PAREXEL REPORTS FIRST QUARTER FINANCIAL RESULTS
BOSTON, MA, October 25, 2001 — PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the first quarter ended September 30, 2001.
For the three months ended September 30, 2001, PAREXEL’s consolidated net revenue was $101.8 million compared with consolidated net revenue of $88.2 million in the prior year period. Year-over-year, quarterly net revenue grew 15%, and excluding the negative impact from foreign exchange, increased 17%. Operating income was $2.5 million versus a pro forma operating loss of $1.1 million in the September quarter of the prior year. Net income for the quarter was $2.4 million or $0.10 per diluted share, compared with a pro forma net loss of $0.1 million, or $0.00 per diluted share for the quarter ended September 30, 2000. Excluding the negative impact from the Perceptive Informatics business unit, earnings per diluted share would have been $0.12 for the quarter.
On a segment basis, net revenue for the first quarter grew year-over-year in all of the Company’s strategic business units. Net revenue was $60.8 million in Clinical Research Services, $21.7 million in the PAREXEL Consulting Group, $15.1 million in Medical Marketing Services, and $4.2 million in Perceptive Informatics, Inc.
“Our revenue, operating income and earnings per share for the quarter improved significantly year-over-year, and we are beginning to see a tangible, positive impact from the strategic initiatives we have underway. We were especially pleased with the performance of the Perceptive Informatics business unit which marked its first anniversary this quarter, and showed year-over-year revenue growth of 75%, as well as sequential growth of 14% from the fourth quarter of Fiscal 2001”, stated Mr. Josef H. von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer.
The Company issued forward-looking guidance regarding revenue and earnings per share for the second quarter of Fiscal 2002 (ending December 31, 2001), and for Fiscal 2002. For the second quarter of Fiscal 2002, the Company anticipates reporting net revenue in the range of $102 to $104 million. Earnings per diluted share are expected to be in the range of $0.10 to $0.12. For Fiscal 2002, the Company’s expectations are for revenue in the range of $425 to $440 million and earnings per diluted share ranging from $0.50 to $0.54.
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 expedite 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. Its information technology subsidiary, Perceptive Informatics, Inc., provides a variety of technology products and services, including web-based portal solutions and voice and data systems, which are designed to accelerate and enhance the clinical development and launch processes. 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 55 locations throughout 35 countries around the world, and has approximately 4,610 employees.
This release contains "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", "appears" 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 win new business, manage growth, and 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 Form 10-K for the period ended June 30, 2001, as filed with the Securities and Exchange Commission, which “Risk Factors” discussion is incorporated by reference in this press release. The Company disclaims any duty to update any of the forward-looking statements contained in this press release.