2006 Is Strong Year For Averion Despite Merger Costs
Boston-based CRO Averion International reported a 48% increase in revenue for 2006 to $27.3 million. However, the company reported a loss in net operating income of $9.2 million, primarily due to costs associated with a merger in 2005 with Millennix and a 2006 reverse merger with IT&E International. The company’s chief executive officer Philip Lavin stated the Averion has had a “solid start” during the first quarter of 2007 and its goal is to reach profitability by the second of half of the year. Averion's backlog of business within clinical research was $35.6 million as of December 31, 2006. Cash and equivalents were roughly $8.1 million, an increase of $1.7 million from 2005.
In February, Averion completed cost reduction initiatives, which included cutting 13% of its staff. The cuts are expected to reduce operating costs by $2.5 million a year. Averion's backlog of business within clinical research was $35.6 million as of December 31, 2006. Cash and equivalents were roughly $8.1 million, an increase of $1.7 million from 2005. The company stated it had executed a record high of $13.1 million in newly signed contracts during Q1 2007.
“Our clients have confidence in our ability to deliver. We are building on this foundation by capitalizing on additional synergistic opportunities afforded by our recent transactions, as well as on market trends that are supporting our industry's rapid growth,” said Lavin.