PAREXEL International Corp. (PRXL, Financial) filed Quarterly Report for the period ended 2009-12-31.
Parexel International Corp. has a market cap of $1.1 billion; its shares were traded at around $18.98 with a P/E ratio of 22.8 and P/S ratio of 0.9. Parexel International Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated Parexel International Corp. the business predictability rank of 4-star.PRXL is in the portfolios of Edward Owens of Vanguard Health Care Fund, Chuck Royce of ROYCE & ASSOCIATES.
Perceptive service revenue decreased by $9.6 million, or 22.2%, to $33.4 million for the three months ended December 31, 2009 from $43.0 million for the three months ended December 31, 2008. The decrease was due primarily to a $9.2 million decrease in RTSM services and a $3.1 million decrease in CTMS services; partly offset by a $2.1 million increase in medical imaging and other services and $0.6 million related to the positive impact of foreign currency exchange rate fluctuations. Perceptive revenue for the three months ended December 31, 2008 included $7.6 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 due to an accounting adjustment related to start-up costs and deferred revenues.
Perceptive direct costs decreased by $5.7 million, or 22.1%, to $20.1 million for the three months ended December 31, 2009 from $25.8 million for the three months ended December 31, 2008. The decrease was due to a $4.5 million decrease in the medical imaging business and a $2.1 million decrease in RTSM; partially offset by $0.3 million related to the negative impact of foreign exchange rate fluctuations and a $0.6 million increase in other service lines. Perceptive costs for the six months ended December 31, 2008 included $2.7 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 due to an accounting adjustment related to start-up costs. As a percentage of service revenue, Perceptive direct costs remained relatively flat for the three months ended December 31, 2009 compared with the three months ended December 31, 2008.
We recorded net other expense of $9.9 million for the three months ended December 31, 2009 compared with net other income of $2.6 million for the three months ended December 31, 2008. The $12.6 million swing was attributable to a $13.6 million decrease in foreign exchange gains; partially offset by a $1.0 million decrease in interest expense (net of interest income). Miscellaneous expense for the three months ended December 31, 2009 included a $6.1 million reserve for an impaired investment in a French laboratory that filed for bankruptcy protection. Miscellaneous expense for the three months ended December 31, 2008 included a $3.0 million legal settlement charge related to a contract dispute and a $2.3 million write-off of certain impaired assets.
On a segment basis, CRS service revenue increased by $20.1 million, or 5.0%, to $423.9 million for the six months ended December 31, 2009 from $403.8 million for the six months ended December 31, 2008. The increase was attributable to a $24.2 million increase in the Phases II-III/PACE portions of the business; partially offset by a $3.8 million decrease in the Early Phase business and $0.3 million related to the negative impact of foreign currency exchange rate fluctuations. Our growth in the Phases II-III/PACE business has been driven by the impact of strategic partnerships and an increase in demand in the Asia/Pacific region from both global studies and studies from local biopharmaceutical companies. The decrease in the Early Phase business was due to weakness in the first quarter of Fiscal Year 2010.
Perceptive service revenue decreased by $11.1 million, or 15.1%, to $62.0 million for the six months ended December 31, 2009 from $73.1 million for the six months ended December 31, 2008. The decline was due primarily to a $9.8 million decrease in RTSM services, a $2.5 million decrease in CTMS, and the $1.7 million negative impact of foreign exchange rate fluctuations; partially offset by a 2.9 million increase in other service lines. Perceptive revenue for the six months ended December 31, 2008 included $13.3 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 related to an accounting adjustment on start-up costs and deferred revenu
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Parexel International Corp. has a market cap of $1.1 billion; its shares were traded at around $18.98 with a P/E ratio of 22.8 and P/S ratio of 0.9. Parexel International Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated Parexel International Corp. the business predictability rank of 4-star.PRXL is in the portfolios of Edward Owens of Vanguard Health Care Fund, Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
PCMS service revenue decreased by $2.2 million, or 6.9%, to $29.7 million for the three months ended December 31, 2009 from $31.9 million for the same period in 2008. The decline was caused primarily by a $1.2 million decrease in health policy and strategic reimbursement services, a $1.1 million decrease in consulting, and a $0.7 million decrease in other services, including the discontinuation of continuing medical education activities; partially offset by $0.8 million related to the positive impact of foreign exchange rate fluctuations.Perceptive service revenue decreased by $9.6 million, or 22.2%, to $33.4 million for the three months ended December 31, 2009 from $43.0 million for the three months ended December 31, 2008. The decrease was due primarily to a $9.2 million decrease in RTSM services and a $3.1 million decrease in CTMS services; partly offset by a $2.1 million increase in medical imaging and other services and $0.6 million related to the positive impact of foreign currency exchange rate fluctuations. Perceptive revenue for the three months ended December 31, 2008 included $7.6 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 due to an accounting adjustment related to start-up costs and deferred revenues.
Perceptive direct costs decreased by $5.7 million, or 22.1%, to $20.1 million for the three months ended December 31, 2009 from $25.8 million for the three months ended December 31, 2008. The decrease was due to a $4.5 million decrease in the medical imaging business and a $2.1 million decrease in RTSM; partially offset by $0.3 million related to the negative impact of foreign exchange rate fluctuations and a $0.6 million increase in other service lines. Perceptive costs for the six months ended December 31, 2008 included $2.7 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 due to an accounting adjustment related to start-up costs. As a percentage of service revenue, Perceptive direct costs remained relatively flat for the three months ended December 31, 2009 compared with the three months ended December 31, 2008.
We recorded net other expense of $9.9 million for the three months ended December 31, 2009 compared with net other income of $2.6 million for the three months ended December 31, 2008. The $12.6 million swing was attributable to a $13.6 million decrease in foreign exchange gains; partially offset by a $1.0 million decrease in interest expense (net of interest income). Miscellaneous expense for the three months ended December 31, 2009 included a $6.1 million reserve for an impaired investment in a French laboratory that filed for bankruptcy protection. Miscellaneous expense for the three months ended December 31, 2008 included a $3.0 million legal settlement charge related to a contract dispute and a $2.3 million write-off of certain impaired assets.
On a segment basis, CRS service revenue increased by $20.1 million, or 5.0%, to $423.9 million for the six months ended December 31, 2009 from $403.8 million for the six months ended December 31, 2008. The increase was attributable to a $24.2 million increase in the Phases II-III/PACE portions of the business; partially offset by a $3.8 million decrease in the Early Phase business and $0.3 million related to the negative impact of foreign currency exchange rate fluctuations. Our growth in the Phases II-III/PACE business has been driven by the impact of strategic partnerships and an increase in demand in the Asia/Pacific region from both global studies and studies from local biopharmaceutical companies. The decrease in the Early Phase business was due to weakness in the first quarter of Fiscal Year 2010.
Perceptive service revenue decreased by $11.1 million, or 15.1%, to $62.0 million for the six months ended December 31, 2009 from $73.1 million for the six months ended December 31, 2008. The decline was due primarily to a $9.8 million decrease in RTSM services, a $2.5 million decrease in CTMS, and the $1.7 million negative impact of foreign exchange rate fluctuations; partially offset by a 2.9 million increase in other service lines. Perceptive revenue for the six months ended December 31, 2008 included $13.3 million that was subsequently reversed in the fourth quarter of Fiscal Year 2009 related to an accounting adjustment on start-up costs and deferred revenu
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