Despite posting an uptick in revenue last quarter, CRO giant Parexel International ($PRXL) is slightly lowering its outlook for fiscal 2015, betting that its backlog of deals will eventually make up for some soft sales.
|Parexel CEO Josef von Rickenbach|
In the quarter ended Dec. 31--the second of Parexel's fiscal year--the company brought in $499.3 million in revenue, a 2.5% increase over the same period the prior year. Clinical research services accounted for $377.4 million of that total, growing nearly 4%, while its Parexel Informatics unit grew about 3% to $65.8 million and its consulting business dipped more than 5% to $56 million.
Now the CRO is expecting about $2 billion in fiscal 2015 revenue, a roughly 2% reduction from the $2.1 billion it forecast back in October.
"The current mix of business in our backlog has resulted in a continued disproportionate number of projects in the start-up stages," Parexel CEO Josef von Rickenbach said in a statement. "In combination with the adverse impact of recent foreign exchange movements on revenue, we expect these dynamics to have a dampening effect on our revenue projections in the short term, but then lead to rapid expansion as the backlog matures."
Parexel wrapped the calendar year with a $5.1 billion backlog, 6% larger than in 2013, adding $964.4 million in new business in the final three months.
- read the results (PDF)