Covance Reports Jump in Fourth Quarter Revenue
Princeton, N.J.-based CRO Covance reported a nearly 20% jump in fourth quarter net revenue to $411 million compared with $343 million in 2006. Net income was also impressive, $47 million, a 22% increase compared with the fourth quarter of 2006. Earnings per share were $0.72 in the quarter, up 21.8% compared with the fourth quarter of 2006. Fourth quarter revenues were split evenly between Covance’s early development and late-stage development business units.
Within the CRO’s early development services, its central lab business saw fourth quarter revenue increase by 11% and year-on-year revenue by 21%. Covance’s phase II-III business also saw revenue growth in excess of 20% both for the fourth quarter and the full year. For the full year 2007, Covance’s total revenues were $1.55 billion, up 15.4% compared with 2006. Full year operating income increased 18.3% to $229 million. Net income grew to $172 million in 2007, up 20.5%. Full year EPS was 265, up 20.5% over the year prior.
“These results topped our internal budget helping us drive at 21% growth in backlog to $2.7 billion and a strong net book-to-bill of 1.28:1 for the full year. Increasing levels of client satisfaction led to strong repeat work resulting in more than $500 million in net orders for the quarter and a 20.6% growth in our backlog to $2.7 billion,” said Joe Herring, chief executive officer of Covance.