Advertisement
PPD recorded net revenue of $375.0 million for the fourth quarter of 2007,an increase of 15.0 percent over net revenue of $326.2 million for the fourthquarter of 2006. Fourth quarter 2007 income from operations was $56.0 million,compared to income from operations of $58.0 million for the same period in2006. Research and development expense for the fourth quarter 2007 was $5.0million, compared to $1.6 million for the same period last year. The increasein R&D expenses was related to the costs incurred in conducting trials forPPD's statin compound for the treatment of dyslipidemia. Fourth quarter 2007earnings per diluted share were $0.34, compared to earnings per diluted shareof $0.35 for the same period last year.
Advertisement
Net revenue for the full year ended December 31, 2007 was $1.4 billion, anincrease of 13.4 percent over net revenue of $1.25 billion for 2006. Full year2007 income from operations was $230.0 million compared to 2006 income fromoperations of $220.0 million. Research and development expense for the fullyear 2007 was $19.2 million compared to $5.4 million for 2006. As with fourthquarter 2007, the increase in R&D expenses was due to costs incurred on PPD'sstatin compound. Earnings per diluted share for full year 2007 were $1.36,compared to earnings per diluted share of $1.32 over the same period in 2006.
Development
Development segment net revenue for the fourth quarter of 2007 was $334.9million, an increase of 15.1 percent over the same period in 2006. Developmentsegment income from operations for the fourth quarter of 2007 was $59.1million, compared to $58.7 million for the same period in 2006.
Full year 2007 development segment net revenue was $1.28 billion, anincrease of 14.6 percent compared to 2006. Development segment income fromoperations for the full year 2007 was $246.6 million, an increase of 17.1percent compared to development segment income from operations of $210.6million in 2006.
Discovery Sciences
Discovery sciences segment net revenue for the fourth quarter of 2007 was$6.4 million, compared to $5.2 million in the same period last year. Discoverysciences segment fourth quarter 2007 loss from operations was $3.1 million,compared to a loss from operations of $0.7 million for the fourth quarter of2006.
Full year 2007 discovery sciences segment net revenue was $20.0 million,compared to $33.2 million in 2006. Full year 2006 discovery sciences segmentnet revenue included a $15.0 million milestone payment for the start of thePhase III clinical trial for Takeda's DPP-4 candidate. Discovery sciencessegment loss from operations for 2007 was $16.6 million, compared to incomefrom operations of $9.4 million for 2006.
Other Financial Information
Gross new business authorizations for the fourth quarter of 2007 totaled$613 million, a 23.8 percent year-over-year increase. The cancellation ratefor the fourth quarter 2007 was 19.7 percent, resulting in a book to billratio of 1.44. Backlog at December 31, 2007 was $2.65 billion, an 18.6 percentincrease over backlog at December 31, 2006. Net days sales outstanding atDecember 31, 2007 for the full year 2007 were 50.8 days. Cash flow fromoperations for the fourth quarter 2007 was $80.5 million, resulting in fullyear 2007 cash flow from operations of $226.7 million, a 21.0 percent increasecompared to full year 2006 cash flow from operations. At December 31, 2007,PPD had $502.4 million in cash, cash equivalents and short-term investments,and no long term debt.
"PPD closed out 2007 with a solid finish in Q4 as evidenced by strongbookings, an exceptional book-to-bill ratio and a backlog of $2.65 billion,"said Fred Eshelman, chief executive officer of PPD. "With this finis
