Thursday August 3, 11:45 am Eastern Time
Press Release
SOURCE: Covalent Group, Inc.
Covalent Group, Inc. Reports Highest Second Quarter Earnings in Company's History
WAYNE, Pa., Aug. 3 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq: CVGR - news) today announced earnings for the second quarter of 2000 that were the best operating results for a second quarter in the Company's history. Net income for the quarter amounted to $463,000 or $0.04 per share diluted as compared to $429,000 or $0.03 per share diluted for the same period last year. Net income for the six months ended June 30, 2000 increased $279,000 to $1,053,000 or $0.08 per share diluted from $774,000 or $0.06 per share diluted for the same period last year.
Kenneth M. Borow, M.D., Chief Executive Officer of Covalent said, ``I am pleased with our bottom line results and in particular with the continued improvement in the gross margins of the business. This most recent quarter marks the sixth consecutive profitable quarter and occurred in spite of one-time costs associated with forming multiple new consultative services and the Covalent Scientific Advisory Boards. Furthermore, we allocated additional resources during the quarter to significantly augment the Company's business development, sales promotion, and web-based efforts. The increased business development effort has already produced results that will flow through to future years. Of note, revenues for the quarter were impacted by a delay in the expected signing of a major contract due to several questions raised by regulatory authorities. Importantly, these questions relate to non-clinical issues. We expect this matter to be resolved in the near future.''
Statements of Operations
(all amounts in thousands, except per share amounts)
Unaudited
For the Three Months For the Six Months
Ended June 30, Ended June 30,
2000 1999 2000 1999
Revenues $3,466 $4,197 $7,139 $7,462
Operating Expenses:
Direct 1,816 2,596 3,780 4,489
Selling and
Administrative 918 954 1,707 1,793
Income from Operations 732 647 1,652 1,180
Interest Income 3 34 19 48
Income before Income 735 681 1,671 1,228
Taxes
Income Tax Provision 272 252 618 454
Net Income $463 $429 $1,053 $774
Net Income Per Share
Basic $0.04 $0.04 $0.09 $0.06
Diluted $0.04 $0.03 $0.08 $0.06
Covalent Group, Inc. provides drug development services and health management solutions to pharmaceutical, biotechnology, and device manufacturers as well as managed care organizations. To aid its customers, Covalent has developed several currently available proprietary products utilizing interactive speech recognition technology including TeleTrial®, for use in clinical trials, and Virtual HouseCall®, a disease assessment system.
This document contains forward-looking statements identified by words such as ``believe,'' ``expect'' and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by, the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results include, without limitation: (i) the Company's success in attracting new business; (ii) the size, duration, and timing of clinical trials; and (iii) the termination, delay or cancellation of clinical trials. Additional information concerning factors that could cause actual results to materially differ from those in forward-looking statements is contained in Covalent's SEC filings, including periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent's investor relations department. |
