PAREXEL REPORTS FIRST QUARTER FISCAL 2003 FINANCIAL RESULTS
BOSTON, MA, October 23, 2002 — PAREXEL International Corporation (Nasdaq: PRXL) today announced its financial results for the first quarter ended September 30, 2002.
For the three months ended September 30, 2002, PAREXEL’s consolidated service revenue was $119.4 million compared with $101.8 million in the prior year period, a year-over-year increase of 17.2%. Operating income in the first quarter was $7.0 million versus $2.5 million in the prior year quarter. Operating income as a percentage of service revenue was 5.9% for the first quarter of Fiscal Year 2003 versus 2.5% for the first quarter of Fiscal Year 2002. Net income for the first quarter ended September 30, 2002 was $3.3 million, or $0.13 per diluted share, compared with net income of $2.5 million, or $0.10 per diluted share in the comparable prior year period.
On a segment basis service revenue for the first quarter of Fiscal 2003 was $71.9 million in Clinical Research Services, $24.8 million in the PAREXEL Consulting Group, $17.1 million in Medical Marketing Services, and $5.6 million in Perceptive Informatics, Inc.
Mr. Josef H. von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer stated,
“We achieved solid results this quarter with strong year-over-year revenue growth, significant improvement in operating margin which increased by 340 basis points, and earnings per diluted share of thirteen cents, in line with the guidance we issued in August and one penny above consensus estimates. We believe we are on track to achieve the financial targets and operational goals we previously outlined for this new fiscal year, and are encouraged by the low level of cancellations we have experienced from June until the present time.”
The Company issued forward-looking guidance regarding revenue and earnings per share for the second quarter of Fiscal 2003 (ending December 31, 2002), and for Fiscal 2003. For the second quarter of Fiscal 2003, the Company anticipates reporting consolidated service revenue in the range of $117 to $122 million and earnings per diluted share in the range of $0.13 to $0.15. For Fiscal 2003, expectations are for consolidated service revenue in the range of $490 to $500 million (versus previously issued guidance of $485 to $500 million) and earnings per diluted share ranging from $0.63 to $0.67 (confirming guidance given on August 15, 2002).
PAREXEL’s First Quarter Fiscal 2003 Earnings Conference Call will begin at 10 a.m. EDT on Wednesday, October 23rd and will be broadcast live over the internet via webcast. The webcast may be accessed in the “Webcasts” portion of the Investor Relations section of the Company’s website at http://www.parexel.com. Users should follow the instructions provided to assure that the necessary audio applications are downloaded and installed. A replay of this webcast will be archived on the website approximately two hours after the call and will continue to be accessible for one month following the live event. To participate via telephone, dial (212) 346-0487 and ask to join the PAREXEL quarterly conference call.
PAREXEL is one of the largest biopharmaceutical 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 57 locations throughout 37 countries around the world, and has approximately 4,860 employees.
This release contains "forward-looking" statements regarding future results and events, including statements regarding the Company’s existing capital resources and future cash flows from operations, and 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", “estimates”, “projects” 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 and other international economic and political risks. Such factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Form 10-K for the fiscal year ended June 30, 2002, as filed with the Securities and Exchange Commission, which “Risk Factors” discussion is incorporated by reference in this press release. The forward-looking statements included in this press release represent the Company’s estimates as of the date of this release. The Company specifically disclaims any obligation to update these forward-looking statements in the future. These forward-looking statements should not be relied upon as representing the Company’s estimates or views as of any date subsequent to the date of this press release.