PAREXEL Reports Third Quarter Fiscal Year 2017 Results

BOSTON--(BUSINESS WIRE)--PAREXEL International Corporation (NASDAQ: PRXL), a leading global biopharmaceutical services company, today reported financial results for the third quarter of Fiscal Year 2017, which ended on March 31, 2017.

“PAREXEL’s financial results for the third quarter of Fiscal Year 2017 were in line with our expectations,” said Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL International. “We are encouraged by our outlook for revenue and overall operational performance in the fourth quarter.”

“We continue to be committed to margin improvement. In response to revenue shortfalls earlier in this fiscal year, we are right-sizing the organization. In January, we announced a restructuring program, and we are now expanding that program. All in, we expect total annual savings of $75-85 million from our restructuring activities in Fiscal Year 2018. We remain committed to our longer-term goal of 14-16% adjusted operating margin.

“The biopharmaceutical services market remains solid, and we continue to identify good opportunities across PAREXEL’s broad range of services," Mr. von Rickenbach concluded. "We expect that our rising customer satisfaction positions us well to take advantage of these opportunities and to drive improved revenue performance in Fiscal Year 2018 and beyond.”

Beginning with the third quarter of 2017, PAREXEL is reporting net new business and backlog based on executed contract awards, in line with emerging practice in our industry. Like other industry leaders, we are moving away from the former industry practice of including pre-contract awards in net new business and backlog. Net new business in the third quarter was $648 million and the net book-to-bill ratio was 1.22. During the trailing twelve months, net new business was $2.26 billion and the net book-to-bill ratio was 1.08. Backlog at the end of the third quarter was $4.06 billion. The Company expects approximately $1.56 billion of this backlog to convert into revenue in the next twelve months.

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