PAREXEL REPORTS FIRST QUARTER FINANCIAL RESULTS
BOSTON, MA, October 26, 2000 — PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the first quarter ended September 30, 2000.
The following financial results exclude the effect of restructuring charges, accelerated depreciation expense and special charges in both the current and prior periods. For the three months ended September 30, 2000, PAREXEL’s consolidated net revenue was $88.2 million versus net revenue of $91.8 million in the prior year quarter. Operating losses were $1.1 million versus operating income of $5.8 million in the prior year quarter. The net loss for the quarter was $0.11 million or $0.00 per diluted share, compared with net income of $4.2 million, or $0.17 per diluted share for the quarter ended September 30, 1999.
On a segment basis, consolidated net revenues for the first quarter were $54.7 million in Clinical Research Services (CRS), $17.3 million in the PAREXEL Consulting Group (PCG), $13.8 million in Medical Marketing Services (MMS), and $2.4 million in Perceptive Informatics, Inc.
"The results of our first quarter are consistent with the forecast we gave at the time of our last earnings release, and we anticipate that future results will show improvement from here for the remainder of Fiscal 2001", stated Mr. Josef von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer. "Overall, I believe we are on track to achieve the revenue targets we previously established, and am encouraged by the progress we saw this quarter in our Consulting and Medical Marketing groups. We are hopeful that the lower levels of cancellations we have experienced this past quarter in our Clinical Research Services unit, combined with positive new business activity, will help us to improve results in this unit in the coming quarters. Our Advanced Technology and Informatics business, now called Perceptive Informatics, Inc., is progressing nicely. The market’s reception of their products is excellent, and we look forward to reporting on their growth in the coming months."
The Company issued forward-looking guidance regarding revenues and pro forma earnings per share (not taking into account any extraordinary charges) for Fiscal 2001. For the second quarter the Company anticipates reporting revenues in the range of $90 to $95 million and earnings per diluted share of between $0.02 to $0.05. For Fiscal 2001, PAREXEL anticipates revenues to be in the range of $370 to $380 million, and earnings per share to be in the range of $0.25 to $0.35 per diluted share.
PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing and other drug development consulting services. The Company's integrated services, therapeutic area depth and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL operates in 45 locations throughout 29 countries around the world, and has approximately 4,200 employees.
This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand that involve a number of risks and uncertainties. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects", "intends", and similar expressions are intended to identify forward-looking statements. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: actual operating performance; actual expense savings and other operating improvements resulting from recent restructurings; the cancellation, revision, or delay of contracts, including those contracts in backlog; the Company's dependence on certain industries and clients; the Company's ability to manage growth and its ability to attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses or enter into new lines of business; government regulation of certain industries and clients; competition and consolidation within the pharmaceutical industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Annual Report on Form 10-K for the period ended June 30, 2000.