INC swings to profit and dials up its revenue expectations

INC Research CEO Jamie Macdonald

CRO INC Research ($INCR) boosted its sales by 14.5% in the first quarter, returning to profitability as it blueprints a big year.

The company's net revenue came in at $211.5 million on the quarter, beating out $184.7 million in the same period last year. INC credits the jump to a boost in demand, especially in CNS and oncology trials. And the company turned a $25.3 million net profit, besting the $1.6 million taken in Q1 2014.

INC cleared $255.5 million in net new business on the quarter, a roughly 10% decline from last year that the CRO blames in part on the decline of the euro and pound compared with the dollar. INC is rolling into the third quarter with a $1.6 billion backlog.

The company is raising its revenue guidance for the full year by about 1% at midpoint, expecting between $880 million and $905 million in 2015 for roughly 12% annual growth.

"Our operating and financial performance demonstrated the continued strength of our growing global organization and keen focus on operational efficiency to deliver improved profitability for our shareholders," CEO Jamie Macdonald said in a statement.

INC, about 6 months removed from a $150 million IPO, has watched its shares jump by nearly 80% since going public. And some of the company's backers are looking to take advantage of that warm reception, planning to sell 9.2 million shares of the CRO in a secondary offering. INC won't see any proceeds from that sale.

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