Kendle plans to reduce staffing levels in the coming months in response to decreased sales and customer demand.
The Cincinnati contract research organization (CRO) reported a drop in revenues for both the fourth quarter 2009 and year-end. Fourth quarter revenues were $96.6 million in 2009, compared with $109.2 million for the same period 2008. Net income for the quarter was $2.3 million or $0.16 per diluted share.
Full-year revenues were $416.7 million in 2009, compared with $475.1 million for the full-year 2008. Net income for the full-year 2009 was $15.2 million or $1.02 per diluted share compared with $23.1 million or $1.54 per diluted share for the prior year.
Kendle said it expects reduced staffing levels to save up to $18 million in 2010 and up to $23 million on an annualized basis.
The company announced that, based on the “continued volatility of the CRO market,” it does not plan to reinstate guidance at this time