PDI Inc. (PDII, Financial) filed Quarterly Report for the period ended 2010-06-30.
Pdi Inc. has a market cap of $123.7 million; its shares were traded at around $8.67 with and P/S ratio of 1.5. PDII is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Revenue, net in our Sales Services segment for the quarter ended June 30, 2010 increased by $16.4 million, or 117.6%, to $30.3 million, compared to the quarter ended June 30, 2009. The increase in Sales Services revenue, net was primarily due to 2010 business wins of approximately $16.6 million, performance fees of $0.9 million as well as increases in our continuing (or renewal) contracts of approximately $1.3 million and pass through costs of $0.9 million. These increases were partially offset by contracts that expired and were not renewed in 2010 with an approximate value of $3.6 million.
Revenue, net in the Marketing Services segment for the quarter ended June 30, 2010 decreased by $0.7 million, or 18.4%, to $3.2 million, compared to the quarter ended June 30, 2009. Revenue from our Pharmakon and TVG business units decreased approximately $0.5 million and $0.4 million, respectively, compared to the quarter ended June 30, 2009. Pharmakon s decrease in revenue, net was attributable to the overall reduction in the number of projects in effect in the current period as well as our customers delaying certain projects. The decrease in TVG s revenue, net was primarily attributable to the cancellation or delay of certain contracts by our customers as well as the decrease in demand of market research. Changes in the healthcare industry, including various mergers and acquisitions as well as healthcare reform, have resulted in a significant decrease in demand for the market research services our TVG business unit provides. We therefore intend to exit the market research services business and close our TVG business unit, as publicly announced on July 20, 2010.
Consolidated cost of services for the quarter ended June 30, 2010 increased by $16.1 million, or 170.7%, to $25.5 million, compared to the quarter ended June 30, 2009. This increase was due to higher program expenses in our Sales Services segment in support of the increased revenues discussed above, and lower program expenses in our Marketing Services segment due to the decrease in revenues discussed above.
Cost of services in our Sales Services segment for the quarter ended June 30, 2010 increased by $12.0 million, or 103.7%, to $23.7 million, compared to the quarter ended June 30, 2009. This increase is directly attributable to the increase in Sales Services engagements, which requires a significant increase in headcount in order to deliver the additional services. The higher headcount resulted in comparable increases in costs related to: the recruitment, hiring and training of new employees; employee compensation; employee-related benefits; automobile lease expense; and reimbursable travel expenses such as mileage and gas.
Cost of services in our Marketing Services segment for the quarter ended June 30, 2010 decreased by $0.3 million, or 13.1%, to $1.8 million, compared to the quarter ended June 30, 2009. Reductions in costs of services at our Pharmakon business unit were directly attributable to the decrease in the number of projects in effect and our customers delaying certain projects during the period ended June 30, 2010 compared to the period ended June 30, 2009. Lower cost of services at our TVG business unit was the direct result of project cancellations or delays during the current quarter. In addition, PDI Voice, our new Call Center, incurred approximately $0.4 million of expenses during the current quarter related to program execution. During the quarter ended June 30, 2009, the support services now provided by PDI Voice were being outsourced to a third-party service provider.
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Pdi Inc. has a market cap of $123.7 million; its shares were traded at around $8.67 with and P/S ratio of 1.5. PDII is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Consolidated revenue, net for the quarter ended June 30, 2010 increased by $17.2 million, or 105.8%, to $33.5 million, compared to the quarter ended June 30, 2009. This increase was primarily attributable to new business wins in our Sales Services segment, which was partially offset by a decrease in our Marketing Services segment revenue.Revenue, net in our Sales Services segment for the quarter ended June 30, 2010 increased by $16.4 million, or 117.6%, to $30.3 million, compared to the quarter ended June 30, 2009. The increase in Sales Services revenue, net was primarily due to 2010 business wins of approximately $16.6 million, performance fees of $0.9 million as well as increases in our continuing (or renewal) contracts of approximately $1.3 million and pass through costs of $0.9 million. These increases were partially offset by contracts that expired and were not renewed in 2010 with an approximate value of $3.6 million.
Revenue, net in the Marketing Services segment for the quarter ended June 30, 2010 decreased by $0.7 million, or 18.4%, to $3.2 million, compared to the quarter ended June 30, 2009. Revenue from our Pharmakon and TVG business units decreased approximately $0.5 million and $0.4 million, respectively, compared to the quarter ended June 30, 2009. Pharmakon s decrease in revenue, net was attributable to the overall reduction in the number of projects in effect in the current period as well as our customers delaying certain projects. The decrease in TVG s revenue, net was primarily attributable to the cancellation or delay of certain contracts by our customers as well as the decrease in demand of market research. Changes in the healthcare industry, including various mergers and acquisitions as well as healthcare reform, have resulted in a significant decrease in demand for the market research services our TVG business unit provides. We therefore intend to exit the market research services business and close our TVG business unit, as publicly announced on July 20, 2010.
Consolidated cost of services for the quarter ended June 30, 2010 increased by $16.1 million, or 170.7%, to $25.5 million, compared to the quarter ended June 30, 2009. This increase was due to higher program expenses in our Sales Services segment in support of the increased revenues discussed above, and lower program expenses in our Marketing Services segment due to the decrease in revenues discussed above.
Cost of services in our Sales Services segment for the quarter ended June 30, 2010 increased by $12.0 million, or 103.7%, to $23.7 million, compared to the quarter ended June 30, 2009. This increase is directly attributable to the increase in Sales Services engagements, which requires a significant increase in headcount in order to deliver the additional services. The higher headcount resulted in comparable increases in costs related to: the recruitment, hiring and training of new employees; employee compensation; employee-related benefits; automobile lease expense; and reimbursable travel expenses such as mileage and gas.
Cost of services in our Marketing Services segment for the quarter ended June 30, 2010 decreased by $0.3 million, or 13.1%, to $1.8 million, compared to the quarter ended June 30, 2009. Reductions in costs of services at our Pharmakon business unit were directly attributable to the decrease in the number of projects in effect and our customers delaying certain projects during the period ended June 30, 2010 compared to the period ended June 30, 2009. Lower cost of services at our TVG business unit was the direct result of project cancellations or delays during the current quarter. In addition, PDI Voice, our new Call Center, incurred approximately $0.4 million of expenses during the current quarter related to program execution. During the quarter ended June 30, 2009, the support services now provided by PDI Voice were being outsourced to a third-party service provider.
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