Princeton, N.J.-based PharmaNet Development Group reported first quarter revenue of $84.8 million compared with $74.4 million in the first quarter of 2006, a 13.9% increase. Total revenue, after out-of-pocket expenses, reached $107 million for the period.
Operating margins rose to 11.2% for the quarter from 10.2% in the year ago period. The company reported non-GAAP operating earnings of $9.5 million compared with $7.6 million in the same quarter a year ago.
Last year PharmaNet’s first quarter bottom line results were quite different. The company's net earnings for the first quarter of 2007 were $6.6 million or $0.35 per share, compared to a net loss of $4.1 million or $0.23 per share in the first quarter a year ago. The lion share of the loss was due to discontinued operations associated with its reorganization after its acquirer SFBC International was dissolved.
PharmaNet’s revenue increased in both its early and late stage business groups. Although PharmaNet sold off its Miami phase I assets, its early stage work in Canada is still strong. The company stated its backlog of business in early stage work increased to $54.4 million from $42.3 million reported at the end of last year. The company announced that its new Quebec City, Canada clinic and laboratory facility is open and has a capacity of 200 beds.
Jeffrey McMullen, president and chief executive officer at PharmaNet stated the company is now beginning to reap the benefits of last years major restructuring.
"With the improvement in the operating performance of the early stage segment, record direct revenues in the late stage segment and significant backlog growth, we are continuing to see the results of our organizational and operational improvements, business development initiatives and capacity expansions,” he said.
PharmaNet will maintain -- for 30 days -- an archived webcast of its earnings call on its investor relations website.