Parexel posts revenue increase in second quarter
Boston-based CRO Parexel International posted a 9.5% increase in consolidated service revenue for the second quarter ended Dec. 31, 2011, to $333.2 million, from a year ago.
GAAP operating income for the quarter was $22.6 million, or 6.8% of consolidated service revenue (operating margin). GAAP net income totaled $12.9 million, or $0.21 per diluted share, compared with $16.8 million, or $0.28 per share, a year ago, a decrease of 23.1%. Excluding special items, adjusted operating income for the quarter was $23.8 million, or 7.1% operating margin, down 14% year-over-year.
Backlog at the end of December was approximately $3.74 billion, up 23.8% from a year ago. The reported backlog included gross new business wins in the quarter of $622.2 million, cancellations of $121.7 million, a negative impact from foreign exchange rates of $29.7 million and a downward backlog adjustment of $3.8 million related to dispositions in the early phase business. The net book-to-bill ratio was 1.50 in the quarter.
“In the second quarter, we continued our positive momentum, demonstrating solid achievements in a number of key financial and operational areas,” said Josef H. von Rickenbach, Parexel’s chairman and CEO. “On a sequential basis, highlights included accelerated revenue growth for the company overall, an improved operating margin and earnings per share that were in line with our projections. Our progress was broad-based, with each of our three reporting segments delivering higher gross margins on a sequential basis. This was the result of improved operating leverage, further benefits of productivity and efficiency initiatives, and the impact of recent restructuring activities.”
Parexel issued forward-looking guidance for the third quarter of fiscal 2012 (ending March 31, 2012) and for fiscal 2012. It expects to report consolidated service revenue for the third quarter between $350 and $358 million, GAAP earnings per diluted share between $0.28 and $0.30 and adjusted earnings per diluted share between $0.30 and $0.32. For fiscal 2012, consolidated service revenue is expected between $1.360 and $1.375 billion, GAAP earnings per diluted share between $1.01 and $1.09, and adjusted earnings per diluted share between $1.09 and $1.17.