Hello Bill
PRXL looks intriguing, from a valuation standpoint, if nothing else.
Any thoughts about the following, from the most recent 10Q (don't you hate it when the last 10K is 11 1/2 months old-g-)?
During the nine months ended March 31, 2000 the Company experienced contract
cancellations of $140 million, including $36 million related to the Novartis
contracts discussed below, compared to contract cancellations of $41 million for
the same nine month period last year.
In March 2000, the Company announced that Novartis, a key customer, had reduced
the amount of work being outsourced to PAREXEL's Contract Research Services
group due to Novartis' reprioritization of its research pipeline. As a result,
Contract Research Services revenue was impacted by approximately $1 to $2
million in the third quarter of fiscal 2000 and will be impacted by
approximately $9 million in the fourth quarter of fiscal 2000, and by $40 to $45
million in fiscal 2001.
Receivables seem to be a very large part of the assets. At least Novartis could be counted on to pay their bills, though I'm sure they were never in any hurry to do so. |
