Parexel's profits slide as it slashes costs

Parexel International ($PRXL), in the process of shedding about 850 jobs, saw its net income dip in the fiscal first quarter, dimming its expectations for the full year.

The CRO posted $24.9 million in profits, a 33% drop from what it made in the same period last year. To blame, at least in part, was a $14.8 million restructuring charge tied to the company's ongoing efforts to pare down its business and save between $20 million and $30 million a year starting in 2016.

The efficiency push didn't affect Parexel's revenue, however, which grew 4.1% to $512.1 million on the quarter. The company's clinical research business led the way with $410.2 million, while its eClinical unit brought in $62.6 million and its consulting segment contributed $39.3 million.

Still, the CRO is dialing back its full-year expectations, reducing its revenue goal by about 2% at midpoint to around $2.14 billion.

Parexel closed the quarter with a $5.4 billion backlog, 11.3% larger than last year, with net new business of $609 million.

"Parexel's results for the first quarter were in line with our expectations, and we believe we are on track toward meeting our profitability targets for the fiscal year," CEO Josef von Rickenbach said in a statement. "... We believe the market for our services continues to be attractive, and that Parexel is well-positioned to deliver increasingly profitable growth in the quarters ahead."

- read the results