|Quintiles raised about $947 million for itself and its shareholders in May (Click to expand).--Courtesy of NYSE|
In its first earnings release since going public back in May, CRO giant Quintiles ($Q) turned in a so-so quarter, as flat service revenue coupled with the costs of settling debts dragged down net income.
Quintiles reported $944.2 million in service revenue, about 0.1% off from the $944.9 million it reaped in the second quarter of 2012. Net income slid about 18% to $38.5 million, slowed by a 6% increase in costs of revenue and a one-time $16.5 million charge tied to retiring old debts.
The CRO's product development business hauled in $724.2 million on the quarter, a 4.6% jump Quintiles credits to an increase in clinical services volume that offset a decline in consulting sales. The smaller integrated healthcare services segment slipped 13% to $220.1 million.
Despite the flat sales, Quintiles is expecting between 3.8% and 5.2% revenue growth on the year, eyeing up to $3.8 billion for 2013. Net new business increased 13% to $1 billion on the quarter, and that's a sign of favorable trends to come, CEO Tom Pike said.
|Quintiles CEO Tom Pike|
"We have maintained the momentum following our initial public offering in May, which we believe demonstrates the confidence our customers have in us as well as the depth and diversity of our customer base," Pike said in a statement. "... We continue to focus on growth areas that further differentiate us by deepening our scientific, therapeutic and data expertise as well as developing new capabilities."
While its IPO raised $947 million in total, only $489.9 million ended up in Quintiles' coffers, and the company used about $358.9 million of that haul to pay outstanding debts.
Quintiles' shares are up about 15% from their $40-apiece debut in May, trading at $45.90 on Thursday afternoon.
- check out Quintiles' full results