Net income on a GAAP basis for the nine months ended March 31, 2010 was $28.7 million, or $0.49 per diluted share, compared with GAAP net income of $33.0 million, or $0.57 per diluted share, in the prior year period.  On a non-GAAP basis, excluding certain items in both periods that are detailed in the attached financial tables, net income for the nine months ended March 31, 2010 was $44.4 million, or $0.76 per diluted share, compared with $40.9 million, or $0.71 per diluted share, in the comparable nine-month period of the prior year.  

PAREXEL’s backlog was $2.38 billion at the end of the March quarter, an increase of 16.9% year-over-year.  The reported backlog included record gross new business wins of $606.9 million, cancellations of $140.3 million, and a negative impact from changes in foreign exchange rates of $103.7 million.  The net book-to-bill ratio was 1.60 in the quarter (defined as gross new business less cancellations, divided by service revenue).  

Mr. Josef H. von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer stated, “Our performance in the third quarter clearly demonstrates a return to growth, and we are now looking more confidently into the future given our strong new business wins and growth in backlog.  We also generated healthy cash flow, allowing us to further strengthen our balance sheet.  I would like to thank our employees around the globe for their hard work and dedication, which have enabled us to report this strong operational and financial performance.”

Mr. von Rickenbach continued, “As we move into our fourth fiscal quarter and gain better perspective on calendar year 2010, we believe that the market for our services is continuing to recover.  In this regard, we have seen a significant increase in the volume and value of pending requests for proposals from our clients.  We anticipate a solid finish to our fiscal year, and will work to maintain our momentum during Fiscal Year 2011, as the benefits of our strategic investments in our global footprint, technology capabilities, and process enhancements further take hold.”

SOURCE PAREXEL International Corporation