Parexel, a global contract research organization (CRO), cut its earnings guidance for its first quarter of fiscal year 2009 and for the full fiscal year, with the successful completion of its acquisition of eClinical trial technology company ClinPhone for about $182 million.

In early trading this morning, Parexel's shares were up 1.5% to $32.01.

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 fiscal year 2009, including the amortization of intangibles and other costs, with $0.01 to $0.02 of that amount being recorded in the first quarter. Excluding the amortization of intangibles and other costs, the acquisition is accretive, the company said.

Beyond the impact from ClinPhone, Parexel said, 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 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.

Parexel officials now anticipate 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.

Parexel has increased its 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 and of $1.215 to $1.245 billion for fiscal year 2009. The ClinPhone acquisition is expected to contribute $10 to $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.

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."