PAREXEL INTERNATIONAL UPDATES FINANCIAL GUIDANCE IN CONJUNCTION WITH THE ACQUISITION OF CLINPHONE PLC AND OTHER FACTORS
BOSTON, MA, September 8, 2008 – PAREXEL International Corporation (NASDAQ: PRXL), a leading global biopharmaceutical services organization, today updated its forward-looking financial guidance for the first quarter of Fiscal Year 2009 (ending September 30, 2008) and for the full Fiscal Year, in conjunction with the successful completion of the acquisition of ClinPhone Plc and other factors discussed herein.
Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL stated, “We are very pleased to have completed the acquisition of ClinPhone, which enhances our eClinical platform. Information technology is increasingly utilized in clinical development, and we believe the products and services that ClinPhone adds to the portfolio of Perceptive Informatics, our technology segment, will enable us to better meet the needs of our clients.”
PAREXEL has increased its forward-looking service revenue guidance for the first quarter and Fiscal Year as a result of the positive contributions from the ClinPhone acquisition and a slightly better operating performance, which has been somewhat offset by the negative impact of recent exchange rate movements associated with a much stronger dollar. Including these factors, the Company anticipates reporting consolidated service revenue in the range of $270 to $280 million for the first quarter of Fiscal Year 2009, and consolidated service revenue in the range of $1.215 to $1.245 billion for Fiscal Year 2009 in its entirety. Of the increase, the ClinPhone acquisition is expected to contribute $10 - $14 million in service revenue in the first quarter, and between $95 and $105 million in service revenue during Fiscal Year 2009. Previously issued consolidated service revenue guidance, not including ClinPhone, was $260 to $270 million for the first quarter, and for the Fiscal Year was $1.125 to $1.155 billion.
As previously reported, the ClinPhone acquisition is expected to have a dilutive effect on earnings per share in the range of $0.04 to $0.06 for FY 2009, including the amortization of intangibles and other costs, with $0.01 to $0.02 cents of that amount being recorded in the first quarter. Excluding the amortization of intangibles and other costs, the acquisition is accretive. Beyond the impact from ClinPhone, the estimated negative impact of the recent sharp movements in foreign exchange rates on earnings per share has been essentially offset by somewhat better operating performance. As previously reported, the Company will also incur a one-time charge of approximately $0.02 cents per diluted share during the first quarter in conjunction with the write-off of unamortized loan fees and the unwinding of interest rate hedges related to the Company’s previous credit line. Taking into account all of the afore-mentioned factors, PAREXEL now anticipates reporting diluted earnings per share on a GAAP basis in the range of $0.20 to $0.21 for the first quarter, and diluted earnings per share in the range of $1.09 to $1.17 for the Fiscal Year. Previously issued diluted earnings per share guidance, not including ClinPhone or the one-time charge, was in the range of $0.23 to $0.25 for the first quarter and in the range of $1.15 to $1.25 for the Fiscal Year.
A conference call to discuss PAREXEL’s acquisition of ClinPhone and updated financial outlook will begin at 10:00 a.m. EDT tomorrow, Tuesday, September 9th 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 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 approximately one year following the live event. To participate via telephone, dial (612) 332-1210 and ask to join the PAREXEL Earnings Guidance conference call.
PAREXEL International Corporation is a leading global biopharmaceutical services organization, providing a broad range of knowledge-based contract research, medical communications and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. Committed to providing solutions that expedite time-to-market and peak-market penetration, PAREXEL has developed significant expertise across the development and commercialization continuum, from drug development and regulatory consulting to clinical pharmacology, clinical trials management, medical education and reimbursement. Perceptive Informatics, Inc., a subsidiary of PAREXEL, provides advanced technology solutions, including medical imaging, to facilitate the clinical development process. Headquartered near Boston, Massachusetts, PAREXEL operates in 69 locations throughout 52 countries around the world, and has approximately 8,800 employees. For more information about PAREXEL International visit www.PAREXEL.com.
This release contains "forward-looking" statements regarding future results and events. 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,” “targets,” and similar expressions are also intended to identify forward-looking statements. The forward-looking statements in this release involve a number of risks and uncertainties. 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 loss, modification, or delay of contracts which would, among other things, adversely impact the Company’s recognition of revenue included in backlog; the Company’s dependence on certain industries and clients; the Company’s ability to win new business, manage growth and costs, 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, including ClinPhone; the impact on the Company’s business of government regulation of the drug, medical device and biotechnology industry; consolidation within the pharmaceutical industry and competition within the biopharmaceutical services 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, political, and other risks. 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 Fiscal Year ended June 30, 2008 as filed with the SEC on August 28, 2008, 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.
PAREXEL is a registered trademark of PAREXEL International Corporation, and Perceptive Informatics is a trademark of Perceptive Informatics, Inc. All other names or marks may be registered trademarks or trademarks of their respective business and are hereby acknowledged.