Minnow that might be worth a second glance -
Nov. 6 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq: CVGR - news) today announced that its third quarter earnings were the highest in the Company's history. Net income for the quarter increased by 46% compared to the same period last year to $598,000 or $0.05 per share diluted from $409,000 or $0.03 per share diluted. Net income for the nine months ended September 30, 2000 compared to the same period for 1999 increased by 40% to $1,651,000 or $0.13 per share diluted from $1,183,000 or $0.10 per share diluted. Importantly, the Company stated that the previously reported FDA related issues that resulted in the delay of a major clinical research program have been resolved. It is anticipated that this large clinical program will begin enrolling patients shortly.
Kenneth M. Borow, M.D. Chief Executive Officer of Covalent stated, ``The record earnings reported this quarter demonstrate our continued emphasis on operating margins and earnings performance. This marks the seventh consecutive profitable quarter for the Company. The resolution with the FDA of the issues relating to a major long-term clinical research program is an important breakthrough for Covalent. The third quarter also saw the initiation of our multi-faceted contract with the University of Pennsylvania for the development of procedural standards for research involving human subjects. This highly prestigious contract in which Covalent was selected above 17 competitors because of its domain expertise, positions the company favorably to win additional contracts to help other academic institutions comply with the new FDA mandates for good clinical and manufacturing practices.''
Statements of Operations
(all amounts in thousands, except per share amounts)
Unaudited
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2000 1999 2000 1999
Revenues $3,501 $4,048 $10,640 $11,510
Operating Expenses:
Direct 1,581 2,462 5,361 6,951
Selling and
Administrative 971 979 2,678 2,772
Income from Operations 949 607 2,601 1,787
Interest Income 1 43 20 91
Income before
Income Taxes 950 650 2,621 1,878
Income Tax Provision
(Benefit) 352 241 970 695
Net Income $598 $409 $1,651 $1,183
Net Income Per Share
Basic $0.05 $0.03 $0.14 $0.10
Diluted $0.05 $0.03 $0.13 $0.10
The Covalent Group is a drug development and total research management organization. Its recently announced SpeedTrials joint venture with eByz.com in addition to its propriety TeleTrial(TM) interactive speech recognition system demonstrate that the company is on the cutting edge of advanced clinical trial processes. Through its consultative, operational and technologic expertise, The Covalent Group is setting the standard in new approaches to drug development and clinical trial safety. |
