Kendle Cutting Staff to Offset Drop in Sales
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